 2014-08-14 |
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Reporter Wang Yixin, Taipei
YC (4306) reported consolidated revenue of NT$10.02 billion for the first half of 2014, with a net profit of NT$64 million and earnings per share (EPS) of NT$0.14. Its subsidiary ACHEM (1715) posted consolidated revenue of NT$5.58 billion for the same period, with a net profit of NT$280 million and an EPS of NT$0.72. Xinzhou Global (3171) achieved consolidated revenue of NT$866 million, a net profit of NT$34 million, and an EPS of NT$0.70.
YC’s profitability declined in the first half of the year, primarily due to an oversupply in the Chinese film market, which led to a significant drop in prices. Additionally, changes in IFRS accounting principles, requiring revenue recognition only after project completion, contributed to the decline. While sales for the New Taipei’s Wangzhou MORE and Linkou’s Wangzhou Premium products are performing well, revenue and profit from these products are expected to be recognized only in the second half of next year.
Furthermore, YC plans to actively develop new products, explore new export markets, and expand product applications and sales combinations to improve profit structures and enhance production and sales efforts. Looking ahead to the second half of the year, the company expects that improvements in profit structure and stabilization of the Chinese market will lead to gradual improvements in revenue and profitability.
For the second quarter, ACHEM reported consolidated revenue of NT$2.875 billion, up 6.32% from NT$2.704 billion in the first quarter. Net profit for the quarter was NT$166 million, a 40% increase from NT$115 million in the previous quarter, with a quarterly EPS of NT$0.42. This improvement was mainly due to increased OPP (Oriented Polypropylene) export orders and higher shipments of PVC (Polyvinyl Chloride) tapes (automotive and protective types), which led to higher gross profit and a 9% increase in operating income compared to the first quarter. Additionally, the quarter included income from Linkou land.
In the specialized sector, stable growth is expected once major customer certifications are completed. The third quarter is anticipated to show overall growth in ACHEM’s performance, driven by increased shipments of PVC tapes, specialized products, new production capacities, and the launch of new PE (Polyethylene) products.
Xinzhou Global also saw significant growth in revenue and profitability for the first half of the year. Last year’s profits were mainly from property sales, while this year’s profits came from packaging material channels. This indicates that the integration benefits of expanding business locations and channels after acquiring YC’s packaging business are becoming evident. The "Pack Master" business in China is gradually increasing revenue and profitability, and future growth is expected to continue.
Looking to the second half of the year, YC expects to benefit from the expanded capacities of ACHEM, continued growth in Xinzhou Global’s packaging material channels in Taiwan and China, and increased capacity at ACHEM Petrochemical. The company anticipates that growth in these three subsidiaries will drive steady increases in revenue and profitability. |
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