Taiwan Life fined NT$6m
The Financial Supervisory Commission yesterday fined Taiwan Life Insurance Co (台灣人壽保險) NT$6 million (US$199,382) for irregularities related to a real-estate transaction that was made as the insurer was acquired by CTBC Financial Holding Co (中信金控) in 2015. CTBC Financial was found to have overpaid for commercial property that was owned by Gobo Group (國寶集團), a major shareholder in the insurer. The property was put to auction in 2014 with a starting bid of NT$1.4 billion and did not find a buyer. It was later sold to CTBC Financial for NT$1.57 billion.
ASLAN defends IPO
ASLAN Pharmaceuticals (亞獅康), a biotech firm focused on the development of immunotherapies and targeted agents for Asia-prevalent tumor types, yesterday responded to allegations that the interests of retail investors who had participated in its initial public offering (IPO) on the Taipei Exchange had been harmed as its share price dropped from its NT$58 debut to NT$52.2. The company said that all of its investors have agreed to lockup periods of one to two years for board members and management, and six months for other investors of varying stakes. They did not sell ASLAN shares during its volatile market debut on Thursday last week, and it is not seeking to capital gains as critics claim, the company said.
HTC sales hit 14-month low
HTC Corp (宏達電) yesterday reported that its sales last month had dipped 4 percent sequentially and 33 percent annually to NT$4.53 billion, reaching the lowest in the past 14 months. Sales during the first five months of this year fell 13 percent annually to NT$23.78 billion. The company attributed its sales performance to an ongoing product cycle adjustment, as it had launched its latest HTC U11 flagship handset last month. The company would also cut its number of new handset models this year from six to five in a bid to remain in the black.
MediaTek reports growth
MediaTek Inc (聯發科), the nation’s biggest handset chip designer, yesterday reported NT$18.44 billion in revenue for last month, representing 3.89 percent growth from April’s NT$17.75 billion. The sequential growth was supported by recovering demand from Chinese handset makers. On an annual basis, revenue plunged 25.16 percent from NT$24.64 billion made in May last year. The company forecast in April that revenue would be flat or grow 8 percent quarter-over-quarter to between NT$56.1 billion and NT$60.6 billion. Shipments of chips used in smartphones and tablets are to increase by less than 5 percent quarterly to between 110 million and 120 million units this quarter, MediaTek said.
Nanya reduction hits revenue
DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said revenue fell 4.68 percent last month to NT$4.12 billion from NT$4.32 billion in April due to a 4 percent reduction in shipments. The Taoyuan-based chipmaker attributed the shipment decline to its ongoing technological migration to 20 nanometer (nm) technology from 30nm technology. Compared with the same period last year, revenue soared 42.06 percent from NT$2.9 billion. As chip prices are stabilizing, Nanya Technology expects revenue to return to growth this month on a monthly basis. The company expects shipments to grow about 1 percent this quarter from last quarter.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US