| Prime News | | ![]() | ![]() | Tsai Ing-wen Will Lead a New State-Sponsored Bio-Tech Firm
Taipei, Sept. 13, 2007 (CENS)--To spearhead bio-tech development in Taiwan, the National Development Fund under the Executive Yuan has decided to obtain 40% stake in a new bio-tech firm TaiMed Biologics, boasting Tsai Ing-wen, former vice premier as its chairperson and David Ho, a world-renowned AIDS researcher, as the scientific founder.
TaiMed Biologics has made a major breakthrough in kicking off its operation, announcing yesterday (Sept. 12) that it has obtained licensing of TNX-355, a new HIV and AIDS medicine, from Genentech, the largest bio-tech firm in the U.S., which is expected to hit the market in three years, following clinical tests in the U.S., Europe, and Latin America.
Having secured investment commitments of US$50 million, the new company will be become the first company in the projected Hsinchu Bio-Medicine Park, dedicating to the development and production of new bio-tech medicines, such as protein medicines and vaccines.
TaiMed Biologics will be a subsidiary of TaiMed Inc., with board directors including Tsai Ing-wen, David Ho, Wong Chi-huey, president of Academic Sinica, Taiwan's foremost academic institution, Lee Yuan-tseh, a Nobel laureate in chemistry, Chen Lan-bo, member of Academic Sinica and honorary professor of Harvard University, and Yang Yu-min, senior vice president of Genentech, and with Morris Chang serving as the enterprise consultant. Other major shareholders include Ho Sho-chuan, chairman of Yuen Foong Yu Group and President Enterprises Group.
Ho Mei-yueh, chairperson of the Cabinet-level Council for Economic Planning and Development (CEPD), pointed that with scale of US$6.2 billion, the National Development Fund has invested US$200 million in the bio-tech sector so far.
Tsai Ing-wen played a critical role in the enactment of the "Statute for Development of Bio-tech New Medicine Industry" in her capacity as the vice premier in June this year. The statute was drafted by Wong Chi-huey of Academic Sinica, who will also join the board of directors of TaidMed Biologics.
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| | ![]() | | | Dispute Between Taiwanese Department Store and Chinese Partner Settled
Taipei, Sept. 13, 2007 (CENS)--Thanks to strong mediation of the Chinese authorities, the management row over a joint-venture department store in Beijing between Shin Kong Mitsukoshi Department Store, Taiwan's leading department store, and Beijing Hualian Group, a state retail-channel player in China, was finally settled yesterday (Sept. 12), with Hualian expressing formal apology and returning the management right of the joint venture to Shin Kong Mitsukoshi.
A joint statement was signed by the two parties following a 48-hour marathon talk between Wu Tung-hsing, chairman of Shin Kong Mitsukoshi, and Ji Xiao-an, chairman of Hualian, according to which Wu Hsin-ta, Wu tung-hsing's son, will resume presidency of the joint venture, dubbed Shin Kong Place, and other staffers dispatched by Shin Kong, including the Japanese store manager, will return to their posts, following their abrupt dismissal by Hualian in late August.
At a press conference following the settlement, Li Wei-yi, spokesman of the Taiwan Affairs Office of the State Council, expressed that protection of the legal rights of Taiwanese businessmen and encouragement of close cross Taiwan-Strait economic and trade relationship has been the consistent policy of the Chinese government, as well as the stipulation of the Chinese law.
The dispute erupted on August 26, when Wu Hsin-ta was asked by Beijing airport policemen to get off a plane on his way returning to Taiwan so that he could help with "investigation of an economic crime." On the following day, backed by 200 security men, Hualian staffers expelled all the Shin Kong staffers from Shin Kong Place and Beijing Hualian formally announced dismissal of the staffers and replaced them with its own on August 28.
Hualian took the move following failure to obtain satisfactory answers from Shin Kong to alleged irregularities of the latter concerning hiring of contractors, as well as payments for, interior décor of the department store before its inauguration on April 19. Shin Kong denied any wrongdoing in the engineering works.
The event quickly received extensive coverage by the Taiwan press and sparked fear of investment safety and concern about reliability of Chinese legal system in the Taiwanese business community. Even Chinese president Hu Jintao and vice premier Wu Yi noticed the case, prompting the Taiwan Affairs Office to intervene actively, which finally led to the solution of the problem.
