| Prime News | | ![]() | ![]() | Taiwanese Exporters in China Allowed to Resume Some Tax Rebates
Taipei, Sept. 7, 2007 (CENS)--Wu Yi, Chinese vice premier, announced yesterday (Sept. 6) allowing exporters in lines other than high-pollution, high energy-consumption, and high resources-spending ones to resume the preference of exports tax rebates at original rates, giving Taiwanese exporters there a respite from the impact deriving from slashing of such preference.
Wu made the announcement during a meeting with Taiwanese business representatives, who complained that slashing of exports tax rebates has battered some Taiwanese exporters, especially in view of their low margins.
The Chinese government abruptly slashed tax rebates for 1,853 export items in July and further required traders of processed goods to deliver full guarantee fund for their operation on August 23, triggering bitter response and widespread complaint among the Taiwanese community there.
Taiwanese business leaders at the meeting noted that the new measures have pushed many Taiwanese firms to the brink of closure. They included Chang Han-wen, chairman of Taiwanese Chamber of Commerce China, Guo Kun-shan, chairman of Taiwanese Chamber of Commerce Dongguan, Li Kuan-xin, chairman of Taiwanese Chamber of Commerce Kunshan, and Zeng Qin-zhao, chairman of Taiwanese Chamber of Commerce Xiamen.
Meanwhile, to alleviate liquidity pressure on Taiwanese businesses, China's Ministry of Commerce announced the other day permitting Taiwanese exporters to deliver letters of guarantee issued by the Bank of China, instead of cash, to the customs for the guarantee fund for processed foreign trade.
During yesterday's meeting, Wu Yi also urged Taiwanese businessmen to move their operations to inland areas in central and western China, as the Chinese government is accelerating formulation of corresponding measures and preferences encouraging investments in these areas.
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| | ![]() | | | FSC Revised Calculation of Stock Value for Employee Stock Bonus
Taipei, Sept. 7, 2007 (CENS)--For expensing employee stock bonus from next year, listed companies should calculate value of the stock bonus on the basis of the stocks' closing prices on the last trading session of the previous fiscal year, rather than on the day prior to the shareholders' assembly, as originally stipulated, announced the Financial Supervisory Commission (FSC) yesterday (Sept. 6).
In addition, staring from next year, listed firms will have to incorporate estimated costs for employee bonus in their quarterly financial statements, thereby affecting their publicized profit figures.
The original calculation method for employee stock bonus was publicized by the FSC on March 30, which, though, has triggered widespread complaints subsequently, including uncertainty for the shareholder dividend distribution proposal, as listed companies' actual profits can not be settled until determination of employee stock-bonus value following closing of the trade session prior to the shareholders' meeting.
In addition, should stock prices plunge on the trading session prior to the shareholders' meeting, listed firms may have to considerably boost amount of stocks for employee bonus, as a result of which listed companies will have to change in a hurry the figure of new paid-in capital following capital increment via use of retained earnings contained in its revised corporate charter, to be voted on by the shareholders' meeting.
FSC noted that listed firms will have to take into account the closing stock prices at the last trading session of the previous year, as well as stock and cash dividends for shareholders, in determining the amount of stocks to be issued for employee bonus. The new method will facilitate smooth proceeding of shareholders' meetings, most held in April every year.
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| | ![]() | | | Marketech Taps Solar-energy Production Equipment Sector
Taipei, Sept. 7, 2007 (CENS)--Marketech International Corp., one of Taiwan's professional technology service providers, has entered the production tools field for solar-energy silicon wafer and solar cells, aiming at the NT$10 billion (US$303.03 million at US$1:NT$33) business opportunities per year in the solar-energy production equipment market.
In addition, the company is said to have landed orders for plant-construction engineering to fill its production lines through the end of this year. With the acquisition of NT$8 billion (US$242.42 million) orders from mainland China-based Semiconductor Manufacturing International Corp. and Taiwan's Formosa Plastics Group, Marketech will see sales in the second half of this year double from that registered in the first half.
