Shares in electronics manufacturer VTech Holdings fell 10 per cent after the company warned of a substantial loss in the year to March 31.
VTech shares fell as much as 15 per cent yesterday to a 52-week low of HK$3.40, but recovered slightly to close at HK$3.60.
The Hong Kong-listed company announced on Monday it would cut 4,500 jobs, or 16 per cent of its workforce, as it expected to report a significant loss in the financial year closing at the end of this month.
Chairman Allan Wong Chi-yan attributed part of the loss to exceptional items amounting to US$133 million.
The exceptional items included the unsatisfactory integration of the consumer wired telephone business acquired from Lucent Technologies last year.
As a result, the company had decided to close two Mexican factories engaged in the production and maintenance of telephone units.