Tatung Co. shareholders approved a 5% capital reduction and cash return of NT$0.5 ($0.016) per share at an extraordinary meeting on March 17, marking a significant financial restructuring for the Taiwanese electronics manufacturer.
Chairman Wang Kuang-hsiang told shareholders this capital reduction is part of a broader strategy to enhance shareholder value and streamline the company’s financial structure. The move follows management’s efforts to address more than NT$20 billion ($640 million) in special surplus reserves and accumulated losses.
Tatung also plans to distribute a NT$2.95 ($0.094) cash dividend, its first dividend payment in 23 years, Wang said.
When questioned about the company’s decision to sell two properties rather than develop them independently, Wang cited extended timelines of up to eight years for urban renewal projects, noting both properties sold at prices exceeding market expectations.
The chairman highlighted ongoing real estate development projects, including the well-received “Tatung New Era” in Zhonghe and the upcoming “Tatung New Fengcai” urban renewal project in Shuanglian, which received building permits and will begin presales in the first quarter.
Following the capital reduction, Tatung’s capital will decrease from NT$23.395 billion to NT$22.225 billion. The company also recently completed a share buyback program, purchasing 75.5 million shares for NT$3.362 billion between January 8-22.