Concentrating on production and sales of semiconductor and optoelectronic manufacturing equipment, Marketech has also involved in clean-room engineering business with major clients coming from the U.S.-based Applied Materials, AKT, and Brooks. By rolling out the solar-energy production equipment, the company has become Taiwan's first firm involving in semiconductor, optoelectronics and solar energy fields.
With the participation in the science and technology special project under the auspices of the Ministry of Economic Affairs, Marketech has set up a research and development team in its headquarters in Taipei City to engage in the production of silicon wafer and solar cell manufacturing equipment. Based on its existing plant engineering experience, the company will be able to assist customers complete plant construction, which will escalate its competitiveness.
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| | ![]() | | | TRC Affirms "twAAA" on Cathay Life Insurance on Strong Market Position
Taipei, Sept. 7, 2007 (CENS)--Taiwan Ratings Corp. (TRC) recently affirmed its "twAAA" insurer financial strength and counterparty credit ratings on Cathay Life Insurance Co. The Outlook is stable.
The ratings reflect Cathay Life's strong business franchise and market position, satisfactory operating performance, adequate capitalization, and good liquidity. However, due to its superior credit characteristics within the Cathay Financial Group, Cathay Life may be required to provide resources, either on a regular basis or in unexpected circumstances, to weaker group members. A legacy negative spread burden is another factor constraining the ratings.
Cathay Life is the core subsidiary and main earnings contributor to the Cathay Group. Cathay Life accounted for 63% of the group's total assets of NT$3.5 trillion (US$106.06 billion at US$1:NT$33) at the end of March this year and contributed about 82% of the group's total profit in 2002-2006.
The TRC noted Cathay Life has a strong business profile supported by its dominant market position and extensive domestic distribution network. In 2006, the insurer had a market share of 28% in terms of assets and 23% in terms of total premiums. In the first half of 2007, it had a 22% and 24% market share of total premiums and first-year premiums, respectively. Cathay Life's asset base is almost double the size of its nearest competitor's, giving it a strong scale advantage.
Cathay Life's operating performance remains above the domestic peer average, and the insurer maintains a satisfactory mortality surplus and low expenses. Amid a favorable investment environment and foreign exchange movements, Cathay Life's ratio of net profit to average assets was about 1.5% in the first half of 2007, and averaged 1.1% in 2002-2006. The company still suffers from a legacy negative spread burden. Cathay Life's financial profile is adequate. The company's liquidity is strong due to favorable operating cash flows and its holding of liquid assets. Cathay Life's invested assets are of satisfactory quality and it has adequate asset-liability management, especially on new business. The company's capitalization is adequate, supported by the insurer's above-average earning capability and adequate reserves.
The TRC said the stable outlook reflects the likelihood that Cathay Life will continue to benefit from its dominant market position and strong domestic franchise. The company faces challenges in expanding its traditional life insurance products amid a low interest rate environment, but satisfactory growth of new products should support overall business growth. Cathay Life is likely to continue to outperform its competitors. The insurer's profitability is likely to remain above the domestic peer average, underpinned by proactive asset-liability management and prudent risk management.
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| | ![]() | | | E-Tone Solar, Kenmos Technology Enter Into Thin Film Solar Cell Business
Taipei, Sept. 7, 2007 (CENS)--E-Tone Solar Tech and Kenmos Technology Co., Ltd. recently separately unveiled their plans to enter into manufacturing of thin-film solar cells.
Kenmos announced it will open thin-film solar-cell venture at cost of NT$1 billion (US$30 million at US$1:NT$33) and it alone will put NT$450 million (US$13.6 million) into the venture.
Kenmos' executives said their company had invited U.S. solar-cell supplier NanoPV Corp. and some solar-cell equipment suppliers to join it in the investment. NanoPV and the equipment suppliers, they said, will sign investment agreement next Thursday to acquire a 20% stake and a 10% stake in the venture, respectively.
They said the solar-cell venture will begin production and shipments next year, with initial output capacity set at 10 megawatts of cells a year. In two years, the output will be boosted to 30 megawatts.
