Taipei, Loss-incurring flat panel maker Chunghwa Picture Tubes Ltd. is scheduled to be delisted from the main board in May after its book value plunged into negative territory, according to the Taiwan Stock Exchange (TWSE).
The TWSE said the last trading day for Chunghwa Picture Tubes is set for May 10 and its delisting will take place May 13.
Chunghwa Picture Tubes will become the second subsidiary of the Tatung Co. conglomerate to be removed from the main board after Green Energy Technology Inc., a multi-crystalline solar wafer manufacturer, the last trading day of which is set for April 30.
Due to the delisting news, shares of Chunghwa Picture Tubes fell 10 percent, the maximum daily decline, to close at NT$0.34 (US$0.01) on the local main board Tuesday, when the benchmark weighted index ended up 0.45 percent at 10,690.30 points.
The announcement of Chunghwa Picture Tubes' market delisting came after the company disclosed last week that it incurred NT$19.56 billion in net losses, or NT$3.02 per share, in 2018, compared with NT$0.34 in earnings per share in 2017.
The large 2018 losses came after a loss of NT$17.73 billion incurred in the fourth quarter of last year as the company booked NT$7.26 billion in losses resulting from its investment in Fuzhou-based CPT Technology (Group) Co.
The heavy losses plunged Chunghwa Picture Tubes' book value to minus NT$0.7 as of the end of last year from plus NT$1.44 as of the end of September, according to data compiled by the TWSE.
Chunghwa Picture Tubes, a supplier of small and medium-sized screens, launched an initial public offer on the local main board Sept. 17, 2001.
The flat panel industry has encountered problems recently due to a supply glut, and small suppliers such as Chunghwa Picture Tubes, in particular, have faced tremendous pressure.
In March, the company announced that it will lay off 2,000-2,500 employees by May 10 in preparation for restructuring. The company filed for bankruptcy protection in mid-December 2018.
According to the flat panel maker, the layoffs will account for 44.44 percent-55.55 percent of its total workforce at a time when the global flat screen industry faces a supply glut.
About half of the affected employees will come from production lines, the company said, adding that having submitted the layoff plan to the Taoyuan City government, it will do everything it can to help affected employees land new jobs.
The company said it reached an agreement with its labor union a day earlier for the massive layoffs, based on local employment regulations.
In addition to the latest layoffs, the flat panel maker said, it will also dispose of two 4.5-generation production lines or put them up for lease, but maintain its 6th-generation production plant, which is more efficient.
In February, the flat panel maker's shipments of small and medium -sized flat screens fell 67.1 percent from a month earlier to about 920,000 units, with shipments of large-sized screens down 98.9 percent, Chunghwa Picture Tubes said.
Its sales for February totaled NT$103 million, down 40.9 percent from a month earlier and down 95 percent from a year earlier, the company said.
Shares of Green Energy Technology, whose book value per share fell from NT$3.30 at the end of the third quarter to minus NT$5.53 at the end of the fourth quarter of last year, also fell 10 percent to close at NT$1.61 on the main board Tuesday, when shares of Tatung lost 2.07 percent to end at NT$23.65.
Source: Focus Taiwan News Channel