South Korea-based Pixelplus (proposed ticker: PXPL) which designs, develops and markets image sensors for use primarily in mobile camera phones filed for an IPO last week. In its F-1 filing the company discusses plans to partner with China Techfaith Wireless (ticker: CNTF) and also comments on concerns relating to the Chinese economy. Excerpts from the F-1:
On China Techfaith Wireless
We also intend to partner with leading mobile phone designers, such as China Techfaith, and module makers to deliver superior solutions to our customers as we continue to focus on the development of image sensors.
On the Chinese Economy & Recent Developments
In addition, there can be no assurance that any growth in China’s economy will be stable or that any slowdown will not have a negative effect on our business; that deflation will not reoccur in the foreseeable future; or that the level of international trade to and from China will not cease to grow at historical rates or even decrease, which could negatively impact demand for our products.
Finally, our PRC customers’ business and our results of operations and financial condition could be negatively affected by adverse changes in government monetary policies, import-export polices and regulations, tax regulations or policies and regulations affecting the high technology industry.
Most recently, the PRC government implemented a number of measures, such as raising bank reserves against deposit rates, to place additional limitations on the ability of commercial banks to make loans, in order to slow growth in certain segments of its economy it believed to be overheating. These actions, as well as future actions and policies of the PRC government, could result in a reduction in international trade activities involving China, which could in turn reduce the demand for our CMOS image sensors and reduce our future revenues.
You can access the company's F-1 filing with the SEC here.