Kenmos' executives pointed out that the company began around a year ago identifying potential business outside its core backlighting-module manufacturing as part of its plan to boost revenue. Finally, the company decided to look for greener pastures in thin-film solar-cell business after extensive evaluation.
They went on that their company cooperates with NanoPV in this case on ground that the U.S. company specializes in TCO glass technology, which is essential in the production of thin-film solar cells. In addition, the company has set up distribution channels in Europe and the United States.
Kenmos' executives noted that although competition in the market of the cells is already stiff, NanoPV is one of the handful suppliers making money. NanoPV's large-area thin-film solar modules now report conversion efficiency of 8.5%, higher than average 5-6% achieved by the company's rival products.
They said the solar-cell venture will initially develop products targeting applications including notebook computers, solar lamps, rechargers, small stand-alone power generators and solar-powered buildings. Major markets for the startup will be the United States, Germany, mainland China, Australia, Britain, Israel and Japan.
The executives pointed out that although investments in manufacturing equipment of the cells are pricier than that in equipment for making polysilicon solar cells, production costs at Taiwanese thin-film solar cell factories are likely to largely pare down in near future since 70% of local equipment suppliers catering to thin-film cell makers are able to make the equipment by themselves.
E-Tone plans to open a thin-film cell factory at the Southern Taiwan Science Park, allowing it to expand into the new area from polysilicon-cell sector.
Industry watchers pointed out that thin film is a new-generation solar technology, which eliminates the need for silicon crystal as raw material in the manufacturing. Nevertheless, the new solar methodology poses higher technological challenge than does polysilicon technology.
However, many solar-energy entrants are embracing thin-film products considering escalating shortage of polysilicon materials.
Industry watchers pointed out boom business has recently prompted the island's thin-film cell makers to poach talents from liquid-crystal display (LCD) manufacturers. They said LCD talents tend to defect to thin-film cell manufacturers on ground that solar-cell industry is believed to be more profitable than LCD since it has still infant, leaving a huge room for future growth.
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| | ![]() | | | Motorola Taiwan Reported to Buy Into First International Telecom
Taipei, Sept. 7, 2007 (CENS)--Motorola Taiwan has reportedly agreed to buy undisclosed number of shares of First International Telecom (FIT) Corp. in the latter's telecom provider's upcoming issuances of 250 million new common shares via private placement.
FIT recently announced the capital-raising plan and said it will plow the capital, estimated at NT$3 billion (US$90 million at US$1:NT$33), into its WiMAX telecom project. The company is one of the six Taiwanese enterprises awarded with WiMAX licenses.
FIT's executives said the company needs around NT$4 billion (US$121 million) for its WiMAX infrastructure investment and it is still around NT$3 billion short of that goal since the government already subsidized it NT$1.2 billion (US$37.8 million) for its involvement in a government-backed mobile-telecom project.
They noted the company would raise the capital in two phases, with phase one set to issue 100 million shares at NT$12 per unit and phase two designed to issue the remaining portion also at same unit price.
The company's executives said the company had secured subscription pledges from three to four local publicly held companies in first stage. Informed sources pointed out that Motorola Taiwan already agreed to buy into FIT as part of Motorola's efforts to push global mobile Internet-connection applications based on WiMAX technology chipmaker Intel Corp. spearheads.
To push the market, Motorola already put up a dedicated fund as a tool for financing its WiMAX partners, who, in return, buy its equipment as an obligation. Industry watchers pointed out any future WiMAX cooperation between Motorola and FIT would not be a surprise since the two had such experience in the past. Motorola plans to enter into alliance with one WiMAX operation each in northern and southern Taiwan.
However, FIT's executives have declined to release identifications of their company's likely shareholders in the upcoming stock issuance, simply saying that many international equipment heavyweights are interested in buying the company's stock.
In a move believed to have connection with the company's new share issuance, the company ended on Sept. 4 trading of its shares on over the counter (OTC) market. The company's executives said its share price on OTC market could hardly reflect the true value of its stock after it won a WiMAX license in late July. The company has depended on the low-tier wireless personal handyphone (PHS) service for revenue.
