Tatung subsidiaries’ shares tumble ahead of delisting

TAIPEI, (CNA) — A pending delisting from the local main board sent shares of financially troubled flat panel maker Chunghwa Picture Tubes Ltd. (CPT) plunging by the daily limit today, as did the stocks of two other subsidiaries of Tatung Co.

The share drop occurred after CPT yesterday reported an after-tax loss of NT$25.28 billion (US$818.88 million) for 2018, which sent its book value down to minus NT$0.7 per share, according to a message it posted on the Taiwan Stock Exchange Corp. (TWSE) website.

As a result, CPT will be removed from the main board, in accordance with TWSE’s regulations that ban listed companies from trading on the stock market if their net value falls into the red.

CPT is likely to be delisted from the Taiwan Stock Exchange by May 8 if the debt-ridden company submits its financial statement on Thursday, according to the TWSE.

Meanwhile, Green Energy Technology Inc., another subsidiary of local home appliance maker Tatung, will also delist in May because its book value has dropped into negative territory.

Today, shares in Tatung’s three subsidiaries –CPT, Green Energy and San Chih Semiconductor Co.— all fell by the daily maximum 10 percent to end at NT$0.45, NT$2.18, and NT$4.13, respectively.

Meanwhile, shares in Tatung closed 0.40 percent lower at NT$24.75.

Yesterday, Tatung announced that it had suffered an operational loss of NT$15.48 billion in 2018 due mainly to the huge debts incurred by CPT and Green Energy.

As a result, Tatung reported a loss per share of NT$4.75 for 2018, the lowest since it was listed on the stock market in 1990, according to its CFO Peng Wen-chieh (彭文傑).

By Jiang Ming-yan, Elizabeth Hsu and Evelyn Kao