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.
Binwei WangMay 08,2019,02:55

China TechFaith Wireless Communication Technology Ltd. (Nasdaq: CNTF), which provides solutions for mobile handsets, as well as develops and operates commercial real estate properties, said it has received a standard notice from NASDAQ stating that, as a result of not having timely filed its annual report on Form 20-F for the year ended December 31, 2018, TechFaith is not in compliance with NASDAQ Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports with the Securities and Exchange Commission. This notice has no immediate effect on the listing or trading of TechFaith's American depositary shares on the Nasdaq Global Select Market.

NASDAQ's listing rules mentions the company has 60 calendar days from the date of the notice to submit a plan to regain compliance. If the plan is accepted by NASDAQ, the company can be granted up to 180 calendar days from the Form 20-F's due date, to regain compliance.

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.