Shanghung Shen Enters the Board of Directors of Jung Shing Wire (Commercial Times / Huizhen Chen / Tainan)
2013/06/26
TaYa Electric Wire & Cable (1609) Chairman Shanghung Shen entered the Board of Directors of Jung Shing Wire (1617) for the first time. Jung Shing Chairman Dongxian Wang stated that modern industry trends no longer require companies to strike out on their own. In the future, Jung Shing will be competing and cooperating with TaYa to expand their markets. Dongxian Wang pointed out that Jung Shing is now turning losses into profits, and its mainstay magnet wire production volume can grow by double digit percentage points this year.
Taiwan’s two major electric wire and cable manufacturers, TaYa and Jung Shing, faced dramatic reductions in the price of copper, a main ingredient for magnet wires, and business operations suffered considerably. Jung Shing Chairman Dongxian Wang had apologized to shareholders regarding last year’s losses during yesterday’s (25th) shareholder meeting, and stated that the company is turning profits around this year, and will work to increase profits in the future.
Jung Shing earned TWD$ 370 million last year, suffering a net loss of TWD$ 89 million. The shareholder meeting yesterday approved a motion to suspend dividend payments, while the Board of Directors will be completely shuffled. TaYa, which holds 22% of all shares from Jung Shing, became a new member of Jung Shing’s Board of Directors, and is represented by Chairman Shanghung Shen. Since both company has their headquarters located in Tainan, cooperation between the two companies are expected to create many new business opportunities after TaYa enters Jung Shing’s Board of Directors.