(Yicai) Dec. 4 -- Wingtech Technology’s shares sank after the Chinese smartphone assembler said it had not been awarded new orders from a "specific overseas client." Though the company did not name the client, market participants generally assumed that it was Apple. 

Despite Wingtech saying the loss of the orders would not have a big impact, its shares [SHA: 600745] ended 6.6 percent lower at CNY45.23 (USD6.34) apiece in Shanghai, after slumping by as much as 9.4 percent this morning.

The Jiaxing-based firm said in a statement on Dec. 1 that one of its subsidiaries, Delta Imaging Technology, had finished producing its existing orders for the “specific overseas client” by Nov. 30 and has not won any new orders. 

Delta Imaging specializes in producing camera modules and Apple is its main client. Wingtech bought it from Nanchang-based Ofilm Group for CNY2.4 billion (USD336.3 million) in March 2021.

Wingtech said revenue from the specific client's business made up less than 5 percent of its total in the first three quarters, adding that the loss of new orders will only have a small impact on its overall business. But it will bring asset impairments and staff-related costs, shaving CNY733 million (USD102.7 million) off Wingtech's net profit this year, it added. 

Stopping supplies to Apple will not mean that Wingtech will have to dismantle its camera business entirely, a source told Yicai, but after this round of business adjustment, Delta is likely to be merged into Wingtech's communications division. 

Having lost Apple as a client, Wingtech has diverted related production lines’ capacities toward partnerships with other vendors, the person added. 

Editors: Dou Shicong, Tom Litting