Sat, Jan 25, 2014 - Page 14 News List

Chailease posts record-high earnings

By Crystal Hsu  /  Staff reporter

Chailease Holding Co (中租控股), the nation’s top leasing services provider, posted NT$5.89 billion (US$194.26 million) in net income for last year, rising 56 percent from 2012, on the back of rapid business growth in Taiwan and China, the company said in a statement yesterday.

The figures translate into a record-high of NT$5.91 earnings per share, topping peers in the local capital leasing market, the statement said.

For last month, Chailese recorded NT$457 million in net profit. The company attributed its strong performance partly to its cooperation with Canadian aircraft maker Bombardier, starting in the second half of last year, to broaden the availability of its aircraft in Southeast Asia and boost Chailease revenue.

Chailease Finance, a major subsidiary of Chailese Holding, struck a deal in July last year to buy a corporate jet valued at US$33 million from the aircraft maker. Chailese expects to deepen cooperation with Bombardier and increase its clientele this year, the statement said.

Demand for corporate and private jets has been growing in Southeast Asia, and Chailease Finance is expected to sign more financing deals with customers in the region, Chailese said last year.

The capital leasing provider reiterated it has sufficient funds to maintain smooth operations in China amid reports of liquidity squeeze and shadow banking concerns.

The group has focused on dealings with small and medium-sized enterprises (SME) in China, a strategy that is consistent with China’s policy to prop up SMEs, the statement said. Chailese is able to secure pledges of stable liquidity support from Chinese banks, adding it recently obtained an offshore syndicated loan sized at 890 million yuan (US$146.85 million) that will be used in the Chinese market.

Shares in Chailese Holding closed down 1.16 percent to NT$76.8 yesterday, weaker than the TAIEX that ended at 0.04 percent, Taiwan Stock Exchange data showed.

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