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| | ![]() | | | Lite-On IT Boasts 50% Growth in August Turnover
Taipei, Sept. 13, 2007 (CENS)--Thanks to the coming of the traditional peak season and increased shipment of optical drivers for Xbox360 game consoles, Lite-On IT Corp., one of Taiwan's leading manufacturers of information-technology devices, saw domestic sales break the NT$4 billion (US$121.21 million at US$1:NT$33) mark in August, up 50% from NT$2.66 billion (US$80.6 million) in the preceding month.
With the added sales of automotive optical drivers to Philips Co., Lite-On IT will be able to score NT$5.1 billion (US$154.54 million) in combined sales in August, hitting a historic high.
An institutional investor predicted Lite-On IT will be able to see third-quarter sales increase by 25% from the preceding quarter with earnings per share hitting NT$1 (US$0.03).
Impacted by the price slump in DVD (digital versatile disc) burners, Lite-On IT saw annual sales hit the lowest level over the past several years. After acquiring the optical driver department of BenQ Corp. in the beginning of this year, Lite-On IT has seen sales continue growing quarter after quarter. Preparing to begin shipping optical drivers for Xbox360 game console in the third quarter of this year, the company is expected to generate sizable sales for the rest of this year.
Lite-On IT president K.Y. Sung said his company encountered the worst sales performance last year but will see substantial growth this year. Lite-On IT saw sales increase in the third quarter because of the shipments of optical drivers installed in Xbox 360 game consoles. Sales in the fourth quarter will continue to grow as it will soon begin shipping digital video frames and blu-ray optical drivers for Compaq.
An institutional investor predicted Lite-On IT will challenge NT$15.6 billion (US$472.72 million) in combined sales in the third quarter of this year, up 25% from the preceding quarter. After-tax earnings will break the NT$800 million (US$24.24 million) mark, or NT$1 (US$0.03) in earnings per share, in the third quarter, surpassing overall earnings posted in the first half.
Capital Securities Co. predicted Lite-On IT will see combined sales grow 24% year-on-year to reach NT$57 billion (US$1.72 billion) this year. After-tax earnings will reach NT$2.14 billion (US$64.84 million) this year, up 211% annually.
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| | ![]() | | | Cathay FHC's "twAA+/twA-1+" Ratings Affirmed on Strong Market Position
Taipei, Sept. 13, 2007 (CENS)--Taiwan Ratings Corp. (TRC) recently affirmed its "twAA+" long-term counterparty credit rating and "twA-1+" short-term rating on Cathay Financial Holding Co., Ltd. (Cathay FHC), the flagship of the Cathay Financial Group. The outlook on the long-term rating is stable.
The ratings on Cathay FHC reflect the company's strong market position in Taiwan's financial services industry, above-average profitability, and adequate capitalization. These strengths are partly moderated by the challenges the company faces in expanding its banking business and improving its profitability amid fierce domestic competition. The ratings on the holding company also reflect its subordinate role among the Cathay Group's core entities.
Cathay FHC is one of Taiwan's largest financial holding companies in Taiwan in terms of consolidated assets. Most of its operating subsidiaries, including Cathay Life Insurance and Cathay United Bank Co., maintain good positions in their respective markets. Cathay Life Insurance Co. is Taiwan's leading life insurer, with a market share in terms of assets of about 25% at the end of June 2007. Cathay United Bank Co. is Taiwan's ninth-largest bank, accounting for 4% of domestic banking overall assets at the end of June 2007.
The TRC noted Cathay FHC's overall profitability is above average. Its return on average assets (ROAA) was an unsatisfactory 0.33% in 2006. Cathay FHC's preliminary annualized ROAA improved to 1.18% in the first half of 2007 amid a favorable investment environment. The company's profitability, which benefits from relatively balanced revenue stream from banking and insurance, generally outperforms that of its peers.
Cathay FHC's stand-alone liquidity is supported by a diversified source of dividend income from its subsidiaries. The company's capitalization is satisfactory and its double leverage ratio (parent company's equity investment in its subsidiaries to total shareholders' equity) was a prudent 95% at the end of 2006.
