Nemesis11
Power Member
Abit stock downgraded to requiring full delivery
Stock of the second-tier motherboard maker Abit Computer will be downgraded on the Taiwan Stock Exchange (TSE) to requiring full delivery, starting tomorrow, due to its questionable financial reports over the past three years, the TSE said yesterday.
Over 70% of Abit’s total import and export business in the first half of this year were conducted through seven Hong Kong-based companies, all of which were located at the same address, with a registered capital of just HK$2 each, the TSE said.
In addition, a total NT$4.1 billion-worth of Abit’s import and export transactions in the January-June period was conducted without shipping documents, the TSE added.
The TSE also suspects that management at Abit might have embezzled company funds through the issuance of a euro convertible bond (ECB). According to the TSE, Abit invested US$40 million in an offshore company with a book value of only US$3.3 million. The owner of that offshore company then bought a portion of the US$75 million ECB issued by Abit last year.
Abit also converted NT$2.8 billion in accounts receivable from two offshore companies – Apex Venture and Top Beyond – into equity investments early this year, and the two firms then created more than US$100 million in business transactions for Abit in the first half, the TSE noted.
Abit recorded revenues of NT$18.4 billion (about US$558 million) in the first 11 months of this year, up 77% on year, according to data released by the company.
When contacted, Abit declined to comment on the news, saying that Abit is continuing to do business as usual. A spokesperson for Abit stated that the company would release an official statement later this week.
http://www.digitimes.com/mobos/a20041215B2074.html
Back in the first week of November Mike Magee's theINQUIRER.net ran a story reporting that one of HEXUS' favourite Taiwanese mainboard manufacturers ABIT, was denying allegations of accounting irregularities (See 'Abit shares crash amidst financial irregularity allegations' )
At the time of our writing it's about 04:30 in the morning in Taipei, so the very fullest details are difficult to establish, but we've just heard that the Taiwanese authorities have come out and confirmed that the owner of ABIT, or perhaps ABIT itself, is under investigation for financial irregularities.
These allegations of financial irregularities seem to relate to the Share dealings of the owners of the company.
Apparently ABIT may still be permitted to trade its Shares on Taiex the Taiwanese Stock Exchange, but this seems to be only on a cash basis. Apparently some 50% of ABIT's capital is in its Shares.
If these allegations are proved to be true, then unsurprisingly the 'owner' of ABIT might be in serious trouble, and it's believed that the 'owner' of ABIT may have been asked to surrender his passport to the Taiwanese authorities pending the ongoing investigations.
Presently we're not sure if the person described to us as the 'owner' is Mr. Redmond Lu, who we believe to be the Chairman of ABIT worldwide, but other sources suggest that Mr. Lu may have been served with a restriction to not leave Taiwan.
As it's out of office hours here in the UK too we've been unable to raise a comment from ABIT UK, but we'll do so tomorrow.
This could all be sad news for PC technology enthusiasts and gamers everywhere, as under the hand of ABIT Taiwan's Marketing Director Scott Thirwell and ably supported by Ms. Coco Lee, ABIT have established increasingly higher visibility in those influential markets.
And simply put, Scott's just a real nice guy to spend time with.
Here at HEXUS we really hope that ABIT can ride this out, but clearly the signs aren't good... as this page at Yahoo finance indicates.
More as we get it.
http://www.hexus.net/#ABIT
http://finance.yahoo.com/q/bc?s=2407.TW&t=3m&l=on&z=m&q=l&c=
Desde dia 12 de Novembro que as acções estão em queda.
As noticias são de hoje e parecem indicar que há grandes problemas.
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