Companies listed on the Taiwan Stock Exchange (TWSE) saw their combined revenue in the first half of this year hit the highest level in a decade, but their combined net profit dropped 25 percent annually over the period, the Financial Supervisory Commission said yesterday.
While their combined revenue totaled NT$13.34 trillion (US$424.8 billion), up 0.08 percent from the same period a year earlier, their combined profit plunged to NT$813.7 billion, from NT$1.08 trillion a year earlier, commission data showed.
The annual 25 percent fall in net profit was the largest for the first six months in the past seven years, the data showed.
“Although at first glance it might seem strange that the listed companies saw a revenue growth and a profit plunge, the profit decline in the first six months was mainly dragged by the companies’ high comparison base last year,” Securities and Futures Bureau Deputy Director Sam Chang (張振山) told a news conference in New Taipei City.
Last year, the listed companies reported higher non-operating income on the back of higher gains from investments and disposals of assets, Chang said.
However, the companies’ net profit for this year still ranked the fourth-highest over the past decade, he added.
Shipping and cement companies reported the highest rate of profit growth, as the former benefited from a boost in freight demand and rates, while the latter reported profit gains due to higher demand and prices in some regions, the TWSE said in a statement.
By comparison, semiconductor companies, plastic companies as well as oil, power and gas industry reported a net profit decline as they were affected by a global slowdown, US-China trade tensions and falling oil prices, the exchange said.
Separately yesterday, the commission said that so far, two listed companies — Oceanic Beverages Co (大西洋飲料) and Holux Technology Inc (長天科技) — have still not submitted their financial statements for last year or for the first two quarters to financial authorities.
If they fail to submit the documents by the regulatory deadline, they would be delisted from the local stock market on Nov. 18 and Sept. 2 respectively, Chang said.
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