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Chung Yang Optical Adopts Asset-Light Strategy, Plans Sale of HQ and Land
Electronic Technology · Electronic Components · economic_daily · 2026-09-03
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Chung Yang Optical aims to improve its financial structure by selling its Taichung headquarters and Changhua land, shifting toward an asset-light business model.
What Happened
Asset Optimization Strategy: Chung Yang Optical has announced plans to sell its Taichung headquarters and land in Changhua as part of a new asset-light strategy. The company expects these divestitures to improve its financial structure and reduce its debt ratio, thereby enhancing overall operational efficiency.
Production Realignment: In recent years, the company has been shifting its manufacturing footprint to Dongguan, China, and Thailand to reduce costs and mitigate geopolitical risks. By the end of this year, the company expects to reduce its Taiwan-based workforce to under 100 employees, focusing its local operations primarily on R&D and sales.
Ownership Structure: As a Foxconn-affiliated company, Chung Yang Optical maintains strong ties with the group, which holds a 15% stake. Following this year's board election, thermal module manufacturer Auras Technology also gained a seat on the board after participating in a private placement, signaling potential shifts in strategic partnerships.
Financial Overview: As of the first half of the year, the company's debt-to-asset ratio stood at approximately 40%. The assets slated for sale include the Taichung headquarters and a 2,366-ping plot in Changhua purchased five years ago for NT$388 million, which should provide a significant boost to the company's balance sheet upon completion.