The stable outlook reflects the likelihood that the credit profiles of Cathay FHC's major subsidiaries will not change significantly over the medium term. TRC expects Cathay FHC to retain its strong business franchise. While the group may continue to expand, the company is likely to adopt prudent measures to maintain satisfactory capitalization. Cathay FHC's ROAA should continue to improve, but it remains challenging for the Cathay group to enhance its profitability to a strong level given fierce domestic competition. Moreover, the company's double leverage ratio is likely to stay below 120% over the medium term. The outlook may be revised to negative if Cathay FHC adopts a more aggressive expansion plan and/or its operating performance deteriorates beyond expectations.
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| | ![]() | | | MediaTek Acquires ADI Handset Chip Operation
Taipei, Sept. 13, 2007 (CENS)--MediaTek Inc., currently Taiwan's No.1 fabless house by market capitalization, recently announced it already acquired Analog Devices Inc.'s (ADI's) cellphone IC operation including its assets and 400 talents for US$350 million in cash.
Industry watchers pointed out that the acquisition will beef up the Taiwanese chip design house's strength in developing third-generation (3G) cellular chips consistent with mainland China's TD-SCDMA standard.
The mainland's industry watchers estimated that 20-50 million TD-SCDMA handsets would be shipped in the mainland next year. They noted that the mainland's consumption of cell phones approaches 80 million systems a year and at least half of the mainland consumers will very likely trade their current phones for TD-SCDMA phones next year.
Taiwanese market-research organization Topology forecast the mainland market for TD-SCDMA handsets to reach 16 million systems in 2008 and grow seven folds to over 80 million systems in 2010.
MediaTek has been reported for a while to buy ADI's cellular-chip division as a step of its efforts into the mainland's 3G market because ADI and Datang Telecom Technology Co. of the mainland already worked together on TD-SCDMA chips. Some institutional investors analyze that TD-SCDMA will grow into a dominant 3G standard in the first half 2009 in the mainland along with GSM.
Industry watchers also estimated MediaTek would likely replace Freescale as No.2 cellular-chip supplier by the end of this year and challenge No.1 Texas Instruments (TI) thanks to the acquisition. MediaTek's shipments of handset chips throughout the first eight months this year made it the world's No.3 supplier of the chips, trailing only Freescale and TI. So far this quarter, MediaTek's revenue has posted a better-than-expected 40-45% increase. So far this month, it has been even with Freescale in market share control.
The ADI cell-chip operation owns many popular designs including Othello and SoiftFone. The two lines of products last year contributed around US$230 million to ADI's revenue
Taiwanese industry watchers have equated the MediaTek's acquisition with VIA's acquisition of National Semiconductor's CPU division several years ago for the two companies' significant spending on cross-border deals.
MediaTek Chairman M.K. Tsai and the company's chief finance officer (CFO), M.T. Yu, inked the deal on Sept. 9 in the United States with their ADI counterparts. The deal will be completed next year.
MediaTek will cash in on the ADI cellular-chip division's specializations to enhance its GSM, GPRS, EDGE, WCDMA and TD-SCDMA wireless technologies and take over the division's patents. The patents and technologies from the ADI's cellular-chip unit will enter into MediaTek's chips next year. Until July 7 this year, ADI had won 1,438, 145 and 797 patents on 3G technologies in the United States, Europe and the Chinese mainland.
MediaTek executives pointed out that ADI's cellular-chip division broke even last year and expected the acquired business to inject US$300-330 million into their company's revenue next year. Nevertheless, they estimated MediaTek's earnings per share will likely be watered down next year as a result of 2-3% increase in operating cost after the acquisition.
From long term, they said the procurement will strengthen the company's competitiveness because MediaTek and ADI's cellular-chip unit are complementary, with MediTek appealing to mainland Chinese cell-phone suppliers, and ADI catering to first-tier handset suppliers like Samsung and LG.
MediaTek executives stressed that their company will not draw back the cellular-chip unit's foundry outsourcing from Taiwan Semiconductor Manufacturing Co. (TSMC) after the acquisition. MediaTek has been considered as a member of the United Microelectronics Corp. (UMC) camp. TSMC and UMC are rivals in silicon-foundry industry.
