Kian Shen, Takebe Tekkosho to set up truck-frame plant in China

Taipei, June 8, 2004 (CENS)--Taiwan's Kian Shen Corp., a leading maker of automobile platforms and sheet-metal auto parts, has projected a revenue growth of over 20% this year and will cooperate with Takebe Tekkosho Co., Ltd. Of Japan to set up a heavy-duty truck frame plant in mainland China.

At a recent shareholders' meeting, Kian Shen decided to distribute dividend of NT$1.5 (US$0.04 at US$1: NT$33.5) for each share, including NT$1 in stock and NT$0.5 in cash, for last year's operations.

As the domestic automobile market is recovering steadily, especially in the commercial vehicle and heavy-duty truck segments, Kian Shen is very optimistic about this year's business outlook. In the first quarter, Kian Shen reported pretax earnings of about NT$40 million (US$1.19 million), up approximately 50% from the same period of last year and translating into earnings per share (EPS) of NT$0.79 (US$0.02).

As Kian Shen's two reinvested subsidiaries in mainland China, Fu Shiang (Fuzhou) Motor Industry Co., Ltd. In Fujian Province and NTN-Yulon Drivetrain Co., Ltd. In Guangdong Province, have been enjoying increasing profits, many institutional investors estimated that Kian Shen stands a chance of challenging the EPS goal of NT$3.5 (US$0.1) this year.

As part of a China business deployment project conducted by Hino of Japan, which plans to set up a heavy-duty truck plant with Chunlan Motor Group in Jiangsu Province, Kian Shen was invited by its Japanese technical partner Takebe Tekkosho to jointly set up the scheduled truck frame facility.

According to Kian Shen, it will take charge of the operation of the joint venture with Takebe Tekkosho and the venture is expected to further strengthen the Taiwan company's business development in China.