Innolux has nominated four candidates for polarizer maker Cheng Mei Materials Technology’s board of directors election, as it seeks to stabilize the management of the company’s upstream supply chain, according to a company announcement.
Cheng Mei is scheduled to hold an extraordinary shareholders meeting on April 26 to elect a new board of directors as part of its reorganization following a recent management dispute among its top-level executives.
Innolux holds a 6.72% stake in Cheng Mei and has been absent from the latter’s board for five years. Innolux nominated vice president Jeffrey Yang and investor relations department director Liu Chao-shien for the election. It also nominated GIO Optoelectronics president Pauline Liu and Wellstech Optical chairman Hsu Li-yen for independent directorships.
Innolux’s move comes after Cheng Mei reported net loss of NT$578.33 million (US18.76 million) in 2018, narrowing from NT$1.22 billion a year earlier. EPS for 2018 came to negative NT$0.87, improving from a net loss per share of NT$2.18 a year ago.
Meanwhile, Cheng Mei’s creditor banks have frozen its credit lines and the company’s accountant has upheld a “reserved” attitude toward its financial report for 2018, according to industry sources, who added that a lack of endorsement from the accountant could downgrade Cheng Mei’s status as to a full-cash delivery stock.―Digitimes