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.
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.
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.
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.
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.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s