The fact is that HTC’s stock price has been declining since early 2015 and closed at NT$40.35 (US$1.22) on the Taiwan Stock Exchange (TSE) during the August 24 session.

Furthermore, based on the August 24 closing price, it will take HTC about NT$2 billion to buy back the 50 million treasury shares. However, the buy-back plan aims to boost shareholders’ equity and reflect the company’s financial strength and flexibility, according to HTC.

HTC has declared early this month that the company’s realignment will also involve a streamlining of operations to result in an expected reduction in operating expenditure of 35 percent; this includes an expected 15 percent in headcount.

“HTC is an inspirational company driven by innovative people, with a unique blend of expertise in hardware and software integration, advanced technology and world-class design. Now, as we diversify beyond smartphones, we need a flexible and dynamic organization to ensure we can take advantage of all of the exciting opportunities in the connected lifestyle space,” said Cher Wang, Chairperson and CEO of HTC.

“This strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise to win new markets.” commented Cher Wang.