Elevator manufacturer Yungtay Engineering Co (永大機電) expects its revenue-losing Shanghai subsidiary to break even next year, as orders began to rebound last quarter.
Shanghai Yungtay Elevator Equipment Co (上海永大), which accounted for 56 percent of the group’s total revenue last year, reported losses of NT$30 million to NT$40 million (US$951,777 to US$1.27 million) for last quarter, with low utilization pushing the subsidiary’s gross margin down to 16 percent.
Shanghai Yungtay’s sales for this year are expected to bottom out, local Chinese-language media reported on Thursday, quoting Yungtay Engineering chairman Hsu Tso-ming (許作名).
While Shanghai Yungtay’s orders surged 90 percent year-on-year in the first four months of this year, it usually takes one to two years before confirmed orders contribute to sales figures, Hsu said, adding that the company expects last quarter’s orders to boost sales contributions in the second half of next year.
The chairman, who worked at the Shanghai unit for 20 years, said that the company’s goal for this year is to decrease losses at the unit and raise its gross margin to 19 to 21 percent.
In China, Yungtay Engineering expects orders to increase from 10,000 units last year to 20,000 units this year, as shipments grow from 7,700 to 13,000 units, local media reported.
In the local market, Yungtay Engineering expects flat order growth — about 3,000 units — with elevator maintenance and repairs being the main sales driver, they reported.
The maintenance and repair business accounted for more than 50 percent of Yungtay Engineering’s total revenue last year, the company said.
The company seeks to increase revenue from the maintenance of old elevators by 20 percent, after it contributed 15 percent of total revenue last year, it said.
Yungtay Engineering has a 27 percent share in the local elevator market and is working to expand its share in the high-end elevator market beyond 20 percent, the company said, adding that high-end elevator maintenance and repair have a high gross margin, which could boost the company’s net income, it said.
The company’s first-quarter net income plunged 62.16 percent to NT$136.37 million, from NT$360.42 million a year earlier.
Cumulative revenue for the first four months of this year fell 22.65 percent to NT$4.19 billion, compared with NT$5.42 billion over the same period last year.
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
Artificial intelligence (AI) agents would supplant smartphones as the center of people’s digital lives, fundamentally reshaping personal devices and driving a major computing upgrade cycle, Qualcomm Inc CEO Cristiano Amon said yesterday. In his keynote speech for this year’s Computex trade show in Taipei, Amon said that the rise of "agentic AI" — AI systems capable of reasoning, planning and carrying out tasks autonomously — would transform how people interact with technology across phones, PCs, vehicles and wearable devices. Describing the technology as the next major evolution in computing, Amon said that "2026 is the year of agents.” For decades, smartphones have sat
Hon Hai Precision Industry Co (鴻海精密) yesterday said it would work with US chipmaker Intel Corp to jointly develop and deploy next-generation artificial intelligence (AI) infrastructure and intelligent computing platforms in a move to capture booming demand for AI computing systems. Hon Hai, also known as Foxconn Technology Group (富士康), said in a statement that the partnership would combine its global manufacturing scale, system integration expertise and AI data center deployment capabilities with Intel’s strengths in processor architecture, silicon technologies and software ecosystem. The companies said they plan to work on equipment used in AI data centers, including server racks powered by
RSS