2017-05-20

Taroko (1432) In recent years, it has transformed from textile fiber to retail development, and has switched to investing in Taroko to develop and operate shopping malls, including Kaohsiung Caoya Road, Taichung New Times and other shopping malls, and will also open Taroko Square (Hsinchu) this year, under the overall revenue proportion of trade department stores to 74.36%, will be relisted “Trade Department Store” stocks from July 1, and it is expected that the shareholders’ meeting next month will change its name to “Taroko US Corporation(TRK Corporation)”.

In recent years, Taroko has actively transformed the development and operation of shopping malls and gradually reduced the proportion of textile industry; As the proportion of revenue of trade department stores continues to grow after the transformation, accounting for 74.36% of all operating income last year, it will be changed to “trade department stores” stocks from July 1. The development and operation team’s Taroko development is still moving towards public offering, and will continue to renovate the Taichung store and open a new Hsinchu store this year, but the opportunity to turn profit throughout the year is small.

In November 2014, Taroko announced its withdrawal from the textile industry after disposing of all the shares of Shandong Taroko Weaving and Dyeing Industry Co., Ltd., a business that was transferred to investment in mainland China; And through its subsidiary Taroko Development, it actively transforms the development and operation of shopping malls and sports and leisure and entertainment business. At present, the shopping malls under development and operation include the “Taroko New Era Shopping Center” in Taichung, which opened in July 2015, the “Taroko Caoya Road Shopping Center” in Kaohsiung, which opened in May 2016 last year, and the Hsinchu “Taroko Square (Hsinchu)”, which is expected to open by the end of this year.

Taroko’s consolidated revenue in the first quarter of this year reached NTD 306 million, with an after-tax loss of NTD 85.09 million and EPS NTD 0.46, and its revenue in April reached NTD 84.93 million, showing a multiplier growth, and the consolidated revenue reached NTD 390 million as of April, an annual increase of 125%. With the growth of the revenue of Taroko Development, the operating income of trade department stores accounted for 35.66% of the total operating income in 2015, and increased to 74.36% in 2016, and the listed industry category was also changed from textile fiber to trading department stores.

Since the opening of the Taroko Caoya Road Shopping Center in May this year, the original target of attracting 12 million people has been expected, and Hsu Yung-Chang, executive vice president of Taroko, stressed that the overall target number of people will increase by 14 million as the month increases.

【Reporting by Business Times reporter Li Liman from Taipei】