AEON leaving Taiwan
The Financial Supervisory Commission yesterday confirmed that AEON Credit Card (Taiwan) Co Ltd (台灣永旺信用卡) began winding down its business in December last year. By June 1, about 50,000 credit cards issued by the local unit of the Japanese retail giant would be taken out of circulation, it said. After arriving in 2002, the company lacked the required scale to be profitable, the commission said.
Giant upbeat on year ahead
Giant Manufacturing Co (巨大機械) is upbeat about its sales this year as bicycle demand recovers in China while demand for electric bicycles continues to grow steadily, chairwoman Bonnie Tu (杜綉珍) said at a trade show in Taipei yesterday. The company last year reported that net income rose 39.4 percent annually to NT$2.86 billion (US$92.69 million), or earnings per share of NT$7.64, while sales rose 9.1 percent annually to NT$60.24 billion. Sales of electric bicycles are expected to grow 30 percent this year and contribute up to 25 percent of total sales this year, up from last year’s 19 percent, Giant said. The company said it is planning to spend about NT$5 billion this year on overhauling its headquarters in Taichung and expanding its logistics and manufacturing capabilities in Taiwan.
VHQ plans NT$7 payout
Singapore-based visual effects and post-production company VHQ Media Holdings Ltd yesterday announced plans to distribute a cash dividend of NT$7 per share, representing a yield of 4.4 percent. The Taipei Exchange-listed company, whose customers include Netflix Inc and Facebook Inc, last year reported net income of NT$505 million last year — a record high. Post-production revenue also rose 23 percent annually to NT$1.6 billion, with gross margin reaching 56 percent, besting 2017’s showing by 3 percentage points. The company said that it is collaborating with Netflix on an Asian-led science fiction series, which would begin contributing to its top line next quarter.
UREC bests battling peers
United Renewable Energy Co (UREC, 聯合再生能源) yesterday reported that it ended last quarter NT$1.43 billion in the black, besting its peers, which reported massive losses, and bucking a persistent downturn in the solar power sector. Revenue last quarter rose 76.47 percent quarter-on-quarter to NT$4.83 billion, the company said. However, it ended last year with a net loss of NT$468 million — 88.7 percent less than a year earlier. UREC was formed last year after solar cell makers Neo Solar Power Energy Corp (新日光能源), Gintech Energy Corp (昱晶能源) and Solartech Energy Corp (昇陽光電) merged.
Clevo reports income spike
Computer maker Clevo Co (藍天電腦) yesterday reported that net income last year surged 102 percent annually to NT$1.46 billion, while sales dipped 5 percent annually to NT$19.8 billion. Earnings per share were NT$2.32 — a four-year record. Laptop shipments last year rose 0.8 percent to 128.2 million units, despite challenges because of key component shortages. The company said that as Intel’s 14-nanometer fabrication stabilizes, laptop shipments should rise to 164 million units this year. Shipments of gaming desktop computers and laptops are expected to reach 9.8 million units this year, up from 8.5 million units last year and 4.7 million in 2016, the firm said.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
EQUITIES TAIEX moves sharply higher The TAIEX moved sharply higher yesterday as buying focused on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) after a strong showing by its American Depositary Receipts overnight. However, the gains were capped after the benchmark index breached 13,000 points and ran into technical hurdles, prompting investors to turn cautious, dealers said. At the end of the session, the TAIEX was up 131.11 points, or 1.02 percent, at 12,976.76. Turnover was NT$206.328 billion (US$7.04 billion), with foreign institutional investors buying a net NT$18.47 billion in shares, Taiwan Stock Exchange data showed. TSMC rose 2.92 percent to close at NT$458.