Arima Communications Corp. Invested for Transformation

 

Arima Communications Corp. (Arima) declared that it will invest in four subsidiaries specializing in light engines, IoT, thin film monomer, and lasers as well as progress with its smartphone business. President Chou, Chao-Cheng estimated that the subsidiaries in which the company is investing will contribute to the parent company and breakeven in the second half of 2018. In addition, Arima expects to make a profit in Q2 due to its more diverse product portfolio.

 

In terms of smartphone OEM, companies have the quantity of reduced medium-priced and low-price production lines, laid off employees, or reduced the number of models developed to survive. Having made a loss for two consecutive years, Arima is expected to make a profit in Q2. With intense competition in the second half of 2017, it is hard to maintain profit margins; however, Arima invested in several subsidiaries last year in the hope of transforming the company through the launch of new products.

 

Vice President Hung, Yi-Feng indicated that Arima has invested in Colorative Co., Ltd. (light engines), the Arima Intelli Corporation (IoT), the Arima Acoustic Engineering Corporation (thin film monomer), and Arima Lasers Corp. (laser). Colorative Co., Ltd. specializes in ultra-short focus projectors and automobile head monitors, the Arima Intelli Corporation specializes in industrial control, core technology of sweeping robots, security cameras, and LTE modules, and the Arima Acoustic Engineering Corporation specializes in highly cost-effective thin film speakers and high-end headphones. Not including Arima Lasers Corp., Arima currently holds more than 70% of the other three companies’ shares. The parent company will benefit from the revenue and profit of the companies in which it has invested.

 

With regards to the existing smartphone business, Vice President Hung, Yi-Feng indicated that Arima will develop niche-based products, such as encrypted phones, while maintaining regular operations. Arima’s factory in Indonesia which was established for Asus’s purchase orders has obtained purchase orders for LTE models from LG Electronics, the ZTE Corporation, and BlackBerry. In addition, Arima has set up a procurement center in Shenzhen for the large-scale use of China’s component suppliers, leading to a reduction in the costs of materials by 15-20%. Vice President Hung, Yi-Feng demonstrated with confidence that Arima has surpassed Huaqin Telecom Technology Co., Ltd., the leading smartphone ODM in China, in terms of costs, development of technology and quality. (Source: Commercial Times)