Qiao Xin Technology Announces 25% Cash Capital Reduction, Returning NT$2.5 Per Share

Qiao Xin Technology (1563), a manufacturer of automotive wheel rims, has announced a significant capital reduction plan. The company will reduce its capital by 25%, returning NT$2.5 in cash for each share held by its shareholders. This move is intended to optimize the company's capital structure and improve financial metrics.

The capital reduction will eliminate 56,402,035 shares, decreasing the registered capital by NT$564 million. Following the reduction, the company's paid-in capital will be lowered from NT$2.256 billion to NT$1.692 billion. The number of outstanding shares will also be adjusted to 162 million, excluding treasury shares. The last day for trading old shares is set for August 26, with trading suspended from August 27 to September 4. New shares are scheduled to begin trading on September 7.

Qiao Xin stated that this cash capital reduction is primarily driven by overall financial planning. With ample operating funds and a stable cash flow, the company aims to effectively utilize idle capital. This strategy is expected to enhance shareholder equity return (ROE) and earnings per share (EPS), thereby maximizing long-term investment value for shareholders.

Looking ahead to 2026, Qiao Xin maintains a cautiously optimistic outlook. The company anticipates a steady recovery in demand for customized forged aluminum wheel rims from European and American supercar and luxury car brands. Furthermore, the increasing market penetration of its "RESAICAL" recycled aluminum material and the stable shipment growth of its "semiconductor front-end equipment components" business are expected to contribute significantly in the latter half of 2026. Qiao Xin is confident that these dual growth engines will enable the company to challenge for a new historical revenue high in 2026.

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The cash capital reduction plan is primarily based on overall financial planning considerations. Under the premise of sufficient operating funds and stable cash flow, returning shareholder equity through cash capital reduction can not only properly utilize idle funds but also help optimize the capital structure and further enhance shareholder return on equity (ROE) and earnings per share, continuously creating the greatest long-term investment value for shareholders.