Yieh Loong Co (燁隆) -- a re-investment company of China Steel Corp (中鋼) that makes NT$2 billion in profits per year -- shocked the business community on Tuesday when a check for NT$49 million that it wrote bounced, triggering concern among lawmakers over the rights of the company's stockholders. \nAt yesterday's meeting of the legislature's financial committee, DPP Legislator Lin Wen-lang (林文郎) lambasted Yieh Loong Chairman Lin I-shou (林義守) -- who is also a national policy advisor -- for the company's "immoral" conduct. \nLin Wen-lang said the company's move has negatively impacted the performance of steel stocks yesterday -- at the expense of investors. \nYieh Loong shares fell NT$0.60, or 7 percent, to close at NT$8 while China Steel, the nation's largest steelmaker, fell NT$0.40, or 2 percent, to NT$19.4. \nThe Taiwan Stock Exchange also reclassified the Yieh Loong stock as "requiring full delivery," which means that investors won't be able to buy any of the firm's shares using borrowed money in so-called margin trading -- as of tomorrow. \nLin Wen-lang also expressed concerns over potential irregularities behind the bounced-check incident. He said it is unlikely for the steelmaker, which is expected to make NT$4.6 billion in revenues this year, to bounce a check as small as NT$49 million. \nThe lawmaker urged the Ministry of Finance to launch an investigation into the incident. \nIn response, Vice Finance Minister Sam Wang (王得山) said his ministry will soon look into the company's financial statements and produce a report within a week. \nAccording to local media reports, a group of domestic banks led by Chiao Tung Bank (交銀) has agreed to continue offering funds to Yieh Loong. \nBut the steelmaker needs to communicate with the banking unit that bounced its check on Tuesday -- the Metropolitan Bank & Trust Company's Taipei Branch (菲律賓首都銀行). The firm owes the bank a total of NT$90 million. \nThe media reports said Yieh Loong is expected to allocate NT$500 million out of its profits this year in order to pay back syndicate bankloans of NT$18 billion. \nThe steelmaker is reportedly also considering negotiating with the banks to lower the interest rate on its syndicate loan. If the interest rate is lowered, Yieh Loong will be able to save NT$250 million in interest payments next year, the reports said. \nDespite Yieh Loong's financial debacle, SinoPac Securities Corp (建華證券) said in its research report yesterday that it is still bullish about the nation's steel industry and Yieh Loong's performance next year -- it cited rising demand and higher prices in the global market. \nMeanwhile, Lin Wen-yuan (林文淵), newly appointed chairman of China Steel, which owns 39.3 percent of Yieh Loong -- worth NT$1.13 billion -- shrugged off market concerns over its re-investment company's financial performance, saying that China Steel won't sit back and watch Yieh Loong's financial problems deteriorate. \nLin Wen-yuan added that Yieh Loong has had no problem paying back debts since it began turning a profit after last year's losses of NT$1.9 billion.
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
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E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to