Chairman Shen: Smart Meter IC may be developed Commercial Times (Journalist: Mei Xing Shen’s report)

2012/04/23

TA YA Electric Wire & Cable Co. uses innovation to upgrade traditional industry. It invested NT$ 18 million in the fourth quarter of last year to found Esoterism for the design and production of cell phone shells for iPad and iPhone.
The green iPad shell in the hands of the Chairman Shanghung Shenis made by Esoterism.

As Chairman Shen pointed out, there are lots of uncertainties internationally and domestically in 2012, and TA YA holds a prudent and conservative view on business and operation. Every company has its own strategy in response to changes in the environment, and TA YA (1609) tries to do better than others.

Chairman Shen stressed that the future vision of TA YA’s development is not to become a company of the highest profitability. TA YA’s values and mission is to make employees happy, customers satisfied, shareholders contented, and the homeland beautiful, and hopes to become the most trustworthy cable and wire company by 2015.

The following is a summary of the interview
Q: What is your view on the global economy this year?
A: We are conservative and prudent. Both the global and Taiwan markets are full of uncertainty. Internationally, the US economy is gradually recovering and the GDP of China is decreasing, while the euro issue and the euro debt crisis still hang on. Domestically, the rise of oil and electricity prices might result in inflation in Taiwan. The government strives to keep CPI below 2% so the possibility of higher interest rates grows. Besides, the government even revises the GDP growth forecast down in April. These factors combined give us no ground to be optimistic so I am conservative and prudent about the economy this year. The economy slows down so we are cautious with expansion of the business and see investment in a prudent and conservative way, which is also applicable to the operation of TA YA this year.

Q: What is TA YA’s strategy regarding the rise of oil and electricity prices?
A: We have to be thriftier. TA YA should use energy like natural gas, oil, and electricity more efficiently or even uses new energy due to the rise of oil and electricity prices.

Q: What is your view on copper prices this year?
A: Estimation of the international copper price is a business secret because it involves risk management and profits. I can just say that the copper price has great influence on revenue. Earnings before taxes (EBT) was NT$ 333 million and net income per share was NT$ 0.51 last year. Although it was not the most profitable year, we were glad that revenue was still positive. We cannot control the entire environment. Every company has its strategy so TA YA should work harder and do better than others.

Q: You mentioned that TA YA may invest in regions other than Taiwan, China, and Vietnam. Could you give more details about that? And has TA YA thought about setting foot in the green energy industry?
A: A company needs to find new tools for development so we do not exclude any possibility to invest in other areas. TA YA has a subsidiary venture capital company to determine whether we should make financial investment or engage in venture capital jointly with external technology and capital. Venture capital is a development platform for us, and investment in Guan Shuo (China), which produces lithium iron phosphate batteries, is a financial investment in nature. We want to enter the green energy industry but there’s no clear direction yet. The smart meter IC is part of energy management, and could be a direction for development.

reference:http://money.chinatimes.com/newmoney/realtime/newscontent.aspx?NewsSN=010423000384l