Acorp facing financial woes

Taiwan’s components sector is reeling from forgery accusations surrounding motherboard manufacturer Acorp, and follows on the heels of similar reports of malpractice at fellow components vendor Abit.

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By  Alex Malouf Published  January 22, 2005

Taiwan’s components sector is reeling from forgery accusations surrounding motherboard manufacturer Acorp, and follows on the heels of similar reports of malpractice at fellow components vendor Abit. According to Taiwan’s DigiTimes, news of financial irregularities emerged after Taiwan’s Over-the-Counter (OTC) Securities Exchange demanded details of Acorp’s transactions after market revelations that company chairman, Tseng Wen-hua, had fled to China with US$8.2m worth of funds embezzled from the firm. Responding to both market rumours and the OTC’s request, Tseng Wen-hua said that Acorp had been cheated out of US$8m by Chinese manufacturing firm Zexsa in a distribution deal. Last week additional details emerged about the Zexsa-Acorp agreement, revealing that Acorp had been stung by five companies for the US$8m, and not just Zexsa. The losses included accounts receivable and advance payments for the purchase of raw materials, according to the documents. However, according to DigiTimes, the OTC suspects that Acorp might have forged the trade documents in order to pump up its revenues. It seems highly suspect that the company was cheated by the five companies, and all around the same period, said sources at the OTC. Acorp’s accounting firm has also declined to endorse the company’s financial reports for lack of sufficient trade documents. In tune with other motherboard manufacturers, Acorp has shifted its focus away from the components space and wafer thin profits to developing higher margin products such as MP3 players and multimedia centres. But with motherboard shipments declining, Acorp recorded pre-tax losses of US$1.6 million in the first three quarters of last year, according to data released by the company.

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