In August, MediaTek had consolidated revenues of NT$9.6 billion (US$293 million at US$1:NT$33), better than insiders' expectations of NT$8 billion (US$242 million). They forecast the company's consolidated revenue for this month to approach the NT$10 billion (US$303 million) mark. Some institutional investors have projected the company's revenues for the third quarter to be 15-20% higher than previous forecasts.
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| | ![]() | | | USI Enters Into Solar Polysilicon Business
Taipei, Sept. 13, 2007 (CENS)--Plastic-material maker USI Corp. recently announced it would open a venture at a cost of NT$12 billion (US$363 million at US$1:NT$33) to produce polysilicon materials for making solar cells.
The venture, named Universal Semiconductor Corp. (USC), is scheduled to kick off pilot production in late 2008 or early 2009 at the earliest, USI executives said.
According to USI executives, the company jumps onto the bandwagon in light of thriving demand for the raw materials by solar-cell makers, leading to recent supply shortfall of the solar materials globally.
Industry watchers noted that USI's affiliate Asia Polymer Corp. had put money into polysilicon producer Wafer Works Corp. and a joint venture of Wafer Works, as well as a mainland Chinese company, suggesting USI is eager to expand its presence in polysilicon segment as is rival Lee Chang Yung Chemical Industry Corp.
Lee Chang Yung Chemical Industry Corp.and LED maker Everlight Electronics Co., Ltd. recently drew up a plan to co-invest in polysilicon business The two companies set the venture's capitalization at NT$4 billion (US$121 million at US$1:NT$33), with initial capitalization to be NT$500 million (US$15 million).
USI has declined to disclose who it will work with in polysilicon business although it simply said it had secured technology sources and at least five listed companies at home will join the investment.
USI executives said the company had originally planned to open naphtha cracker factories in mainland China as a step of its efforts to develop integrated manufacturing capability by expand into the upstream segment. However, Taiwan government has imposed taboo on Taiwanese investments in naphtha cracker plants in the mainland, prompting the company to instead invest in polysilicon manufacturing, which the company says share similar processing with its core business.
It is understood that USI has shown high interest in electronics business although its investments in such enterprises have been confined to putting money rather than introducing management into invested businesses. So far, it has invested in electronics companies including Vanguard International Semiconductor Corp. (VISC), Taiwanese Semiconductor Manufacturing Co. (TSMC), Wafer Works, and ACME Electronics Corp. and AU Optronics Inc.
According to the government-backed Industrial Technology Research Institute (ITRI), there were 15 solar-energy manufacturers in Taiwan generating revenues of NT$7 billion (US$212 million) in 2005. Last year, eight new entrants came onboard, helping boost the annual revenues to NT$21.2 billion (US$642 million). So far this year, the Taiwan industry has seen 18 newcomers, who are expected to push revenue to NT$40 billion (US$1.2 billion). Taiwan`s solar-energy output capacity will likely approach two gigawatts of solar power in 2008, suggesting that the Taiwan industry is taking off.
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| | ![]() | | | IDB Cites Leading Transportation-vehicle Exporters for 2006 Sales
Taipei, Sept. 13, 2007 (CENS)--Industrial Development Bureau (IDB) of the Ministry of Economic Affairs recently awarded leading exporters in local transportation vehicle industry for performances in 2006. China Motor Corp. (CMC) and Kwang Yang Motor Co., Ltd. (KYMCO) again won the first prizes in the automaker and powered two-wheeler (PTW) manufacturer categories, respectively.
KYMCO, the largest PTW maker in Taiwan, ranked as the top PTW exporter for the past seven consecutive years. Last year, the company exported NT$8.78 billion (US$266.15 million at US$1: NT$33) worth of PTW-related products (including motorcycles, scooters, all terrain vehicles (ATVs), electric scooters, generators etc.), making it the top exporter in the line.
CMC, local producer of Mitsubishi and Chrysler cars, stayed ahead of all local counterparts for the fifth consecutive year in 2006 in terms of export value. The company exported NT$15.5 billion (US$469.7 million) worth of complete vehicles and auto parts last year, up 26% from 2005 and making it the top exporter among local automakers.
