China TechFaith Reports Another Notice of Non-compliance With Nasdaq

It was the third time in two months that the Chinese mobile handset maker reported non-compliance with Nasdaq listing rules.
Belinda ZhouJul 06,2019,06:55

China TechFaith Wireless Communication Technology Ltd. (Nasdaq: CNTF) reported notice of non-compliance from Nasdaq for the minimum market value requirement today.

Chinese mobile handset maker TechFaith owns market capitalization of 5.8 million, according to Nasdaq. Under Rule 5450(b)(1)(C) in the exchange, TechFaith need to maintain a minimum market value of $5 million.

The Company has a grace period of 180 calendar days till December 26 and it has reported three non-compliance notices in last two months.

In May, the Beijing-based company said as a result of not having timely filed its annual report for last year, TechFaith was no longer in compliance with Nasdaq listing rules, which require timely filing of periodic financial reports.

Last month, the company has received a notice of non-compliance from the Nasdaq regarding the minimum bid price requirement.

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.

Shares in TechFaith jumped 6 percent to $0.55 apiece when the market closed Friday.