RAC Electric Vehicles Inc (華德動能), which makes electric buses and trucks, yesterday said that its domestic shipments of electric buses would more than double next year on the back of a government policy to increase the adoption of electric vehicles.
The government aims to raise the nation’s number of electric buses to 10,000 units over the next 10 years, starting with 430 units next year, RAC said.
RAC aims to acquire one-fourth of the market next year by selling about 108 buses, up from 53 buses this year, chairman and chief executive Alex Tsai (蔡易忠) told investors yesterday.
This year, RAC holds 90 percent of the market, Tsai said, adding that the declining market share expected next year is due to capacity constraints.
RAC can build between 80 and 90 buses a year, and plans to expand capacity in the second or third quarter next year to produce between 400 and 500 units per year, Tsai said.
In the first half of this year, RAC sold 31 buses and posted revenue of NT$228.05 million (US$7.28 million), according to a filing with the Taiwan Stock Exchange.
RAC swung into the black in the first six months of this year with profit of NT$13.02 million, or NT$0.65 per share, the filing said.
Tsai said the break-even point for the company is selling 60 buses a year.
Last year, RAC reported revenue of NT$57.83 million against losses of NT$60.53 million, or NT$4.73 per share, the filing said.
There are 35 large electric buses and 45 medium-sized electric buses in use in Taiwan, with RAC accounting for 58 percent of the market, Tsai said, adding that nine commuter buses for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s top contract chipmaker, in the Hsinchu Science Park (新竹科學園區) were manufactured by the firm.
The company also plans to sell buses overseas soon, Tsai said.
RAC sells large buses for about NT$5.2 million each and medium-sized coaches for NT$3.15 million, it said, adding that 60 percent of the units are manufactured locally.
Recharging for between five and seven hours, large buses can cover up to 350km, while medium-sized buses average about 280km, Tsai said.
The company is set to debut on the Emerging Stock Market on Tuesday, with an initial public offering price of NT$60.
The Emerging Stock Market is a preparatory board for the nation’s two main bourses: the Taiwan Stock Exchange and the GRETAI Securities Market. Trading on the smaller board is restricted to securities firms, by means of negotiation, making initial public offerings not open to public subscription.
RAC said it plans to apply to shift its listing to the main board in the second quarter of 2016.
Tsai owns 28.9 percent of the company’s shares, while autoparts maker Mobiletron Electronics Co (車王電子) owns 14.9 percent, the company said.
SPECULATION: The central bank cut the loan-to-value ratio for mortgages on second homes by 10 percent and denied grace periods to prevent a real-estate bubble The central bank’s board members in September agreed to tighten lending terms to induce a soft landing in the housing market, although some raised doubts that they would achieve the intended effect, the meeting’s minutes released yesterday showed. The central bank on Sept. 18 introduced harsher loan restrictions for mortgages across Taiwan in the hope of curbing housing speculation and hoarding that could create a bubble and threaten the financial system’s stability. Toward the aim, it cut the loan-to-value ratio by 10 percent for second and subsequent home mortgages and denied grace periods for first mortgages if applicants already owned other residential
EXPORT CONTROLS: US lawmakers have grown more concerned that the US Department of Commerce might not be aggressively enforcing its chip restrictions The US on Friday said it imposed a US$500,000 penalty on New York-based GlobalFoundries Inc, the world’s third-largest contract chipmaker, for shipping chips without authorization to an affiliate of blacklisted Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC, 中芯). The US Department of Commerce in a statement said GlobalFoundries sent 74 shipments worth US$17.1 million to SJ Semiconductor Corp (盛合晶微半導體), an affiliate of SMIC, without seeking a license. Both SMIC and SJ Semiconductor were added to the department’s trade restriction Entity List in 2020 over SMIC’s alleged ties to the Chinese military-industrial complex. SMIC has denied wrongdoing. Exports to firms on the list
ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip assembly and testing manufacturing (ATM) service provider, expects to double its leading-edge advanced technology services revenue next year to more than US$1 billion, benefiting from strong demand for artificial intelligence (AI) chips, a company executive said on Thursday. That would be the second year that ASE has doubled its advanced chip packaging and testing technology revenue, following an estimate of more than US$500 million for this year. ASE is one of the major beneficiaries from the AI boom as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is outsourcing production of advanced chip
TECHNOLOGY EXIT: The selling of Apple stock might be related to the death of Berkshire vice chairman Charlie Munger last year, an analyst said Billionaire Warren Buffett is now sitting on more than US$325 billion in cash after continuing to unload billions of US dollars worth of Apple Inc and Bank of America Corp shares this year and continuing to collect a steady stream of profits from all of Berkshire Hathaway Inc’s assorted businesses without finding any major acquisitions. Berkshire on Saturday said it sold off about 100 million more Apple shares in the third quarter after halving its massive investment in the iPhone maker the previous quarter. The remaining stake of about 300 million shares was valued at US$69.9 billion at the end of
RSS