In addition to Motorola, Intel and Clreawire are reported to have interest in pumping money into the island's WiMAX license holders to take advantage of the rapid development of mobile WiMAX operations on the island. Already, about 20 organizations are offering WiMAX-based applications such as distant education and distant care in Taiwan.
WiMAX is part of the government's "Mobile Taiwan" project, which aims to set up a seamless island-wide environment for mobile Internet connectivity that will be available to a wide range of handheld devices including cell phones and personal digital assistants (PDAs), as well as notebook computers.
According to the Market Intelligence Center (MIC) of the government-backed Institute for Information Industry (III), Taiwan is the world's second most active investor in WiMAX networks, after the United States; over the three years to the end of 2008, total global investment in WiMAX will top US$5.3 billion, with Taiwan alone accounting for US$664 million of that amount.
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| | ![]() | | | Mobile-TV Device Demand to Double in 2008: Newport Media CEO
Taipei, Sept. 7, 2007 (CENS)--The global demand for mobile TV devices, with the most conservative estimate, is expected to grow by over 100% to 44 million units, according to Mohy Abdelgany, CEO and director of Newport Media Inc.
Abdelgany made the forecast at a recent seminar on topics of mobile digital TV. NewPort Media, an innovative fabless semiconductor company supplying products to the mobile broadcast media market, recently announced plans to unveil the world's first MBRAI-compliant Digital Video Broadcasting-Handhelds (DVB-H) System-on-Chip (SOC) solution.
The global demand for mobile TV devices is expected to enjoy an over-100% annual growth in next three years, Abdelgany said, and the market is big enough to accommodate various broadcasting standards. So, he stressed, mobile-TV chip suppliers would have to push chips simultaneously supporting three to four mobile digital TV broadcasting standards from 2010 for market survival.
In Europe, the CEO and director said, the mobile-TV broadcasting services have been increasingly popular in most nations, which is expected to generate strong demands for mobile TV devices from 2008.
France, Netherlands, and Germany, major supporters of the DVB-H standard in Europe, Abdelgany said, plan to start commercial broadcasting in 2008; while two major telecom companies in the United States, AT&T and Verzon Wireless, which together own an 85% coverage of cellphone subscribers, have announced adoption of the MediaFLO technology to provide mobile-TV broadcasting services.
Japan, the world's first nation to provide mobile TV broadcasting services, has already sold 20 million mobile-TV cellphones so far this year, and the volume is expected to jump to 40 million thanks to the free receiving of mobile-TV contents. Japan has also developed a new market segment of using notebook PCs to watch mobile TV content, generating an annual demand of about one million notebook PC-use mobile-TV devices this year, according to Abdelgany.
From 2010, Abdelgany forecasted, all mobile TV chips would have to simultaneously support DVB-H, MediaFLO, and Integrated Services Digital Broadcasting-Terrestrial (ISDB-T) standards, or plus the standard would be adopted by mainland China, which intends to support the Terrestrial-Digital Multimedia Broadcasting (T-DMB).
In addition, he pointed out, the chip would account for about 20% of all mobile-TV solutions while the rest 80% would be achieved by middleware. So, Newport Media has announced to set up a strategic alliance with WRC of South Korea, which has developed mobile TV middleware for five years.
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| | ![]() | | | CMO Ventures Into Small-, Medium-sized TFT-LCD Biz by Setting Up New Subsidiary
Taipei, Sept. 7, 2007 (CENS)--Chi Mei Optoelectronics Corp. (CMO), the No. 2 thin film transistor-liquid crystal display (TFT-LCD) panel maker in Taiwan, recently announced plans to pour NT$2.4 billion (US$72.73 million at US$1: NT$33) into setting up a subsidiary making small- and medium-sized TFT-LCD modules.
CMO claimed that the investment project would be completely executed by the end of the year.
