Vigor Kobo shares plunge on delisting announcement
RESTRUCTURING: The bakery firm has posted losses since 2020, affected by a decline in Chinese tourists and the COVID-19 pandemic, but is determined to make a comeback
By Chen Cheng-hui / Staff reporter
Shares of Vigor Kobo (維格餅家), a bakery specializing in pineapple cakes and traditional pastries, yesterday plunged 53 percent after announcing that it would delist from the Emerging Stock Board, as the company restructures its business and pursues optimal resource allocation.
At one point, the stock fell to NT$4.88, a record low since its debut on the preparatory board for the nation’s two main bourses in 2012. It closed at NT$4.98, compared with NT$10.64 a day earlier.
Vigor Kobo said in a statement on Wednesday that it decided to delist from the market as its business has largely been impacted by Taiwan’s tourism policy, especially for Chinese tourists, and the overall market environment.
Vigor Kobo’s factory in New Taipei City’s Wugu District is pictured on June 21, 2014.
Photo: Chen Wei-chung, Taipei Times
Established in 2003, the company once thrived on an influx of Chinese tourists, with its factory in New Taipei City’s Wugu District (五股) a must-see destination for Chinese tourists visiting Taiwan.
Chinese shareholder Fosun Group (復星集團) acquired a 20 percent stake in the company in 2012, making it the first Chinese firm to receive approval to invest in the nation’s food sector as Vigor Kobo sought to expand its footprint in China.
That boosted Vigor Kobo’s revenue to NT$1.24 billion (US$38.9 million) and earnings per share of NT$7.9 in 2013 and further to NT$1.34 billion and NT$8 respectively in 2014. Its stock soared as high as NT$152 during its heyday.
However, a sharp drop in Chinese visitors to Taiwan due to government policy and the impact of the COVID-19 pandemic caused the company to suffer losses for six consecutive years since 2020, while its market capitalization and trading volume on the Emerging Stock Board declined over the period.
Even with the reopening of Taiwan’s borders and the return of foreign tourists following the pandemic, Vigor Kobo’s operations have not recovered to their previous peak.
Last year, the company reported revenue of NT$336 million and net losses of NT$49.21 million, or losses per share of NT$2.05. In the first half of this year, revenue was nearly NT$154 million, and its net loss came in at NT$24.93 million or losses per share of NT$1.04, company data showed.
Vigor Kobo will focus on transforming its operations, expanding its sales channels and developing new businesses, the statement said.
The company would reapply for listing on the Emerging Stock Board once its performance improves, it added.
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