Taiwanese copper and electronic cable manufacturer Walsin Lihwa (Walsin) board has decided to sell its LED subsidiary Xian Walsin Technology in China’s assets for RMB 166 million (US $26.72 million) to Shangxi Electronic Information Group, marking Walsin’s exit from the LED industry, according to a report from China Times.
The company board announced it will be selling the Xian LED subsidiary’s land, factories, and equipment to Shangxi Electronic Information Group. Walsin estimates it will be listing a loss of RMB 4.37 million from the transaction.
Established in April 2006, Xian Walsin Technology is a separate entity that is focused on LED R&D, production and market promotion. However, intense competition in the LED market has made it a relatively unprofitable market for most manufacturers.
Walsin Lihwa Chairman You-lun Chiao is reorganizing the company’s business strategies to focus on electric and copper cables, stainless steel and real estate industries in China. The company will continue to spin-off non-profitable or peripheral businesses.
The group’s refocus of company strategies seems to becoming effective, Walsin Lihwa has turned around losses during second quarter of 2015, with revenues during first quarter exceeding NT $50 million (US $1.59 million). The group’s consolidated revenue reached NT $728 million, and Earnings Before Tax (EBT) was NT $1.12 billion, while its net profits reached NT $743 million. The company’s EPS also climbed up from NT $0.19 in 2014 to NT $0.20 this year.
Gross profits reached NT $2.57 billion, and operating income peaked to NT $784 million. Net profits this quarter was NT $514 million, and EPS was up to NT $0.14.
