 2014-09-10 |
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Reporter: Wang Yixin, Taipei
In August, YC (4306) reported consolidated revenue of NT$1.684 billion, a modest increase of 4.45% compared to the same period last year. For the first eight months of the year, consolidated revenue totaled NT$13.402 billion, up 3.66% year-over-year.
The group's subsidiary, ACHEM (1715), achieved consolidated revenue of NT$912 million in August, a 2.26% increase from the previous year. Year-to-date revenue for ACHEM reached NT$7.402 billion, showing a growth of 7.43% compared to the same period last year. Xinzhou Global (3171) reported consolidated revenue of NT$148 million for August, up 4.92% from July, with a cumulative revenue of NT$1.155 billion for the first eight months of the year.
ACHEM has accelerated its vertical integration in the OPP (Oriented Polypropylene) market in China, where market conditions have been poor. The company is gradually relocating equipment from its Shanghai plant to the Ningbo plant, with the relocation expected to be completed by the end of the year. While production and shipments in July and August are anticipated to hit a low point, revenue is expected to gradually recover starting in September. Despite this, revenue for the first eight months of the year has still grown by 7.43% compared to last year, driven by stable growth in export tape orders, increased shipments of automotive and PVC tapes, and the evident benefits of new production capacities. ACHEM’s performance in the third quarter is expected to improve, with increased shipments of PVC tapes (automotive and protective types), new PE (Polyethylene) products coming online, and steady growth in specialized business sectors.
After integrating its packaging material business, Xinzhou Global's operational efficiency in Taiwan has begun to show, and the "Pack Master" business in China has continued to grow and has started to show profits. It is expected that Xinzhou Global will achieve stable growth in the future.
The group's investment in ACHEM Petrochemical’s acrylic acid is still in trial production. Once full production begins, it is expected to enhance the overall operational efficiency through vertical integration within the industry.
Looking ahead to the second half of the year, with the benefits of new production capacity at ACHEM, ongoing expansion of packaging material channels by Xinzhou Global in Taiwan and China, and the increasing capacity of ACHEM Petrochemical, YC will benefit from the growth of these three subsidiaries. Revenue and profits are expected to continue to grow steadily. |
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