The strong demand for small- and medium-sized TFT-LCDs has been injecting lucrative profits to local TFT-LCD manufacturers such as AUO (Taiwan's No. 1 large-sized TFT-LCD panel supplier but has long been developing small- and medium-sized panel business), HannStar Display Corp. (which sold its two third-generation, or 3G, TFT-LCD panel plants to local Wintek Corp. for very good prices due to the favorable business climate in small- and medium-sized panel market).
Industry sources said that CMO's entry into the small- and medium-sized panel business is expected to further upgrade the panel supplier's sales revenue and product range.
CMO used to focus on LCD TV and monitor panel products and only had a small notebook PC panel shipment rate due to the company's late entry into such application market. For small- and medium-sized panels, CMO has been directly contracting outside sub-contractors to inject the liquid crystal into such products; while even at the firm's 3.5G and 4G panel plants the production ratio of small- and medium-sized products is quite small due to capacity-digestion concerns.
CMO made the decision to more actively enter into small- and medium-sized panel business due to the increasingly strong demand for such product since the second quarter of the year, which has led to price hikes of all under-10-inch panel models. The small- and medium-sized panels are winning increasing popularity in some booming application markets such as digital photo frame and smartphone sectors, and the strong demands from related sectors are expected to sustain stable growth of small- and medium-sized panels.
The panel maker pointed out that demands for all sizes of TFT-LCD panels have been increasingly strong since the second quarter and it would aggressively try to adjust its panel-product mixtures and customer structures so as to grab more business opportunities. In the past, CMO said, the shipment ratio of its notebook PC panels was lower than 10% but from this year the company would actively develop sales to the world's top-10 notebook PC purchasers and gradually upgrade its notebook PC-panel shipment ratio. In the future, the company claimed, the shipment ratios of various kinds of panel products would be increasingly balanced, including the uprising ratio of small- and medium-size panels, helping the firm achieve a goal of more balanced business development.
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| | ![]() | | | Taiwan's Export Growth Behind Asian Competitors in First Half
Taipei, Sept. 7, 2007 (CENS)--The effect of free trade agreement (FTA) signed among alliances in North and South America, Europe, and Asia is emerging. Most of FTA participants witnessed double-digit growth in the first half of this year, while Taiwan, excluded from the FTA umbrella, saw the corresponding figure stand at 7.5%, behind most of its competitors in Asia.
Huang Chih-peng, director general of Bureau of Foreign Trade (BOFT), indicated that the strong demand of the emerging markets has helped boost the global external trade this year. From January to June, even the world's leading industrialized nations, which used to see stable trade, experienced obvious rise in exports. Among the nations were Germany, France and the United States, which boasted annual export growth of 20.3%, 12.2%, and 8.6%, respectively.
In the same period, the countries in Asia also saw pretty good performance in exports, particularly China, which has in recent years become a locomotive for economic growth in Asia, with exports shooting up 27.6%. Other leading economic powers in Asia, namely, South Korea, Singapore, Hong Kong, and Japan, saw export growth post in sequence at 14.4%, 10.9%, 9.8%, and 8.6%. However, Taiwan's corresponding percentage lagged behind at 7.5%.
Moreover, some developing countries in Asia, such as Thailand, Vietnam, the Philippines, and Indonesia, all boasted higher export growth than Taiwan, although their GNP was lower than Taiwan's. In the first half, Thailand and Vietnam enjoyed export growth of more than 20% each and the Philippines and Indonesia more than 10%.
Huang explained that Taiwan's lackluster performance in exports in the first half was mainly because of more than 40% of the orders receive by manufacturers on the island were filled overseas and exported from there directly. Besides, FTA signed among countries around the world has helped reduce trade tariffs between FTA members and Taiwan is not eligible for such lower tariffs since it has difficulties of signing FTA with trade partners due to political identity. So, it has so far signed no trade agreement even with such major trade partners as the U.S., Japan, and European Union.
Huang urged the government to try its best to move any barriers ahead to sign FTA with trade partners as soon as possible and follow the step of South Korea to develop fleet industries and vertically integrate up-, mid- and down-stream industries to reinforce manufacturing strength and enhance external trade.
