Business Digest
ASM PACIFIC PLANS TO REDUCE CAPITAL SPENDING
Semiconductor assembly equipment maker ASM Pacific Technology plans to reduce its capital expenditure after recording a 15.2 per cent drop in net profit last year to $850.48 million.
The company has budgeted $200 million as capital expenditure for this year, a 25 per cent drop from last year.
Turnover fell 7.6 per cent to $3.53 billion.
Earnings per share were $2.20 for last year, compared with the $2.60 posted in 2004.
The company recommended a final dividend of $1 and a special dividend of 30 cents per share. Andy Cheng
SHENZHEN VENTURE BOOSTS LUEN THAI PRESENCE
Luen Thai Holdings has set up a joint venture with Shenzhen Guangthai International, the Hong Kong-listed garment maker said yesterday.
The joint venture will be based in Shenzhen with offices in other cities, including Guangzhou and Shanghai, and will start operations later this quarter. The joint venture would expand the company's range of apparel products and boost its presence in the denim apparel category, said Luen Thai. Toh Han Shih
AMERICAN EXPRESS AND CITIBANK CUT LOAN RATES
Two more banks have joined the mortgage war.
American Express Bank cut its home loan rate by 0.4 percentage point to 3.05 per cent below the prime lending rate with an effective rate of 4.95 per cent for the first year and prime rate minus 2.8 per cent from the second year. The preferential rate applies only to select clients.
Citibank cut its mortgage rate to prime minus 2.8 per cent with an effective rate of 5.2 per cent from prime minus 2.45 per cent. Maria Chan
CNOOC PARENT ENTERS PRODUCTION-SHARING DEAL
CNOOC said yesterday parent company China National Offshore Oil Corp had signed an 11th production-sharing contract with Devon Energy Corp for block 11/34 in the South Yellow Sea.
Under the deal Devon will pay for all seismic surveys and wildcat drilling during the exploration period while CNOOC will have the right to participate in up to 51 per cent of any commercial discovery. Kandy Wong
