Taiwan’s Ennostar has announced that it is moving ahead with the strategic sale of some assets as its board of directors approves measures for the company to facilitate a reorganization of its finance. As a result, it is selling its Zhunan plant for NT$670 million ($21 million) with a small profit from the sale.
Ennostar has low utilization rates at existing blue LED at its Jingdian and been actively reorganization resources in Taiwan, and optimizing the use of plant space. The company initially planned to build a new MicroLED production facility in Zhunan and had pursued a capital raise in 2022 but now intends to use the space freed up by the optimization of existing resources at its subsidiary Epistar.
Additionally, due to the global economic downturn and weak consumer demand, the capacity utilization rate of Epistar’s blue LED epitaxial wafer business has been low. So, there are a lot of swirling issues surrounding Ennostar with write downs of assets, and a seemingly negative value for the company’s capitalization to its assets. The total impact on Ennostar Holdings’ consolidated net loss for the period is going to be NT$3.45 billion ($108 million).