Both top exporters are expected to further expand their export sales. KYMCO expects to export 275,000 PTWs this year and launch the utility vehicle (UTV, or side-by-side) models in the U.S. next year. CMC will begin exporting locally made vehicles such as the Zinger recreational/commercial van, Delica commercial van, etc. to the Philippines, Mexico, and other markets through global sales channels of both Mitsubishi and Chrysler.
CMC vice president Huang Chung-chou said that his company has been focusing on export sales to develop future business. With the successful exports of the Zinger and Delica, Huang estimated that CMC would export over 6,000 locally made vehicles this year. In addition, CMC and its tier-one parts suppliers are expected to challenge record export value of NT$20 billion (US$606.06 million) in auto parts this year.
KYMCO vice president Ko Jun-bin said that in addition to good sales performance in Europe, KYMCO has been successfully developing sales in some PTW production nations such as Japan and Italy. In Italy, he said, KYMCO has a 10.5% share of local scooter market, making it the No. 1 imported scooter brand.
KYMCO's ATV products have been the No. 1 brand in Europe for many years with a sizable 20%-plus share of the regional market.
In order to further develop international sales, Ko added, KYMCO has set up its first overseas marketing firm in the United States, a 50-50 venture with STR Motorsports there. The next step, the vice president said, for KYMCO is to explore the French market by setting up a marketing company with major distributors in the targeted market.
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| | ![]() | | | TSE-listed Bicycle Makers Report Lucrative 1st Half Results
Taipei, Sept. 13, 2007 (CENS)--Major bicycle makers listed on the Taiwan Stock Exchange (TSE) reported lucrative operation results in the first half of the year.
Industry sources said that the highflying fuel prices, the Kyoto Protocol effects (on limitation of CO2 emission), and increasing awareness of global warming, etc. together fuel the demand for bicycles worldwide, making the energy-saving and eco-friendly vehicle a top choice for short-term commuting. In addition, they added, the global market is showing increasing demand after an inventory adjustment in late 2006.
Giant Manufacturing Co., Ltd., the largest bicycle manufacturer in Taiwan, reported after-tax net earnings of about NT$883 million (US$26.76 million at US$1: NT$33) in the first half, up 52.87% from the same period of last year, translating into earnings per share (EPS) of NT$3.15 (US$0.1).
Merida Industry Co., Ltd., the No. 2 on the island, registered net earnings of NT$576 million (US$17.46 million), up 77.52% year-on-year (YoY), translating into EPS of NT$2.68 (US$0.08).
The Giant Group had consolidate revenue of NT$15.58 billion (US$472.12 million), up 21% YoY. All the group's plants and subsidiaries in Taiwan and mainland China enjoyed clear revenue and profit growths in the first six months.
Giant began restructuring its global distribution channels in 2006, leading to its continuously rising profit margin and sales revenue. Giant products are already distributed at over 11,000 independent dealers worldwide, and the famous global bike maker aims to set up 400 Giant-brand bike specialty stores worldwide this year so as to further extend its global branding effects.
Giant is also actively accelerating its investments in the huge mainland Chinese market. The company started constructing a new plan in Shandong Province in June and will pour additional US$12 million to set up another new bike facility in Tianjin soon. Both the two new plants are scheduled to start production in spring 2007 so as to tap lucrative business opportunities generated by the 2008 Beijing Olympics.
Merida exported over 323,400 complete bikes from its Taiwan plant in the first half, up over 40% from 226,800 units during the same period of 2006, and the export average selling prices (ASP) climbed to US$406 from US$348.
Thanks to the upgraded export ASP, Merida's profit margin rose to 13% in the first half from 12%.
Ideal Bike Corp., the third-largest of its kind in Taiwan, had net earnings of US$76.67 million (US$2.32 million), up 120%, generating EPS of NT$0.69 (US$0.02).
Industry experts attributed the increasing profit margins of complete-bike makers to their economy of scale, increasingly strong market demand, and positive effects of their successful branding efforts. But margins for bicycle parts makers, they added, are expected to increasingly worsen due to fierce competitions in the market.
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| | ![]() | | | Taiwan's Financial Institutions Post Mixed Performance in August
Taipei, Sept. 13, 2007 (CENS)--Taiwan's financial institutions witnessed mixed performance in August and some financial holding companies (FHC) with securities affiliates experienced shrinking profits due to weak trading in local bourse during the month.
