HTC Corp (宏達電) yesterday said it is to sell a plot of land and a building in Taoyuan to Inventec Corp (英業達) for NT$6.06 billion (US$183.46 million) as part of its efforts to lower operational costs and boost efficiency.
The local smartphone maker said the production facilities and its employees would be transferred to HTC’s three other properties in Taoyuan to centralize its production facilities.
“The sale of the land and building will not affect HTC’s production capacity or shipping schedules,” an HTC investor relations officer said by telephone.
The officer said the transaction also has no implications for HTC’s operations or headcount.
After deducting transaction costs and tax payments, the firm is to book a NT$2.1 billion non-operating gain from the sale of the land and the building, the smartphone company said.
“A non-operating gain of NT$2.1 billion is to be booked in the first quarter of next year,” the officer said.
When asked whether HTC has plans to sell other assets to continue to cut its operating costs, the company said it would review all the possibilities based on its operational needs.
The smartphone maker reported a net loss of NT$12.56 billion in the first three quarters of this year, a significant decline from a net profit of NT$1.01 billion in the same period last year.
That represented a loss per share of NT$14.68 from January to September, compared with earnings per share of NT$1.23 last year.
In the quarter ending Sept. 30, HTC had NT$43.3 billion in cash and cash equivalents, its balance sheet showed.
In an attempt to meet the expanding scale of its server business, Inventec said its board of directors approved the NT$6.06 billion purchase of the land and building from HTC.
“The building will be used as the main office of Inventec’s server business,” an Inventec investor relations officer said by telephone.
The officer said Inventec’s server business is based in two offices in Taoyuan and the purchase of the building from HTC would help the company centralize the management of its server business.
The officer said the firm also plans to set up a research and development center for the server business in the building.
Inventec said it expects the transaction to complete in March next year and it expects to transfer the server business and its employees to the building in the second quarter of next year.
The NT$6.06 billion transaction costs would be booked in the first quarter of next year, the firm said.
After moving the server business to the new building, the remaining offices in Taoyuan would be used for Inventec’s solar business, the officer said.
HTC shares rose 0.63 percent to close at NT$79.5 in Taipei trading yesterday, while Inventec shares remained unchanged at NT$21.9. The TAIEX lost 0.77 percent.
HEAVY TOLL: The closure of the plants, which produced 56 percent of Feng Tay’s shoes last year, followed similar shutdowns in India, its second-biggest production base Feng Tay Enterprises Co Ltd (豐泰), a supplier for Nike Inc, on Saturday temporarily shut down four factories in Vietnam, its biggest manufacturing base, for about a week amid COVID-19 lockdowns, it said yesterday. Feng Tay is the latest in a slew of local manufacturers with operations in Vietnam that have suspended operations as the country grapples with its worst outbreak of COVID-19. Pou Chen Corp (寶成工業), the world’s largest manufacturer of branded athletic and casual footwear, last week said that it had suspended operations at its plant in Ho Chi Minh City, as virus restrictions shuttered factories in the business hub
Taiwan should protect its vaccine supply chain and invest in vaccine development after seeing how the COVID-19 pandemic has inflicted tremendous social and economic losses worldwide, Sanofi Pasteur Hong Kong & Taiwan general manager Philip Ho said in an interview this week. “When you look at the trillions of dollars that countries have lost, parents who are forced to stay at home with their children and various restrictions imposed following a nationwide lockdown, we really see what we are losing compared with what we can benefit from vaccination,” Ho said. While the government has been trying to secure vaccines since the middle
The next target for China’s cybersecurity crackdown is to be the pools of data collected by the latest generation of vehicles. This approach risks Beijing shooting itself in the foot, and jeopardizing its ambitious plans to lead the global race for electric and autonomous vehicles. China wants to have control over the information vehicles have about their drivers, the roads they traverse, and the faces and voices they pass, according to a draft law on data-security management for the automotive industry issued in May. It seeks to ensure manufacturers across the auto supply chain keep data in the country and pass
Yang Ming Marine Transport Corp (陽明海運) is to use NT$16 billion (US$570.4 million) of its NT$29 billion in newly raised capital to lower its debt-to-asset ratio to less than 60 percent, it said yesterday. The container shipping company’s assets and liabilities were NT$208.85 billion and NT$146.4 billion respectively as of the end of March, indicating a debt-to-asset ratio of 70 percent, company data showed. Its major rivals had lower debt ratios. As of March 31, Evergreen Marine Corp (長榮海運) reported a debt-to-asset ratio of 61.6 percent, while Wan Hai Lines Ltd (萬海航運) had an even lower ratio of 57.4 percent. After repaying debts,