Thu, Mar 28, 2019 - Page 12 News List

LCD maker CPT at risk of delisting

DELISTING:Regulations mandate that listed firms’ shares be banned from trading if they post negative net value. CPT’s book value came in at minus-NT$0.7 last year

By Lisa Wang  /  Staff reporter

Chunghwa Picture Tubes Ltd spokesman Huang Shih-chang bows at the Taiwan Stock Exchange’s headquarters in Taipei yesterday following a sudden drop in the firm’s share price.

Photo: Chen Mei-ying, Taipei Times

Financially troubled LCD panel maker Chunghwa Picture Tubes Ltd (CPT, 中華映管) yesterday said that its book value slid into the red last year, pushing the stock to the brink of being delisted from the stock market.

CPT is the second subsidiary of local home appliances maker Tatung Co (大同) to face the imminent risk of having its shares banned from trading in the near future, following Green Energy Technology Inc (綠能科技).

The LCD panelmaker saw losses balloon to NT$17.73 billion (US$574.6 million) in the final quarter of last year, from losses of NT$2.61 billion in the previous quarter, dragged by a persistent industry oversupply and impairment losses from its 26 percent shareholding in CPT Technology Group Co (華映科技).

For the full year, CPT posted losses of NT$19.61 billion, a reversal of net profits of NT$2.99 billion in 2017.

As a result, the company’s book value deteriorated to minus-NT$0.7 per share, from NT$2.19 a share in 2017.

CPT is likely to be delisted from the Taiwan Stock Exchange in the middle of May at the earliest, 40 days after the company submits its financial results to the exchange.

Regulations ban listed companies from trading on the stock market if their net value falls into the red.

CPT has about 244,000 shareholders, who are likely to see their holdings become worthless following the delisting.

“The company is in a difficult financial situation due to the LCD industry supply glut in 2018 and [adverse] impact from the US-China trade dispute,” company spokesperson Huang Shih-chang (黃世昌) told a media briefing in Taipei.

As of Dec. 31 last year, the Taoyuan-based firm’s debt had reached NT$36.6 billion, including NT$1.3 billion in severance payments, as it plans to lay off 2,500 workers.

The company submitted a restructuring proposal to the Taoyuan District Court, but the court has rejected the plan.

CPT said it has resumed operation of a 4.5G and a 6G fab, with equipment loading running at a low 10 to 20 percent, Huang said.

The company had idled a 4.5G line in 2013.

The company plans to sell the two 4.5G lines to fund the operation of the 6G fab upon receiving approval from the court, he said.

The company is restricted from selling the fabs as it is in the process of applying for court receivership.

Tatung yesterday said it has recognized losses of NT$9.9 billion from its shareholdings of CPT and Green Energy.

As a result, Tatung saw its losses widen to NT$33.29 billion last year, after losing NT$4.09 billion in the first three quarters of last year.

The home appliance maker saw its book value drop to NT$14.5 per share.

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