Debt-ridden Green Energy Technology Inc (綠能科技) yesterday saw its share price tumble 9.88 percent as investors scrambled to sell shares of the solar wafer maker, which faces imminent risk of being delisted from the local stock market.
Green Energy shares plunged to NT$3.65 after the company said that its net value deteriorated to minus-NT$5.53 per share at the end of last year, from NT$3.3 per share in the third quarter of last year.
Green Energy’s stock is to stop trading on May 2, the Taiwan Stock Exchange said after the market closed yesterday.
Regulations require listed firms to stop trading their securities on the stock market if their stock’s net value falls into the negative.
“Green Energy is stepping up its transformation to cope with the solar industry’s volatility. Due to the industry’s ups and downs, the company has failed to quickly swing back into the black,” Green Energy spokeswoman Christine Chen (陳婷婷) told a media briefing on Wednesday.
The Taoyuan-based company said that losses last quarter widened to NT$3.99 billion (US$129.48 million) due to shrinking demand and massive asset impairment losses totaling NT$3.12 billion, compared with losses of NT$2.22 billion in the prior quarter.
The impairments were caused by losses from its manufacturing facilities in Tainan and investment losses from a subsidiary, as well as losses from long-term polysilicon supply contracts due to lower-than-market-value prices, Chen said.
San Chih Semiconductor Inc Ltd (尚志半導體) yesterday said that its net value fell to minus-NT$0.84 per share, dragged by investment losses stemming from its 23.33 percent stake in Green Energy.
San Chih’s net value was NT$10.72 per share on Sept. 30 last year, as it had accumulated losses of NT$939 million in the first three quarters of last year.
San Chih and Green Energy are two of three loss-making subsidiaries of home appliance maker Tatung Co (大同).
The third, Chunghwa Picture Tubes Co Ltd (華映), a supplier of mobile and automotive displays, has filed for corporate restructuring due to financial woes.
Green Energy has received approval from creditors to restructure its debts.
Separately yesterday, solar wafer maker Sino-American Silicon Products Inc (SAS, 中美矽晶) posted net profit of NT$1.95 billion, or earnings per share of NT$3.36, for last year, representing an annual growth of 108.3 percent.
Last year was challenging for the solar industry, SAS said, but added that it benefited from the strong earnings of its silicon wafer subsidiary, GlobalWafers Co (環球晶圓).
GlobalWafers last year contributed 85 percent to SAS’ revenue, which totaled NT$69.24 billion, SAS said.
The firm’s board of directors yesterday approved a proposal to distribute a cash dividend of NT$3 per common share.
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