Wintek Takes Steps to Improve Finances

Taiwanese touch panel manufacturer Wintek says it has secured an extension for the repayment of bank loans and is also looking for a new injection of capital to finance its business. In a filing to the Taiwan Stock Exchange, the company said that it plans to cut costs by streamlining operations and boosting manufacturing efficency, as well as revitalising some of its under-used assets to improve its cash holdings. There were unconfirmed reports that Wintek was considering halting production at one of its facilities in the city of Yangmei

In the first eight months of the year, Wintek repaid NT$1.2 billion ($39.5 million) in long-term debt and cut its short-term debt by almost NT$4 billion ($131.8 million). The company currently has NT$5 billion ($164.8 million) in cash and cash equivalents but has to re-pay NT$17.8 billion ($586.9 million) in short-term and NT$9.5 billion ($313.2 million) in long-term debt within one year. Over the past three years, Wintek has lost NT$15 billion ($494.5 million) and in the first half of this year has already lost NT$3.4 billion ($112.1 million).