The Hong Kong stock market has again seen individual stocks plummet. $SPROCOMM INTEL (01401.HK)$ At the opening on Wednesday, stocks fell straight down.

As of the time of writing, the company’s stock price has plummeted over 87%, reported at 1.55 Hong Kong dollars, with a trading volume of 92.7755 million Hong Kong dollars and a total market value of 1.55 billion Hong Kong dollars.

In October of this year, SPROCOMM INTEL launched a strong offensive.

In the nearly one month leading up to early November, the company saw a crazy surge of over 240%, with the stock price once reaching around 14 Hong Kong dollars, setting a new high since its IPO.

However, it subsequently fluctuated and adjusted, and has seen a consecutive three days of decline this week, especially today, which was particularly brutal.

The hard work of an entire year can be wiped away by a single day's stock price drop.

Targeted by the Hong Kong Securities and Futures Commission.

Behind the sudden crash of SPROCOMM INTEL is the fact that the Hong Kong Securities and Futures Commission has pointed out that the company's equity is highly concentrated.

It is reported that the Hong Kong Securities and Futures Commission recently inquired about the share distribution of sprocomm intel.

Results show that as of November 7, 2024, the company had 26 shareholders holding a total of approximately 0.517 billion shares, accounting for 51.74% of the company's issued capital; a total of 47.604 million shares of the company (accounting for 4.76% of the issued capital) were not settled in the Central Clearing and Settlement System ("CCASS").

The shareholding related to the company, along with approximately 0.345 billion shares held by its two major shareholders (accounting for 34.50% of the issued capital), accounts for 91% of the company's issued capital.

Therefore, only 90.022 million shares (accounting for 9% of the issued capital) are held by other shareholders.

The Securities and Futures Commission also reminded that given the high concentration of shareholding among a few shareholders, even a small number of shares traded may cause significant fluctuations in the company's share price, and shareholders and potential investors should act with caution when buying or selling the company's shares.

Public information shows that sprocomm intel is an ODM phone supplier focused on emerging markets.

The main business involves the research, development, design, manufacturing, and sales of mobile phones and printed circuit board assembly for mobile phones, with products sold to over 15 countries globally, and strategically focusing on india and other emerging markets with rising demand and large populations.

Major clients include mobile phone suppliers, telecommunications operators, and trading companies of various well-known local brands from india, thailand, china, other countries in asia, and other regions around the world.

According to the Zhuaqisi consulting report, based on the unit shipment volume of 2017, the company ranks seventh among ODM smartphone suppliers in china, holding 2.6% of the market share.

Revenue surged in the first half of the year.

On November 13, 2019, sprocomm intel successfully listed on the main board of the Hong Kong Stock Exchange.

In the following years after the listing, the company's stock price remained below 2 Hong Kong dollars for a long time. However, this year, sprocomm intel began to show improvement and experienced a major breakout in October.

However, after today's flash crash, the company's stock price suffered a 'foot chop' and returned to its original position.

From the performance perspective, sprocomm intel's revenue surged in the first half of the year.

In the first half of 2024, the company's total revenue reached 1.257 billion yuan (RMB, same below), an increase of about 55.8% compared to the same period in 2023, with a net income of 9.856 million yuan.

The revenue growth mainly comes from the sales of smart phones and internet of things related products.

The revenue from smart phones increased by 40.8% from 0.568 billion yuan in the first half of 2023 to 0.8 billion yuan in the first half of 2024.

Although smart phone sales in india have declined, growth in sales in the china and usa markets has driven an overall increase in revenue.

The revenue from printed circuit board assembly decreased from 0.056 billion yuan in the same period last year to 0, mainly due to the group's strategic decision to retain capacity to meet the demands of major chinese clients for smart phones and internet of things related products.

The revenue from internet of things related products increased by 1.4 times from 0.153 billion yuan in the first half of 2023 to 0.363 billion yuan in the first half of 2024.

In its interim report, the company stated that the ODM mobile phone market in china will be full of challenges and opportunities in the future. The company believes that the rapid rollout of 5G telecommunication networks worldwide will drive demand for smart phones and internet of things related products.

To seize potential market opportunities and maximize the interests of the company and its shareholders, the company will prudently develop its business and gradually increase capacity, enhance R&D capabilities, enrich its product portfolio, and intensify sales and marketing efforts to achieve regional diversification.

Editor/Lambor