In August SinoPac Financial Holding Co. and Taichung Commercial Bank raked in profits of NT$132 million (US$4 billion at US$1 = NT$33) and NT$166 million (US$5.03 million), respectively, while Far Eastern International Bank and Ta Chong Bank, both are still influenced by the aftermath of twin-card debt storm, suffered a loss of over NT$100 million (US$3.03 million) each.
Bank SinoPac and SinoPac Securities, both are affiliates of SinoPac Financial, presented mixed performance in August. During the month the former scored after-tax profits of NT$60 million (US$1.82 million) and the latter, influenced by the sluggish stock market, gained merely NT$10 million (US$303,030).
In the same month Mega Financial Holding Co. set aside about NT$1.6-1.7 billion (US$48.48-51.51 million) as provisions to write off bad loans and its stock price tumbled by NT$2.6 (US$0.079) per share as result. King's Town Bank, undermined by stock price fall, witnessed profits shrink to NT$30 million (US$909,090).
From January to August, Taichung Commercial accumulated pretax profits of NT$1.472 billion (US$44.61 million) with earnings per share (EPS) of NT$1.13 (US$0.034). In the same period its non-performing loan (NPL) ratio posted at 1.65% and NPL coverage ratio at 69.03%. King's Town had aggregated profits of NT$242 million (US$7.33 million) in the first eight months for EPS of NT$0.224 (US$0.0068), and its NPL ratio stood at 2.41% and NPL coverage ratio at 50.14%.
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| | ![]() | | | ABN AMRO Becomes Largest Foreign Bank in Taiwan After Merger
Taipei, Sept. 13, 2007 (CENS)--The Cabinet-level Financial Supervisory Commission (FSC) recently approved ABN AMRO Bank, a Dutch bank, to merge with Taitung Business Bank, a local bank in eastern Taiwan. After the merger, the Dutch bank will see the number of its outlets here expand to 37, the highest among foreign banks in Taiwan.
The U.S.-based Citibank had been the largest foreign bank in Taiwan with 11 branches. Early April this year, Citibank purchased Bank of Overseas Chinese (BOC), a Taiwanese bank. After the merger, and number of Citibank branches has therefore increased by 55; however, the bank has since been obliged to transform into a subsidiary, making it a domestic bank and subject to the local banking laws, which also happened with the U.K.-based Standard Chartered Bank after its merger with Hsinchu International Bank about two months ago. Hsinchu International was also a local bank with a total of 83 branches islandwide.
In June of this year, ABN AMRO spent NT$6.9 billion (US$209.09 million at US$1 = NT$33) to totally acquire Taitung Business Bank, including its assets, debts and operating right. After the purchase, ABN AMRO saw its assets expand to NT$246.8 billion (US$7.48 billion).
S. L. Chang, vice chairperson of FSC, indicated that the operating cost of a branch in Taiwan is much lower than that of a subsidiary and FSC would not force ABN AMRO to transform into a subsidiary at least within three years, or until its assets grow to NT$450 billion (US$13.64 billion).
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| | ![]() | | | Elitegroup Lands Orders From Gateway for NB PCs
Taipei, Sept. 13, 2007 (CENS)--Elitegroup Computer Systems Co., Ltd. (ECS), a leading supplier of motherboards in Taiwan, has landed orders for 19-inch notebook PCs from the U.S.-based Gateway Inc., according to company sources.
However, with Gateway having been acquired by Acer Inc., ECS, which is already a contract supplier of motherboards for both Acer and Gateway, plans to take a further step to join Acer's supply chain of notebook PCs.
Recently, ECS scored sales revenue of NT$6.55 billion for August, down 4.29% from July, on shipment of 2.15 million motherboards, up around 10% from a month earlier. ECS explained that a decline in August revenue was caused by shortage of some components and parts, which delayed its shipment of notebook PCs in the month.
Last year, ECS announced a buyout of a notebook PC maker, Uniwill Computer Corp., hoping to diversify its business operations to include making notebook PCs. In addition to orders for the products from Fujitsu Siemens, ECS has also won orders from Gateway for 19-inch models, which are scheduled to be delivered coupled with central processing units for desktop models starting the end of September.
