Chi Mei Corp (奇美實業), a leading synthetic and electronic materials supplier, yesterday said that it has incurred more than NT$1 billion (US$35.89 million) in losses after disposing of some of its stake in flat panel maker Innolux Corp (群創光電).
The sale of about 183.71 million Innolux shares, representing a more than 2 percent stake in the company, came after a rethink about how it wanted to reallocate its funds, Chi Mei said in a filing with the Taiwan Stock Exchange.
The company disposed of the Innolux shares in four transactions between Aug. 10 and Wednesday last week and it rceived NT$3.26 billion from the sales, incurring NT$1.114 billion in losses.
Those funds would be invested in US dollar-denominated bonds, which are expected to yield a higher return, said Chi Mei, whose stake in Innolux has now fallen to 0.83 percent at a time when flat panel prices are falling due to weakening global demand.
Innolux shares hit NT$32.55 on April 29, a 10-year intraday high, but they have since come under pressure amid concerns over falling product prices.
The shares fell 47 percent between April 29 and Wednesday last week, the last day Chi Mei sold Innolux shares.
Before the disposal, Chi Mei was Innolux’s third-largest shareholder with a 2.59 percent stake, trailing Hon Hai Group’s (鴻海集團) 6.79 percent and the Labor Pension Fund’s 2.89 percent, according to Innolux’s latest annual report.
Innolux posted its highest-ever quarterly net profit of NT$21.4 billion in the second quarter, or earnings per share at NT$2.05, but flat panel prices, especially large screens for TVs, have since fallen.
On Tuesday, US President Donald Trump weighed in on a pressing national issue: The rebranding of a restaurant chain. Last week, Cracker Barrel, a Tennessee company whose nationwide locations lean heavily on a cozy, old-timey aesthetic — “rocking chairs on the porch, a warm fire in the hearth, peg games on the table” — announced it was updating its logo. Uncle Herschel, the man who once appeared next to the letters with a barrel, was gone. It sparked ire on the right, with Donald Trump Jr leading a charge against the rebranding: “WTF is wrong with Cracker Barrel?!” Later, Trump Sr weighed
HEADWINDS: Upfront investment is unavoidable in the merger, but cost savings would materialize over time, TS Financial Holding Co president Welch Lin said TS Financial Holding Co (台新新光金控) said it would take about two years before the benefits of its merger with Shin Kong Financial Holding Co (新光金控) become evident, as the group prioritizes the consolidation of its major subsidiaries. “The group’s priority is to complete the consolidation of different subsidiaries,” Welch Lin (林維俊), president of the nation’s fourth-largest financial conglomerate by assets, told reporters during its first earnings briefing since the merger took effect on July 24. The asset management units are scheduled to merge in November, followed by life insurance in January next year and securities operations in April, Lin said. Banking integration,
LOOPHOLES: The move is to end a break that was aiding foreign producers without any similar benefit for US manufacturers, the US Department of Commerce said US President Donald Trump’s administration would make it harder for Samsung Electronics Co and SK Hynix Inc to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies’ production in the world’s largest semiconductor market. The US Department of Commerce in a notice published on Friday said that it was revoking waivers for Samsung and SK Hynix to use US technologies in their Chinese operations. The companies had been operating in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. The move would revise what is known
Artificial intelligence (AI) chip designer Cambricon Technologies Corp (寒武紀科技) plunged almost 9 percent after warning investors about a doubling in its share price over just a month, a record gain that helped fuel a US$1 trillion Chinese market rally. Cambricon triggered the selloff with a Thursday filing in which it dispelled talk about nonexistent products in the pipeline, reminded investors it labors under US sanctions, and stressed the difficulties of ascending the technology ladder. The Shanghai-listed company’s stock dived by the most since April in early yesterday trading, while the market stood largely unchanged. The litany of warnings underscores growing scrutiny of
RSS