HK's Q Technology drops most in nearly 4 years after spinoff unit sees weak Q1

Q Technology (Group) Co

24/02/2022 06:05

** Shares of camera modules manufacturer Q Technology
(Group) Co Ltd  1478.HK  drop 15.9% to HK$7.07, their biggest
daily percentage drop since May 2018
    ** Stock sinks to the lowest since September 2019;
second-biggest percentage decliner in Hang Seng Composite Index
 .HSCI  and sixth-biggest percentage loser on the Hong Kong
bourse
    ** The Jiangsu-based co says spin-off unit Kunshan Q
Technology has updated the financial data in its filings for an
IPO in China's Shenzhen, with Q1 2022 net profit estimated to
drop 48.7%-61.5% from year-ago period (https://bit.ly/3pbPhVF)
    ** Says profit decline is due to poor demand of Android
mobile phone market amid epidemic and intensified competition in
camera module market 
    ** Says the proposed listing is conditional upon approval of
the CSRC and the Shenzhen Stock Exchange while the offering
size, price and the timetable have yet to be fixed
    ** Kunshan Q Technology plans 3 bln yuan ($474.6 mln) IPO in
 Shenzhen, raising proceeds to fund camera module production for
smartphones and electric cars, publication IFR reported
 urn:newsml:reuters.com:*:nIfp1hvXxz
    ** Hang Seng Composite Index  .HSCI  and Hang Seng Index
 .HSI  fall 3.2% each, while index tracking information
technology firms  .HSCIIT  drops 4.6% 
    
    ($1 = 6.3206 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))