 2015-01-14 |
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ACHEM Performance Rebounds with Stabilizing Chinese OPP Market and Recovery in U.S. and Japanese Markets
January 12, 2015, 14:23
Reporter: Peng Xuan-Yi
ACHEM(1715) has seen a recovery in its performance due to the gradual resumption of production at its Ningbo OPP line. The stabilization of the Chinese OPP market, combined with a rebound in export markets in the U.S. and Japan, and the depreciation of the Taiwan dollar, led to a 7.34% month-over-month increase in consolidated revenue for December 2014, bringing the annual revenue to NT$10.98 billion, a 4.44% increase from the previous year.
ACHEM indicated that in 2014, stable order growth from the Americas and Asia (excluding China) and the successive shipment of new products helped maintain a positive growth trend. The operations are expected to continue progressing steadily with the upcoming addition of the Yangmei PE plant and the Haian plant in China.
However, YC has faced challenges due to severe declines in crude oil prices, which have impacted its film business negatively. Additionally, adjustments in accounting principles under IFRS for its construction business led to revenue not being recognized, which constrained its 2014 performance. With the ongoing decline in oil prices, the operational challenges for this year remain significant. |
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