Economics Minister Steve R. L. Chen declared that the government has decided to appropriate additional budget of NT$900 million (US$27.27 million at US$1 = NT$33) to help domestic manufacturers to promote exports in the coming year. Chen emphasized that Taiwan, being an export-oriented island, has to lay more emphasis on external trade and maintain its strength in the world market.
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| | ![]() | | | Taiwan's Revolving Credit of Plastic Shrinks to Under NT$300 B. in July
Taipei, Sept. 7, 2007 (CENS)--Taiwan's outstanding revolving credit used by credit cardholders decreased by NT$150 billion (US$4.55 billion at US$1 = NT$33) from the end of last year to NT$299.3 billion (US$9.07 billion) at the end of July of this year, according to the statistics released by the Cabinet-level Financial Supervisory Commission (FSC).
In the last six months there were a total of 19.56 million credit cards still in use, a sharp fall of at least 5-6 million credit cards from the peak period. As for cash cards, there were 1.78 million in use at the end of July with outstanding revolving credit of NT$142.7 billion (US$4.32 billion).
Insiders indicated that compared to the peak period, the outstanding revolving credit of both cash and credit cards declcined by more than NT$400 billion (US$12.12 billion) at the end of July. The sharp drop of the revolving credit was mainly because most card issuing banks have recently suspended the issuance of new cash cards to avoid possible bad loan risk. In the same period, the delinquent cash-card loan rate averaged at 7.48%, and some banks, including Taishin International Bank, Union Bank of Taiwan, The Chinese Bank, and Bowa Bank, recorded the corresponding percentage of above 8%.
After the impact of twin card debt storm, some card issuers have turned their spearheads on high-tier consumer market and issued top-class credit cards instead of the ordinary ones. They have therefore gained profits mainly from transaction service fee instead of interests from revolving credit. In July the transaction value of credit cards reached NT$122.6 billion (US$3.72 billion), down by NT$10.8 billion (US$327.27 million) from a month earlier, yet an increase of NT$8.9 billion (US$269.7 million) from that recorded in the same month of last year. In July the delinquency rate of credit-card loans posted at a low level of 2.32%.
FSC statistics showed that among domestic banks Chinatrust Commercial Bank was most profitable in the first seven months with pretax profits of NT$11.27 billion (US$341.52 million), followed by China Development Industrial Bank with profits of NT$10.7 billion (US$324.24 million).
First Commercial Bank took the third place with profits of NT$9.55 billion (US$289.39 million) and Mega International Commercial Bank the fourth with NT$8.67 billion (US$262.73 million). The following were Chang Hwa Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank, each with profits of more than NT$7 billion (US$212.12 million).
In the same period, Taiwan's 41 domestic banks raked in total pretax profits of NT$47.6 billion (US$1.44 billion), a whopping rise of 65.6% from the corresponding figure of last year.
At the end of July, the outstanding deposits of domestic banks witnessed a monthly fall of NT$82.2 billion (US$2.49 billion) to NT$21.3 trillion (US$645.45 billion). It's believed that the fall was mainly because of the transfer of funds to active local bourse from banking deposits.
In the same month, the outstanding loans extended by domestic banks increased by NT$87.2 billion (US$2.64 billion) to NT$17.6 trillion (US$533.33 billion), with non-performing loans (NPL) totaling NT$6.5 billion (US$196.97 million) for an NPL ratio of 2.35%, edging up by 0.03 of a percentage from 2.32% from a month earlier.
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| | ![]() | | | Chungkang Export Processing Zone to See Turnover of Over NT$40 B. This Year
Taipei, Sept. 7, 2007 (CENS)--Taiwan's Chungkang Export Processing Zone is expected to post turnover of over NT$40 billion for this year, according to Lee Kuang-chai, director-general of the Chungkang Branch under Export Processing Zone Administration.
Recently, Chungkang EPZ has approved new investment projects in the zone by two more companies, including Ju-Kao Engineering Co., Ltd, driving aggregate investment value in the zone up to NT$34.37 billion.
