Tong Yang's Pre-tax Profits Exceed NT$1.2 B. in Past 8 Months

Taipei, Sept. 20, 2010 (CENS)--With core business prospering, Taiwan-based Tong Yang Industry Co., a major manufacturer of auto parts, has posted pre-tax profits of NT$1.221 billion (including NT$98.76 billion for August alone), or NT$2.71 per share, for the first eight months, up 6.5% from that of last year, according to the company.

The profit growth has been mainly driven by Tong Yang' business in China, which has reported combined revenue of NT$8.001 billion for the first seven months, up 59% from a year earlier to hit a record high, and aggregate pre-tax profits of NT$983 million, growing 142% year-on-year, due to China's fast-growing car market, in which sales have topped 10 million vehicles over the past seven months.

With the ECFA (Economic cooperation Framework Agreement) working to reduce trade barriers between Taiwan and China, TYG's (Tong Yang Group) president Raymond Wu says that Tong Yang will further tap China's market for aftermarket auto parts by offering comprehensive products and friendly service, which are Taiwanese auto parts makers' competitive edge.

Meanwhile, Ta Yih Industrial Co., Ltd., a TYG affiliate and maker of auto lamps, also saw its revenues grow 41.91% year-on-year to NT$363 million in July, adding to its aggregate revenue of NT$2.247 billion for the past seven months, to post aggregate pretax profits of NT$288 million or NT$3.77 per share.

TYG's other affiliate Taiwan Kai Yih Industrial Co., Ltd., surprisingly, suffered pretax losses of NT$2.96 million in August for the first time, hence driving down its aggregate pretax profits to NT$58.06 million, or NT$0.35 per share, for the past eight months. TYG admits that the company has underperformed so far this year, partly due to postponed activation of two automated production lines, and partly due to rising material costs.