Press Release for 2018 Annual General Shareholders’ Meeting
Revenues and Profits Jump Significantly Following New Capacity Ramp Up in the U.S. and Vietnam, Heading to a New Century of FENC
Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) held its 2018 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium at 9:00 AM on 29 June with Chairman Douglas Tong Hsu presiding. During the meeting, the management team reported the 2017 financial results and the operating strategies of key businesses – production, investments, and property development.
FENC’s 2017 consolidated revenue reached NT$217.8 billion (US$7.3 billion), a 1% growth YoY, whilst net income attributable to shareholders of the Company was NT$8.1 billion (US$270 million), a 28% growth YoY, or an EPS of NT$1.61 (US¢5.39). The cash dividend of NT$1.2 (or US¢4.02) per share , a record high in the past three years, was accepted during the meeting. The dividend yield is around 4.2% based on the stock closing price of June 28, 2018. FENC also outperformed in 1Q18, as its consolidated revenue reached NT$51.5 billion (US$1.7 billion), a 2% growth YoY, whilst net income attributable to shareholders of the Company was NT$2.5 billion (US$83 million), a 92% growth YoY.
Production Business: Solid Growth Momentum
Property Development: Develop Properties to Generate Greater Value
Currently FENC has total land holdings of 570,000 pings (1,900,000 square meters) in Taiwan, the majority of which are located in prime areas of northern Taiwan. The Taipei Far Eastern Telecom Park (Tpark) project in Banqiao of New Taipei City is one of FENC’s development priorities. After the completion of the phase I plan, the Company has entered the second phase of the Tpark’s construction. The IDC building and the second R&D building broke ground last June. In addition, a premium residential project located inside Tpark, built by Far Eastern Construction, is planned to launch its pre-sale, with a gross floor area of more than 7,000 pings(23,000 square meters), which is expected to generate substantial income.
Diversified Investment: Branch Out to Drive Profit Growth
The majority of the Company’s investment portfolio is listed companies on the Taiwan Stock Exchange with proven track records, including Far EasTone Telecommunications Co. Ltd., Far Eastern Department Stores Limited, Asia Cement Corporation, Oriental Union Chemical Corporation, Everest Textile Corporation Limited, and Far Eastern International Bank, thus providing the Company consistent dividend and investment income each year. In 1Q2018, the total “net income attributable to shareholders” of the aforementioned six companies was 35% higher than the corresponding period last year.
Social Responsibilities: Ongoing Sustainable Development
“With collective efforts from our employees, FENC has received great recognition for our sustainability achievements”, mentioned by the management team. FENC has been nominated by Forbes as one of the world’s top 500 best employers and is a constituent of the MSCI ESG Leaders Indexes (MSCI ESG Rating - Industrial Conglomerates: A). The Company also won the “Best CSR Report of the Year in 2017” of Taiwan Corporate Sustainability Awards (TCSA) in consecutive years, and was granted “TOP 50 Sustainable Corporates Award”, “Sustainable Water Management Awards”, “Social Inclusion Award, Growth through Innovation Award”, and “Circular Economy Leadership Award” from TCSA.
“With a solid foundation in the industry over six decades, we formed our ‘sustainability blueprint’ in 2017 as the strategy to guide us and lead the industry moving forward,” said the management team.