Over the past two years, domestic and overseas enterprises have been mobbing Chungkang EPZ to set up their plants in the zone. According to Lee, over the past eight months of this year, Chungkang EPZ approved 16 investment projects worth NT$5.58 billion. This clearly shows that a big investment boom in the zone is still carrying over.
Lee emphasized that enterprises sited in Chungkang EPZ are inclined to take advantage of convenient transportation linking to Taichung Harbor, as well as to other neighboring science parks, including Central Taiwan Science Park, which forms an integrated supply chain for them to save transportation costs on their goods.
According to statistics compiled by Chungkang Branch, as of the end of this August, there have been 57 enterprises investing a total of NT$34.37 billion in Chungkang EPZ, with 35 ones starting operating and generating sales revenue of NT$16.5 billion for the first half of this year, up 18% from a year earlier.
Last year, enterprises operating in Chungkang EPZ posted total annual revenue of NT$30 billion. However, with Chungkang Branch consistently reinforcing software and building infrastructure, Chungkang EPZ is expected o attain its goal of attracting NT$6.9 billion worth of investment and annual revenue of more than NT$40 billion generated by enterprises in the zone for this year, according to Lee.
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| | ![]() | | | Taiwan's LED Sector Sees Stellar Performance in Aug.
Taipei, Sept. 7, 2007 (CENS)--Taiwan's light-emitting diode (LED) making sector posted stellar sales in August, with most suppliers of LED packaging having seen their sales revenues hit new highs and their production lines run at full capacity, according to industry sources.
Among Taiwanese suppliers in the sector scoring shining sales performance in August were Unity Opto Technology Co., Ltd., Bright LED Electronics Corp., Everlight Electronics Co., Ltd., Ligitek Electronics Co., Ltd., Formosa Epitaxy Inc. and Tyntek Corporation. Worth mentioning is that Everlight, Bright LED, Tyntek and Formosa Epitaxy have witnessed their single-month revenues hit historical highs over past four straight months.
Weng T.C., spokesman of Unity Opto, noted that with fair prices, LED backlights have been well received in markets for touch panels, digital photo frames and display panels for 3G phones. Such simmering market demand for the products has caused a deficiency of production capacity in Unity Opto, with some production lines already exceedingly reaching 200% capacity. Thus, Unity Opto projects its sales will keep going upward starting September through the end of this year.
Unity Opto tallied sales revenue of NT$311 million in August, still a new high and up 76.63% from a year earlier, and its aggregate revenues of NT$1.954 billion for the first eight months this year represented a sharp rise of 31.89% from NT$1.482 billion posted a year earlier.
Meanwhile, Bright LED posted sales revenue of NT$338 million in August, growing 33% from last August, and has recorded new highs in sales for four straight months. Wang B. Y., assistant manager of the company, attributed the record sales to explosively increasing shipment of 160 million LEDs in the month alone, and Bright LED will further boost the figure to 230 million units in September.
Bright LED already completed a capital increase in cash acquired by WK Technology Fund. This boosted WK Technology Fund's controlling stakes in Bright LED up to nearly 6%.
Although having yet to publicize its sales performance, Everlight already confirmed its sales revenue for August exceeding NT$900 million, a new monthly high. Also achieving full capacity, the company is very likely to record another new high in sales for September.
Thanks to an influx of orders for LEDs and its affiliate contributing single-month revenue of over NT$10 million, Ligitek posted combined revenue of NT$110 million in August, the highest in months this year as well as nearly a historical high. The company projected its profits to sharply grow in the second quarter of this year, with a huge increase in its shipment of LEDs and backlights and solar-energy-based products by its affiliate starting September.
Infused with a whopping growth of 50% in sales revenue of NT$150 million by its affiliate, Tyntek scored combined revenue of NT$410 million in August from NT$350 million in July. The company expected of a stronger growth in combined revenue in the future due to surging shipment by its affiliate.
By expanding its capacity and improving production, Formosa Epitaxy scored sales revenue of NT$141 million in August, sharply growing 96% from a year earlier, and has recorded new highs in revenue for five straight months this year. The company is optimistic to see its sales revenue keep moving up due to excessive orders; besides, it will concentrate production on outdoor displays and high-power LEDs to boost its gross profits in the future.
