Revived Hua Hong NEC renews listing plan
The NEC Corp's semiconductor joint venture in Shanghai plans to list in Hong Kong next year following a turnaround in business and a new company strategy.
Hua Hong NEC, founded in 1997 as China's first 200-millimetre water plant, has been seeking a listing but lost money in 2001 and 2002.
'We made a profit in 1997, but then suffered losses because of the historic downturn in the semiconductor market,' general manager Fang Peng said in Shanghai yesterday. 'This year, the market has recovered and next year, our orders are better than expected.
'Output next year will increase by 30 per cent over 2003. We have changed our market position and changed from producing drams to producing for other companies.
'We are preparing to list in Hong Kong next year.'
Asked about the regulation that companies applying to list must have at least three consecutive years of profits, he said that he was not a financial specialist but his company would follow the regulations of the stock exchange.
Hua Hong has a monthly capacity of 20,000 to 40,000 units and earned US$155.5 million from exports last year, an increase of 60 per cent over 2001.
Last month, the company announced a 71 per cent rise in capital to US$1.2 billion, with an equity injection from US firm Jazz Semiconductor, which took an 11.32 per cent stake. The other shares are held by state-owned Hua Hong Group, with 63.34 per cent, Shanghai Hua Hong International 5.66 per cent, and NEC 19.68 per cent.