Taiwan Tobacco and Liquor Corp (台灣菸酒公司), the nation's largest beer and liquor producer, plans to set up representative offices in Beijing and Shanghai as part of its internationalization efforts, company chairman Martin Tsai (蔡木霖) said yesterday.
"The application to expand our business across the Taiwan Strait has been approved by the Mainland Affairs Council, but it might take another four months before the Chinese government gives the green light," he said during a press conference.
Tsai outlined a three-stage plan for the company's expansion in China.
In the initial stage, Taiwan Tobacco will focus on marketing its well-known products, including "Long Life" (長壽) cigarettes, beer, rice wine and Kaoliang liquor (高梁酒), to build up brand awareness and set up distribution channels.
In the second stage, the company plans to grant authorization to or look for original equipment manufacturing (OEM) partners to turn out the products.
The third and last stage will involve joint ventures or mergers to directly manufacture and sell its products in China, as well as provide manufacturing services to competing brands in line with the company's internationalization goals.
Taiwan Tobacco is a state-controlled enterprise that falls under the supervision of the Ministry of Finance.
The company has already achieved its full-year earnings target in the first 11 months of the year, with pre-tax profits reaching NT$6.9 billion (US$211.9 million), Tsai said.
He estimated that sales would grow 10 percent to NT$61.8 billion this year.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to