Taiwan Cellular Corp (
Chang will replace Chen Chin-hsing (
"With Chang's managing expertise, I believe Taiwan Cellular will continue to lead the telecom market," said Daniel Tsai (
Tsai, who's also vice chairman of Fubon Financial Holding Co (
He has vowed to improve corporate governance and employ cost-cutting measures to reverse a more than 10 percent slide in the company's net income last year.
Due to slow sales, Taiwan Cellular's profits fell 10.8 percent last year.
Tsai had said the company hopes to meet its goal of boosting full-year profits by about 10 percent.
But he is facing more competition in a market where Far EasTone Telecommunications Co (
Currently, Taiwan Cellular has 9.05 million users, accounting for 32 percent of market share as of the end of this month.
The company reported NT$46.6 billion in sales last year and is targeting NT$50.5 billion this year.
Taiwan Cellular's net debt last year more than tripled to NT$54.6 billion from 2001, raising the debt-to-asset ratio to 47 percent from 29 percent a year earlier after buying 550 million shares of the state-run Chunghwa Telecom Co (
The appointment of Chang as Taiwan Cellular's president, therefore, is viewed by analysts as a savvy move to help improve the company's finance and corporate image.
Shares of the mobile-service company yesterday rose NT$0.30, or 1.2 percent, to NT$26 before the announcement.
"Chang's reputation and ability will definitely bring advantages for the company," said Tony Tsai (
Tsai said Taiwan Cellular is known for its complicated ownership structure and lower financial transparency, which present challenges for most shareholders.
"Chang is exactly the master on how to manage a company's finances to assure its investors and customers," Tsai said
"But before we see any concrete policy-making after Chang assumes office, we'll maintain our current ratings for Taiwan Cellular at twA+/twA-1," Tsai said.
Meanwhile, Taiwan Semiconductor yesterday confirmed that Chang will be leaving his post with the company and said it has appointed Lora Ho (何麗梅), currently TSMC controller, to succeed Chang in the company.
"Harvey Chang has made great contributions to TSMC in the past five-and-a-half years he has been with the company ? We give Harvey our very best for his future success," said Morris Chang (
Harvey Chang, also an independent board director of Fubon Group, entered TSMC in January 1998. Prior to joining TSMC, he served as vice president of KG Telecommunications Co (