 2014-07-10 |
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Reporter: Wang Yixin, Times Report, Taipei
Taiwan's leading tape manufacturer, YC (4306), reported a consolidated revenue of NT$1.734 billion for June, a slight decline of 6.62% compared to the same period last year. For the first half of 2014, cumulative revenue reached NT$10.017 billion, marking a 3.88% increase year-over-year.
Among the group’s subsidiaries, ACHEM (1715) reported a consolidated revenue of NT$927 million in June, up by 3.02% from the previous year. The cumulative revenue for the first half of the year was NT$5.58 billion, reflecting an 8.74% increase compared to the same period last year. Meanwhile, Xinzhou Global (3171) achieved a consolidated revenue of NT$153 million in June, an impressive 219% increase year-over-year. The cumulative revenue for the first half of the year was NT$866 million.
Although ACHEM’s June revenue was impacted by a mid-year inventory check, which resulted in 3 to 4 fewer shipping days, the second-quarter revenue still grew by 6.9% compared to the first quarter. The year-to-date performance showed stable growth in export tape orders and increased shipments of automotive and PVC tapes, indicating that the benefits of new production capacities are continuing to materialize.
In terms of specialized products, the new distillation tower for EBR products under 20 nanometers has been completed, with expansion starting in April. Performance improvements are becoming evident, and significant growth is expected in the second half of the year once major customer certifications are completed and shipments begin. Additionally, new high-margin products such as water-based PVC tapes for automotive use and eco-friendly PE tapes are in the trial production and sample testing stage. It is anticipated that ACHEM’s performance in the third quarter will see a return to high levels with increased shipments of PVC tapes (automotive and protective types) and the launch of new products.
For Xinzhou Global, operational efficiency in Taiwan is becoming apparent following the integration of its packaging materials business. The "Pack Master" business in China is also showing growth and has started to be profitable, suggesting that Xinzhou Global’s future operations will continue to grow.
Regarding ACHEM Petrochemical's acrylic acid plant, it officially began trial production in June. Full-scale production is expected to enhance the benefits of vertical integration within the industry.
Looking ahead to the third quarter of this year, YC anticipates that the expansion of ACHEM’s new production capacity and Xinzhou Global’s continued expansion in Taiwan and China will lead to improved operational performance. With ACHEM Petrochemical's production capacity fully operational, YC expects to benefit from the growth of these three subsidiaries, resulting in stable growth in both revenue and profitability. |
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