China TechFaith Reports Notice of Non-compliance; Stock Drops
The stock of the Chinese mobile handset maker dropped more than 5 percent to 91 cents per share Tuesday.
China TechFaith Wireless Communication Technology Ltd. (Nasdaq: CNTF), which provides solutions for mobile handsets and operates a real estate business, announced today it has received a notice of non-compliance from the Nasdaq.
In a statement today, the company said that, as a result of not having timely filed its annual report for last year, TechFaith is no longer in compliance with Nasdaq listing rules, which require timely filing of periodic financial reports.
As a result, the stock of the company dropped more than 5 percent to 91 cents per share on Tuesday.
TechFaith now has 60 days to submit a plan to the regulators to regain compliance. If the plan is accepted by the Nasdaq, the company can be granted up to an additional 180 days to regain compliance.
In its latest financial results, the company reported a disappointing revenue decline and mounting net losses.
TechFaith started as a software and hardware designer for handsets in 2002 and later launched its original products, including a brand-name phone and, in its profitable years, motion gaming devices. In 2015, the company entered the real estate market, leasing and operating building units, as well as launching construction projects throughout China.