Zhong Ding's US Subsidiary Faces 19.6 Billion Loss, Dividend Policy Changed Urgently!
Zhong Ding (9933)'s US subsidiary CTCIA has encountered a massive loss, with 19.6 billion in receivables deemed uncollectible, resulting in a four-day consecutive stock price drop. In response to this crisis, the board of directors has decided to modify the dividend policy, changing the originally proposed cash dividend of NT$2 per share to NT$1 in stock and NT$1 in cash. Additionally, the board has approved a private placement fundraising not exceeding 9 million shares, aiming to attract direct suppliers, customers, and strategic investors to strengthen its financial structure.
Despite Zhong Ding expressing optimism about the restructuring of its parent company GCEH and an expected gradual repayment of debts, it has failed to gain market trust, with the stock closing today at NT$25.65 and over 40,000 pending sell orders remaining unfilled.
