Cirtek woes linger; hunt for investors continue

MANILA, Philippines —  Cirtek Holdings Philippines Corp., a listed integrated technology company chaired by Jerry Liu, said it continues to face significant challenges due to the global slowdown in market demand, hampering its ability to pay dividends and redeem its preferred shares.

“At present, the company does not have sufficient unappropriated retained earnings to declare and pay dividends nor redeem the preferred shares,” Cirtek said in a stock exchange filing.

Cirtek earlier said the global slowdown in market demand, particularly in the first half of last year, was further impacted by tariff-related concerns, which led several of the company’s customers to delay purchases and reduce orders across key segments.

According to the company, it will carefully assess the availability of unrestricted retained earnings upon completion of its audited financial statements as of Dec. 31, 2025, in which any indicative timeline for dividend payments or redemption will be determined thereafter.

In October last year, Cirtek’s board approved the suspension of dividend payments on the preferred shares, specifically the Preferred B-2 Subseries A Shares, Preferred B-2 Subseries B Shares, Preferred B-2 Subseries C Shares and Preferred B-2 Subseries D Shares, until further notice.

The move is part of the company’s strategy to manage liquidity and to preserve its resources to ensure the long-term sustainability of its business.

“We reiterate that the company fully recognizes that the dividends on the preferred shares are cumulative. Cirtek remains committed to fulfilling its obligations to pay all dividends due in accordance with the terms and conditions of the preferred shares as stated in the respective prospectus of the preferred shares, once sufficient unappropriated retained earnings become available,” the company said.

“As previously stated by the company, this includes payment of all dividends due on the preferred shares, including arrears of dividends outstanding by reason of the suspension, on future dates to be set by the board of directors,” it said.

Cirtek said it is undertaking various measures to address liquidity constraints and strengthen its financial position.

Among these measure is its active search for new investors whose participation is expected to generate additional revenue streams and improve financial stability.

The company is also exploring potential collaborations and funding options to support long-term sustainability and is reviewing existing debt obligations and capital structure to ensure balanced allocation of resources.

Cirtek was listed on the Philippine Stock Exchange on Nov. 18, 2011.

Through its subsidiaries, Cirtek is primarily engaged in two major activities: the manufacture and sale of semiconductor packages as an independent subcontractor for outsourced semiconductor assembly, testing and packaging services, as well as the manufacture of value-added, highly integrated technology products.