Fri, Jun 29, 2018 - Page 12 News List

Yungtay investors’ meeting puts end to boardroom spat

ON THE WAY DOWN?The elevator supplier said profit last year fell as business in China slowed and forecast a sluggish housing market in Taiwan and China this year

By Kuo Chia-erh  /  Staff reporter

Elevator supplier Yungtay Engineering Co Ltd (永大) yesterday elected a new board of directors at its annual general meeting, putting an end to a high-profile boardroom fight.

The management team led by chairman Hsu Tso-li (許作立) secured six seats on the nine-member board, while a group of investors siding with former president Hsu Tso-ming (許作名) won three.

Hsu Tso-li, the focal point of the boardroom war, has been accused of poor leadership by Hsu Tso-ming, who is also a key member of Yungtay’s founding Hsu family, the Chinese-language Liberty Times (sister newspaper of the Taipei Times) reported.

Hsu Tso-li is expected to announce his retirement soon and his son, Su Ray-chun (許瑞鈞), is likely to take up the 62-year-old company’s top position, the report said.

Yungtay’s net profit last year fell 27.46 percent to NT$1.13 billion (US$36.95 million), from NT$1.56 billion in 2016, as business in China slowed.

Earnings per share fell from NT$3.8 to NT$2.76, while revenue dropped 14.45 percent from NT$19.58 billion to NT$16.75 billion and gross margin slid from 28.84 percent to 26.59 percent.

Yungtay, which is capable of producing up to 28,000 elevators per year, made 12,283 units last year, down from 15,500 units in 2016.

In its annual report, the company said that it is cautious about operations this year amid relatively bearish sentiment in the domestic and the Chinese market housing.

The company said it expects to sell 3,128 elevators in Taiwan and 11,500 in China this year.

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