|
FocalTech Systems Co., Ltd. (below, FocalTech) resolved after the board of directors’ meeting held today (November 11). Since the net realizable value of some of the Company's products has been lower than the cost of inventory, a loss for market price decline and obsolete and slow-moving inventories will be recognized in the third quarter of 2022 in accordance with the International Accounting Standards(IAS) No. 2 for a total of NT$2,497,481 thousand. The net loss per share after tax in the third quarter of 2022 is NT$13.57, and the accumulated net loss per share after tax in the first three quarters of 2022 is NT$9.53. The net value of FocalTech per share will decrease from about NT$51.72 in the second quarter of 2022 to about NT$40.31 in the third quarter of 2022.
|
FocalTech said that, affected by the off and on of the pandemic, the Russian-Ukrainian war, inflation, and the poor global economic environment, End-Market demand has continued to decline since the first quarter this year, and the imbalance between supply and demand has also created downward pressure on product prices. Under the double impacts of slowing demand and product price reduction, the market price is lower than the cost of inventory. After evaluation with the CPA, FocalTech will recognized a total of NT$2,497,481 thousand loss for market price decline and obsolete and slow-moving inventories in accordance with the International Accounting Standards(IAS) No. 2.
FocalTech believes that the recognition of the loss for market price decline and obsolete and slow-moving inventories, together with the revision of some of the terms of the Long-Term Agreement (LTA) after coordination with customers and suppliers, will help the Company reduce its inventory and improve its financial situation in the future. With the subsequent new matched products being launched one after another, the overall operation will maintain a steady progress and resume the growth trend.
