DETAI NEWENERGY (00559): Listing Committee Finds Company Fails to Maintain Sufficient Operations Under Rule 13.24

Stock News
01/14

DETAI NEWENERGY GROUP (00559) announced that on January 14, 2026, the company received a letter from the Stock Exchange notifying it of the Listing Committee's decision. After considering all documents submitted by the company and the Listing Division, the Listing Committee determined that the company has failed to maintain a sufficient level of operations as required by Rule 13.24 of the Listing Rules to ensure the continued listing of its shares. Consequently, the Listing Committee decided to uphold the Listing Division's decision to suspend trading of the company's shares under Rule 6.01(3). In reaching its decision, the Exchange considered the following factors: since the acquisition, and following a change in its largest single shareholder and the termination of its e-bike and new energy businesses, the company's hotel hospitality business has become its primary revenue source. However, even after the end of the COVID-19 pandemic in the fiscal year ended June 30, 2023, its operational scale has remained small. This segment has consistently generated low revenue over the past six fiscal years, ranging from HKD 16 million to HKD 31 million, and has incurred continuous segment losses. Furthermore, the resort's average monthly occupancy rate over the past three years has been below 60%. This situation does not appear to be a temporary downturn. Overall, the company has failed to demonstrate to the Listing Committee that its business is substantive, viable, and sustainable. Under Chapter 2B of the Listing Rules, the company has the right to request a review of the Listing Committee's decision by the Listing Review Committee of the Exchange. Rule 2B.08(1) stipulates that a review application must be submitted to the Secretary of the Listing Review Committee within seven business days from the date of the Listing Committee's decision, meaning by January 23, 2026. Unless the company applies for a review of the Listing Committee's decision, trading of the company's shares will be suspended on January 26, 2026. The company is currently reviewing the Listing Committee's decision and conducting internal discussions, and will consider whether to request a review of the decision by the Listing Review Committee.

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