(Yicai) April 9 -- Bringspring Science and Technology’s shares slumped after the healthcare software supplier refuted a rumor that it plans to acquire XFusion Digital Technologies, a server maker spun off from Huawei Technologies. 

Bringspring’s shares [SHE: 300290] ended 12.8 percent lower at CNY9.13 (USD1.30) apiece in Shenzhen today. The stock has more than doubled in value over the past two months.

Bringspring has no intention of buying XFusion and restructuring, the Shenyang-based company said late yesterday. 

The rumor that it plans to acquire XFusion for CNY12 billion to CNY22 billion (USD1.7 billion to USD3 billion) began circulating online last month. And speculation that XFusion was eyeing a backdoor listing also resurfaced that same month after first appearing last October. 

Bringspring said on the Shenzhen bourse's investor communications platform in March that it has a business partnership with XFusion as its subsidiary Smart We is a top supplier to the server firm. It did not deny the acquisition rumor at the time.

Huawei founded XFusion in September 2021 to handle some of its server business, but later spun out the unit. Its controlling shareholder, with a 65 percent stake, is Henan province-based XFusion Technology. Others include China Telecom Group Investment and China Mobile Capital Holding, a subsidiary of wireless carrier China Mobile. 

Bringspring has said previously that it expects to have swung into the black last year, with a net profit of as much as CNY37 million (USD5.1 million).

Editor: Emmi Laine