Weige Bakery has confirmed that it will terminate its retail sales starting from October 20
Due to declining performance and years of losses, Weige Bakery voluntarily applied to terminate stock trading in the stock market.
Quick Look
- Due to consecutive years of losses and sluggish trading volume, Weige Bakery, which is famous for its pineapple cakes, has voluntarily applied to terminate its counter trading after a board of directors resolution.
- The counter buying center confirmed that it will take effect from October 20.
- The company stated that it will continue to conduct public offerings and conduct business transformation, and will evaluate and re-login after its performance improves.
AI-generated summary
Why It Matters
Weige Bakery once had great performance due to the influx of Chinese tourists, but due to the impact of the epidemic and tourism policies, it has suffered losses for six consecutive years.
Weige Bakery (2733), which rose to prominence with pineapple cakes, took the initiative to apply to terminate the stock trading in Xingge. The stock price once plunged from 10.6 yuan to a minimum of 4.88 yuan. Today, it received a notice from the counter buying center that it will terminate stock trading in Xingtai from October 20. The stock price also rebounded sharply by 86.41% today, closing at 16.05 yuan.
The pineapple cakes produced by Vigo Bakery became very popular in the Chinese market. In 2013, they returned to Taiwan and set up a tourist factory in Wugu, New Taipei City, which became a must-visit place for Chinese tourists visiting Taiwan. Vigo's revenue in 2013 reached 1.241 billion yuan, and earnings per share reached 7.9 yuan; in 2014, revenue reached 1.335 billion yuan, earnings per share reached 8 yuan, and a more generous dividend of 7 yuan per share.
In 2013, Weige’s stock price soared to 152 yuan in Xingcai. Unexpectedly, due to the ban on Chinese tourists visiting Taiwan and the impact of the COVID-19 epidemic in 2020, Weige Bakery has been in losses for six consecutive years.
Last year, revenue was 336 million yuan, with a loss of 49.02 million yuan, a net loss after tax of 49.21 million yuan, and a loss per share of 2.05 yuan. In the first half of this year, revenue was nearly 154 million yuan, a loss of 25.75 million yuan, a net loss after tax of 24.93 million yuan, and a loss per share of 1.04 yuan.
Vigo Bakery said that due to declining performance and years of losses, the company's market value and stock trading volume in Xinggui continued to decline. Based on the consideration of business development planning and optimal allocation of resources, the company passed the resolution of the board of directors and voluntarily applied to terminate the trading of the company's stocks on the counter.
Weige Bakery said that the company still maintains its public offering, actively transforms its business, continues to expand sales channels and develop new businesses. When its performance improves significantly, it will re-apply for listing in the counter in due course.
What to Watch
AI outlook — possibilities, not facts
Weige Bakery will officially terminate its retail sales on October 20.
Very likely · Within days
Open Questions
- What is the specific business direction of the company after its transformation?
- When will the financial criteria for re-registering as a counter be met?