After acquiring Uniwill, which has been actively expanding its production capacity of its plant in China, ECS recorded monthly production volume of 3.7 million notebook PCs in 2006 and has boosted the figure to 4.2 million units at the moment. By the end of this year, the figure is expected to further move up to five million units. ECS projected the fourth quarter of the year will be a booming season, which is expected to boost its annual shipment to three million notebook PCs, including 1.16 million units posted for the first half of the year.
ECS's major clients for notebook PCs include Fujitsu Siemens, which absorbs more than 50% of its total shipment, and some Korean and Chinese ones. Besides, ECS also supplies Classmate PCs, low-price models ordered by Intel, and will start to deliver the products soon, with annual shipment of 300,000 units for this year.
Furthermore, with Acer's acquisition of Gateway, ECS has been eager to vie for orders from the two companies, as well as Gateway's affiliate Packard Bell. At present, Acer's contract suppliers of notebook PCs include Quanta Computer Inc., Compal Electronics Inc. and Inventec Corp., and Gateway's include Quanta, Wistron Corp. and Arima Computer Corp.
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| | ![]() | | | Merida, Giant Ride Down Path of Solid Sales in Aug.
Taipei, Sept. 13, 2007 (CENS)--Taiwan's top-two suppliers of bicycles generated solid sales in August, with Merida Industrial Co. seeing its single-month revenue break NT$1 billion for the first time, and Giant Manufacturing Co. posting a 10% growth in its turnover, according to company sources.
Merida scored sales revenue of NT$1.053 billion for August, up 65.68% from one year earlier and 14.7% from NT$918 million posted in March to hit a historical high. It has also reported aggregate revenue of NT$5.83 billion over the past eight months this year, sharply growing 57.46% from a year earlier.
Merida posted annual revenue of NT$6.926 billion in Taiwan last year, up 13.71% from 2005. Based on the aggregate revenue over the past eight months this year, the company expects to see its annual revenue to soar past NT$9 billion for the entire year.
Merida has reported banner sales this year due mainly to ongoing orders from the U.S.-based Specialized Bicycle Components Inc. (SBC), a well-known bicycle brand in the world. Also, Merida is the largest shareholder with a 35% controlling stake in SBC.
Besides, Merida has posted aggregate shipment of 442,200 bicycles over the past eight months this year, up 41.92% from a year earlier and including 68,600 units in August. Meanwhile, the average selling price (ASP) of Merida's bicycles has gone for US$430 per unit in the same period, up 17% from US$368 a year earlier. Thus, a significant increase in selling prices and shipment have served to drive up the firm's corporate sales and profits.
Merida added, since the second half of 2006, the company has enjoyed booming sales of bicycles sold under own brands, including Merida and Specialized. The firm's sales in North American and European markets surprisingly increased during the bearish season this year, sustaining a huge growth in its sale performance.
After developing well-received new models and effectively joining distribution channels in emerging markets to build a solid brand name in the line, Merida has seen its production lines of new models fully booked through 2008. This drove up the company's shipment as well as the ASP to US$493 in August. Running at full capacity, the company is to challenge single-month shipment of 70,000 units, and to hit historical highs in its shipment, sales and profits this year.
On the other hand, Giant scored sales revenue of NT$1.124 billion in August, up 10.74% from a year earlier and only next to a historical high of NT$1.129 billion posted in October 2005, and has posted aggregate revenue of NT$6.518 billion for the past eight months this year, growing 19.64% from a year earlier.
Incidentally, Giant Inc., including all its overseas affiliates, posted compound revenue of NT$3.081 billion in August, growing 24.33% from a year earlier, and aggregate revenue of NT$21.452 billion over the first eight months of the year, up 26.11% from a year ago.
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| | ![]() | | | VIDA Showcases Student Vehicle Design Talent
By QUINCY LIANG
After eight months of deliberation, 14 international jurors of the prestigious Motor Vehicle Innovation Design Award for Colleges in Asia (VIDA) 2007 selected this year's final winners out of 503 registrations from Taiwan, mainland China, Hong Kong, and Japan.
The award ceremony was held at the Taipei World Trade Center on May 17, with all jurors expressing high praise for this year's design submissions.
