Taiwan FSC to look into HTC’s cut in Q2 sales forecast

Want China Times
Date: 2015-06-08
By: CNA

The Financial Supervisory Commission (FSC), the top financial regulator in Taiwan, will launch an investigation into HTC after the smartphone maker unexpectedly cut its sales forecast for the second quarter.

FSC chairman Tseng Ming-chung said Monday that he has asked the Taiwan Stock Exchange to determine whether HTC was aware that it might post a net loss of nearly NT$10 (US$0.32) per share in the current quarter when the company held its annual shareholders meeting on June 2.

Companies issue forecasts voluntarily and HTC’s release of a new forecast on June 5 did not pose any procedural problems, Tseng said on the sidelines of a meeting of the Legislature’s Finance Committee.

But the Taiwan Stock Exchange will still check the work sheets reported by HTC to see why the company did not reveal its reduced sales forecast to its shareholders on June 2, Tseng said.

The FSC chief noted that HTC remains “a highly respectable brand” and said he still has high regard for the company’s brand value.