Rich Development Inc (力麒建設) yesterday reported a sharp jump in net income last quarter after booking profits from a new housing project, but said it was cautiously optimistic about its business outlook this quarter and next year.
The company recorded a net profit of NT$617 million (US$20.07 million), or earnings per share (EPS) of NT$0.83, in the July-to-September quarter, an increase of 75.85 percent from the same period last year, the Taipei-based builder said in a statement.
For the first nine months of the year, Rich Development posted a cumulative net profit of NT$1.14 billion, or EPS of NT$1.53, already surpassing the sum for the whole of last year, it said.
ACCOUNTING CHANGES
The company attributed the earnings improvement to the completion of a new upscale housing project in Taipei’s Zhongzheng District (中正), allowing the company to book profits under new accounting rules.
In the past, builders could book gains in keeping with the progress of the construction work.
The company, whose business covers construction, water treatment and hotels, was cautiously optimistic about its prospects.
The property market remains sluggish and is unlikely to see a pickup next year, Rich Development chairwoman Kuo Shu-chen (郭淑珍) told reporters, as the government may continue to curb housing price hikes.
Rich Development achieved an above-industry average pre-sale ratio of 40 percent for the two new home projects it launched last quarter and this quarter, which Kuo attributed to their prime locations and use of quality building materials.
“Developers and builders need to stay positive and underscore their brand value to survive difficult times,” she said.
The property market may emerge from the cloud of political uncertainty after the mayoral elections next week, but may enter the woods again soon, as political parties brace for the presidential election in early 2016, Kuo said.
The property market is likely to be flat next year, she said, as housing unaffordability tops the public’s list of concerns and become a hot topic on the campaign trail.
Rich Development is looking to diverisfy its investments, but will maintain its focus on real-estate development, Kuo said.
DIVERSIFICATION
The company has expanded into water treatment, led by its subsidiary Forest Water Environmental Engineering Ltd (山林水工程), which will debut on the emerging stock market in January and is planning to invest in China next year.
In addition, Rich is to raise stakes in the hotelier business next year by constructing more five-star hotels in local scenic spots, Kuo said.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
FUTURE PLANS: Although the electric vehicle market is getting more competitive, Hon Hai would stick to its goal of seizing a 5 percent share globally, Young Liu said Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler and supplier of artificial intelligence (AI) servers powered by Nvidia Corp’s chips, yesterday said it has introduced a rotating chief executive structure as part of the company’s efforts to cultivate future leaders and to enhance corporate governance. The 50-year-old contract electronics maker reported sizable revenue of NT$6.16 trillion (US$189.67 billion) last year. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), has been under the control of one man almost since its inception. A rotating CEO system is a rarity among Taiwanese businesses. Hon Hai has given leaders of the company’s six