E-commerce operator Momo.com Inc (富邦媒體) on Tuesday announced the construction of 10 satellite warehouses and a logistics center in southern Taiwan.
The infrastructure upgrades would help to lower costs and shorten shipping times for packages delivered to southern Taiwan, the company said at a media gathering.
“These new logistics upgrades will elevate our ability to deliver all across Taiwan,” Momo chairman Lin Chi-feng (林啟峰) said. “We anticipate the southern logistics center to begin operations in 2023.”
Photo: CNA
The firm launched its subsidiary Fu Sheng Logistics Co (富昇物流) in May last year so that it could operate its own fleet of delivery vehicles.
“We hope to increase the percentage of deliveries completed by Fu Sheng to 15 percent this year,” Lin said.
Northern Taiwan accounts for 60 percent of Momo’s orders, while central and southern Taiwan each account for 20 percent.
However, the company’s main logistics center and warehouse are in the north.
Packages destined for the south are dispatched from the northern logistics center, which is inefficient, the company said.
Momo has benefitted from the shift in consumer behavior driven by the COVID-19 pandemic, as consolidated revenue last year increased 29.65 percent year-on-year to reach a record NT$67.2 billion (US$2.37 billion) from NT$51.83 billion in 2019.
Thanks to improving operational efficiency and economies of scale, net profit last year increased 39.48 percent to NT$1.94 billion from NT$1.39 billion in 2019, with earnings per share rising from NT$9.95 to NT$13.87, company data showed.
On Tuesday, PChome Online Inc (網路家庭) announced that it would launch a share buyback program to reward employees, and proposed distributing a cash dividend of NT$1.3 per share to shareholders, which would represent a payout ratio of 60.19 percent.
PChome Online said that its board of directors approved a plan to buy back 1.5 million shares, or 1.27 percent of its outstanding shares, on the open market for NT$60 to NT$100 per share from yesterday to May 16.
The company added that it plans to reward employees with the repurchased shares over the next five years.
The e-commerce company reported that net profit last year increased 55.63 percent to NT$252.79 million from NT$162.44 million in 2019, with earnings per share increasing to NT$2.16 from NT$1.39.
Revenue last year increased 12.82 percent to a record NT$43.87 billion from NT$38.88 billion in 2019, company data showed.
This year, the company said that it aims to increase its customer base by offering points-based incentives, and to expand offline channels, from large chains to small stores.
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