Despite strong growth from its China operations, Uni-President Enterprises Corp (統一企業) yesterday said it would seek to limit their contribution to 50 percent of consolidated sales to minimize risks from overconcentration on a single market.
“It is just a matter of time before sales from China exceed those from Taiwan,” company chairman Alex Lo (羅智先) told a media briefing after the company’s annual shareholders’ meeting.
Uni-President posted consolidated sales of NT$423.06 billion (US$14.09 billion) last year, with revenue from China accounting for about 40 percent.
However, with the Chinese economy expected to expand steadily over the next few years, Lo said it would be a challenge to maintain the sales ratio from Taiwan, China and Southeast Asia — its three major markets — at one-third each.
Uni-President will strive to keep combined sales from Taiwan and Southeast Asia at 50 percent over the long term — a relatively healthy structure for the company — to avoid overconcentration on the Chinese market, Lo added.
Asked about the outlook for this year, Lo said he expects the macroeconomic sentiment in Taiwan to improve from last year, which should lend support to its sales and profitability.
However, the Chinese market remains a major uncertainty, Lo said, adding that a slight change in a huge economy like China could have a volatile impact.
Lo said Uni-President China Holdings Ltd (統一企業中國控股), Uni-President Enterprises’ major subsidiary in China, would continue its strategy of product diversification and avoiding cutthroat price competition.
Uni-President Enterprises also plans to focus more on value-added products, instead of cost-down measures, to maintain its profitability and ensure food safety.
The company is planning to invest NT$1 billion to build a food testing center this year to raise product quality, Lo added.
Shareholders yesterday approved Uni-President Enterprises’ plan to distribute a cash dividend of NT$1.50 per share and a stock dividend of 6 percent per share, based on its net profit of NT$12.76 billion, or NT$2.48 per share, last year.
The stock rose 0.19 percent to close at NT$52.90 on the local bourse yesterday, Taiwan Stock Exchange data showed.
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