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| | ![]() | | | TRi Forecasts Top-5 Technology Products in China
Top-ranking tech items to see double-digit annual turnovers
The Topology Research Institute (TRi), the largest private market-research institute in Taiwan, recently published its forecast for the top-five hot-technology products in mainland China: low-end multimedia cellphones, electric bicycles, LCD TVs, budget notebook PCs, and digital photo frames.
Each category in the list is expected to enjoy double-digit growth in annual sales volume over next few years. For low-priced LCD TVs the growth figure is forecast at 57% this year, bringing the total to about 8.9 million units, thanks to the Beijing Olympics effect and the advent of digital-TV broadcasting. In 2008, TRi predicts, LCD TV sales in China will grow 67% to 14.84 million units.
Multimedia Cellphones
With a potential customer base of about 910 million people in backcountry (rural and poorly developed) areas, the low-end multimedia cellphone is destined to be the hottest and most popular technology product in China.
Data released by TRi indicate that about 267 million handsets were shipped by Chinese manufacturers in the first half of this year, up 37.6% from a year earlier; the total included about 103 million units sold in the domestic market, up 59%. Of all categories, low-end multimedia handsets (those priced under 600 renminbi, or RMB) enjoyed the highest growth rate.
In 2005 low-end multimedia handsets accounted for only 2% of China's total cellphone market, but the figure rose to 16% in 2006 and 39% in the first half of this year. Cellphone platform solution providers such as Texas Instruments (TI), NXP Semiconductors, and MTK, Infineon have targeted the lesser-developed areas that contain 70% of China's population for the marketing of low-priced multimedia handset solutions.
LCD TVs
Thanks to the emerging digital TV industry in China, plus a decline in prices to more affordable levels, sales of LCD TVs in China soared 188% to 39.79 million units in the first six months of this year, according to TRi data. Increasing demand came not only from big cities like Shanghai and Beijing, but also from second- and third-class cities.
With the mass production of large-sized thin film transistor-liquid crystal display (TFT-LCD) TV panels using new 7.5-generation (7.5G) and 8G facilities, the prices of large-sized LCD TVs are no long unreachable. A 32-inch LCD TV, for example, is now priced at only about 6,000 RMB in China (US$1 equals approximately 7.6 RMB). With the coming of the 2008 Beijing Olympics, TRi forecasts that sales of high-quality LCD TVs will continue growing, making these among the hottest consumer electronic products in China.
Digital Photo Frames
Another market focus is the digital photo frame, which is gaining favor in China as prices fall due to increasingly fierce competition. TRi's data show that only 97,000 digital photo frames were sold in China in 2006; but the figure is expected to increase to 499,000 this year (accounting for about 5.2% of global sales), and to reach 2.45 million in 2008 (15% of the global total).
Electric Bicycles
About 14.45 million electric bicycles were sold in China last year, accounting for about 95.6% of global shipments. These vehicles are expected to become increasingly dominant tools for short-distance commuting in China, TRi predicts, because mass transportation systems in big cities cannot keep up with population growth. With their powerful advantages--zero-emissions, convenience, high mobility, energy conservation, and low cost--electric bicycles are expected to become increasingly popular in China.
This is especially true as many first-class cities, including the capital of Beijing, have lifted their bans on electric-bike license and on-road use.
Budget Notebook PCs
Data released by TRi indicate that consumption of notebook PCs in China will reach 5.5 million units this year and soar to about 7.7 million units in 2008 due to increasingly affordable prices. TRi said that sales of notebook PCs in China are expected to be further stimulated by the introduction of low-priced models by major international brands as well as charitable institutions. These include the OLPC (one laptop per child) developed by MIT Media Lab., the Classmate PC by Intel, and the EeePC by Asus.
With almost as many functions and capabilities as the general notebook PC, these ultra-low-cost notebooks are expected to enjoy smooth sales in China and elsewhere, especially among rural residents and students. (QL, August 2007) | |
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