China Digital TV, which manufactures and distributes cable TV and gaming conditional access ‘smart’ cards in China, which last year had its appeal to stay listed on the New York Stock Exchange (NYSE) denied, is in more trouble.

The de-listing of the company came about because its overall value, in terms of market capitalisation, had dropped below the NYSE’s threshold. The NYSE had formally notified China Digital that it would be delisted in May 2017, and while China Digital appealed that ruling, the delisting happened on Nov 6 last year.

The problems, reported on by market observer Johan Wigert, focus on changes of the company’s directors, and a poor operational performance. He says: “Management [is] not showing any interest in taking action on the low stock price or communicating with concerned shareholders, several directors recently resigning from the company, and a continued poor operational performance with substantial cash-burn.”

In a March 27th statement, China Digital’s CEO Jianhua Zhu said that last year saw registered users rise 56 per cent to 7.8 million, and that net revenues increased 290 per cent y-o-y, to $3 million for Q4 and $6.2 million for the full year to December 31^st. Gross profit for Q4 was $2.7 million ($0.2 million in Q4/2016). He specifically referred to cash-at-hand as being $26.8 million.

Jianhua Zhu said that from now on the company would report at half and full-year.

Shares in the company are trading well down (at 18 cents) on the 34 cents position last July.

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