Eslite Spectrum Corp (誠品生活), which runs the Eslite bookstore chain, department stores and leisure lifestyle services in Taiwan and abroad, aims to achieve revenue of NT$18.5 billion to NT$19 billion (US$628.9 million to US$645.93 million) this year after extending losses in the first quarter, chairwoman Mercy Wu (吳旻潔) said in an interview with the Chinese-language Commercial Times yesterday.
The Taipei-based group is struggling to swing back to profit after posting losses of NT$1.46 per share in the January-to-March period, as the COVID-19 pandemic weighs on its popular Eslite bookstores and department stores.
Eslite Spectrum has sought to survive by adopting an online-merges-offline (OMO) business model that enables offline retailers to tap into existing e-commerce platforms with better utilization of its business network and lower costs, the newspaper quoted Wu as saying.
The company incurred losses per share of NT$4.82 last year for the first time since its listing on the over-the-counter Taipei Exchange. Wu attributed the poor results to the COVID-19 pandemic and capital spending to create an online sales network.
The chilling effect was most evident in Eslite branches at transportation hubs and popular locations in northern Taiwan, she said.
The company last year launched a three-year transformation geared to restore annual revenue to the pre-pandemic level of NT$20 billion next year and boost it to NT$30 billion thereafter.
Reaching the NT$30 billion target would mean the company’s sales channels are growing, and its emphasis on cultural tourism, community life and e-commerce is paying off, Wu said in the interview, adding that the effort must eventually lead to improved earnings to be called successful.
Eslite Spectrum plans to open large flagship bookstores and small neighborhood outlets accross Taiwan as well as overseas to increase customers and expand its business scale, Wu told the newspaper.
The pandemic is reshaping business districts around Taiwan, with small retailers being forced out of the market while demand for food, beverages and recreation prove stronger than regular shopping, Eslite Spectrum said.
Further, the business mix and leasing structure of commercial properties have been forced to change, but consumer activity at the neighborhood level remains active, the company said.
Affiliate Eslite Hotel (誠品行旅) at the Songshan Cultural and Creative Park (松山文創園區) in Taipei is currently wooing domestic tourists before the government reopens Taiwan to foreign tourists, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, has decided to slow down its 3-nanometer chip production as Intel Corp, one of its major customers, plans to push back the launch of its new Meteor Lake tGPU chipsets to the end of next year, market researcher TrendForce Corp (集邦科技) said yesterday. That means Intel has canceled almost all of the 3-nanometer capacity booked for next year, with only a small amount of wafer input remaining for engineering verification, the Taipei-based researcher said in a report. Based on Intel’s original schedule, TSMC was to start producing the new chipsets in
DATA SHOW DOWNTURN: Manufacturing in Taiwan contracted as production and demand slumped, while growth in chip exports last month eased in South Korea World chip sales growth has decelerated for six straight months in another sign that the global economy is straining under the weight of rising interest rates and mounting geopolitical risks. Semiconductor sales rose 13.3 percent in June from a year earlier, down from 18 percent in May, data from the global peak industry body showed. The slowdown is the longest since the US-China trade dispute in 2018. The three-month moving average in chip sales has correlated with the global economy’s performance in the past few decades. The latest weakness comes as concern about a worldwide recession has prompted chipmakers such as Samsung
Italy is close to clinching a deal initially worth US$5 billion with Intel Corp to build an advanced semiconductor packaging and assembly plant in the country, two sources briefed on discussions said yesterday. Intel’s investment in Italy is part of a wider plan announced by the US chipmaker earlier this year to invest US$88 billion in building capacity across Europe, which is striving to cut its reliance on Asian chip imports and ease a supply crunch that has curbed output in the region’s strategic auto sector. Asking not to be named due to the sensitivity of the matter, the sources said the
Malaysia is scrambling to protect its assets as the descendants of the last sultan of the remote Philippine region of Sulu look to enforce a US$15 billion arbitration award in a dispute over a colonial-era land deal. In 1878, two European colonists signed a deal with the sultan for the use of his territory in present-day Malaysia — an agreement that independent Malaysia honored until 2013, paying the monarch’s descendants about US$1,000 per year. Now, 144 years later after the original deal, Malaysia is on the hook for the second-largest arbitration award on record for stopping the payments after a bloody incursion