GAMING
Cayenne to list in Taipei
Mobile game distributor Cayenne Ark Mobile Co Ltd (辣椒方舟), an affiliate of Cayenne Entertainment Technology Co (紅心辣椒), is to list today on the Taipei Exchange’s Emerging Stock Board at NT$20 per share. Cayenne Ark chairman Joe Deng (鄧潤澤) yesterday told a news conference that the company has a challenging year ahead due to intensified market competition and the hit mobile game Pokemon Go. The company reported net losses of NT$15.05 million (US$476,900) in the first half of this year, compared with a net income of NT$16.03 million during the same period last year. Deng said the company plans to introduce a new mobile game in Taiwan at the end of this year and four more games next year, making them Cayenne Ark’s main growth drivers next year. Deng declined to offer a revenue forecast for next year.
COSMETICS
Namchow inks skincare MOU
Cooking oil manufacturer Namchow Chemical Industrial Co (南僑化學工業) yesterday signed a memorandum of understanding (MOU) with the Metal Industries Research and Development Center (金屬工業研究發展中心), marking a further step into the natural skincare market. Under its self-owned brand, the company hopes to distribute high-priced cosmetic products with natural ingredients from Taiwan to global customers, Namchow chairman Alfred Chen (陳飛龍) said at a signing ceremony in Taipei, without giving a schedule.
STEELMAKERS
CSC appoints chairman
China Steel Corp (CSC, 中鋼), the nation’s largest steel mill, said in a press release yesterday that the company’s board approved the appointment of Wong Chao-tung (翁朝棟) as chairman. The board also named vice president Liu Jih-gang (劉季剛) to take over Wong’s position as president. In a separate release, the company reported pretax profit for the first nine months of this year of NT$16.67 billion, soaring 40 percent from the same period last year, after pretax profit of NT$8.83 billion last quarter, its highest quarterly level this year.
SOCIETY
Kaoshiung to host expo
The Maker Wisdom Expo, an event that allows artists and organizations to showcase their work and interact with others, is to take place at the Chung Cheng Martial Arts Stadium in Kaohsiung on Nov. 19 and Nov. 20, organizers said yesterday. Now in its second year, the expo is to have 125 booths set up by 65 schools and businesses for exhibitions, presentations and demonstrations, the Kaohsiung City Government said.
SOCIAL MEDIA
Line reports Q3 profit
Line Corp reported third-quarter profit and revenue that missed analysts’ estimates as the company pushes into advertising to offset slowing growth in its user base. Operating profit was ￥4.9 billion (US$47 million) in the period ended Sept. 30, according to calculations based on nine-month numbers released by Line yesterday, while sales reached ￥35.9 billion in the period. Line said its monthly active users totaled 220 million as of last month, a 3.5 percent increase from a year earlier. That was slightly lower than the previous quarter, when subscribers increased 4.1 percent, and the slowest growth in at least two years. Line expects annual sales to increase in the period ending Dec. 31, helped by advertising revenue. The company did not give a full-year earnings forecast.
Japanese technology giant Softbank Group Corp said Tuesday it has sold its stake in Nvidia Corp, raising US$5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this fiscal year from a year earlier. Tokyo-based Softbank said it sold the stake in Silicon Vally-based Nvidia last month, a move that reflects its shift in focus to OpenAI, owner of the artificial intelligence (AI) chatbot ChatGPT. Softbank reported its profit in the April-to-September period soared to about 2.5 trillion yen (about US$13 billion). Its sales for the six month period rose 7.7 percent year-on-year
CRESTING WAVE: Companies are still buying in, but the shivers in the market could be the first signs that the AI wave has peaked and the collapse is upon the world Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported a new monthly record of NT$367.47 billion (US$11.85 billion) in consolidated sales for last month thanks to global demand for artificial intelligence (AI) applications. Last month’s figure represented 16.9 percent annual growth, the slowest pace since February last year. On a monthly basis, sales rose 11 percent. Cumulative sales in the first 10 months of the year grew 33.8 percent year-on-year to NT$3.13 trillion, a record for the same period in the company’s history. However, the slowing growth in monthly sales last month highlights uncertainty over the sustainability of the AI boom even as
AI BOOST: Next year, the cloud and networking product business is expected to remain a key revenue pillar for the company, Hon Hai chairman Young Liu said Manufacturing giant Hon Hai Precision Industry Co (鴻海精密) yesterday posted its best third-quarter profit in the company’s history, backed by strong demand for artificial intelligence (AI) servers. Net profit expanded 17 percent annually to NT$57.67 billion (US$1.86 billion) from NT$44.36 billion, the company said. On a quarterly basis, net profit soared 30 percent from NT$44.36 billion, it said. Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said earnings per share expanded to NT$4.15 from NT$3.55 a year earlier and NT$3.19 in the second quarter. Gross margin improved to 6.35 percent,
FAULTs BELOW: Asia is particularly susceptible to anything unfortunate happening to the AI industry, with tech companies hugely responsible for its market strength The sudden slump in Asia’s technology shares last week has jolted investors, serving as a stark reminder that the world-beating rally in artificial intelligence (AI) and semiconductor stocks might be nearing a short-term crest. The region’s sharpest decline since April — triggered by a tech-led sell-off on Wall Street — has refocused attention on cracks beneath the surface: the rally’s narrow breadth, heavy reliance on retail traders, and growing uncertainty around the timing of US Federal Reserve interest-rate cuts. Last week’s “sell-off is a reminder that Asia’s market structure is just more vulnerable,” Saxo Markets chief investment strategist Charu Chanana said in
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