Tong Yang Industry Co (東陽實業), a supplier of automotive metal sheets and bumpers, yesterday reported that pretax profit last month surged 32 percent to NT$135.29 million (US$4.6 million) from July thanks to recovering demand in the Chinese market.
It was the fourth consecutive month of pretax profit growth for Tong Yang, indicating that the effects of the COVID-19 pandemic are easing, the Tainan-based company said.
Although a monthly increase, the figure was a decline of 36 percent from a pretax profit of NT$211.21 million that it made a year earlier, company data showed.
Photo: Lin Chin-hua, Taipei Times
“Promotions by the Chinese government for new-energy vehicles in rural areas have boosted new vehicle sales, helping to prop up revenue growth for Tong Yang’s Chinese operations,” the company said in a statement.
Demand has also increased because the global automotive aftermarket is entering its peak season, the company said, adding that it is optimizing its production lines and increasing inventory levels to cope with the seasonal demand.
Aftermarket business refers to the secondary market in the automotive industry, which offers the sale, distribution and installation of vehicle parts, chemicals, equipment and accessories to people who have purchased from automakers.
During the first eight months of this year, Tong Yang’s pretax profit totaled NT$564 million, declining 65.76 percent from the NT$1.66 billion that it made a year earlier, as auto factories were forced to shutter amid the spread of COVID-19.
Consolidated revenue plunged about 22 percent year-on-year to NT$11 billion in the first eight months, company data showed.
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