Property move digs profit hole for Akai

A SUBSIDIARY of Hong Kong-listed Semi-Tech (Global), Akai Electric of Japan, will see its net loss widening sharply for the period from last November to June this year, due to a plan to sell its head office building in Tokyo being dropped.

Meanwhile, as part of the corporate restructuring, Akai's president Koji Taneda has resigned with company chairman and representative director James Ting filling his place.

The forecast of the business result for Akai for the seven-month period from November 21 to June 30 this year is to be revised from a net loss of 100 million yen (about HK$8.8 million) to 3.5 billion yen, while ordinary losses would be widened from 3.4 billion yen to four billion yen. Sales were revised downward from 20.6 billion yen to 15.5 billion yen.

The net loss would have been kept at 100 million yen had Akai gone ahead with its plan to sell its head office building, which would generate an exceptional gain of 3.3 billion yen.

Akai has now decided to keep the building for its corporate headquarters, worldwide marketing and certain high-value engineering activities.

The management reshuffle marked the end of a transitional period after Semi-Tech's acquisition of Akai in February.