Tue, Aug 13, 2019 - Page 11 News List

Inventory enough for three months:Johnson Health

By Kwan Shin-han  /  Staff reporter

Fitness equipment maker Johnson Health Technology Co Ltd (喬山健康科技) yesterday said it has enough inventory to keep it running until at least late November in light of an additional 10 percent tariff imposed by the US on US$300 billion of Chinese goods from Sept. 1.

The company expedited shipments from its Shanghai plants over the past two weeks ahead of the tariffs, as about one-third of the output is bound for the US, a public relations official said by telephone.

The Shanghai plants manufacture mainly household fitness equipment, the official said.

Despite lower output for the US-bound goods, orders for European clients would likely grow steadily in the second half of the year, she said.

The company might also benefit from diverted orders this year, as its competitors face increased manufacturing costs after China in June raised tariffs on US products from 6 to 10 percent, she said.

The company reported cumulative net income of NT$247.49 million (US$7.88 million) in the first half of the year, or earnings per share (EPS) of NT$0.82, compared with a net loss of NT$341.76 million a year earlier.

Cumulative revenue in the first seven months rose 21.83 percent year-on-year to NT$12.8 billion.

Fitness equipment and power tools maker Rexon Industrial Corp Ltd (力山工業) yesterday said that the new US tariffs would not pose a threat to its business, as most of the US-bound products are made at its Taichung plants.

The company reported first-half net income skyrocketed 1,246.18 percent year-on-year to NT$916.98 million, or a rise in EPS from NT$0.38 to NT$5.05.

Excluding asset disposal gains from its plant in Zhejiang Province’s Hangzhou, EPS would be NT$1.12, it said.

Cumulative revenue in the first seven months surged 75.76 percent annually to NT$4.25 billion, it said.

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