The board of luxury hotel operator My Humble House Hospitality Management Consulting Co (寒舍餐旅) has approved a capital reduction plan to wipe out losses and issue special shares via private placements to strengthen its financial health.
The plan comes as the COVID-19 pandemic has cut the Taipei-based hospitality group’s revenue by about 50 percent over the past two years without a quick solution in sight.
The company last year reported a loss of NT$720 million (US$24.67 million), or a loss per share of NT$6.45.
Photo courtesy of ezTravel Co
It was the second consecutive annual loss as Le Meridien Taipei (台北寒舍艾美酒店) and Humble House Taipei (寒舍艾麗) in the city’s Xinyi District (信義), Sheraton Grand Taipei Hotel (台北喜來登大飯店) near Taipei Railway Station and hot spring resort Mu Jiaosi Hotel (礁溪寒沐) in Yilan County all suffered due to lingering border controls and disease prevention measures that weighed on guestroom operations as well as food and beverage sales, the company said.
Combined revenue in 2019 was NT$4.48 billion in 2019 prior to the pandemic, but that slumped to NT$2.8 billion in 2020 and NT$2.32 billion last year, company data showed.
The company’s board on Friday approved a plan to reduce its paid-in capital of NT$1.12 billion by 18 percent, or NT$200 million, to make up for cumulative losses.
The arrangement would allow May Humble House Hospitality to cancel 2 million common shares and bring its capital down to NT$915 million, it said.
The conglomerate would then issue up to NT$200 million of special shares via private placements to boost its capital, it added.
The program would help lower the company’s debt ratio and interest payments, while strengthening operating funds and earnings ability, it said.
My Humble House said it would price its special shares at no less than 80 percent of its reasonable value to safeguard the interests of its shareholders.
It opted for private placements after factoring in fundraising costs, efficiency and feasibility, it said, adding that potential participants are original major shareholders and affiliated companies.
The launch of a new Humble Boutique Hotel (寒居酒店) in Taipei demonstrated that the group is committed to its business and upbeat about the long-term market outlook, it added.
My Humble House shares yesterday closed down 1.34 percent at NT$22.10, a deeper fall than the TAIEX’s 0.62 percent retreat, Taiwan Stock Exchange data showed.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employee bonuses are likely to grow more than 30 percent this year, in line with the past few years as the company’s profits continue to set new records, an anonymous source cited TSMC chairman C.C. Wei (魏哲家) as saying yesterday. TSMC, the world’s largest contract chipmaker, is committed to taking care of its workers, the source said, citing Wei’s meeting with employees yesterday morning. Wei also expressed gratitude to employees for their contribution to the company’s improving bottom line, the source added. Since 2023, TSMC’s employee bonuses have grown at an annual rate of
RSS