讀後心得

Huasheng Electronics, established for 41 years, has been ordered by the OTC Center to stop trading starting tomorrow due to failure to submit financial reports as required. The stock price dropped to the limit of 3.96 yuan as soon as it opened, with a large number of sell orders remaining unexecuted. If the financial reports are not submitted within six months, it will face delisting risk, and the stocks of 37,628 shareholders may lose their value. Since 1984, Huasheng has focused on the production of computer cables and went public in 2005, achieving a global market share of 25%. The company has factories in both China and Vietnam but is currently facing penalties for failing to report the financial statements for the fiscal year 2024.

Hua Sheng, a wire connection manufacturer with a history of 41 years, was required by the OTC Market Center to suspend stock trading starting from April 7 due to its failure to submit its financial report within the stipulated deadline. After the market opened on the 2nd, the stock price immediately hit the limit down, dropping to 3.96 NT dollars, with over 4,448 shares remaining unsold. According to regulations, if Hua Sheng does not submit the financial report within six months, it may face the risk of being delisted, at which point the stocks of 37,628 shareholders will lose their value.

Hua Sheng Electronics was established in 1984, starting with the production of wires for computers. It was listed in Taiwan in 2005 and has developed steadily over the years, reaching a global market share of one-quarter in 2009, with a capital amount of up to 2.5 billion NT dollars. Its main clients include well-known technology companies such as Wistron and Compal, with products mainly consisting of coaxial cables, electronic wires, and antennas. In the revenue structure for the year 2023, the electronic connection wire group accounted for as much as 97%, with the remaining 3% being other products.

The scale of Hua Sheng should not be underestimated, as it has factories in Guangdong, Jiangsu, Shandong, Sichuan, and Henan in China, and has also established a production base in Hanoi, Vietnam. However, the OTC Market Center stated that after a formal review, it found that Hua Sheng failed to submit the financial report for the year 2024 as required, thus announcing the trading suspension date as April 7.