Apple’s foundry Lianjian Technology has been torn between private environmental groups and Apple, over social responsibility, after the incident of poisoning of several employees caused by the use of toxic cleaner n-hexane was disclosed by private environmental groups. The picture shows the workshop of Apple’s generation factory in Shenzhen.
On February 8, Lixun Precision, an Apple foundry in mainland China, crashed shortly after the afternoon opening, with its stock price falling more than 7% at one point. In just 26 days, the stock’s value has evaporated by 124 billion RMB.
According to the Daily Economic News, the “fruit chain” leader Lixin Precision opened with a sharp dive in the afternoon, but then pulled up in a V-shape during the session, and as of press Time, the stock is down 4.2%, with the latest market value of 333 billion yuan (RMB, same below). In addition, Geer, Changying Precision and Lanshi Technology dived slightly.
Since January 14 this year, Lixun Precision’s market capitalization has evaporated 124 billion yuan. At the end of 2018, two years ago, Lixun Precision’s market capitalization was less than 60 billion yuan.
Behind the plunge of Lixun Precision’s share price, in addition to the controlling shareholder’s reduction, there is also the reason that the U.S. International Trade Commission (ITC) launched a 337 investigation against Lixun Precision.
On December 21 last year, Lixin Precision disclosed to the public that the company had learned that Amphenol Group had filed a 337 investigation with the ITC on December 18, 2020 under the relevant provisions of the U.S. Tariff Act of 1930, accusing Lixin Precision of infringement in the export, import and sale of relevant products to the United States.
On January 22 of this year, the relevant departments disclosed again that the ITC decided to launch a 337 investigation into specific electrical connectors and cage assemblies and their products, in which Lixun Precision was involved. After the news was announced, the stock price of Lixun Precision fell.
On February 4, Lixun Precision announced that the controlling shareholder Lixun Limited and its concerted action, one of the effective controllers of Lixun Precision and vice chairman Wang Laisheng reduced the company’s shares by a total of 140 million shares, accounting for 2% of the total share capital of the company, through the bulk trading system on February 3, 2021.
337 investigation refers to the United States International Trade Commission (USITC) under Section 337 of the Tariff Act of 1930 (“Section 337”) and related amendments. 337 investigations are conducted by the USITC pursuant to Section 337 of the Tariff Act of 1930 (“Section 337”) and related amendments, which prohibit unfair competition or any unfair trade practices in exports to the U.S. The 337 investigations are directed at infringement of U.S. intellectual property rights by imported products and other unfair competition in the import trade.
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