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Upcoming delisting sends Green Energy shares into tailspin

2019/03/22 15:36:07

Taipei, March 22 (CNA) An upcoming delisting from the local main board sent shares in financially-troubled Green Energy Technology Inc., a multi-crystalline solar wafer manufacturer in Taiwan, into a tailspin Friday, dealers said.

The delisting announced by the Taiwan Stock Exchange (TWSE), which operates the local main board, Thursday also impacted market sentiment over Green Energy affiliate San Chih Semiconductor Co. during the session, they said.

Shares in Green Energy dropped 10 percent, the maximum daily decline, to close at NT$3.29 (US$0.11) on the main board Friday, while shares in San Chih also declined 10 percent to end at NT$6.26. The weighted index on the main board closed up 0.28 percent at 10,639.07 points.

Soon after the local equity market opened Friday, Green Energy shares came under heavy pressure, dropping 10 percent. That weakness continued to the end of the session as investors took their cue from the delisting news to dump the stock, dealers said.

On Thursday, the TWSE issued a statement, saying because Green Energy's book value has plunged into negative territory its shares will be removed from the main board based on the exchange's rules. The last day the stock will trade on the market will be April 30.

In the fourth quarter, Green Energy booked NT$3.12 billion in asset impairment losses so the company posted about NT$3.72 billion in net losses or NT$8.56 per share in the quarter. In 2018, when the global solar market faced a supply glut, Green Energy incurred NT$16.34 in loss per share, compared with NT$1.49 in loss per share a year earlier.

As a result, Green Energy's 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, according to data compiled by the TWSE.

San Chih booked losses from its investments in Green Energy and its book value per share fell from NT$10.72 at the end of the third quarter to NT$0.84 at the end of the fourth quarter.

Last year, Green Energy filed an application with a court to seek debt restructuring to deal with its deteriorating financial situation.

As of the end of 2018, Green Energy had NT$11.26 billion in total debt, up from NT$9.64 billion at the end of 2017, TWSE data showed.

Green Energy and San Chih fall under the corporate umbrella of home appliance brand Tatung Co. Shares in Tatung also closed down 1.91 percent at NT$25.65.

(By Chang Chieh-chung, Pan Chih-yi and Frances Huang)
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