(Yicai Global) June 28 -- Shares of Aiko Solar Energy dropped after the Chinese solar cell manufacturer terminated its plan for a secondary listing on the Six Swiss Exchange, switching to a private placement.

Aiko’s stock price [SHA: 600732] declined by as much as 4.4 percent intraday and closed down 2.2 percent at CNY30.26 (USD4.20) as of 3 p.m.

Considering recent changes in domestic and international markets, Aiko has decided to cancel its intended issuance of global depository receipts after in-depth discussions with relevant intermediaries, as well as prudent analysis and communication, the Shanghai-based firm said in a statement yesterday. The decision is based on the company’s operating and financial situation, capital requirements, and long-term strategic plans to fully protect the interests of all shareholders, it added.

The change of plans will not have a significant impact on the company’s production and operation, Aiko said, adding that it will continue to promote mass production of its new generation of high-efficiency solar cells and modules.

There will be other ways to secure funding as Aiko aims to raise no more than CNY6 billion (USD829.8 million) by issuing shares to specific investors to expand its crystalline solar cell project in Yiwu, Zhejiang province, while supplementing its working capital, the company said in another announcement yesterday.

Aiko first revealed its Swiss financing plan in January. After China expanded its capital market cooperation mechanism with European countries last year, Switzerland has become a popular option for mainland-listed companies. Several new energy firms, including battery suppliers Gotion High-tech, Shanshan, and Sunwoda Electronic, have been listed on the Six Swiss Exchange.

Although issuing GDRs on the principal exchange in Switzerland has advantages such as a relatively short review period, a high issuance price, and fewer transfer restrictions, some fresh Chinese GDRs have been falling amid slow trade.

Aiko is one of the world’s biggest suppliers of solar cells with its four plants in Foshan, Yiwu, Tianjin, and Zhuhai. The firm expanded its net profit by more than three times to CNY702 million (USD97.1 million) in the first quarter from a year ago, but revenue slid by 1 percent to CNY7.7 billion (USD1.1 billion), according to the latest earnings report.

Editors: Dou Shicong, Emmi Laine