STOCKS | Shuangjie Electric Hits Limit Down After State Grid Suspends Its Bidding Eligibility

Shuangjie Electric’s shares hit the daily limit down in morning trading on July 14. According to Jin10, the stock was at 8.56 yuan per share by the midday close, down 20%, with a market capitalization of 6.9 billion yuan. The company said in an announcement released on the evening of July 13 that it learned on March 1 that its controlling subsidiary, Wuxi Power Transformer Co., Ltd., was penalized by the State Grid system with a three-year suspension from bidding across all product categories due to violations. The company also said it recently learned that its headquarters was simultaneously suspended from bidding for one year because of issues found in product sampling inspections. Based on the company’s calculations, it expects cumulative revenue to decrease by about 1.223 billion yuan across the four fiscal years from 2026 to 2029, and said its traditional power grid business segment faces a significant impact. In response to reporters, Shuangjie Electric said it did not disclose the matter after learning of it on March 1, and that this announcement was the first disclosure. The company said the reason was that, under the rules, the impact of a single event on performance did not meet the threshold for mandatory disclosure. It also said it has started an appeal process and that specific details and subsequent impacts should be based on its announcements.