【Tainan/Taiwan – Nov. 28th, 2018】Experiencing a severe volatility in solar industry, Motech has implemented a series of organization optimization plans for fulfilling our revolutionary strategic management by lean management, assets activation and deleveraging. Over the past few months, the Company has made organization alignments through integrating manpower allocations gradually as a result of new 61 PV power policy unveiled by the Chinese government.
Besides the organization allocations, we will back to focus on high-efficiency solar cells and modules, as well as expend to the local solar system market proactively. Not pursuing economies of scale but optimizing the manufacturing organizations, we have made a difficult and painful decision for a reduction of approximately 916 employees across the Company and this plan will be completed on January 28th, 2019. We would like to thank employees who are affected by the plan for their hard work and contributions over the years to Motech. In order to minimize the impact, the Company will offer with comprehensive resources and comply with all relevant regulations and procedures of Labor Standards Act (LSA).
The Company has aimed at producing well operating cash flow through lowering inventory and accounts receivable. As for assets activation, we have made a great progress for our factory transaction and kept reducing financial debts to improve our capital structure and make solid and healthy financial statements.
Motech will be continuing to improve the competitiveness and reduce operating loss through our organization optimization plan. As part of this effort, we have extended the core business to module and downstream system market and made a long-term and stable funding source in the long run. Overall the reorganization across the Company, we are able to go through any challenges and downturn in any way and move forward to achieving enterprise goals and value for accomplishing the shareholders benefits and expectations worldwide.