Taiwan Power Company (Taipower) held its annual shareholders' meeting on the 27th, acknowledging ongoing financial pressure. Last year, Taipower's total revenue was 871.4 billion, with expenses of 912.5 billion, resulting in a pre-tax net loss of 41.1 billion. By the end of May this year, Taipower's cumulative losses had reached 451.4 billion New Taiwan Dollars, with net asset value per share dropping to just 2.7.
Due to consecutive losses, Taipower has been unable to distribute dividends for 20 consecutive years. Some minority shareholders expressed strong dissatisfaction at the meeting, even describing Taipower as a "fraudulent enterprise" and calling for the major shareholders to buy back private shares.
From 10 New Taiwan Dollars per share to less than 3 dollars, now 2.7... I am ashamed of Taipower. Taiwan has the most fraud, this is fraud.
Government Subsidies and Financial Improvement Measures
Facing severe losses, Taipower stated that it has actively sought government budget subsidies of 300 billion in the past year, but has not yet received parliamentary support.
The company plans to strengthen fuel procurement, expand green electricity sales, adjust line charges, and reduce expenses. They also hope to activate real estate assets to reduce losses. Additionally, power subsidies for outlying islands have been absorbed by Taipower for years, accumulating costs of over hundreds of billions.
Taipower Chairman Wen-Sheng Tseng said that the Ministry of Economic Affairs has requested a budget from the Accounting Department, with hopes of receiving approximately 6 billion in subsidies as early as 2026.
Nuclear Four Asset Handling and Transformation Progress
Regarding questions about the Nuclear Four plant's assets remaining on the books after shutdown, Taipower's Accounting Director Wang Yun-chun explained that the Nuclear Four transformation plan has not been officially approved, so the company must continue to budget for asset maintenance and land tax payments. Wen-Sheng Tseng noted that the Nuclear Four transformation involves local communication and land regulations, making immediate progress difficult. He emphasized:
"The Nuclear Four transformation cannot be explained in a few words. Currently, power source development and grid reinforcement are more urgent."
Minority Shareholders' Claims and Future Prospects
Regarding calls for major shareholders to buy back private shares, Taipower stated that due to its current financial condition, it is not appropriate to discuss share buyback at this stage. They need to wait until accumulated losses are offset and net value recovers. Wen-Sheng Tseng emphasized that they will continue to seek government subsidies and promote financial health, hoping to eventually resume normal dividend distribution.
Facing its largest financial crisis in history, Taipower's future depends on its ability to improve financial structure, ensure stable power supply, and meet carbon reduction goals, which will be determined by fuel cost fluctuations, policy subsidy progress, and the implementation of electricity price adjustment plans.
