【Shihlin Electric & Engineering Corp.】Announcement by Subsidiary Global Tek GmbH Regarding Improvement Plan for Exceeding Loan Limit to Others
Shihlin Electric & Engineering Corp.'s subsidiary, Global Tek GmbH, announced an improvement plan for exceeding its loan limit due to losses from an invested company. The loan of EUR 110,000 to Formtechnology GmbH, which has filed for bankruptcy, has been fully provisioned as bad debt, and the liquidation process is ongoing.
📋 Article Processing Timeline
- 📰 Published: May 11, 2026 at 09:00
- 🔍 Collected: May 12, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: May 12, 2026 at 19:34 (11h 34m after Collected)
1. Date of occurrence of the event: 2026/05/11
2. Company name: Global Tek GmbH
3. Relationship with the company (please enter 'parent company' or 'subsidiary'): Subsidiary
4. Mutual shareholding ratio: 100%
5. Reason for occurrence:
(1) Announcement of improvement plan in accordance with Financial Supervisory Commission letter No. 1140340215 dated April 25, 2025.
(2) Global Tek GmbH's net worth decreased due to recognition of losses from an invested company, causing its loan balance to Formtechnology GmbH to exceed the prescribed limit.
6. Countermeasures:
(1) The improvement plan is as follows: Formtechnology GmbH filed for bankruptcy with a local German court in 2024. The local court appointed a provisional insolvency administrator in December 2024, and the liquidation process has not yet been completed. The full amount of EUR 110,000 for this loan has been provisioned as a bad debt loss in December 2024, and will be written off based on the liquidation results.
(2) The board of directors reported on May 11, 2026, that the liquidation process is still ongoing.
7. Other matters that need to be specified (If the subject of the event or resolution is a public company or above, this material information also complies with Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act, which stipulates matters that have a significant impact on shareholders' equity or securities prices): The improvement plan will be announced quarterly regarding its implementation status and reported quarterly to the board of directors for control, and the implementation status will be reported at the 2026 annual general meeting of shareholders.
2. Company name: Global Tek GmbH
3. Relationship with the company (please enter 'parent company' or 'subsidiary'): Subsidiary
4. Mutual shareholding ratio: 100%
5. Reason for occurrence:
(1) Announcement of improvement plan in accordance with Financial Supervisory Commission letter No. 1140340215 dated April 25, 2025.
(2) Global Tek GmbH's net worth decreased due to recognition of losses from an invested company, causing its loan balance to Formtechnology GmbH to exceed the prescribed limit.
6. Countermeasures:
(1) The improvement plan is as follows: Formtechnology GmbH filed for bankruptcy with a local German court in 2024. The local court appointed a provisional insolvency administrator in December 2024, and the liquidation process has not yet been completed. The full amount of EUR 110,000 for this loan has been provisioned as a bad debt loss in December 2024, and will be written off based on the liquidation results.
(2) The board of directors reported on May 11, 2026, that the liquidation process is still ongoing.
7. Other matters that need to be specified (If the subject of the event or resolution is a public company or above, this material information also complies with Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act, which stipulates matters that have a significant impact on shareholders' equity or securities prices): The improvement plan will be announced quarterly regarding its implementation status and reported quarterly to the board of directors for control, and the implementation status will be reported at the 2026 annual general meeting of shareholders.