Maiquer, a milk producer, has seen its stock going limit up for three days in a row even though the company is not currently producing fresh milk and recently was involved in a food safety scandal when propylene glycol was found in the company’s products.
The stock dipped when the safety scandal broke in July and the stock price fell to 6.47 yuan/per share. With the recent rally, the share price has now exceeded pre-scandal levels.
The company suspended milk production on July 3rd and as of August 15th has not restarted production.
As the company has seen its share price rise rapidly, the company’s leadership issued a statement on Sunday saying there was no material change in their business and they were unaware why investors were bidding up their stock.
The company recently announced that it expected to lose 130-150 million yuan in the first half of the year.