Swancor Industry Co Ltd (上緯), which manufactures rotor resins for wind turbines and corrosion-resistant materials, yesterday said that annual net profit plunged 85.03 percent in the first half due to increased competition in the Chinese market and falling material prices.
Net income slid to NT$65 million (US$2.05 million), or NT$0.74 per share, on revenue of NT$2.81 billion, down 41.09 percent from a year earlier, company executives told an investors’ conference.
China accounts for more than 80 percent of the revenue of the Nantou-based company, which also has plants in Shanghai, Tianjin and Jiangsu Province.
The Chinese government’s measures to reduce an oversupply of wind turbines affected Swancor’s sales of related products, the executives said.
However, Swancor expects sales to pick up in the second half.
“Demand for corrosion-resistant materials in China is still rising, and we may adjust product prices in line with fluctuations in [raw] material prices,” Swancor chairman Robert Tsai (蔡朝陽) said.
Swancor’s expansion in Jiangsu is to commence operations in the second half of next year, manufacturing more corrosion-resistant materials, Tsai said.
The company also sees growth for its wind-turbine resin business.
“The performance [in the second half] will be better than in the first half. The profit margin will also not be lower than last year’s,” Tsai added.
As part of its diversification strategy, the company plans to expand its focus on the Southeast Asian and Indian markets, as well as introduce its products to new markets, such as Mexico and Turkey, the company said.
Swancor has also ventured into the wind turbine business. It inked in May a NT$2.5 billion syndicated loan led by Cathay Financial Holding Co (國泰金控) to construct two wind turbines off Taiwan’s coast.
Swancor’s subsidiary, Formosa I Wind Power Co Ltd (海洋風力發電), is constructing two offshore wind turbines in the first phase and plans to install 30 more turbines in the long term.
“The two offshore wind turbines are scheduled to start operations in the second half of this year, and the next 30 turbines are expected to begin operating in 2019. We are still seeking interested investors,” Tsai said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’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