Wed, Dec 24, 2014 - Page 14 News List

Taiwan Business Quick Take

Staff writer, with CNA

ELECTRICITY

Taipower eyes profit hike

Taiwan Power Co (Taipower, 台電) yesterday said that it hopes to raise the “reasonable” profit margin to 6 percent in the new rate pricing formula in an attempt to repay the company’s accumulated losses of NT$208.4 billion (US$6.57 billion). Taipower’s remark came after newly appointed Minister of Economic Affairs John Deng (鄧振中) promised lawmakers to remove “reconstruction costs” from the pricing formula. Taipower said given that “reconstruction costs” are no longer in the formula, boosting the profit margin from 3.42 percent would help it recover financially over the next 10 years as scheduled. The upward adjustment in the profit margin would result in a price hike in electricity bills as well, Taipower said. The legislature is scheduled to hold a public hearing over the pricing formula tomorrow.

AUTOMAKERS

Foxconn, Harmony ink deal

Taiwan-based Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, yesterday said that one of its subsidiaries spent HK$608 million (US$78.36 million) to acquire shares in China Harmony Auto Holding (中國和諧汽車), a Zhengzhou, China-based company listed in Hong Kong. Hon Hai said that Foxconn (Far East) acquired 128.734 million shares at a price of HK$4.73 per share, accounting for 10.53 percent of all shares in China Harmony. Hon Hai said that the deal totaled HK$608,911,820, adding that the investment is aimed toward industrial cooperation and developing new business. Market sources said that Hon Hai’s buying into China Harmony is a strategy for marketing electric cars in China. China Harmony focuses mainly on high-end luxury and super-luxury brands and aims to become China’s first luxury-only auto dealer. It has 46 outlets and after-sales service centers across China, including in Beijing, Guangzhou, Shanghai, Xiamen, Wuhan and Xian. Hon Hai announced in September that it was investing in the electric auto industry in Shanxi Province, China.

CHIPMAKERS

Legislature bans share sale

The legislature’s Economic Committee on Monday ruled that the National Development Fund cannot sell 176.85 million shares in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s top contract chipmaker, as the investment provides steady income for the nation. The government previously planned to sell the shares for NT$21.34 billion. However, legislators perceived the decision as short-sighted and demanded that the government come up with alternative income sources.

SHIPPING

Evergreen names new head

Evergreen Marine Corp (長榮海運), the nation’s largest container shipping firm, announced on Monday that its board of directors has appointed Lawrence Lee (李孟傑) to be the company’s president as of Thursday next week. Lee is set to replace Scott Chang (張新億), who has held the position since last year, with Chang scheduled to stay on within the Evergreen Group (長榮集團) in another role, which the company has yet to specify. Joining Evergreen Marine in 1978, Lee, 62, has worked in the US, the UK, Germany and Panama, while serving as Unigreen Marine SA (立青海運) chairman and concurrently as Evergreen Marine (Latin America) SA president from last year.

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