Cheng Uei Precision Industry posted its biggest quarterly loss on record after recognizing charges from a troubled offshore wind project undertaken by its renewable energy unit. The electronics manufacturer reported a third-quarter net loss of NT$13.83 billion ($432 million), dragging the parent company into the red for the first time in years.
The writedown stems from Foxwell Energy’s NT$62.89 billion ($1.96 billion) contract with Taiwan Power Company to build the utility’s second offshore wind farm. Foxwell, controlled by Cheng Uei’s subsidiary Shinfox Energy, has logged NT$7.7 billion ($241 million) in losses on the construction project. Foxlink recognized NT$1.1 billion ($34 million) of those losses proportional to its 24.87% stake in Shinfox.
The company’s core business operations remain unaffected by the renewable energy troubles. Management pointed to recent wins including a contract with a major U.S. mobile payment platform and shipments of high-speed AI cables that began in July. The firm also supplies products to U.S. government and defense contractors.
Hu Hui-sen, who departed as Shinfox’s chief executive earlier this week, also resigned from his role at Yungchia Investment Holding, another related entity. The resignations came as shares of Cheng Uei, Yungchia, and Shinfox all hit their daily trading limits following the earnings disclosure.
Cheng Uei has requested additional budget from Taiwan Power to cover cost overruns on the 300-megawatt offshore wind installation, which is scheduled for completion by September 2025. If approved, the company said previously recognized losses could be recovered.
