Prinx Chengshan (HKG:1809) subsidiary Prinx Chengshan Tire North America will recall 541,632 snow tires from the market due to safety concerns, according to a Tuesday filing with the Hong Kong Exchange.

The tires lack sufficient traction in accordance with US federal snow driving regulations, which can increase the likelihood of a crash, the filing said.

Prinx Chengshan is still examining the impact of the recall on its financials, the filing said.

Shares of the company plunged over 3% in morning trade Wednesday.

Price (HKD): $7.67, Change: $-0.25, Percent Change: -3.16%