(Yicai Global) June 29 -- Shares of China’s Ofilm Group soared by the exchange-imposed daily trading limit after the US government removed one of the former Apple supplier’s units from a list of entities subject to export controls.

Ofilm [SHE: 002456] jumped 10 percent today to close at CNY6.80 (USD1), giving the camera module maker a market capitalization of CNY22.2 billion (USD3.3 billion). But the stock is still down more than 60 percent since the unit was added to the list nearly two years ago.

The US End-User Review Committee removed Nanchang O-Film Tech from the Bureau of Industry and Security’s so-called Entity List yesterday, Shenzhen-based Ofilm said on its WeChat account this morning, without revealing the reason behind the move.

In July 2020, the US Department of Commerce put 11 Chinese companies, including Nanchang O-Film Tech, in which Ofilm owns 49 percent, on its list of entities subject to export controls. In March 2021, the company confirmed after months of speculation that it had been dropped from US tech giant Apple’s supply chain after a four-year partnership.

After Apple let go Ofilm, the Chinese manufacturer reported huge losses. Its net loss was CNY1.8 billion (USD268.5 million) in 2020 and widened to CNY2.6 billion last year. In the first quarter of this year, the loss was CNY186 million (USD27.8 million), with operating revenue down 38 percent from a year earlier to CNY4.6 billion.

Ofilm also sold two units doing work for Apple to Chinese mobile phone foundry Wingtech Technology for CNY2.4 billion in March last year.

Editor: Futura Costaglione