(Yicai Global) Nov. 24 -- Shares of Haoyue Personal Care surged after the Chinese personal care products maker said it had stopped trading in the coal futures market in the wake of a CNY45.8 million (USD7.2 million) loss.

Haoyue [SHA: 605009] closed up 10 percent at CNY59.05 (USD9.24) today. The stock had fallen over 60 percent from CNY134 early this year to about CNY53 recently.

The loss equaled 7.6 percent of audited net profit last year, the Hangzhou-based company said yesterday. Haoyue invested CNY153 million in total, accounting for 5.49 percent of audited net assets in 2020.

China’s coking coal futures prices fell 6.3 percent in January, and coke futures plunged over 25 percent. But prices have jumped 77 percent and 40 percent respectively since July. Haoyue went short again and again, suffering huge losses.

Its directors and senior management apologized for the losses, and Haoyue has cut the salaries of those deemed responsible, it said, adding that in future the company will concentrate on its core business.

Many listed companies have suffered heavy losses due to futures speculation, insiders told Yicai Global. Trading poses considerable risks to their main business, leading to stock price volatility and loss of investment.

Editor: Tom Litting