Fri, Jan 15, 2016 - Page 14 News List

Taiwan Business Quick Take

Staff writer, with CNA

AVIATION

China Airlines sales down

China Airlines Ltd (中華航空), the nation’s largest carrier, reported that its sales last year declined 3.2 percent to NT$145.04 billion (US$4.3 billion). Sales last month gained 3.34 percent sequentially to NT$11.74 billion, but were 9.57 percent lower year-on-year. EVA Airways Corp (長榮航空) reported a 3.06 percent annual rise in sales last year to NT$137.17 billion, with sales in the previous month, reaching NT$12.08 billion, gaining 7.25 percent month-on-month and rising 0.96 percent year-on-year. Meanwhile, amid a continued tumble in international oil prices, EVA Airways reported that it has incurred NT$3.5 billion in unrealized losses from its hedging derivative contracts. China Airlines said that its losses were limited to NT$288 million due to its much smaller hedging portfolio.

SMARTPHONES

4G initiative boosts Asustek

Asustek Computer Inc (華碩) is the biggest beneficiary of a government initiative aimed at boosting consumption by incentivizing mobile phone users to upgrade to 4G from 2G networks. According to Ministry of Economic Affairs data, purchases of Asus-brand smartphones have captured 43.5 percent of subsidies allocated for the initiative, followed by InFocus Corp at about 20 percent, and HTC Corp (宏達電) at about 15 percent. The ministry said that as most 2G users are older, they tend to steer away from smartphones made by top brands, such as Sony and Apple. Most 2G subscribers who took advantage of the initiative are Chunghwa Telecom Co (中華電信), the ministry added.

ELECTRONICS

Pegatron relaxed on growth

Pegatron Corp (和碩) chairman Tung Tsu-hsien (童子賢) yesterday said he is not worried about Pegatron’s business performance in the slow season, as the company’s annual revenues jumped nearly 20 percent annually to NT$1.21 trillion last year amid the weak global economy. “It was stressful to seek such high annual growth in sales for Pegatron employees. We will not irrationally to continue pursuing high expansion and growth,” Tung told reporters after he showed up to support Chinese Nationalist Party (KMT) Legislator Ting Shou-chung (丁守中) in Taipei’s Beitou District (北投), Taipei. Tung said the company is expected to reward employees with more year-end bonuses.

FINANCE

Regulators warn on ETFs

Financial regulators issued a warning to brokerages who were advertising exchange traded funds (ETF) as a method of evading a 20 percent tax on dividend income for their clients. The Financial Supervisory Commission said it found that investors would weigh in heavily into ETFs prior to June, only to liquidate holdings after October, which coincided with the typical dividend payout season during the five-month period. The commission said it will crack down on overt advertising by brokerages, and asked dealers to deny suspicious purchase request by clients. In addition, the commission will require certain ETFs to raise the number of annual dividend payouts from one to two.

SMARTPHONES

Ichia earnings plunge 90%

Smartphone keypad manufacturer Ichia Technologies Inc (毅嘉科技) reported that its pre-tax earnings last year had declined by about 90 percent annually to NT$560 million, with sales falling 34.24 percent year-on-year to NT$7.38 billion, amid rising competition from China and sluggish demand for non-Apple Inc products. The firm’s shares yesterday closed flat at NT$13, lower than its book value of NT$22.

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