BIOTECHNOLOGY
Samsung unit to be probed
Samsung Group’s biotechnology unit is facing a criminal investigation and potential delisting after the South Korean Financial Services Commission said the company “intentionally” contravened accounting rules for an initial public offering (IPO). A securities panel of commission said Samsung Biologics Co deliberately overstated the value of affiliate Samsung Bioepis ahead of its 2016 IPO, which raised about US$2 billion. The regulator fined Samsung Biologics 8 billion won (US$7.04 million) and recommended dismissing its CEO. Commission Vice Chairman Kim Yong-beom said trading of Samsung Biologics shares would be halted temporarily and it would be under review for possible delisting.
TECHNOLOGY
Johnson sells battery firm
Johnson Controls International PLC’s US$13.2 billion sale of its car battery business has completed the company’s dramatic makeover from an automotive supplier to a provider of systems for homes and buildings, setting the stage for growth through acquisitions. CEO George Oliver is betting on continued growth of smart buildings. With the sale of the power unit to Brookfield Asset Management Inc, Johnson Controls has become a “pure-play” provider of fire, security, climate control and building management systems. The company expects net proceeds of US$11.4 billion for the power unit, which is to bolster its war chest to repay as much as US$3.5 billion of debt and snap up rivals.
BANKING
Bradesco to boost lending
Banco Bradesco SA, the second-biggest bank in Latin America by market value, is to increase lending at least 10 percent next year amid expectations that a new Brazilian government will promote market-friendly policies and speed up economic growth, CEO Octavio de Lazari said. The incoming government might make changes amid an uproar from Brazilians and investors who have called for social security reform, the independence of the central bank and tax simplification. Bradesco is betting on growth and sees lending to companies as “a mission,” Lazari said, adding that it would also continue boosting credit to individuals, focusing on mortgage, vehicles and payroll loans.
ENTERTAINMENT
Sales threaten Iger’s bonus
Walt Disney Co CEO Bob Iger could miss out on a US$60 million cash bonus. Disney posted US$15.7 billion of segment operating income for the year ended Sept. 29, adding up to US$73.9 billion over the past five years, falling short of targets tied to the payout. Disney granted him the bonus opportunity in 2014 as part of a contract extension. Iger would receive part of the award if total adjusted operating income for the period exceeds US$76 billion and the full amount if it reaches US$78.3 billion.
ENERGY
E.ON optimistic on targets
German energy giant E.ON SE yesterday said it was confident of hitting its full-year targets after a strong set of third-quarter results as it pushes on with a complex restructuring. The Essen, Germany-based group reported a net profit of 247 million euros (US$278.4 million) from July to September, compared with a loss in the same quarter last year. Adjusted operating, or underlying profit, grew 17 percent year-on-year to 410 million euros, although revenue fell 13 percent to 7.3 billion euros.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
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