COSMETICS
Production to restart
Chlitina Holding Ltd (麗豐), which manufactures and sells beauty and cosmetic products through its salon franchise in Taiwan and China, yesterday said its Chinese production lines are to restart today, adding that the company attaches great importance to the health of its employees and the safety of its operations. The company has asked administrative staff to work from home where possible until the end of this month, according to a regulatory filing issued yesterday. The company owns Chlitina (China) Trade Ltd Co (克麗緹娜中國貿易), Weishuo (Shanghai) Daily Product Ltd Co (微碩上海日用品) and other subsidiaries in China.
SANITARY PRODUCTS
KNH eyeing developments
Sanitary paper product manufacturer KNH Enterprise Co Ltd (康那香) yesterday said its Chinese subsidiaries have been applying for permission from local authorities to resume operations. The company’s subsidiaries in Shanghai, Yangzhou and Chengdu were originally scheduled to restart production yesterday, but KNH said each subsidiary’s schedule would depend on the development of the 2019 novel coronavirus outbreak and local government policies. The company said it is closely monitoring developments, which so far have not had a significant impact on its finances and business operations in Taiwan and China.
GLASS
Taiwan Glass optimistic
Taiwan Glass Industry Corp (台灣玻璃) yesterday said that some of its subsidiaries in China resumed operations as scheduled yesterday, while others were still awaiting approval from local governments pending the development of the 2019 novel coronavirus outbreak. However, the company’s kiln production equipment has been running 24 hours a day and it has seen no negative effects since the Lunar New Year holiday, Taiwan Glass said in a filing with the Taiwan Stock Exchange. The company said the impact of delayed resumption of operations on its revenue depends on the development of the outbreak and its impact on the operations of its clients.
TELECOMS
Chunghwa revenue falls
Chunghwa Telecom Co (中華電信), the nation’s biggest telecom, yesterday posted consolidated revenue of NT$16.7 billion (US$554.8 million) for last month, a 5.3 percent year-on-year decline due to falling handset sales and lower fixed-line voice revenue. Due to cost declines owing to lower handset sales, operating expenses fell to NT$12.92 billion, resulting in operating income of NT$3.78 billion, the company said in a regulatory filing. Net income was NT$2.99 billion last month, or earnings per share of NT$0.39, exceeding the company’s previous guidance.
CONTACT LENSES
Pegavision income slumps
Pegavision Corp (晶碩) yesterday posted net income of NT$475.49 million for last year, or earnings per share of NT$7.62, down from NT$541.16 million the previous year. Pegavision, a contact lens subsidiary of Pegatron Corp (和碩), said in a filing with the Taiwan Stock Exchange that its revenue climbed to NT$3.36 billion from NT$3.13 billion in 2018. The board of directors has proposed distributing a cash dividend of NT$2.5 per common share, representing a payout ratio of 32.81 percent. The dividend proposal is subject to shareholders’ approval at an annual general meeting on May 27. Pegavision also announced that vice president of materials research and development division Lai Yu-chin (賴有進) is to retire on Thursday next week.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
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