(Yicai Global) Jan. 22 -- Shenzhen O-Film Tech, a Chinese manufacturer of optical components and devices related to touch screens and recognition technology, which is part of Apple’s industry chain, was reported to have sold its Guangzhou plant to Chinese electronics firm Luxshare Precision Industry yesterday.

Both parties denied the claim but shares of O-Film Tech [SHE: 002456] closed down about 8 percent at CNY11.88 (USD1.8) today after slumping by about 7.3 percent yesterday. The Shenzhen Component Index closed 1.95 percent higher.

Luxshare insisted the rumors were not true while O-Film said it had no idea where the information came from, Securities Time reported today. However, cls.cn, the financial news platform under online news outlet Jiemian, cited O-Film as saying: “The matter is still under multi-party negotiations and the eventual buyer has not been decided.”

Yesterday media reports suggested that O-Film was about to sell its plant in Guangzhou, capital of southern Guangdong province, to Luxshare, adding the target facility belonged to O-Film’s cellphone camera module division, which is also a part of Apple’s supply chain.

On Sept. 1 it was reported that Apple had removed O-Film Tech from its supply chain list, but the Shenzhen-based firm immediately issued a statement clarifying that the company has been providing products and services for the United States client for many years and they had formed a good partnership with steady purchase orders, so there was no big issue that could “lead to the exclusion from the list of suppliers.”

Apple has remained silent on the matter. But a search of the US Department of Commerce’s official website found that on July 20, the department added O-Film’s branch in Nanchang, Jiangxi province, and 10 other Chinese companies to its entity list.

O-Film was already removed from Apple’s camera module supply chain in December, the ELEC, a South Korean electronics industry media, reported, adding that the Chinese firm may only be able to supply camera modules to the old series of iPhones but not components for new iPhones.

Editor: Peter Thomas