Political rumors caused the stock price to plummet, Innolux wrote to shareholders: no orders, no technology transfer

Taiwan panel maker Innolux has recently been questioned about the incident in which its shipment orders to Huawei were changed to Shenzhen Super Group due to the fact that Foxconn Group Chairman Terry Gou plans to run for Taiwan's leader. Innolux is scheduled to hold a regular shareholders' meeting on June 20. However, on the 23rd, the company issued a rare "Letter to 350,000 Innolux Shareholders", emphasizing that there will be no transfer of orders to other panel manufacturers and automotive businesses, and no technology transfer.

Innolux said that due to the recent false reports by the media and the distorted remarks of some politicians with ulterior motives, the share price of Innolux Optoelectronics has fallen irrationally and the rights of shareholders have been damaged. The company issued a clarification statement to 350,000 Innolux shareholders in a rare solemn tone and signed by Chairman Hong Jinyang.

First, regarding the business side, Hong Jinyang pointed out that Innolux has never transferred orders to other panel manufacturers, let alone transferred the automotive business to mainland panel manufacturers. He also emphasized that the company is based on market conditions and customer needs, and takes the company's revenue, profit and shareholder equity as the most important factors in evaluating all business options. The management team independently formulates the company's business strategy, and there is absolutely no hollowing out or breach of trust as reported by the media.

Secondly, Innolux has never transferred its technology to the mainland. Innolux said that the company discussed and exchanged opinions on the specifications of the transaction products based on the transaction relationship with specific customers/suppliers. This is a common practice in the technology industry and is definitely not a technology outflow.

Innolux believes that a certain candidate's claim that the company was involved in transferring Taiwanese technology to the mainland is a malicious distortion and highlights his ignorance of how the industry works.

Hong Jinyang also said, "Faced with the headwinds of panel market, we face it bravely," and called on the 350,000 shareholders who support Innolux to have confidence in the company. He is confident that Innolux is the world's number one in panel products such as medical, aerospace and industrial control, and has a global voice in many key technologies. It is a company with technical cultivation and hard work. "Please (shareholders) do not panic and worry because of the unbalanced stock price order. Innolux will not disappear. The company's management team vowed to make Innolux Optoelectronics bigger and more stable within three years, and we will definitely do it."

Innolux reluctantly refuted the fact that certain media and politicians hyped up the news with false content. It also questioned whether a few people abused freedom of speech in order to increase their own popularity in the election, while ignoring the company's efforts, the interests of the majority of investors and the working rights of the company's employees?

Finally, Innolux solemnly calls on certain media and politicians to stop doing anything that harms corporate assets, and not to break the law. In order to protect the rights and interests of all Innolux shareholders and employees, if certain media and politicians continue to hype up false news, the company will ask the relevant competent authorities to investigate whether such behavior involves illegal situations such as stock price manipulation under the Securities and Exchange Act, and pursue legal responsibility of the relevant persons.