Tue, Mar 12, 2019 - Page 11 News List

Taiwan Business Quick Take

Staff writer


Hon Hai facing suit: reports

Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics manufacturer, yesterday declined to comment on media reports that Microsoft Corp had filed a lawsuit against the Taiwanese firm last week in the US District Court for the Northern District of California. Microsoft has sued Hon Hai for failing to comply with a patent-licensing agreement from 2013 and accused it of not paying royalties on time, several media outlets reported, citing US news network CNBC. “The company does not comment on an ongoing judicial case,” Hon Hai said in a regulatory filing. Hon Hai shares yesterday fell 0.42 percent to close at NT$70.4 in Taipei.


Quang Viet to pay NT$6

Quang Viet Enterprise Co (廣越), which makes down jackets for The North Face and other major brands, has proposed paying a cash dividend of NT$6 per common share, representing a payout ratio of 80.75 percent. The company’s net profit surged about 47 percent year-on-year to NT$769 million (US$24.88 million) last year, thanks to higher product prices and lower labor costs. Earnings per share rose to NT$7.43, from NT$5.07 in 2017. The company expects revenue to grow by a double-digit percentage this year from NT$13.28 billion last year. Cumulative revenue in the first two months had doubled to NT$1.5 billion from NT$689 millon in the same period last year.


Hiroca revenue slumps

Automotive components maker Hiroca Holdings Ltd (廣華) yesterday reported that cumulative revenue for the first two months of the year declined 18.81 percent year-on-year to NT$1.03 billion due to weakness in the Chinese automobile market. However, steady sales of major Japanese brands Toyota Motor Corp, Honda Motor Co and Nissan Motor Co in China — which account for more than 70 percent of the company’s revenue — provided some support, Hiroca said. The company said it is cautiously optimistic about this quarter and expects its customers’ efforts to digest inventory to foster a healthier market.


Advantech profit a record

Industrial computer supplier Advantech Co (研華) posted earnings per share of NT$9.02 last year, the highest in nearly 20 years, thanks to rising revenue and an improved operating margin. Net profit for last year increased 62.3 percent year-on-year and operating profit grew 2.6 percent to NT$6.31 billion, with revenue rising 10 percent to NT$48.78 billion, the company said on Friday last week. Last year’s profit and revenue were the highest in the company’s history. Gross margin was 38.3 percent and operating margin was 15.33 percent, compared with 39.17 percent and 15.28 percent a year earlier respectively, the company said.


XPEC’s Hsu released on bail

The Taiwan High Court yesterday approved the release of Aaron Hsu (許金龍), former chairman of game developer XPEC Entertainment Inc (樂陞), who has been detained at the Taipei Detention Center since October 2016. In February last year, the Taipei District Court sentenced Hsu to 18 years in prison after he was found guilty of fraud. It also seized NT$4.07 billion deemed to be illegal profits in relation to a failed tender offer by a Japanese firm. In his bail terms, the court restricted Hsu from changing his place of residence and required him to report to his local police station every night.

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