 2009-05-01 |
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(Times News - Taipei)
Packaging materials giant YC (4306) has released its Q1 financial report, achieving a record high gross margin of 19.57%. However, due to significant price fluctuations in the Chinese market, the profit contribution from its subsidiary, Ningbo Asia Plastic Technology, fell short of expectations. As a result, the net profit after tax was only NT$79 million, a decline of 22.8% compared to Q1 last year, with earnings per share (EPS) at NT$0.49.
In Q1 2009, YC's revenue was NT$775 million, with an operating gross profit of NT$152 million, resulting in a gross margin increase of over 3 percentage points to 19.57%. The net profit after tax was NT$79 million, down from NT$103 million in the same period last year, with after-tax earnings per share of NT$0.49.
YC indicated that the increase in product prices in the first quarter led to the highest gross margin recorded. However, the equity method investment recognition was impacted by extreme price fluctuations in the Chinese market, resulting in a reduced profit contribution of NT$5.43 million from Ningbo Asia Plastic Technology compared to the previous year. The benefits from the investment in Asia Chemical are considered long-term, currently contributing to shareholder equity and helping to enhance net worth.
Looking ahead to Q2, YC stated that order-taking is progressing smoothly, with no disruptions in shipments due to annual leave, and expects steady growth in Q2 revenue. In terms of profitability, not only is the plastic core business expected to continue growing, but this year is also the peak for revenue recognition from Wangzhou Construction projects, indicating strong quarterly profit performance. |
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