Tatung announced after board approval on November 2 that it had settled the lawsuit with China-listed Huaying Technology. About NT$9.95 billion of the loss booked at the end of 2025 could be reversed, adding roughly NT$4.6 to pre-tax earnings per share.
According to the United Daily News and the Central News Agency, Tatung said in a material-information filing on November 2 that both boards had approved a settlement of RMB 768 million, about NT$3.75 billion. That is about 74.6 percent below the RMB 3.029 billion awarded in the original ruling. Tatung said the long-running litigation risk had been put to rest.
광고 문의 · 300×250The case traces back to a 2009 performance commitment tied to the Chunghwa Picture Tubes group's investment in China, for which Tatung accepted joint liability. A Chinese court ruled at the end of 2025 that Tatung must jointly pay about RMB 3.029 billion, or roughly NT$13.1 billion. Tatung booked a NT$13.567 billion litigation loss in a single fourth quarter, pushing its loss per share above NT$6.
Size of the reversal and earnings effect
By Tatung management's accounts at the end of the third quarter, liabilities tied to the case came to about RMB 2.803 billion, roughly NT$13.7 billion, because late-payment interest kept accruing monthly. The company estimates that after the settlement is paid, about RMB 2.035 billion, or NT$9.95 billion, of the previously booked loss and interest can be reversed.
Based on about 2.151 billion shares outstanding, the reversal would lift pre-tax earnings per share by about NT$4.6. The United Daily News cited analysts saying it could appear in this quarter's financial report as early as possible. The actual amount, timing and per-share effect still depend on accounting rules.
What is not yet confirmed
The company said that with the dispute resolved it will focus fully on core business and on improving the group's operations. Reports noted that a new management team pursued a negotiated settlement. Payment method, timing and any conditions beyond board approval had not been disclosed at the time of writing.
How Tatung shares moved after the filing is also unconfirmed. Because the reversal is a one-off accounting item, investors will want to separate it from underlying operating results.