Sat, Aug 15, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer, with agencies

ELECTRONICS

Powerchip’s income soars

Local chipmaker Powerchip Technology Corp (力晶科技) yesterday posted 18.41 percent growth in net income for the first six months of this year at NT$5.66 billion (US$175 million), compared with NT$4.78 billion in the same period of last year. The figure indicates that Powerchip is on track to hit its target of making NT$10 billion in net profit this year. Gross margin expanded to 35.9 percent in the first half from 33.65 percent a year ago. The chipmaker’s net value spiked to NT$8.32 per share in the first half, compared with NT$2.46 per share in the corresponding period last year.

RENEWABLES

Neo Solar posts Q2 loss

Solar cell maker Neo Solar Power Corp (新日光) yesterday posted a quarterly loss of NT$784 million for last quarter, compared with a loss of NT$492 million in the first quarter, on persistent price decline, according to company statements. Gross margin decreased to minus 3.32 percent last quarter from minus 2.15 percent in the previous quarter.

In the first half of this year, the company lost NT$1.28 billion, reversing a net profit of NT$794 million in the same period of last year. Looking forward, Neo Solar expects robust demand from China, the US and emerging markets to help boost solar cell prices and its profitability.

SMARTPHONES

Market responds to HTC

HTC Corp (宏達電) rose in Taipei trading after the struggling smartphone maker said it will cut its workforce by 15 percent to reduce costs and turn its business around. Its shares rose 2.8 percent to close at NT$52.10 in Taipei yesterday, outpacing a 0.1 percent drop in the benchmark Taiex index. HTC plans to cut operating expenses by 35 percent as part of a restructuring that will create new business units, it said in a statement Thursday. HTC had 15,685 employees as of March, according to its annual report, meaning it would shed about 2,300 jobs.

BANKING

Bond yields at four-year low

Taiwan’s bonds rose this week, pushing the 10-year yield down the most in four years, and the local dollar fell as the central bank eased monetary policy to spur growth. The authority relaxed mortgage controls and lowered the rates it pays on overnight and 14-day debt to loosen cash supply, after preliminary data released last month showed growth slowed to the lowest level since 2012 in the second quarter. Taiwan is to review its benchmark rate, which it has kept unchanged for 16 quarters, next month. The yield on the 10-year bonds fell 19 basis points this week and three basis points yesterday to 1.204 percent, Taipei Exchange prices show.

AVIATION

New Kaohsiung route

China Airlines Ltd (CAL, 中華航空), Taiwan’s largest carrier, yesterday said that it will launch direct flights between southern Taiwan’s Kaohsiung and Changzhou in coastal China on Sept. 16. The flights will be offered every Wednesday and Saturday, using the Embraer regional 190 jet, which seats 104 passengers, the airline said. Starting Oct. 25, the carrier will use Boeing 737-800 jets that can accommodate 158 passengers on the route. Changzhou, located in eastern China’s Jiangsu Province, will be the third Chinese destination for Kaohsiung, after Shanghai and Hangzhou cities. CAL will also be the only Taiwanese carrier to operate on the Kaohsiung-Changzhou route.

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