(Yicai Global) May 5 -- Hikvision Digital Technology's stock price tanked by the daily limit after a media report claimed the US government is preparing to impose sanctions on the Chinese video surveillance firm.

Hikvision [SHE: 002415] dived 10 percent to CNY38.24 (USD5.80). The shares are more than a quarter down in value this year.

The possible sanctions mentioned in the Financial Times report need to be verified, Global Times reported today, citing the Hangzhou-based firm. Sanctions, if any, must be based on reliable evidence and due procedure while Hikvision is hoping to be treated fairly and equally, the report added.

The US government is planning new sanctions on the artificial intelligence company, Financial Times reported yesterday. But the government hasn’t finalized any decision, it added.

Hikvision abides by the laws in countries where it does business as well as internationally accepted business ethics and operating principles, it noted. The company is committed to technology for good just as other leading tech firms worldwide, it added.

Founded in 2001, Hikvision makes smart video surveillance equipment by using the Internet of Things and Big Data technologies, according to its website. On April 29, the firm said on an investor communications platform that its business in different regions is changing and its US business is facing uncertainties despite orderly operations.

The company is still making a profit. Hikvision reported CNY2.3 billion (USD347.6 million) in net profit in the first quarter, up 5 percent from a year ago, according to its earnings report. Its revenue rose 18 percent to CNY16.5 billion (USD2.5 billion).

Editor: Emmi Laine, Xiao Yi