Tue, May 16, 2017 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA

ENERGY

Temperature, usage spike

Electricity consumption soared yesterday as temperatures topped 30°C, resulting in the sixth orange warning this month, state-owned Taiwan Power Co (Taipower, 台電) said. An orange warning indicates that the operating reserve margin has fallen below 6 percent. Electricity consumption peaked at 32.34 million kilowatts at 11:22am, when the operating reserve margin fell to 4.51 percent, or 1.46 million kilowatts, Taipower said. However, rain in the afternoon helped drive down temperatures, easing the burden, the firm said, adding that with the arrival of seasonal plum rains, power consumption is likely to ease in the coming weeks.

TECHNOLOGY

Synnex profits fall 6% yearly

Synnex Technology International Corp (聯強), which distributes computers and handsets, yesterday reported net income of NT$1.14 billion (US$37.8 million) for last quarter, down 6 percent from NT$1.21 billion in the same period last year. Earnings per share fell from NT$0.72 to NT$0.68, the firm said in a statement. Synnex attributed the decline to various challenges in the market, including weak industry demand, deferred launches of new cellphones, a shortage of key components and appreciation of the New Taiwan dollar. Foreign exchange losses totaled NT$140 million in the quarter, Synnex said.

BANKING

SinoPac denies allegations

SinoPac Financial Holding Co (永豐金控) yesterday denied allegations that its banking arm violated rules limiting lending to interested parties. Lawmakers accused Bank SinoPac (永豐銀行) of organizing a US$435 million loan for Sun Power Development and Construction Co (三寶建設) and a number of privately held investment companies under its control. Among the investment companies is Star City, whose board of directors include Chang Hsing-ju (張杏如), wife of SinoPac chairman Ho Shou-chuan (何壽川). SinoPac said in a statement that Chang’s term on the board of directors had ended six months before the loans were approved on Dec. 14, 2012.

MANUFACTURING

Laster Tech profits skyrocket

Laster Tech Corp Ltd (麗清科技), an LED chip and lighting products supplier, yesterday said net income last quarter skyrocketed to NT$85.3 million, or earnings per share of NT$1.25, from NT$31.9 million in the same period last year, or NT$0.53 per share, supported by increasing adoption of automotive LED lights. Sales in the first three months of this year soared 50.9 percent from NT$677.5 million to NT$1.02 billion, a statement said. The automotive parts manufacturer attributed the strong performance to robust demand from its major Chinese customers, such as Great Wall Motor Co (長城汽車) and Shanghai Koito Automotive Lamp Co Ltd (上海小糸), despite a foreign exchange loss of nearly NT$76 million for the first quarter. The company has approved a plan to issue convertible bonds worth NT$701.4 million, in an effort to repay bank loans and improve its financial structure.

FOREIGN EXCHANGE

Yuan deposits extend slide

Chinese yuan deposits last month decreased 0.35 percent month-on-month to 307.97 billion yuan (US$44.65 million), continuing a downtrend seen in the previous months, the central bank said yesterday. Yuan deposits at domestic banking units fell 0.62 percent to 275.36 billion yuan from the previous month, while yuan deposits at their overseas banking units rose 2.02 percent to 32.61 billion yuan, it said.

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