Thursday, September 17, 2015

Willas-Array says Toshiba has terminated distributorship deal with associate company

Willas-Array Electronics says Toshiba Electronics Asia and Toshiba Electronics (China) Co. have decided to terminate their respective distributorship agreements with the company's associated company, GW Electronics Company.

Willas-Array currently holds a 49% stake in GW Electronics whose primary business activity was to act as Toshiba's authorised distributor for the Toshib" brand of semiconductor products in Mainland China and Hong Kong.

GW Electronics' revenue is principally derived from its Toshiba distribution business. Based on the audited consolidated financial statements of the group for the financial year ended March 31, 2015, the share of GW Electronics' loss amounted to HK$6.5 million.

Willas-Array says as the termination results in the loss of GW Electronics' major distribution authorisation, GW Electronics will downsize its operation to an optimum level to serve its existing product lines and seek other business opportunities, such as obtaining authorised distributorship rights from other brands of electronic components.

Willas-Array last closed at 69.5 cents.
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