(Yicai Global) Jan. 5 -- Luxshare Precision Industry’s stock rose after the Apple supplier said cooperation with clients was normal, following a news report that the US tech giant was scaling back orders with suppliers, and another report said Apple is about to sign up the Chinese firm to make premium iPhones.

Luxshare [SHE: 002475] closed up 3.6 percent at CNY29.40 (USD4.28) today, after plunging by the 10 percent trading limit yesterday. The stock fell more than 40 percent last year amid speculation about Apple cutting orders.

To avoid a Taiwan media report misleading investors, the Shenzhen-based company said today that its cooperation with clients was normal, business was progressing in an orderly manner, and there were no notable changes to its business as mentioned in that report.

A separate report by Nikkei Asia on Jan. 2 said Apple had asked several suppliers, including Luxshare and Dongshan Precision Manufacturing, to produce fewer parts for AirPods, Apple Watches, and MacBooks in this quarter because of the weakening consumer demand.

Dongshan Precision also put out a statement making clear that its business was running normally and orders from its core clients were stable. The firm’s stock price [SHE: 002384] jumped 5.9 percent today to CNY23.70. It sank over 9 percent yesterday.

The Financial Times reported today that Apple is set to sign Luxshare to produce its premium iPhones, its first big order with the Chinese company, citing three people familiar with the matter.

Luxshare has become increasingly connected with Apple. In 2021, Apple was the source of 74 percent of its annual revenue, up from 37 percent in 2017. Luxshare’s net profit more than quadrupled in the same period to CNY7.1 billion (USD1 billion).

Hon Hai Precision Industry, the main iPhone assembler better known as Foxconn, said it had no comment to make concerning clients and production.

Editor: Futura Costaglione