Tai Jeng-wu Will Step Down After Turning Around Sharp

7 Dec

Tai Jeng-wu, vice president of Hong Hai Group, said on Dec. 5 that he will relinquish his concurrent position as the presidency of Sharp after turning around the company and relisting its shares on the first section of Tokyo Stock Exchange, for large-cap shares, according to Nikkei Shimbun. 

Since taking over the helm of the beleaguered company in Aug. this year, Tai has been overhauling its operation, in a bid to rid it of its dire financial straits.

Dragged by lackluster performance of its mainstay LCD panel business, the company was mired in staggering loss of 255.9 billion yen (NT$71.85 billion) in fiscal 2015, according to its budget settlement. With its debt already exceeding paid-in capital, the company witnessed its shares being downgraded to the second section of TSE, for small-cap shares, on Aug. 1, 2016, as a prelude for share delisting, should it fail to improve its finance during a one-year observation period ending at the end of March, 2017.

A Sharp spokesman pointed out that the company’s goal is to return to the first-section market in 2018. Despite the strong financial support of Hong Hai, Sharp is still expected to incur 41.8 billion yen (NT$11.736 billion) of net loss in fiscal 2016, the third straight year in the red.

Analysts predict that Sharp will turn profitable in fiscal 2017, starting April 2017. A study of Reuters shows that the company will rake in 7.5 billion yen (NT$2.105 billion) of profit in fiscal 2017, citing average of forecasts made by nine analysts.

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