Wah Hong2 Apr 2019 14:33
I’m a little concerned about what the results may throw up next week. I’ve had a growing concern that there is still not an identifiable Nanoco CFQD display on the market – and so display income will be ‘kicked down the road’ again. This statement in Wah Hong’s Q4 2018 results as also got me worried:
http://www.wahhong.com.tw/download/fin/fin_report2018_Q4.pdf
See top of page 74. Rough translation is as follows:
“The total amount of the company's technical license payment is determined by the sales volume that can be reached during the contract period. The estimated total price… is about 95,255 thousand. It is paid in multiples when the agreed sales volume is reached. At the time of the highest possible payment, the expertise and other payables were recognized and paid in the amount of RMB 31,795 thousand. However, in the 107th year ……it is estimated that it will not be able to reach the agreed sales volume and the remaining amount is not required to be paid 63,460 thousand.”
I believe Wah Hong report numbers in the New Taiwanese Dollar – and so if I’m reading this right (happy to be corrected), then in 2018 (i.e. 107th year in the Minguo calendar) Wah Hong sold c. 1/3rd of what they originally envisaged under the Nanoco agreement…. (c. £0.75m instead of c. £2.4m)?