San Chih Semiconductor Inc Ltd (尚志半導體), a subsidiary of local home appliance maker Tatung Co (大同), yesterday said its shares would be delisted from the stock market next month at the earliest as the company’s book value has dipped to negative territory due to losses at its solar subsidiary.
San Chih, in which Tatung holds a 43.18 percent stake, would be the company’s third delisted subsidiary, following Green Energy Technology Inc (綠能科技) and display manufacturer Chunghwa Picture Tubes Ltd (中華映管).
Delisting for the latter is scheduled for Monday.
The semiconductor company attributed the book value devaluation to its 23.33 percent stake in Green Energy.
Green Energy, also a subsidiary of Tatung, reported asset impairment losses of NT$2.19 billion (US$70.74 million) in the first quarter of this year and was delisted from the Taiwan Stock Exchange last week.
San Chih saw its net asset value per share plunge to minus-NT$3.95 in the first quarter, from NT$0.84 in the fourth quarter last year.
The company has recorded losses for eight consecutive years.
The company yesterday said at a media briefing that the losses incurred by Green Energy should affect neither its working capital nor cash flow.
The company said that it would act according to Section 36 of the Securities and Exchange Act (證券交易法) and submit to exchange regulations, which demand that listed companies cease trading their securities once their net value turns negative.
The Taiwan Stock Exchange is expected to delist the company by the end of next month.
Tatung posted a 50.53 percent drop in revenue of NT$8.14 billion in the first quarter of this year, down from NT$16.45 billion last year.
The firm could regain some momentum in the home appliance market after its peers Sampo Corp (聲寶) and Sanyo Electric Co (三洋) reported growth in sales.
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