HTC has announced that it will launch a new virtual reality (VR) subsidiary to secure the company's future.

During a meeting in Taoyuan, Taiwan, HTC chairwoman Cher Wang apologized to the company’s shareholders for the company's financial struggles with its global smartphone business. But Wang is hopeful that that virtual reality will be the saving grace for the embattled company.

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It was previously denied by that VR unit will be a separate business, but now, HTC’s president for global sales, Chia-lin Chang, has acknowledged the possibility of another business that will operate as a wholly-owned subsidiary of HTC and will help the Taiwanese tech vendor in its efforts to form alliances and elevate capital.

“VR is a very important technology for HTC, and it is not difficult for HTC to generate profits from the technology as there will be a proliferation of VR applications in the education, healthcare, shopping and entertainment sectors over the next 10 years,” said Wang.

Wang is expecting that the new venture will be highly profitable, given the massive customer base of the online game distribution platform.

However, HTC's existing shareholders are not comfortable with the idea of creating VR business separately. They have raised concerns, stating that the subsidiary could eventually swerve away from shareholders' control.

To cast away the doubts, Chang assured them that HTC will remain the largest shareholder, even if the subsidiary sells a few stakes to strategic partners.

In April, HTC also announced its involvement in a $100 million accelerator scheme, which aims to give start-up companies working with VR tech a clear path toward funding.

TagsHTC, Virtual Reality, VR business, HTC Vibe, HTC VR business, VR Gaming, HTC 10