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Shares of Memory Firm Shang Cheng Swing Wildly Between Limit Up and Down Following Capital Reduction
Electronic Technology · Semiconductors · economic_daily · 2026-09-21
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Memory manufacturer Shang Cheng Technology saw extreme volatility on its first day of trading post-capital reduction, with shares swinging from limit up to limit down.
What Happened
Post-Reduction Volatility: Shang Cheng Technology resumed trading on the 21st following a 56.89% capital reduction aimed at offsetting losses. The stock experienced extreme intraday volatility, surging to a limit-up price of 20.5 TWD before plummeting to a limit-down price of 16.85 TWD, marking a 19.57% swing.
Financial Performance: The company reported a net loss of 16.78 million TWD for the first half of the year, with an EPS of -0.18 TWD. To bolster its working capital, the board has approved a follow-on cash offering of up to 10 million common shares in addition to the completed capital reduction.
Corporate Governance Changes: The company is undergoing leadership transitions, with both a director and an independent director submitting their resignations citing personal career planning. Furthermore, the company appointed a new spokesperson, Fu Yu-ling, as part of an internal restructuring process.
Market Outlook: Investors are currently recalibrating their valuation of the firm following the significant reduction in outstanding shares. Future market attention will remain focused on the success of the upcoming capital raise and the company's ability to stabilize its operations and governance.