LITE-ON Technology Reports the Asset Impairment loss of NT$ 6.98 Billion, No impact on working capital, dividend policy and employees' remuneration

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Press Releases

2017/10/03

LITE-ON Technology (2301-tw) announced today its Board has approved to recognize the total asset impairment loss of NT$ 6.98 billion in Mobile Mechanic Business Group, of which NT$5.17 billion on goodwill impairment and NT$1.81 billion on machinery and equipment impairment, based on the impairment test by the professional appraisal organization, as a result, the estimated impact of asset impairment loss is equivalent to NT$3 EPS in the third quarter of 2017. The impairment of machinery & equipment and goodwill follows IAS No. 36 bulletin’s treatment and there will be no impact on its working capital, owing to no cash outflow, neither on employees’ remuneration.

In the first half of 2017, LITE-ON’s capital reached NT$ 23.5 billion, with ample net cash of NT$31.1 billion, as well as the share premium of additional paid in capital of NT$ 26.9 billion. As a result, it is expected to maintain a stable and generous payout policy in 2018.

“The impaired assets of machinery, equipment and goodwill were originally from the acquisition of Perlos, a Finish mobile phone casing manufacturer in 2007. The value of goodwill and capacity utilization went lower than planned, due to changes in operating environment and market. After it, the depreciation expenses of this Business Group is expected to reduce by NT$ 500 million next year. Looking ahead, LITE-ON Mobile Mechanic will continue optimizing its operating efficiency and integration of product strategy for profitability. LITE-ON continues to strengthen operational competitiveness to further improve the value of shareholders, customers and employees in the long run”, said Warren Chen, LITE-ON Vice Chairman and Group CEO.

Press Contact:

Julia Wang, Sr. Director of IR/PR +886-2-8798-2888 LITEONTech.IR@liteon.com