Sponsored by the Department of Industrial Technology (DoIT) under the Ministry of Economic Affairs and organized by Taiwan's Automotive Research & Testing Center (ARTC), the VIDA encourages college students in Asia to present innovative ideas and concepts for motor-vehicle styling and technology, with attention also to trends in the areas of electronic control, safety, and environmental protection.
The award also serves as a bridge between innovative students and enterprises looking to recruit designers.
Any college student living in Asia can participate in the VIDA as an individual or as part of a team. Their designs should consider the future vehicle needs and lifestyles of the general public, drivers and riders. They should also address the problems of high-density-population and social conditions in Asia; meet the development requirements of island nations; and have other benefits such as improving safety, comfort, fuel efficiency, convenience, vehicle intelligence, and other added values of new-type vehicles.
The design contest is divided into two competition groups. The "Styling Innovation" group (Category A) focuses mainly on the styling designs of vehicle interiors and exteriors, such as overall layout, material, surface treatment, interior-space planning and coloring projects etc. The category includes both complete vehicle and parts (such as seats, steering wheels, vehicle lamps, mirrors, and doors.)
The "Functional Innovation" group (Category B) focuses on themes such as safety, environmental protection, and electronic intelligence. Structural materials, active safety controls, multimedia entertainment, energy economy, emission reduction, telematics, batteries, motors, controllers, battery chargers, and other functional parts/systems belong to this group.
The jury consisted of industry experts, academics, and related government authorities. Entries were judged according to the following criteria:
Category A: "Styling Innovation"
(a) Innovation 50%--Styling, structure design, performance, configuration, etc.
(b) Refinement 30%--Appearance, structure, integration of drawing or model, etc.
(c) Feasibility 20%--Manufacturing technology, feasibility of mass-production, effects of safety, green and economic, etc.
Category B: "Functional Innovation"
(a) Innovation 50%--Styling, material, structure design, performance and technology, etc.
(b) Feasibility 30%--Feasibility of marketing, technology and mass-production, etc.
(c) Integrity 20%-- Configuration of drawing or prototype
Award Winners
ARTC president Huang Lung-chou says the design contest aims to inspire good design and help Taiwan become a regional vehicle design hub.
This year, the Gold Award in the Styling Innovation group was absent, while the Second Prize Award was granted to the "SOFA" concept vehicle designed by Wang Chen-hao of National Taiwan University and Lee Po-han of National Chiao Tung University.
"SOFA" is a futuristic table-shaped two-wheel vehicle with crimson velvet sofa that can be extended as a double bed. Video can be projected on the arced car shield. Also, there is room beside the wheel for installing a washing machine, refrigerator, camping equipment etc.
Another second-prize winner was the "AUK" Amphibious Auto designed by Deng Jun and Chang Ning of Beijing Institute of Technology of mainland China.
The "AUK" is a smart concept vehicle designed particularly for people who live in areas with many scattered islands. The AUK can travel over lakes, rivers, and inland seas without alternation. It is also a three-wheel vehicle for road driving. The vehicle enables one to avoid traffic jams in cities by water travel.
The third-prize winner in the same category was the "Roomage," a concept developed by Wang Miao of Xi'an University of Architecture & Technology.
The Roomage aims to provide maximum mobility and occupy the smallest space for parking. The student designer Wang said that in the future, many nations, especially island countries, would face serious traffic jams. The Roomage is a vehicle designed with a narrow car body suited to the crowded road conditions in cities, but the four wheels can be extended and fit to an electric-magnetic railway system, turning the vehicle into a super high-speed shuttle.
There were also several excellent-prize winners, such as the Free-go four-wheel vehicle designed for people who want to enjoy a freer lifestyle. The Free-go can adjust automatically according to the road conditions so as to make the driver more comfortable. The seat can fold out into a bed for an in-car nap.
The shape of the Ampler vehicle was inspired by insects. The amphibious vehicle is driven by a caterpillar on the road and by a propeller on the water. The car door opens from the top to prevent water leakage. (September 2007)
Caption 1: Second-prize winner in the "Styling Innovation" category: The SOFA
Caption 2: Second-prize winner in the "Functional Innovation": The AUK" amphibious vehicle
Caption 3: Third-prize winner in the "Styling Innovation" category: The Roomage | |
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