Kingsoft Corp falls to 2-1/2-year low on weak outlook

Kingsoft

07/10/2022 03:47

** Shares of online games developer and software group
Kingsoft Corp  3888.HK  fall as much as 12.7% to HK$19.30, the
lowest since March 2020
    ** Stock marks the biggest intraday pct decline since March
3 and is second-biggest pct decliner in Hang Seng Tech Index
 .HSTECH  and in Hang Seng Composite Index  .HSCI  
    ** Co says its investment in Kingsoft Cloud  KC.O  has been
affected by sluggish stock prices and financial performance of
the Nasdaq-listed unit and it plans to make an impairment
provision of up to 6.5 bln yuan ($913.76 mln) before tax, an
amount that is yet to be finalized   urn:newsml:reuters.com:*:nFWN3170C7
    ** Co expects to record substantial loss for the nine-month
period ended September after the proposed provision, but the
provision would not have any impact on its cash flow and
operating performance, while it maintains a healthy net cash
balance to support operating and investing activities
    ** Hang Seng sub-index, which tracks information technology
firms  .HSCIIT , falls 1.3% while Hang Seng Tech Index  .HSTECH 
drops 1.9%
    ** Hang Seng Composite Index  .HSCI  eases 1% and Hang Seng
Index  .HSI  slips 0.8%
    ** As of last close, stock down 35.5% this year
    ($1 = 7.1135 yuan)
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))