H1 pretax profits of listed firms on TWSE, OTC rise over 30%

Taipei, Aug. 23 (CNA) The aggregate pretax profit posted by companies on the Taiwan Stock Exchange (TWSE) and over-the-counter (OTC) market in the first half of this year soared over 30 percent compared with 2023, according to the Financial Supervisory Commission (FSC).

Data compiled by the FSC, the top financial regulator in Taiwan, said companies listed on the local main board and the OTC market posted NT$1.93 trillion (US$60.31 billion) in profit before tax for the January-June period, up 31.2 percent from a year earlier and the third-highest total in one decade.

The first half aggregate pretax profit only trailed NT$2.48 trillion recorded in the same period of 2022 and about NT$2 trillion seen in the first half of 2021, the data indicated.

In terms of consolidated sales, the data showed that companies listed on the TWSE and OTC registered a 9.5 percent year-on-year increase in the first half of this year, with a value of NT$18.96 trillion.

In the first half of this year, companies listed on the local main board posted NT$1.775 trillion in pretax profit, up 32.27 percent from a year earlier, while firms listed on the OTC market registered a 19.89 percent year-on-year increase in pretax profit with value at NT$152.5 billion.

Commenting on the profitability among listed companies on the main board, Shang Kuang-chi (尚光琪), chief secretary of the FSC's Securities and Futures Bureau, said the local semiconductor industry got a boost from global solid demand for artificial intelligence (AI) devices, while a rebound in the smartphone market also lent support to export-oriented manufacturers.

Shang added that the local computing industry saw its profitability improving in the wake of robust demand for AI servers.

In addition, a tight supply of cargo shipping space worldwide pushed up freight rates and added momentum to the local transportation industry.

The companies listed on the OTC market, Shang said, benefited from an increase in electronics component shipments and foreign exchange gains, adding that the cultural creative industry saw revenues increase on strong demand for gaming apps and the construction industry reported higher sales from deliveries of homes.