Solar cell maker Motech Industries Inc (茂迪) yesterday reported record losses for last year, due to a worsening industry slump, but said that this year would be a fresh start following the implementation of restructuring plans in the past year.
Net losses expanded by 124.19 percent from a year earlier to NT$6.79 billion (US$220.2 million), with net losses per share of NT$12.61, while revenue declined 38.82 percent to NT$14.19 billion, it said in a financial statement.
The losses include an asset impairment charge of NT$2.63 billion in accordance with IAS 36 impairment of assets, an accounting standard, the company said.
“This one-time asset impairment charge as a result of the company’s implementation of organization optimization plans will not have any impact on our working capital or cash outflows,” Motech said in a statement.
“Instead, through those actions during 2018, we have made great progress in improving debt structure, reducing operational costs and enhancing operational efficiency across the company,” it said.
Last year proved difficult for the company, which saw a change of its top executives, including former chairman Chang Ping-heng (張秉衡), the closure of several production lines in Taiwan and China, as well as job cuts that were not limited to contract workers, but also included full-time positions.
As of the end of last year, the company’s net value had decreased to NT$4.53 billion, meaning that its net value per share had fallen below a par value of NT$10, to NT$8.39.
However, Motech said its operations have stabilized and the company has shifted its core business in Taiwan to the solar system market with the help of its high-efficiency mono PERC solar cell capacities of 250 megawatts and module of 200 megawatts.
The company would also continue to improve production costs of solar cell and module facilities in China to meet market trends, while other efforts — such as collecting overdue accounts receivable, lowering inventories, executing the long-term polysilicon supply contracts and disposing of facilities in Taiwan and China — are also intended to drive free cash flow, improve operating leverage and reduce financial debt, it said.
“A more solid financial statement of Motech will lead to increased flexibility to adopt any strategy shift and position, despite a significant decline in book value,” Motech said.
Shares in Motech yesterday fell 1.78 percent to NT$8.84. They have dropped 61.1 percent in the past 12 months.
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