Tax income up 2.6 percent
The central government's tax income saw 2.6 percent year-on-year growth to NT$102.2 billion (US$3.32 billion) last month, Ministry of Finance figures showed yesterday.
The ministry attributed last month’s growth to tax revenues from securities transactions, which saw the biggest year-on-year growth last month, gaining 29.6 percent to reach NT$11.5 billion after capital inflows flooded into the local stock market.
Tax income in the first four months accumulated to NT$406.2 billion, or 3.6 percent year-on-year growth, the ministry’s latest figures show.
Land incremental tax incomes, however, saw the biggest decline year-on-year in the first four months, dropping 26.4 percent to NT$19.7 billion amid rising land tax reports, some of which were small and tax-free, the ministry said.
Life insurance firms fined
The Financial Supervisory Commission (FSC) Thursday imposed a NT$3.6 million fine on Kuo Hua Life Insurance Co (國華人壽) for its failure to meet the capital reserve requirements in 2005.
The insurer’s former actuary Tsai Sheng-kuo (蔡聲國) is barred from working in his profession permanently.
The commission also imposed a fine of NT$1.2 million on Glo Bal Life Insurance Co (國寶人壽) and suspended its two former actuaries Wang Ming-hui (王明輝) and Yu Shao-hsian (余紹賢) for six months.
Meanwhile, the commission fined Chinfon Bank (慶豐銀行) NT$2 million for negligence in internal control after retired bank clerk Chao Kuo-chyang (趙國強) was found guilty of theft from clients’ safe deposit boxes.
UMC sales reach NT$8.52bn
United Microelectronics Corp (UMC, 聯電) said yesterday its sales rose to NT$8.52 billion last month from NT$8.5 billion last month and were up 4.79 percent year-on-year.
Parent sales in the first four months totaled NT$32.52 billion, up 4.39 percent from the year before, the world’s second-largest wafer foundry said.
UMC said last month that its wafer shipments in the second quarter were expected to increase 10 percent from the first quarter.
Chi Mei units secure loans
Chi Mei Optoelectronics Corp (奇美電子), the nation’s second-largest liquid-crystal display maker, said two of its subsidiaries secured US$1 billion in syndicated loans to help fund operations and expand locally and in China.
Leadtek Global Group Ltd (利達環球), a wholly owned subsidiary of Tainan-based Chi Mei, obtained a three-year US$870 million loan from 22 banks lead by Bank of Taiwan (臺灣銀行), Chi Mei said in a statement yesterday. The loan includes a provision for a two-year extension upon the agreement of all parties, it said.
Chi Mei Lighting Technology Corp (奇力光電), a Tainan-based subsidiary producing light-emitting diodes (LEDs), signed a separate five-year, NT$4 billion loan from 12 banks led by First Commercial Bank (第一銀行), the statement said.
Subprime losses 'very small'
Taiwanese banks’ losses from US subprime-related business amounted to about US$1.25 billion at the end of March, said Hu Sheng-cheng (胡勝正), chairman of the Financial Supervisory Commission.
Subprime-related investments by Taiwanese financial companies totaled about US$3 billion by the end of March, representing just a “very small” portion of total assets, the commission said in a statement on its Web site that cited a speech by Hu in the US.
The impact on Taiwan of the subprime crisis is much less than for the US and Europe, the statement said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a