Net worth showed negative figures in the first three quarters. Taiyang: maintain a going-concern attitude

Taiyang held a press conference today. In the picture is Taiyang Chairman Xie Qijia. (Extracted from the stock exchange website)

[Reporter Wang Yihong/Report from Taipei] Netcom stock Taiyang Technology (2314) held a major press conference today. Chairman Xie Qijia pointed out that the first three quarter quarterly reports showed negative numbers, but it is currently shipping and selling normally, inventory is flowing, and it maintains a good relationship with banks. It has normal principal repayment, and private placement funds will come in at the end of the year, and it will maintain a going-concern attitude.

Xie Qijia said that in the consolidated financial statements for the first three quarters, the financial report approved by the accountant showed that the company's net worth was negative 244 million yuan, and the debt ratio and current ratio were 109% and 65% respectively. In accordance with accounting standards and prudence principles, a sound operating plan related to continued operations was proposed in the consolidated financial report, and the accountant issued an audit report that "there is significant uncertainty in the ability to continue operating."

Xie Qijia emphasized that we are actively contacting strategic partners to improve our financial health and propose a sound operating plan related to continued operations to prioritize the rights and interests of shareholders and stakeholders.

Xie Qijia said that the financial structure faces major challenges in the short term due to internal factors, including the development of RAN (Open Radio Access Network) that is not as expected, delays in U.S. subsidy projects and Dish NetNetwork (Dish NetNetwork) orders, resulting in related infrastructure and product promotion not being as expected, and the inability to reduce operating costs of the U.S. and Danish subsidiaries.

At the same time, low-orbit satellites and emerging businesses were not as good as expected. The main customer's high-orbit satellites failed to launch, and the actual proportion of low-orbit satellites was limited. The low-orbit satellites that were originally optimistic about the market failed to contribute in time. In addition, the Sino-US trade war has caused the operations of the Wuxi subsidiary to continue to shrink.

Xie Qijia explained that Taiyang Technology has been affected by the impact of the overall operating environment and changes in capital market dispatch, as well as the rights and interests of stakeholders. It has begun organizational restructuring, focusing on high value-added products, and maintaining close communication with major customers, financial institutions, suppliers and partners to reduce the impact of external factors on operations. At the same time, in order to ensure sound operations and protect the rights and interests of employees, shareholders and stakeholders, the management team has simultaneously launched four key strategic actions to achieve financial improvement goals through precise management.

The four major actions are: 1. Introducing strategic investments, actively handling private placements and introducing strategic partners to enrich working capital, repay loans and improve the capital structure. 2. Asset activation and disposal, dispose of its subsidiaries, evaluate the sale of its assets and part of the reinvested company equity, activate assets and adjust investment layout, accelerate cash flow back to increase the company's working capital, so as to reduce capital occupation and increase available capital sources. 3. Strive to activate funds and actively seek support from existing financial institutions to improve the flexibility of fund allocation. 4. Cost control and bottle management: Each group's subsidiaries have strictly controlled capital expenditures and management costs to improve overall operating efficiency and reduce various costs and operating expenses.

Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel