On July 13, Lingyi iTech (01688.HK) fell 4.76% in regular trading, trading at HK$7.15/share, with turnover of HK$120 million. The decline was triggered by divergent investor reactions to the company's announcement of a major restructuring investment.
On July 10, the company announced that its controlling subsidiary plans to participate in the public recruitment of restructuring investors for Futong Group (Jiashan) Communication Technology Co., with a total investment cost not exceeding RMB 4 billion to acquire control and operational rights over the target's optical fiber preform, optical fiber, and optical cable assets. Futong Jiashan occupies approximately 1,100 mu in Zhejiang Province with globally leading integrated optical communication production lines, and its optical preform annual capacity ranges between 1,000-1,500 tons.
The company stated the investment aims to enter the optical fiber communication materials sector and create strategic synergies with its existing AI computing power business. However, the significant capital commitment amid ongoing share price weakness has divided market sentiment. The H-shares have traded continuously below the IPO price of HK$10.18 since listing on June 26, representing a substantial discount.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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