 2014-05-13 |
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(Economic Daily News, Reporter Pan Yi-Ching, Taipei)
Since this year, Xinzhou Global (3171), a subsidiary of YC Group, has been integrated into YC Group's packaging division, resulting in a dramatic increase in revenue. In April 2014, Xinzhou Global reported revenue of NT$149 million, marking a year-on-year growth of 208%. Cumulatively, revenue for the first four months of the year reached NT$560 million, up 218% from the previous year, surpassing Xinzhou's total revenue of NT$537 million for the entire previous year.
Expectations are high that Xinzhou’s overall revenue will continue to grow exponentially this year. Additionally, since the packaging division of YC Group has historically shown stable profitability, it is anticipated that Xinzhou’s earnings per share will also rise. Xinzhou's stock price closed at NT$21.6 yesterday, up by NT$0.1.
YC Group noted that both YC and Xinzhou have packaging divisions with similar products but different customer bases: YC’s packaging customers are primarily based in Taiwan, while Xinzhou has channels in mainland China. The group aims to expand the scale of its packaging operations. As a result, in November of last year, the board decided that Xinzhou would acquire YC’s packaging division.
However, regulatory authorities have determined that the contribution of YC’s packaging division does not need to be retroactively applied to the previous year, and should only be included from January 1 of this year. In other words, Xinzhou's revenue for this year is expected to show a multiple increase each month. |
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