JA Solar CFO Shuffle... More Worries? (JASO, TSL, APWR)
Shares of JA Solar Holdings Co., Ltd. (NASDAQ: JASO) fell more than -8% on July 6th and since that day have lost a total of -20%. The reason for the fall was an amended filing which added information regarding the company’s risk.
The company announced today that it’s CFO was leaving to pursue other opportunities. This is just the latest change in the accounting operations at several Chinese alt energy firms. Trina Solar Ltd. (NYSE: TSL) saw Peter Mak, the head of its audit committee, resign yesterday. Mak also resigned recently as the CFO at A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR), a Chinese battery maker. A-Power’s outside audit firm resigned two weeks ago. The company has delayed its annual report filing and its shares have been halted since June 27th.
Accounting and auditing issues have hit Chinese firms hard in the last few months following a number of concerns raised related to reverse mergers with US shell companies.
In addition to the CFO change, JA Solar announced an acquisition earlier this month of a wafer maker that was 70% owned by JA Solar’s chairman. That deal might have raised some eyebrows because JA Solar got the wafer company for a premium of just 5%.
JA Solar’s shares put up a new 52-week low yesterday, and its new range is $4.34-$10.24. Shares closed at $4.56. In the pre-market this morning, JA Solar’s shares are off by just a penny. So far.