Foreign markets eyed by Hua Nan Financial
By Ted Chen, The China PostTAIPEI, Taiwan -- Hua Nan Financial Holdings' investors' conference took place yesterday, with the company announcing plans to significantly expand its overseas operations, while aiming to have 30 percent of overall earnings contributed by offshore divisions.
August 23, 2013, 12:01 am TWN
In the first half of this year, the company accumulated net income of NT$5.203 billion, yielding earnings of NT$0.6 per share.
Chairman Liu Teng-cheng (劉燈城) stated that the company's securities brokerage and investment trust divisions are making great strides in taking footholds in the China market, with numerous establishments having received or awaiting approval in Shanghai and Shenzhen. In addition, the company has received qualified foreign institutional investor (QFII) status by Chinese regulators, and is ready to perform direct investment into the Chinese capital market, Liu said.
In the first half of the year, the company saw its Shenzhen branch contribute pre-tax earnings of US$3.26 million, with portfolio of loans exceeding 180 million yuan. An additional branch based in Bao'an County (寶安) has received approval from regulators, with operations set to commence as soon as November.
Citing the figures published by the Directorate-General of Budget, Accounting and Statistics (DGBAS, 主計處), Liu stated that with second-quarter gross domestic product growth estimated at 2.49 percent, Taiwan's economy is well-positioned for a rebound. Liu also remarked that the Council for Economic Planning and Development had also recently issued a "green light" leading economic indicator, saying that he expects Taiwan's financial sector to take part in the recovery.
However, Liu cautioned that Taiwan may influenced by the economic performances of China, Europe and the impending reduction of quantitative easing measures in the U.S.
The company stated that it has written off exposures to the now-defunct Taiwan Maritime Transportation Co. (台灣海陸運輸) at NT$257 million, and the ailing Chi Mei Lighting Technology Co. (奇立光電) at NT$526 million. It also recognized 52.42 percent of nonperforming loans to ProMos (茂德), and 62.3 percent for Powerchip Semiconductor. Bad debt for the company in the first half of this year reached NT$2.561 billion, up 48 percent year-on-year.
At the end of yesterday's session, shares of Hua Nan Financial Holdings closed at NT$16, gaining NT$0.5, or 0.31 percent.