China Development Industrial Bank (CDIB, 開發工銀), a banking arm under China Development Financial Holdings Co (開發金), yesterday said it planned to accelerate its investment expansion into China by teaming up with provincial governments or large-scale venture capitalists there to operate private equity (PE) fund businesses, a company executive said yesterday.
“By mapping out such a business model, we don’t have to chip in a lot of capital, yet we can maximize our investment returns or bring in steady fee incomes for the bank,” bank president Simon Dzeng (曾垂紀) told a media briefing.
The bank’s brand and expertise in fund management will be an attractive option for potential Chinese partners, he said, promising to set up a fund management joint venture there “within two years.”
Without detailing the bank’s planned China-bound capital injection, Dzeng said the size of PE funds in China could range between 300 million yuan (US$43.9 million) and 1 billion yuan.
Once Taiwan signs a proposed trade accord with China, the bank may also consider acquiring a Chinese bank to tap into the commercial banking market, he said, adding that the Chinese market offers higher net interest margins, looser banking regulations and convenience for Taiwanese banks.
The goal is to boost its assets under management 10-fold to NT$1 trillion (US$31.2 billion) in five years, Dzeng said.
AI SERVER DEMAND: ‘Overall industry demand continues to outpace supply and we are expanding capacity to meet it,’ the company’s chief executive officer said Hon Hai Precision Industry Co (鴻海精密) yesterday reported that net profit last quarter rose 27 percent from the same quarter last year on the back of demand for cloud services and high-performance computing products. Net profit surged to NT$44.36 billion (US$1.48 billion) from NT$35.04 billion a year earlier. On a quarterly basis, net profit grew 5 percent from NT$42.1 billion. Earnings per share expanded to NT$3.19 from NT$2.53 a year earlier and NT$3.03 in the first quarter. However, a sharp appreciation of the New Taiwan dollar since early May has weighed on the company’s performance, Hon Hai chief financial officer David Huang (黃德才)
The Taiwan Automation Intelligence and Robot Show, which is to be held from Wednesday to Saturday at the Taipei Nangang Exhibition Center, would showcase the latest in artificial intelligence (AI)-driven robotics and automation technologies, the organizer said yesterday. The event would highlight applications in smart manufacturing, as well as information and communications technology, the Taiwan Automation Intelligence and Robotics Association said. More than 1,000 companies are to display innovations in semiconductors, electromechanics, industrial automation and intelligent manufacturing, it said in a news release. Visitors can explore automated guided vehicles, 3D machine vision systems and AI-powered applications at the show, along
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