News & Event

2020/7/14

The Board of Directors of Silitech resolved the private placement of cash to increase capital and by-election of two directors, therefore will hold a special shareholders' meeting on August 31

(2020/07/14) Silitech Technology Corp. (TWSE: 3311) Board of Directors resolved the private placement of cash to issue ordinary shares for long-term strategy development and competitiveness enhancement. Silitech has a paid-in share capital of NT$600 million, the maximum of this private placement case is not more than 9,000 thousand shares. It will be issued one or two times within one year from the date of the resolution of the shareholders' meeting. If all the shares are issued, it is expected that the paid-in capital will increase to NT$690 million. Silitech will hold an interim meeting of shareholders on August 31, 2020 for getting approval of this private placement case. At the same time, the interim meeting of shareholders will elect by-election of two directors.
 
The Company manufactures feature phones keypad and automobile parts, due to the popularity of touch-controlled smartphones, demand for mobile phone keypads has been on a gradual decline. In response, the Company has turned to cross-industry applications in two categories: Mechanical Integration and Automotive Components. In Mechanical Integration: the Company has continuously developed new cross-industry applications such as the wearable industry and smart watch strap modules, smart lock modules, netcom components and optical mechanism modules and other fields. In Automotive Components: in addition to solidly profitable automotive interior components, the Company also developed new technologies for interior mechanical components.
 
After a capital reduction to improve the capital structure, and capacity downsizing in mainland China plant last year, and this year, due to the COVID-19 pandemic has caused a significant decline in orders in this year, and the factory rental increases too high, the expected operating performance cannot be achieved, it was decided its china plant Xurong to reduce its production of its factory gradually to stop loss, and to reallocate resources and expand investment in new technology development and capacity expansion in the Taiwan and Malaysia plants, improve the operating physique, Silitech already has the conditions for stable and profitable small but beautiful. In the long term, the company is aimed at expanding the scale of operations and increasing the volume of business development.

In order to grasp the industry trends and accelerate the momentum of transformation, Silitech plans to invite investors who can help the Company to expand the scale of operations and provide future development benefits as priority candidates. The applicant in this private placement case is tentatively Walsin Technology Corporation (hereinafter referred to as " Walsin "). Walsin holds 9,000 thousand shares and 15% of Silitech’s paid-in capital. The actual issuance conditions will be based on the relevant regulations of private placement and the resolutions of the shareholders' meeting, and the resolution by the board of directors meeting both of the Company and Walsin which will be convinced. The funds introduced in this private placement case, in addition to meeting the needs of future strategic cooperation and development, expanding channels, and enriching working capital, furthermore, through the investor's experience, technology and channels, the investor will help Silitech to upgrade in 5G, automotive and other field competitive advantages in order to expand the market and create long-term shareholder value.
 
 
Spokesperson: James Huang, President     TEL: 886-2-2623-2666
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