Zhenhua Technology shares fell sharply in early trade on July 2; at midday the
stock was 58.97 yuan, down 5.35%. The previous trading day the stock hit the
daily up limit after reports of MLCC suppliers raising prices. The company said
MLCC price increases for AI servers are unrelated to its core business, noting
AI-related MLCC hikes mainly involve a few large, consumer-facing suppliers and
that Zhenhua’s MLCC business is very small and not separately quantified. It
acknowledged some product price rises from higher raw-material costs but said
increases were smaller than market expectations and that it is pursuing material
substitution and other cost-saving measures.
