FENC aiming to double revenue from polyester business

23 Jun '10

5 min read

In addition to the bright future, outlined by President Shih, of the Company's operating business, Chairman Hsu believes affiliate earnings booked by FENC will be a rock-solid downside protection to the bottom line of FENC in year 2010. Taipei Far Eastern Telecom Park, with a total size of 76,000 pings in Banciao, the outskirt of the Taipei City, “will begin to harvest from developing efforts made several years.”

The first residential product, named California Dream, adjacent to the MRT Far Eastern Memorial Hospital Station, was offered to the market in the fourth quarter last year, “and the pre-sale result turned out to be very satisfactory”, said Chairman Hsu. The average selling price has climbed over NT$400,000 per ping, recording the highest unit price in the neighborhood area.

“We estimate part of the gain from the pre-sale of this product, roughly NT$1.2 billion, would be booked in the first half this year, and the remaining would be recognized in the second half according to the percentage-of-completion accounting method”, said Chairman Hsu. Meanwhile, the construction of the first commercial office building (TPKA-1) has been completed; the tenants are scheduled to move in and the official operation will commence in the middle of this year.

The investment income of FENC from other equity holdings in the first quarter of 2010 rose as well compared to the same period of 2009. “Each subsidiary employs innovative strategies to seize opportunities for growth in the current challenging business environment,” said Chairman Hsu.

According to Chairman Hsu, an aggressive expansion strategy has been implementing in the cement business; the cement output volume has been increasing substantially through organic growth and mergers and acquisitions, and the operating performance was unrivalled by its cement peers. The retail business has been accelerating its expansions in China and Taiwan in order to achieve the optimal store numbers in the greater China area.

The telecommunication business has accomplished the convergence of wireless and broadband fixed-line businesses, offering a comprehensive service package for its subscribers. Being the first mover into the 4G WiMAX service among its Taiwan peers, the telecommunication business has provided its enterprise and household customers an alternative for connection to the Internet.

Starting from a small yarn mill, “FENC has run its business in Taiwan more than sixty years and successfully upgraded itself into one of the leading enterprises listed in the Taiwan Stock Exchange”, Chairman Hsu stressed. “The Company is well-recognized as one of the most immensely favored companies in Taiwan, which can be evidenced by the increasing number of shareholders exceeding 100,000 persons this year. We would like to take this chance to show our great and sincere gratitude to our shareholders for their admiration and support.”

Far Eastern New Century Corporation

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