Chailease Holding Co Ltd (中租控股), the nation’s top leasing services provider, yesterday gave an upbeat outlook on earnings for the rest of this year, citing growth recovery in China and increased contributions from ASEAN markets.
The company reported that net income last quarter rose 33 percent annually to NT$2.16 billion (US$71.37 million), or earnings per share of NT$1.89.
Returns on assets and returns on equity also improved to 3.1 percent and 22 percent respectively, up from 2.5 percent and 19 percent a year earlier, the company said.
Net profit contribution from China last quarter rose 70 percent annually and 76 percent quarterly to NT$818 million, as the company reduced general provisions with more stringent loan approvals, it said, adding that delinquency eased to 4.7 percent from 4.9 percent in the previous quarter.
During the period, delinquent loan allowances dipped from NT$3.51 billion to NT$3.44 billion, which pushed the allowance-to-loan portfolio ratio from 4.8 percent to 4.9 percent as new loans growth accelerated, Chailease said.
There would be limited effects amid concerns about increasing capital costs in China following a deleveraging campaign in that nation’s financial sector, it said.
The company, which saw funding costs last quarter rise from 4.23 percent to 4.33 percent, said that Chinese banks have been raising loan prices and seeking more profitable clients as a limit on loan book expansion came into effect.
However, the effects would be limited, as the company can still find comparable loan terms from a selection of 20 to 30 Chinese banks that it has been working with, it said.
Most of its funds are sourced from syndicated loans, which are less affected by deleveraging, it said.
At home, the company reported that net income rose 9 percent quarterly as well as annually to NT$1.35 billion.
However, the delinquency rate rose to 4 percent last quarter from 3.6 percent in the previous quarter, the company said, adding that the figure is manageable.
The increased delinquency was because of an across-the-board weakening and the decline is not attributable to any particular industry, it said.
Meanwhile, net income contribution from ASEAN last quarter rose 12 percent annually to NT$188 million, but dipped 8 percent on a quarterly basis, the company said.
During the period, Vietnam and Malaysia showed the fastest growth, while Thailand saw slower expansion, the company said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and