M1B growth gains 1.62%
The monthly growth rates of monetary aggregates M1B and M2 last month rose 1.62 percent and 0.39 percent respectively, the central bank said in a statement yesterday. The annual growth rate of M1B, a narrow measure of the amount of money in circulation, last month rose 6.48 percent from the same period last year. The annual growth rate of the broader M2 monetary measurement — which includes M1B, time deposits, foreign-currency deposits and mutual funds — slowed to 4.51 percent, mainly because of a decline in net foreign-capital inflows and slower growth in time deposits, the bank said.
Mega Bank files for damages
Mega International Commercial Bank’s (兆豐銀行) board yesterday filed compensation claims against the bank’s former chairman Mckinney Tsai (蔡友才) and former bank president Wu Hann-ching (吳漢卿) for damages caused by a compliance failure at the bank’s New York branch. The state-run bank said it plans to seek compensation of NT$5.71 billion (US$182 million) from the two and has asked lawyers to seek NT$1 billion in provisional seizure of their assets. The Financial Supervisory Commission last week fined the bank NT$10 million, among other punitive measures, for poor corporate governance and internal controls that led to a US$180 million fine by US regulators last month for breaches of the US’ Bank Secrecy Act.
XPEC offices raided
Prosecutors and inspectors yesterday raided offices of XPEC Entertainment Inc (樂陞科技) and Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭數位娛樂), as well as the residences of XPEC chairman Aaron Hsu (許金龍) and several others across the nation, as the judicial authorities probe possible financial irregularities in relation to Bai Chi’s failed acquisition of a 25.17 percent stake in XPEC last month. Prosecutors also summoned about 50 people for questioning, including Hsu and XPEC’s three independent board members, in order to gather more information about the botched deal and possible violations of the Securities and Exchange Act (證券交易法) and the Criminal Code (刑法).
Chailease income growing
Chailease Holding Co Ltd (中租控股), the nation’s top leasing services provider, yesterday said that its net income last month increased 3 percent year-on-year to NT$620 million, bringing its aggregate net income for the January-to-August period to NT$4.81 billion, an expansion of 5 percent from the same period last year. The company reiterated a promising outlook in the remaining months of the year, driven by more commercial aircraft leasing in Taiwan and expectations of seasonal financing needs in China, as well as new business from its subsidiaries in Southeast Asia.
Macauto expecting growth
Macauto Industrial Co (皇田), which has a 15 percent global share of the automotive sunshade market, might see significant contribution from its Mexican plant next year, in addition to persistent growth of the Chinese market, Capital Securities Corp (群益證券) said in a note yesterday. Macauto’s plant in Mexico, which has started a trial production this quarter, helps meet clients’ demand to export to the North American market. The company’s planned new plant with expanded capacity could become its “major growth driver” next year, Capital said. Macauto reported total sales of NT$2.85 billion in the first eight months this year, up 20.8 percent year-on-year.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a