Wed, May 17, 2017 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA

FOOD AND BEVERAGE

Afternoon Tea to withdraw

President Chain Store Corp (PCSC, 統一超商), the nation’s largest convenience store chain operator, yesterday confirmed that one of its food and beverage reinvestment units is to withdraw from the domestic market. The firm said it has decided not to renew Afternoon Tea Taiwan Corp’s (統一午茶風光) contract with Tokyo-based Sazaby League Ltd this year, citing a deteriorating business operating environment. Introduced into the local market in 2007, Afternoon Tea Taiwan has 15 outlets nationwide, PCSC said, declining to provide an exact date for the unit’s exit.

ENERGY

Taipower reports losses

State-run Taiwan Power Co (Taipower, 台電) yesterday said that it had slipped into a loss in the first four months of the year due to a spike in the cost of power generation. The company posted NT$5.4 billion (US$179.3 million) in losses from January to last month, compared with NT$17.8 billion in pretax profit in the same period last year. The losses in the first four months of the year were due to higher costs for fuel and natural gas to generate electricity amid increased demand and a shortfall in nuclear power supply, Taipower said, adding that its bottom line was also squeezed by a more than 26 percent increase in coal prices. It attributed the increased electricity demand to relatively higher temperatures so far this year. Taipower said it had been profitable from 2014 to last year, adding that pretax profit totaled NT$39.61 billion for the whole of last year. Taipower was the only one of the four enterprises run by the Ministry of Economic Affairs to report a loss for the four-month period.

PETROLEUM

CPC profit up on crude costs

State-run CPC Corp, Taiwan (台灣中油) yesterday said it has benefited from higher international crude oil prices and generated more than NT$10 billion in pretax profit in the first four months of the year, outperforming other companies also run by the Ministry of Economic Affairs. It reported pretax profit of NT$10.89 billion for the four-month period, a sharp rise from NT$4.2 billion in the same period last year, citing an increase in international crude oil prices that boosted its product prices. CPC last year posted NT$35.4 billion in pretax profit and reported a loss of NT$1.4 billion in 2015. Separately, Taiwan Sugar Corp (Taisugar, 台糖) posted NT$1.46 billion in pretax profit for the four-month period, down from NT$2.32 billion a year earlier. Taisugar cited a decline in revenue from property development for the yearly decline. Meanwhile, Taiwan Water Corp (台水) reported a year-on-year increase from NT$195 million to NT$525 million in pretax profit in the first four months of the year, amid greater water consumption in the industrial sector. Taisugar and Taiwan Water are also run by the economic ministry.

SEMICONDUCTORS

ASE to proceed with merger

Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s biggest chip tester and packager, yesterday said it would push ahead with a merger with local rival Siliconware Precision Industries Co (矽品精密), as the US Federal Trade Commission does not oppose the combination. The commission has wrapped up its investigations of the merger and decided that no further action is needed, ASE said in a filing with the Taiwan Stock Exchange. The decision would help remove hurdles to the merger agreement inked in June last year. The proposed merger has been met with either approval or a neutral view from competition bodies in Taiwan and China.

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