ABIT under investigation for financial irregularities

[Tates]

....At the time of our writing it's about 04:30 in the morning in Taipei, so the very fullest details are difficult to establish, but we've just heard that the Taiwanese authorities have come out and confirmed that the owner of ABIT, or perhaps ABIT itself, is under investigation for financial irregularities....

Hexus.net report

 

[Oakenfold]

Thanks for the post Bob.
Not good at all.
🙁

 

[milesl]

That stinks.Hopefully all is well and a great motherboard manufacturer will continue on making awsome boards.

 

[Hyperlite]

uh oh...i REALLY hope there is no merit behind this...

 

[MDE]

I hope their motherboards' quality and warranty support aren't affected by this, I'm looking at an Abit board for my next upgrade and have two still under warranty.

 

[MrCodeDude]

Oh no 🙁

 

[Mik3y]

that really sux. abit, along with asus and dfi, are my favorite boardmakers. it would suck to see one of them get screwed over.

 

[ponyo]

Originally posted by: Mik3y
that really sux. abit, along with asus and dfi, are my favorite boardmakers. it would suck to see one of them get screwed over.

The ones who got screwed over are the employees and shareholders. Abit stock is taking a beating and those two groups are suffering the most. I've been in their shoes couple of times and it's not fun. Couple of the big ones nearly wiped me out financially. Who knows how many lives these theives have ruined! :|

 

[klah]

http://www.techspot.com/story16545.html

-Over 70% of Abit?s total import and export business in the first half of this year were conducted through seven Hong Kong-based companies, all of which were located at the same address, with a registered capital of just HK$2 each.

 

[Elcs]

Originally posted by: klah
http://www.techspot.com/story16545.html

-Over 70% of Abit?s total import and export business in the first half of this year were conducted through seven Hong Kong-based companies, all of which were located at the same address, with a registered capital of just HK$2 each.

Sad if its true. Even sadder if ABIT die completely.

Even if its untrue, theres untold damage done to their reputation as the stock market will reflect.

 

[klah]

This story states something slightly different.

http://www.taipeitimes.com/New.../2004/12/16/2003215359

The company was found to have closed huge electronic-parts deals with seven Hong Kong-based companies -- although those firms were all registered at the same address and only had working capital of HK$200 million (US$12.8 million) each.

The exchange suspects Abit may have faked deals to boost its sales and that the Hong Kong associates may be subsidiaries from the same group, or just paper companies.

 

[Tates]

Suppliers worried about Abit?s financial situation

Emma Wang, Taipei; Steve Shen, DigiTimes.com [Tuesday 21 December 2004]


Suppliers of core-logic chipsets and printed circuit boards (PCBs) to Abit Computer are worried about their accounts receivable at the motherboard maker, after the company chairman, Remond Lu, said that Abit?s correspondent banks may freeze its assets, market sources said.

The banks took action after the Taiwan Stock Exchange (TSE) demanded Abit provide more details of its financial situation and overseas business transactions, while downgrading it stock to requiring full delivery, said the sources.

Meanwhile, Abit?s sales agents in overseas markets are also concerned about the supply of motherboards from Abit and have started seeking new partnerships with other suppliers, the sources noted.

In an effort to solicit those distributors planning to move away from Abit?s products, some Taiwan motherboard makers have stepped up their marketing efforts in regions such as China, France and northern Europe, where Abit?s motherboard shipments have been the strongest, the sources added.

Sources at a first-tier Taiwan motherboard maker stated that the impact of Abit's financial problems on its distribution channels in China may not begin to materialize for another one to two months because Abit?s subsidiary in China may still have enough capital to finance its operations for a while.

However, Abit?s financial situation may continue to deteriorate, which could weigh on other second-tier motherboard makers who are also financially weak, said the market sources.

Abit was unavailable for comment.

Digitimes

Not looking good 🙁

 

[boyRacer]

That means that Fatal1ty board will cost a fortune in a few years. 🙂