Tong Yang Industry Co (東陽實業), which supplies automotive metal sheets and bumpers to global brands, yesterday reported that its pretax profit last month declined 14.51 percent year-on-year to NT$271 million (US$9.04 million), mainly due to foreign-exchange losses.
Aggregate pretax income in the first 11 months of this year fell 1.9 percent to NT$2.71 billion on an annual basis, with pretax earnings per share of NT$4.37, the company said in a statement.
Tong Yong, one of the world’s largest aftermarket automotive component suppliers, attributed the sluggish earnings performance to a NT$13.67 million foreign-exchange loss last month, saying that mounting losses have reached nearly NT$206 million so far this year because of the appreciation of the New Taiwan dollar against the US dollar.
North America remains the largest revenue contributor to the Tainan-based company’s after-sales parts division, accounting for nearly 65 percent of total sales, company data showed.
Despite the decrease in earnings, Tong Yang gave a relatively positive business outlook for next year, considering the sustained global demand for automotive components.
The company posted sales of NT$2.33 billion for last month, a 7.04 percent increase year-on-year, with aggregate revenue rising 1.63 percent annually to NT$22.34 billion in the first 11 months of the year.
To further cement its position in the global automaker supply chain, Tong Yong said it has been doing research and development on high-value-added products, such as brushless motors and eco-friendly products featuring waterborne coatings.
The company allocated a capital budget of more than NT$1.5 billion to develop new molds for the whole of this year, in a bid to sustain its competitiveness, it said.
As part of its mid-term plan, the company aims to continue investing in China, eyeing the business potential in the original equipment manufacturer (OEM) market there.
Teaming up with Changchun Faway Automobile Components Co Ltd (一汽富維), Tong Yang’s new plants in Shandong Province’s Qingdao and Hebei Province’s Tianjin are set to start mass production in the first half of next year.
Tong Yang, which entered the Chinese market in 1994, has invested US$153 million in its 15 OEM plants and one aftermarket parts plant in China in collaborations with Chinese car brands, such as Guangzhou Automobile Group (廣汽集團) and FAW Group (一汽集團).
Tong Yang shares yesterday remained unchanged at NT$57.6 in Taipei trading after the release of the company’s latest earnings results.
The stock has dropped 9.29 percent this year, compared with the broader market’s 13.38 percent increase over the same period, Taiwan Stock Exchange data showed.
TECH RACE: The Chinese firm showed off its new Mate XT hours after the latest iPhone launch, but its price tag and limited supply could be drawbacks China’s Huawei Technologies Co (華為) yesterday unveiled the world’s first tri-foldable phone, as it seeks to expand its lead in the world’s biggest smartphone market and steal the spotlight from Apple Inc hours after it debuted a new iPhone. The Chinese tech giant showed off its new Mate XT, which users can fold three ways like an accordion screen door, during a launch ceremony in Shenzhen. The Mate XT comes in red and black and has a 10.2-inch display screen. At 3.6mm thick, it is the world’s slimmest foldable smartphone, Huawei said. The company’s Web site showed that it has garnered more than
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
Vanguard International Semiconductor Corp (世界先進) and Episil Technologies Inc (漢磊) yesterday announced plans to jointly build an 8-inch fab to produce silicon carbide (SiC) chips through an equity acquisition deal. SiC chips offer higher efficiency and lower energy loss than pure silicon chips, and they are able to operate at higher temperatures. They have become crucial to the development of electric vehicles, artificial intelligence data centers, green energy storage and industrial devices. Vanguard, a contract chipmaker focused on making power management chips and driver ICs for displays, is to acquire a 13 percent stake in Episil for NT$2.48 billion (US$77.1 million).
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
RSS