 2014-10-09 |
|
|
(Taipei Central News Agency) The Taiwanese tape leader, YC Group, reported a consolidated revenue of NT$1.718 billion for September, marking a slight increase of 4.85% compared to the same period last year. For the first three quarters of this year, consolidated revenue reached NT$15.12 billion, a 3.79% increase year-over-year.
YC Group’s subsidiary, ACHEM, reported a consolidated revenue of NT$872 million for September, a 2.9% decrease compared to the same period last year. For the first three quarters of this year, revenue amounted to NT$8.27 billion, reflecting a 6.23% increase year-over-year.
ACHEM indicated that during a weak period in the Chinese OPP (Oriented Polypropylene) market in Q3, it accelerated its vertical integration of OPP production by gradually relocating three OPP production lines from Shanghai to the Ningbo plant. The relocation is expected to be completed by the end of the year.
ACHEM assessed that the revenue decline in September was due to this relocation, which affected both production and sales volumes. Additionally, some overseas customers adjusted their inventories, delaying their orders. It is expected that these issues will normalize by mid-October.
ACHEM reported that revenue for the first three quarters of this year increased by 6.23% compared to the same period last year, primarily due to stable order growth in the Americas and Asia (excluding China), and increased shipments of automotive and PVC (polyvinyl chloride) tapes. This indicates that the new production capacities are starting to show benefits.
ACHEM anticipates that Q4 performance will improve with increased shipments of automotive and protective PVC tapes, the launch of new PE (polyethylene) products, and steady growth in specialized businesses. Overall operations are expected to gradually return to high levels.
Additionally, YC Group’s subsidiary, Xinzhou Global, reported a consolidated revenue of NT$151 million for September, a 1.99% increase from the previous month. For the first three quarters, revenue totaled NT$1.305 billion.
Xinzhou Global noted that after integrating its packaging material business, operational efficiency in Taiwan has improved. The performance of its mainland China business, Bao Dashi, is gradually growing and has started showing monthly profitability, indicating promising future growth for Xinzhou.
YC Group’s investment in ACHEM Petrochemical's acrylic acid is still in the trial production stage. Once mass production begins, it is expected to contribute to the vertical integration benefits of the industry.
Looking ahead to Q4, YC Group’s overall performance is expected to improve, driven by ACHEM’s new production capacity expansion, new product shipments, and Xinzhou Global’s continued expansion of packaging material channels in Taiwan and mainland China. Operational performance is anticipated to increase accordingly. |
|
