Honyi Requests Suspension of Share Trading on OTC Market

Taipei, Oct. 25, 2010 (CENS)--Honyi Precision Industry, an electronic-parts and mold maker, has applied to the regulator for suspending the trading of its shares on the GreTai Securities Market (over-the-counter market), due to its inability to file the third-quarter business report on schedule.

The case is the latest addition of a flurry of incidents plaguing the company recently, including the replacement of chairman, termination of the commission of Deloitte Taiwan for the CPA (certified public accountant) service, and charge of betrayal of trust and embezzlement on the part of the management filed by a supervisor.

The suspension of the trading of the company's shares is expected to take effect on November 3, after the GreTai Securities Market confirms its failure to render the quarterly report by the deadline on Oct. 31, Sunday, and reports the case to Securities & Futures Bureau, under the Financial Supervisory Commission (FSC).

The company blamed its trouble with compiling the quarterly report to the failure of its affiliate Circle City Technology, an LED (light-emitting diode) lighting maker, to render its financial statement. Chen Chun-hung, a supervisor of Honyi, has questioned the propriety of the company in investing NT$48 million in Circle City Technology, since it didn't obtain the CPA-certified financial statement of the latter in advance.

Honyi boasts paid-in capital of NT$1 billion. It was founded by Chen Wu-chang, who resigned the chairmanship last year and was succeeded by Chang Kui-min, then president.