Wintek Corp’s (勝華) restructuring plan has caused a ripple effect on flexible printed circuit board (FPCB) makers Sunflex Technology Co Ltd (旭軟) and Career Technology Manufacturing Co Ltd (嘉聯益), as unpaid receivables are expected to erode their earnings for last quarter.
The news yesterday sent the stock prices of Career Technology and Sunflex falling by 6.9 percent and 6.93 percent to close at NT$36.45 and NT$31.55 respectively.
Sunflex said in a statement that Wintek owed the company NT$307.93 million (US$10.12 million) in receivables, representing 16.5 percent of the FPCB supplier’s total assets in the first six months of this year.
“The company will actively seek every way possible to reduce the impact and will intensively monitor the subsequent development of the company’s [Wintek’s] restructuring efforts,” Sunflex said.
If Wintek fails to improve its financial structure via the restructuring plan, Sunflex might lose NT$114 million after deducting compensation from an insurance policy on its receivables, Sunflex said.
That could erode NT$1.7 per share from Sunflex’s net profit last quarter, if the company books the loss in the upcoming release of its quarterly earnings, the state-run Central News Agency (CNA) reported yesterday, citing an anonymous analyst’s forecast.
Wintek is one of Sunflex’s top clients, contributing 38 percent of the FPCB maker’s total revenue of NT$1.03 billion in the first three quarters of this year, according to the statement.
Wintek on Monday filed a restructuring plan to a local district court in Greater Taichung to avert potential liquidation of the company by creditors.
Career Technology also said it would seek legal action to recover receivables of NT$318 million, which represents 2.54 percent of the company’s total assets in the first half of this year.
That could cut its net profit by NT$0.95 per share for last quarter, CNA reported.
Meanwhile, Orise Technology Co (旭耀科技), which supplies driver ICs to Wintek, yesterday said it might take legal action to recover NT$225 million in receivables.
The figure represents about 3.17 percent of Orise’s overall assets in the first six months of this year, the company said in a stock exchange filing.
Orise shares inched up 0.48 percent to NT$42.2, going against the broad downtrend of the local bourse.
Touchpanel maker Young Fast Optoelectronics Co (洋華光電) yesterday said Wintek owed it NT$105.19 million in receivables, accounting for 1.09 percent of its total assets in the first half of this year.
LCD panel maker HannStar Display Corp (瀚宇彩晶) also said it has unpaid receivables of NT$218.65 million from Wintek.
The figure is 0.46 percent of its total assets.
Young Fast shares plunged 6.93 percent to NT$18.8, while HannStar shares tumbled 7 percent to NT$7.31 yesterday.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s