Hon Hai most profitable Taiwanese investor in mainland

Taipei, Sept. 17, 2003 (CENS)--Of firms listed on the Taiwan Stock Exchange, Hon Hai Precision Industry Co., Ltd. And Yulon Motor Company gained the most from their investments in mainland China in the first half of this year, according to statistics compiled by the Taiwan Stock Exchange Corporation (TSEC).

Hon Hai was the most profitable electronics firm investing in the mainland, scoring earnings of NT$3.722 billion (US$109.1 million at US$1:NT$34.1) from its mainland investment in the first half of this year. Yulon gained NT$2.111 billion (US$61.9 million) in the same period, the highest among listed firms in traditional industries.

The TSEC statistics show the top-10 most profitable listed companies in the first half of this year, in descending order, were: Hon Hai, Yulon, Wah Lee Industrial Corp. (NT$1.928 billion), Quanta Computer Inc. (NT$1.126 bililon), Cheng Shin Rubber Industrial Co. (NT$878 million), China Motor Company (NT$745 million), Uni-President Enterprises Co. (NT$664 million), Chunghwa Picture Tubes Co. NT$635 million), Delta Electronics Co. (NT$494 million), and Taiwan Green Point Enterprises Co. (NT$325 million).

Of the top-10 earners, Hon Hai, Wah Lee, Quanta, Chunghwa, Delta, Taiwan Green Point are electronics concerns while the remaining Yulon, China Motor, Cheng Shin, and Uni-President belong to conventional industries.

TSEC said many conventional firms have laid solid foundation in the mainland. For instance, Yulon group's Yulon Motor and China Motor, focusing on production of automobiles in mainland China, ranked second and sixth among the top-10 earners; Cheng Shin from the rubber industry and Uni-President from the food industry also squeezed into the top-10 list in the first half of this year.

Other firms making handsome profits in mainland China are Chia Hsin Cement Corp. which gained NT$223 million in the first half of the year, Chun Yuan Steel Corp. with NT$109 million, Yung Tay Engineering Co. (NT$173 million), Ho Tung Chemical Corp. (NT$112 million), Walsin Lihwa (NT$157 million), Yuen Foong Yu Paper Mfg. Co (NT$253 million), Tong Yang Industry Co. (NT$104 million), Far Eastern Textile Co. (NT$78.97 million), and Taiwan Glass Co. (NT485.65 million). Most of the above-mentioned profitable firms belong to conglomerates.

Currently Formosa Plastics Group, Taiwan's largest plastics conglomerate, extends production facilities to the mainland through three affiliates including Formosa Plastics Corp., Nan Ya Plastics Corp., and Formosa Chemical & Fiber Corp. Of them, Nan Ya has seen steady returns on investments there. FPC and FCFC still suffered operating losses in the mainland in the first half of the year because they entered that market later than FPC. Nevertheless, many institutional investors believe FPG will soon rake in handsome profits in the mainland because of its strong management ability.