Global economic uncertainties led by the eurozone’s debt problems have made Dimerco Express Corp (中菲行國際物流) more conservative about its expansion plans for this year.
The Taipei-based company, which offers freight-forwarding and logistics services, said it would only focus on expanding in India for the short-term, on the back of confidence about the trading momentum in the Asia-Pacific region.
“The growing momentum in the Asia-Pacific region remains abundant this year,” chairman Paul Chien (錢堯懷) told reporters on the sidelines of the company’s annual general meeting yesterday.
This prompted Dimerco to continue its expansion in India by forming a joint venture with a local Indian company, which is scheduled to begin operating by the end of this year, Chien said.
Following the initiation of the joint venture, the company will further develop bases in four Indian cities this year: Bangalore, Chennai, New Delhi and Mumbai.
Aside from the Asia-Pacific region, Chien said he was not optimistic about demand in other markets for the remainder of this year and next year, as Europe’s financial woes may not be resolved in the near future.
Even so, Dimerco expects to raise the proportion of its marine freight-forwarding soon. The sector accounted for 26 percent of the company’s revenue as of the end of last year. That proportion has climbed recently and is currently at 28 to 30 percent.
Yesterday, Dimerco’s shareholders approved a NT$1.02 cash dividend per share for this year, based on its net profit last year of NT$192 million (US$6.4 million), or NT$1.47 per share, the company’s financial statistics showed.
The cash dividend was lower than the NT$1.17 cash dividend and NT$0.3 (or 3 percent) stock dividend the company distributed to shareholders in the previous year, data showed.
In related news, shareholders of TransAsia Airways Corp (復興航空), which mainly operates regional and cross-strait passenger routes, yesterday approved the company’s payout of a NT$0.2 per share cash dividend this year, on a net profit of NT$663.96 million, or NT$1.34 per share, which the company earned last year.
Shareholders also gave the go-ahead to the company’s plan to introduce strategic investors through a private placement by issuing a maximum of 50 million new common shares.