Momo.com Inc (富邦媒體) opened its southern distribution center in Tainan’s Sinshih District (新市) yesterday, as the e-commerce operator continues to strengthen its logistics infrastructure, aiming to further differentiate its service not only from online competition, but also brick-and-mortar retailers.
Construction of the southern distribution center on a site covering 24,500 ping (80,972.5m2) started in 2021.
The company plans to build six floors above ground and one below, investing about NT$3 billion (US$92.3 million) in the center, Momo.com said in a statement.
Photo courtesy of Momo.com Inc
The new distribution center has the capacity to process 160,000 packages per day and could store as many as 3.4 million packages, the company said, expecting it to help shorten the lead time for packages delivered in Yunlin County, Chiayi County, Tainan, Kaohsiung and Pingtung County.
Apart from ensuring quality, speedy service for consumers in southern Taiwan, the new distribution center is expected to help achieve fair distribution of delivery tasks between northern and southern Taiwan and reduce distribution costs, while lowering energy consumption for transportation and cutting carbon emissions in the region, the company said.
In addition, the new center is expected to assist the development of local industries, as well as create 500 job opportunities in logistics, data analysis, research and development, and warehouse system in the region, it said.
Momo.com, which operates three platforms — online shopping, TV home shopping and catalog shopping — enjoys a steady share of 16.5 percent of Taiwan’s online retailing market, according to a Fubon Securities Investment Services Co (富邦投顧) estimate.
“With the launch of the southern distribution center, Momo’s warehouse area is estimated to have increased by 15 percent compared with the same period last year. The company’s market share is expected to increase through better logistics services, which will also strengthen its competitiveness,” Fubon Securities said in a statement on Nov. 5.
Momo.com early this month reported its third-quarter revenue hit a record NT$25.55 billion, up 1.9 percent year-on-year, thanks to its greater logistics efficiency and a wider range of product offerings compared with local peers.
However, lower consumer purchases, rising market competition and higher operating expenses earmarked for new businesses affected the company’s bottom-line, with net profit falling 11.2 percent to NT$666 million and earnings per share (EPS) dropping 11.1 percent to NT$2.64, lower than consensus estimates of NT$788 million in net profit and NT$3.27 for EPS, according to data compiled by Bloomberg.
Gross margin decreased 0.34 percentage points to 8.92 percent and operating margin fell 0.42 percentage points to 3.22 percent from a year earlier, company data showed.
Overall, Momo.com’s cumulative revenue in the first three quarters of this year hit a record NT$76.41 billion, up 3.5 percent annually, but net profit over the period fell 5.6 percent to NT$2.34 billion and EPS declined to NT$9.29 from NT$11.04, data showed.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
‘LASER-FOCUSED’: Trump pledged tariffs on specific sectors, including semiconductors, pharmaceuticals, steel, copper and aluminum, and perhaps even cars US President Donald Trump said he wants to enact across-the-board tariffs that are “much bigger” than 2.5 percent, the latest in a string of signals that he is preparing widespread levies to reshape US supply chains. “I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump told reporters on Monday night. Asked about a report that incoming US Secretary of the Treasury Scott Bessent favored starting with a global rate of 2.5 percent, Trump said he did not think Bessent supported that and would not
RSS