Abit stock downgraded to requiring full delivery

**MIG-31** · Dec 15, 2004, 04:02 PM

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
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Source/Tables: digitimes

Dec 15, 2004, 04:02 PM	#1
MIG-31 HardwareHeaven News Mod Join Date: Dec 2002 Location: Nottingham,UK Posts: 56,842 Rep Power: 471 System Specs	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 ________________ Source/Tables: digitimes __________________ Please Post Your News Submissions Here