Hon Hai earned NT$6.714 billion in China in the first nine months

Taipei, Nov. 5, 2003 (CENS)--Hon Hai Precision Industry Co., Taiwan's leading maker of information technology (IT) products, earned NT$6.714 billion (US$197.47 million at US$1:NT$34) from its investment in mainland China in the first three quarters of this year, the highest among Taiwan's listed firms with production facilities there.

Of other IT firms with production facilities in the mainland, Asustek Computer Inc. and Quanta Computer Inc. also posted high earnings of NT$4.76 billion (US$140 million) and NT$723 million (US$21.26 million), respectively, from their mainland investments in the same period.

According to Hon Hai's financial statement, the company has seen earnings in the mainland increase quarter by quarter since the beginning of this year. The company registered NT$1.516 billion (US$44.58 million), NT$2.206 billion (US$64.88 million) and NT$2.992 billion (US$88 million), respectively, in mainland investment gains in the first, second and third quarters of this year.

Hon Hai said it posted NT$18.452 billion (US$542.7 million) in pretax earnings in the first three quarters, with 36% of which coming from mainland investments.

Thanks to its rapid deployment in the mainland, Asustek's mainland imports and exports totaled US$2.3 billion in 2002, making it the eighth-largest foreign exchange earner in the mainland. The firm's ranking is expected to rise to third or fifth this year with import/export shipments breaking US$6 billion.

Asustek boasted its combined global sales revenues would reach NT$200 billion (US$58.82 billion) this year. Lee Tsu-yao, chief finance officer of Asustek, said his company would see sales revenues in the mainland 1.5-fold or double that achieved in Taiwan this year.

Asustek recognized NT$4.76 billion (US$140 million) in earnings from investments in the first three quarters, and most of which came from the mainland because the company's major overseas production facilities are located there.

Quanta recognized NT$723 million (US$21.26 million) in gains from mainland investments in the first three quarters of this year. The company said it saw shipments of notebook computers from the mainland exceed those from Taiwan for the first time in the first quarter of this year.

According to financial statement prepared by respective firms, the top-20 listed firms with handsome earnings from mainland investments each scored over NT$1 (US$0.02) in earning per share in the first three quarters.

Seven out of the top-20 listed firms in terms of earnings from mainland investments each recorded EPS of over NT$2 (US$0.05) in the first three quarters of this year. The seven firms, in descending order, were: Lite-On Information Technology Corp. posting NT$6.56 (US$0.19) in EPS; Advanced International Multitech Co. with NT$5.48 (US$0.16); Taiwan Green Point Technology Inc. with NT$4.47 (US$0.13); Corner Corporation, NT$3.17 (US$0.09); Hon Hai, NT$2.67 (US$0.07); Full Rise Electronic Co., NT$2.08 (US$0.06); and Soft-World International Corp., NT$2.07 (US$0.06).