Tunghsu Optoelectric is a Chinese manufacturer of electronic components which listed on the Shenzhen Stock Exchange in July 1996. In late 2019, the company defaulted on a RMB2bn debt repayment despite reporting cash-like assets of RMB27bn. The company's FY19 audit report disclosed that the company had befallen a series of unfortunate events, including RMB14.4bn being lost to suppliers via prepayments, RMB3.8bn in undisclosed loan guarantees and RMB7.9bn that it could not withdraw from a related party. Thereafter, financial performance began to deteriorate, with super-normal profits reverting to large losses. There have been a large number of management changes at Tunghsu but it somehow retains the same auditor despite clear deficiencies in past audits. We are not aware of any outstanding investigations. It shares continue to trade but have lost over 90% of their value.
Last updated August 2022.
The information on this page has been compiled from publicly available sources. GMT Research Limited has not verified the information and does not warrant its accuracy. Any claims made or views expressed are not necessarily those of GMT Research Limited.lock03 Read More