Hon Hai Q1 net profit plummets 68%, EPS falls to NT$0.93

Hon Hai Q1 net profit plummets 68%, EPS falls to NT$0.93

2023-05-11

The tech giant Hon Hai reported a quarterly loss of NT$20 billion on Thursday, most of it from its investment in Sharp. At a Thursday investor conference, the firm said net profit for the first quarter dropped 68% from Q4 due to the loss. Earnings per share fell to NT$0.93, well below market expectations. The downturn came despite improvements in gross margins and operating margins. Hon Hai said it will push ahead with its overseas and domestic projects, which include a smart city investment plan in Kaohsiung.

Hon Hai held its first-quarter earnings call on Thursday, posting improvements in gross margins and operating margins. But net profit sunk by 68%, dragging earnings per share to NT$0.93. The drop was due mainly to a NT$20 billion loss outside of Hon Hai’s core business. NT$17.3 billion of that came from Hon Hai’s investment in Sharp.

David Huang
Hon Hai CFO
Due to our shareholder ratio, Hon Hai has had to recognize an investment loss of NT$17.3 billion in a noncore business. Although gross margins and operating margins grew compared to the same period last year, our external losses significantly affected our net profit.

Despite losses in noncore businesses, core operations exceeded expectations for the traditionally slow first quarter. Hon Hai plans to scale up operations, and not just overseas. The firm has signed a NT$25 billion investment agreement with Kaohsiung, aimed at building a smart city.

Young Liu
Hon Hai chairman
Hon Hai hopes to take on the role of a systems integrator, creating a comprehensive hardware environment that supports Kaohsiung’s development into a smart city.

The chairman said Hon Hai would be a systems integrator, investing in projects such as an R&D hub for electric buses. He also confirmed that Project X, a much-anticipated three-seat electric vehicle, will be unveiled soon.

Young Liu
Hon Hai chairman
I expect we will have the physical prototype by the end of the year. This is in regard to Project X.

As for the Model C electric vehicle, Hon Hai is set to start mass production and deliveries in the fourth quarter. Meanwhile, the company’s first low Earth orbit communications satellite is in the final stages of testing, and will be launched in the second half of the year.

業外大虧200億! 鴻海季減68%、EPS 0.93元

2023-05-11

今年鴻海集團首季法說會登場，毛利率和營利率雙雙上升，但是獲利和上一季相比，卻因為業外虧200億的影響，季減68%，單季EPS只有 0.93元，低於市場預期，董事長劉揚偉也被問到，投資高雄250億元的計畫，他說具體將投入電動巴士，扮演一個系統整合商的角色。

鴻海集團首季法說會登場，首季財報毛利率和營利率雙雙上升，不過稅後純益卻季減68%，EPS0.93元，主因就是受到業外虧損200億拖累，其中夏普就佔了173億。

[[鴻海財務長黃德才]]
“鴻海依持股比例，必須認列約173億台幣的業外投資損失，雖然我們在這一季，在毛利營業利益的本業獲利相對去年同期都有成長，但是在業外受到這樣的減損，而導致淨利減少”

業外雖然虧損，不過本業獲利淡季不淡，不只在國外投資，鴻海日前才和高雄市簽訂智慧城市備忘錄，豪砸250億元布局南臺灣。

[[鴻海董事長劉揚偉]]
“鴻海希望能夠在這個方面，能夠扮演起整個系統整合商的角色，打造一個完善硬體的環境，來協助高雄能夠發展，我剛剛所說的智慧城市的軟體”

劉揚偉掛保證，會扮起系統整合角色，投入電動巴士打造研發基地，至於對於外界相當關注的，Project X三座版，董事長也證實實體車即將亮相。

[[鴻海董事長劉揚偉]]
“今年年底我預期應該可以看到實質的樣車，這是有關Project X的部分”

至於首款電動休旅車Model C 將如期今年Q4開始量產、交車。另外首顆低軌通訊實驗衛星即將完成最終測試，預計下半年發射升空。

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Construction firm fined NT$1.11 million after deadly metro accident

Service has resumed on the Taichung Metro after its deadly accident on Wednesday. A train had crashed into a construction crane’s boom, killing one passenger and injuring 10 others. The accident paralyzed the section of track stretching from Taichung City Hall to Jiuzhangli Station. After 18 hours of repairs, a 250-person crew restored service at 6 in the morning on Thursday. City and central government have issued stiff fines on the construction company involved, amounting to a total of NT$1.11 million.

Taichung MRT executives observe a moment of silence for the victims of Wednesday’s accident, which left one dead and 10 injured. The crash left passengers terrified and shut down service on the Green Line. A 250-person crew completed repairs lasting 18 hours. At 4 in the morning on Thursday, the damaged train, which had derailed in the accident, was towed away from the tracks.

Following careful inspections of the tracks and electrical equipment, engineers gave the all-clear by 5 a.m.

