Lite-On delays sale of unit
Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations.
Hiroca approves dividend
Automotive interior parts supplier Hiroca Holdings Ltd’s (廣華控股) board of directors yesterday approved a proposal to pay a cash dividend of NT$3.5 per share after posting a net profit of NT$400.53 million (US$13.24 million) for last year, or earnings per share of NT$4.78, a company statement said. The earnings results were lower than the company’s net profit of NT$546.11 million, or NT$6.51 per share, in 2018. Hiroca attributed the 26.6 percent decline to a drop in sales of new vehicles in China and foreign-exchange losses. Revenue last year dropped 7.87 percent to NT$7.43 billion, it said. Despite the pandemic, which disrupted operations at its factories in the first quarter, Hiroca said that it still expects an increase in orders from customers throughout the rest of this year.
Yang Ming losses shrink
Yang Ming Marine Transport Corp (陽明海運) yesterday reported net losses per share of NT$1.66 for last year, down from losses per share of NT$2.53 a year earlier, thanks to rising revenue, more operating volume and lower unit costs. Last year, the shipper posted net losses of NT$4.31 billion, but revenue increased 5.18 percent to NT$149.18 billion, while operating volume rose 3.88 percent to 5.4 million twenty-foot equivalent units, a company statement said. Yang Ming said that this year, it aims to optimize its operational strategy and implement cost structure enhancements to improve competitiveness and customer service.
Genius plans cash payout
Genius Electronic Optical Co (玉晶光), a camera lens supplier for Apple Inc’s iPhones, plans to pay a cash dividend of NT$9 per share, up from NT$3.5 a year earlier, and spend NT$3.46 billion on capital equipment purchases. Based on last year’s earnings per share of NT$24.79, the dividend represents a payout ratio of 36.3 percent. On Monday, the company reported a record-high net income of NT$2.52 billion for last year, with revenue of NT$12.05 billion — a company record — thanks to robust iPhone 11 sales. The company said its gross margin increased 8.2 percentage points year-on-year to 46.95 percent, thanks to greater efficiency.
Hu to chair Taiwan Water
Taiwan Water Corp (台灣自來水公司) president Hu Nan-tzer (胡南澤) has succeeded Kuo Chun-ming (郭俊銘) as the company’s new chairman following the Executive Yuan’s approval, the Ministry of Economic Affairs said yesterday. The 64-year-old Hu, who has a master’s degree in environmental engineering from National Cheng Kung University, has worked at Taiwan Water for about 38 years, the ministry said. Hu has led many construction projects since becoming president in 2013, it said, adding that he would continue to serve as president.
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) yesterday announced that it would suspend guestroom operations and lay off related staffers from Monday, as regional border controls and travel restrictions are unlikely to be lifted anytime soon. The partial shutdown would not affect the five-star hotel’s restaurants, bars, spa, and conference and banquet facilities, which this month have almost recovered to pre-pandemic levels, it said. “Mandarin Oriental Taipei will suspend all guestroom services from June 1 due to the impact of the COVID-19 pandemic,” the hotel said after four months of maintaining normal operations proved unsustainable. The change necessitates downsizing and the hotel is handling
Eslite Spectrum Corp (誠品生活), which runs the Eslite bookstore chain, yesterday said that it would close more outlets in Taiwan later this year as part of a business restructuring plan. At this year’s annual general meeting, Eslite chairwoman Mercy Wu (吳旻潔) told shareholders that the company remains upbeat about the market, despite the announced closures. Eslite would close its bookstore at Kaohsiung Medical University at the end of this month and its Shih Chien University bookstore in Taipei at the end of next month, Wu added. The closures are a necessary part of efforts to restructure its business operations, she said. The company on
The Financial Supervisory Commission (FSC) would set up new guidance by the end of August to boost corporate governance, insurers’ solvency, green financing, financial technology, the trust industry and information security, new FSC Chairman Thomas Huang (黃天牧) said yesterday. “Corporate governance has been improved in terms of compliance and shareholding disclosure with former chairman Wellington Koo (顧立雄) at the helm. It is time to move to the next phase to focus on companies’ roles in sustainable development,” Huang told a news conference in New Taipei City. The commission would also set policies to incentivize companies to increase green financing and adopt the
REVOLVING DOOR? MediaTek said that it has invested more than NT$100 billion in developing 5G chips over the past few years and built a team of 3,000 engineers MediaTek Inc (聯發科), the world’s second-largest handset chip designer, yesterday declined to comment on a report that China’s second-largest smartphone maker, Oppo Mobile Telecommunications Corp (歐珀), is poaching its highest-ranking executive in charge of 5G chip development. The company said that it had its employees sign agreements on labor ethics. Most Taiwanese tech companies impose “revolving door” restrictions on employees, preventing them from leaving for competitors. MediaTek shares yesterday climbed 0.98 percent to close at NT$464.5, compared with the TAIEX climbing 0.16 percent. Turnover jumped 22 percent to 8.15 million shares, compared with 6.68 million shares on Tuesday. Investors did not flinch when the