(Yicai Global) July 12 -- Shares of Wingtech Technology, China’s smartphone assembler, tumbled after the country’s securities regulator began investigating Zhang Xuezheng, the firm’s actual controller, on suspicion of failing to specify the entity acting in concert in contravention of the law on information disclosure.
Wingtech’s stock price [SHA: 600745] ended 8.2 percent down at CNY46.58 (USD6.48) in Shanghai today. It has fallen 11.4 percent since the end of last year.
The investigation is unrelated to Zhang’s role as chairman and president of the Jiaxing-based company, Wingtech said yesterday. The firm is operating as normal, and Zhang is performing his regular duties, it added.
The probe and related incidents will not significantly influence Wingtech’s daily operations and financial affairs, the company said. Shareholders have no plans to reduce their holdings in the next six months, it pointed out.
Wingtech’s business is mainly related to telecoms equipment, semiconductors, electronic devices, and corresponding materials. Its facility in Kunming began to mass assemble Apple’s MacBook Air laptops at the end of last year, and it received an original design manufacturing order for Samsung handsets and tablets this year.
Wingtech’s revenue fell 2.5 percent to CNY14.4 billion (USD2 billion) in the first three months of this year from a year earlier, while net profit dropped 8.4 percent to CNY460 million (USD64 million), its first-quarter earnings report showed.
Editors: Shi Yi, Martin Kadiev