Otis Sheu
Taichung MRT head of operations
The operation was completed roughly at 4:30 a.m. today. After that, we did some dynamic testing to confirm that trains could travel safely. We announced that trains would resume at 6 o’clock.

According to preliminary estimates, the accident affected 20,000 passengers. Officials have suspended work at the crane’s construction site, citing the severity of the injuries and loss of life. The city government and labor ministry have both hit the construction firm with heavy penalties. The city wrote a NT$810,000 fine for violating the Building Act, while labor ministry imposed NT$300,000, for a total of NT$1.11 million. Further penalties will be determined based on the findings of an ongoing investigation.

The Taichung MRT plans to seek full compensation from the construction firm.

Lin Liang-tay
Taichung MRT chairman
We will certainly seek compensation from the company in question. Based on our preliminary estimate, the amount of compensation will be over NT$200 million.

On Wednesday night, police summoned eight contractors for questioning, including one surnamed Tsai. They are being investigated by the Taichung District Prosecutors Office for causing serious injury, negligent homicide, and offenses against public safety.

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Costco announces compensation for recalled frozen berries

Turning now to Costco and its tainted berry scandal. The wholesale giant has unveiled its compensation plan for berries recalled over hepatitis A fears. A full refund will be given, plus an extra payment matching the retail price of the berries. On top of that, Costco will cover NT$500 of testing fees and some medical costs should buyers fall ill. The Consumers’ Foundation says the compensation is not enough, and that Costco should offer at least NT$3,000.

She shows us the refund money from Costco’s berries. Forty-two thousand people had bought the problematic berries, and all eyes are on Costco’s compensation plan.

Chen Yen-lin
FTV reporter
After the hepatitis A virus was found in Costco’s imported frozen berry mix and frozen blueberries, the U.S. big box retailer announced a new compensation plan. Buyers are not just entitled to a full refund. They’ll also be offered compensation equal to the original price of the berries, plus a subsidy for medical expenses and testing fees.

The details are out on Costco’s official website. Customers who bought recalled mixed berries between March 2 and April 11 will get a full refund, plus a payment of NT$469 – the retail price of the berries. Customers who bought recalled blueberries between Feb. 17 and April 30 will also get a full refund, plus NT$549 in cash. In addition, Costco will offer NT$500 for medical testing, and subsidize medical expenses for customers who get sick. Some say that’s not enough.

Member of public
If a person actually does get sick from the berries, he or she might want more compensation than this, because that’s a big impact on you.

Member of public
You buy them for NT$500 and you get NT$500. They should be offering at least 100 times the original price.

Wu Jung-ta
Consumers’ Foundation
The amount is too small. The compensation for testing is not even enough to cover the cost of the registration fee. Hepatitis A has an incubation period as long as 60 days, so you might go for one to three tests during that period. It’s not enough. Also, it’s not just about testing fees. During that time there is also psychological stress and anxiety. Shouldn’t that be compensated too? We advised Costco to offer NT$3,000 to NT$5,000.

The Consumers’ Foundation says Costco isn’t offering enough in compensation. It says it will file a class action lawsuit, considering the severity of hepatitis A. Although the likelihood of infection is low and the mortality rate is only about 3 in 1,000, most people under 40 in Taiwan don’t have antibodies. If infected, the worst case scenario is developing fulminant hepatic failure.

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Mother’s Day is here, and business is booming at Taipei Flower Market

Mother’s Day is one of the biggest holidays of the year for florists. But customs around buying flowers are changing. It used to be that carnations were considered the only appropriate choice for Mother’s Day. But in recent years, that tradition has relaxed, as more and more people choose creative flower arrangements to give their moms. This year at Taipei Flower Market, there’s even a special flower art display. It features a pun on the Chinese word for “spend money” – which Chinese speakers will know sounds just like the word for “flower.”

This Sunday is Mother’s Day, and Taipei Flower Market is unusually bustling for a weekday, as buyers flock to get their bouquets.

Member of public
I’m a cram school teacher. I want to give the flowers to the children, to take home and give to their moms. Flowers are very expensive this year. I come and buy them every year.

A large bouquet of 20 carnations costs anywhere from NT$200 to NT$250. You can go for the classic red or pink, or a more unusual tone – purple, peach or variegated petals are all popular options.

Flower seller
The supply is quite stable this year. It’s usually young mothers getting the light pinks, and older mothers getting the reds. The most expensive are probably the bicolored flowers and the peach colors.

Hung Tzu-chieh
Taipei Flowers Auction Co.
This year, in 2023, Taipei Flower Market got in 125,000 bunches of carnations. In the first half of this year, there have not been any major natural disasters in the production region, which is Changhua. Our teacher of flower-arranging has used her creative skills to make this flower arrangement using fake bank bills. It’s a pun, and implies your mom has lots of “money to spend.”

