(Yicai Global) May 4 -- Shares of Luxi Chemical Group, a unit of Chinese state-owned chemicals giant Sinochem Holdings, sank after nine people died in an explosion at its hydrogen peroxide plant.

Luxi Chemical [SHE: 000830] closed down 6.1 percent at CNY11.26 (USD1.64) today, after earlier plunging by the 10 percent daily trading limit.

Nine people died, one was injured, and one is still missing after production lines at Luxi Chemical’s unit Liaocheng Luxi Hydrogen Peroxide New Material exploded on May 1, the Shandong province-based parent company said late yesterday. Rescue work is still ongoing, the firm added.

After the accident, Luxi Chemical immediately activated its emergency plan and mounted an on-site response with local authorities, it said, adding that as of noon on May 1, the fire had been put out, the leak was sealed off, and the environmental protection department had confirmed that the surrounding atmosphere was normal.

Luxi Chemical has not yet calculated the financial loss from the accident.

Founded in August 2019, Luxi Hydrogen Peroxide has seven production lines that can turn out 400,000 tons of hydrogen peroxide a year, according to Luxi Chemical. It had revenue of CNY1.1 billion (USD159.4 million) last year, accounting for 3.6 percent of Luxi Chemical’s total.

Luxi Chemical’s net profit narrowed 76 percent to CNY322 million (USD46.6 million) in the first quarter from a year earlier, according to its most recent earnings report. Revenue fell 14 percent to CNY6.6 billion.

Editor: Futura Costaglione