Share meltdown at China Digital
July 13, 2015
By Chris Forrester
The Chinese stock market is having a tough time, but ‘smart’ card supplier China Digital TV is having a tougher time than most. Last week, its share price crashed 18.9 per cent, and overall its share price has tumbled 30 per cent over the past month. And the reason is not just the Chinese stock market crisis because the falls have taken place on the New York Stock Exchange.
The past few weeks has seen a handful of negative reports on the company. China Digital has dumped its CEO and re-appointed its founder Jianhua Zhu as its new CEO. Also out of the door is the company’s CTO. It also changed is Auditor at the end of May.
Back on June 8th the CA supplier reported “soft” trading despite it claiming market dominance and a market share of more than 50 per cent.
As to the actual numbers China Digital’s smart card shipments fell 17.1 per cent during Q1, to 2.95 million cards (against 3.65 million same period last year). Net revenues fell 22.7 per cent to $14 million (from $18.2 million in Q1/2014).
As to the outlook for the company, it says that Q2 is likely to see 2.1 million – 2.4 million cards shipped.