This special exhibition is in pride of place in the market, showing off the Mother’s Day strategy. Bunches of carnations are arranged in heart shapes, and held together with imitation paper money. But some customers choose a different type of flower to express a special message.

Chen Hui-shan
Teacher of flower-arranging
The Lily of the Nile has a beautiful meaning too. Customers choose this one particularly if they have a lot of brothers and sisters, and they want to say “Mom, thank you for bringing us all up.”

Roses and balloon flowers are good for Mother’s Day, and some people go for dried flowers. Once upon a time, carnations were practically mandatory for the holiday, but now there are more and more ways to say “thanks, mom.”

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TSMC CEO says trustworthiness is key competitive edge

Being trustworthy is TSMC’s key competitive advantage, says a company executive. TSMC CEO C.C. Wei was speaking at the TMSC 2023 Technology Symposium in Hsinchu. In his keynote, Wei highlighted Taiwan’s crucial role in the world as a semiconductor powerhouse. Despite the turmoil of inflation, TSMC has an edge over its industry rivals, because it can be trusted to put its clients’ success first.

Yang Ssu-min
FTV reporter
TSMC is holding its Technology Symposium in Hsinchu. More than 20 partner firms were invited to showcase their latest technologies. TSMC CEO C.C. Wei also gave an address.

C.C. Wei
TSMC CEO
So due to the Russia-Ukraine war, inflation is rising all around. This war that’s happening so far away – to use a phrase in Chinese, “What’s that got to do with us?” Well, it does affect us. Take neon gas for example – we at TSMC ended up paying six to seven times the usual price.

But with challenges come opportunity. TSMC CEO C.C. Wei said the pandemic was a global wakeup call about the vital role of semiconductors in daily life. And with the artificial intelligence industry booming, TSMC’s advanced chips are creating more value than ever for client products.

C.C. Wei
TSMC CEO
We sold a chip for US$600 to US$700, a chip for AI application. Then we bought it back for US$200,000. So one day I sat down with him and said, “Hey, my friend. Are you really my friend?”

His humorous side on full display, Wei said there was one thing that semiconductors can’t do.

C.C. Wei
TSMC CEO
We will have smart homes. We’ll also have smart cities. This will all be made possible by semiconductors, with the support of AI and 5G. The only thing that AI and 5G can’t help with, frankly, is to make our politicians smarter.

Once the laughter died down, Wei was back to business. He said he was confident in TSMC, and not only because of its technical strengths.

C.C. Wei
TSMC CEO
There are actually very few real competitors out there. Would you entrust your product design to someone who also makes products of their own? We put our clients’ success first, and TSMC’s growth follows. We hope you’ll remember this word – trust – this is a key word.

Facing rivals like Samsung and Intel, Wei said that being trustworthy was TSMC’s key advantage. He urged clients to stand shoulder to shoulder with TSMC to weather the economic downturn.

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How to nail the squat: keep your back straight, knees forward and toes on the ground

Today we take a look at one of the trendiest exercise moves of recent years: the squat. The simple squat has become a favorite of gym lovers. It’s an efficient workout for the glute muscles, and relieves tension from all over the body. But its simplicity can be deceptive. Physiotherapists say lots of people are performing squats wrong. And that can cause more harm than good. We spoke to a physiotherapist from Cathay General Hospital to find out exactly how to get the squat right.

The simple squat can be performed almost anytime, anyplace. It’s a great workout, and can even help relieve knee discomfort. But take care. Physiotherapists warn that performing a squat incorrectly can actually do more harm than good.

Tu Yu-lin
Cathay General Hospital physiatrist
If you put too much force into your thighs, then the pressure of the knee joint goes entirely into the knee. Some people even complain that climbing the stairs has become harder or more painful after they’ve been doing squats.

This physiotherapist showed us the various ways he sees patients get squats wrong. Having your back bent forward like this is a no-no. Letting your knees poke out beyond your feet is also bad form. Worst of all is letting your toes lift up off the ground. He has special advice for older adults who want to practice squats at home.

Stand in front of a sturdy piece of furniture and hold it as you squat, to be sure you don’t fall. Take care not to overstrain your thighs. Instead, rely on the glute muscles in your buttocks. Place your feet the same width apart as your shoulders. Point your knees forward – not in – and straighten your back. According to physios, squats have many benefits, including strengthening the glutes, which can relieve the pressure from knees and lower back, as well as strengthening the skeleton, and burning calories. It’s great for adults of all ages.

Tu Yu-lin
Cathay General Hospital physiatrist
It’s a movement that activates the pelvis. Because the pelvis has the glutes, which are like the engine of the lower limbs. So doing squats fires up that engine, and improves the sports performance of our legs.

Performed correctly, a squat can help improve your coordination. According to one scientific journal, it can also train concentration and strengthen your brain health. So what’s not to love? Let’s get squatting.

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