Beitou Costco to open
US company Costco Wholesale Co will open a new store in Taipei’s Beitou District (北投) on Saturday next week, its second outlet in Taipei and the 12th in Taiwan. Richard Chang (張嗣漢), senior vice president of Costco Wholesale in Asia, said the new Beitou store, with NT$1 billion (US$31 million) in investment, is aimed at reducing the client overload at the company’s Neihu outlet, while targeting consumers living in the Tamsui (淡水), Zhuwei (竹圍) and Guandu (關渡) areas. Costco opened its first outlet in Taiwan in 1997.
Tech, medicine lead
Technology, medicine and consumer-related businesses will dominate the job market this year, while younger and female employees are increasingly filling middle and high-ranking executive positions for the past two years, an online recruitment agency 104 Job Bank (104人力銀行) said yesterday. Consumer-oriented establishments supply 27 percent of jobs, followed by technology firms at 25 percent and medicine and health at 18 percent, 104 vice president Jason Chin (晉麗明) told a media briefing. People aged between 30 and 39 filled 47.4 percent of executive positions last year, from 34.5 percent in 2013, the job bank said.
Asia Cement plans dividend
Asia Cement Corp (亞洲水泥) yesterday said its board plans to distribute a cash dividend of NT$1.1 per share based on last year’s earnings per share of NT$1.55, equivalent to a payout ratio of 70.97 percent. The Far Eastern Group (遠東集團) subsidiary reported net profit of NT$4.93 billion for last year, down 54.75 percent from NT$10.91 billion in 2014. Affected by weak downstream demand and persistent oversupply in China, Asia Cement’s consolidated revenue fell to NT$66.29 billion last year from NT$77.68 billion a year ago.
Wei Chuan loses NT$1.92bn
Wei Chuan Foods Corp (味全食品) yesterday said net loss increased from NT$304 million in 2014 to NT$1.91 billion last year, with losses per share expanding from NT$0.24 to NT$3.78, the worst since 2000. Total revenue last year fell almost 20 percent to NT$20.05 billion, as major products encountered a serious boycott by customers due to the cooking oil scandal at its former biggest shareholder, Ting Hsin International Group (頂新集團). The company said it would not pay a dividend.
FX Hotels loses NT$149m
FX Hotels Group Inc (富驛酒店集團), which manages more than 40 directly operated and franchise hotels in Taiwan and China, incurred losses of NT$149 million, or losses of NT$3.91 per share, for last year because the hotelier shut down unprofitable outlets and recognized bad debts from operation losses in China. In 2014, FX Hotels posted a record profit of NT$59.02 million, or NT$1.55 per share. The hotelier, which faced overdue accounts receivables at some Chinese corporate customers, closed two hotels in Tianjin and Beijing.
Shining net income plunges
Taichung-based Shining Building Business Co (鄉林建設) on Wednesday reported NT$225 million in net income for last year, or earnings of NT$0.25 per share. That was a significant slowdown from net profit of NT$1.1 billion in 2014, or NT$1.37 per share, a year earlier. The builder attributed the retreat to accounting rule changes under which developers cannot recognize income from projects until they are completed.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to