 2015-01-14 |
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YC Group's Revenue Performance Last Year: Xinzhou Leads with 9.88% Growth
January 12, 2015, 11:06
Reporter: Wang Yi-Chen, Taipei
In December 2014, YC (4306) reported consolidated revenue of NT$1.64 billion, a 1.5% increase from the previous month, bringing the total revenue for the year to NT$19.99 billion, a 1.89% increase compared to the previous year. Among its subsidiaries, Wan Chao (1715) reported December 2014 consolidated revenue of NT$950 million, a 7.34% increase from the previous month, resulting in a total annual revenue of NT$10.98 billion, which is a 4.44% increase from the previous year. Xinzhou (3171) reported December 2014 consolidated revenue of NT$159 million, a 4.1% decrease from the previous month, with an annual revenue of NT$1.78 billion, marking a 9.88% increase from the previous year.
Wan Chao attributed its December revenue increase to the gradual resumption of production at its Ningbo OPP line, the stabilization of the Chinese OPP market, and the recovery of the export markets in the U.S. and Japan, along with the depreciation of the Taiwan dollar. Despite market fluctuations in China, Wan Chao's annual revenue grew by 4.44% due to stable orders from the Americas and Asia (excluding China) and the delivery of new products. It is expected that Wan Chao's revenue will continue to rise with the upcoming operations at the Yangmei PE plant and the Haian plant in China, as well as the gradual realization of vertical integration benefits.
As for Xinzhou, after integrating its packaging materials business, operational benefits have been evident in Taiwan, and the performance of its packaging business in China has shown gradual growth with monthly profitability. Future business expansion into Central and North China is expected to further drive Xinzhou's revenue growth.
YC noted that ongoing low crude oil prices and the risk of further declines have negatively impacted its film business. Additionally, adjustments in accounting principles under IFRS for its construction business led to a failure to recognize some revenue, resulting in suboptimal overall performance for the year. If crude oil prices continue to fall, YC's operations will face even greater challenges.
Looking ahead, YC expects stable revenue and profit growth for Wan Chao, supported by new products and vertical integration benefits, despite facing a sluggish market in China and intense competition. Xinzhou is anticipated to see continued growth in operational performance due to the expansion of its packaging channels in Taiwan and China. However, YC will face significant pressure on its film business operations due to persistent low oil prices, presenting challenges for future revenue and profit growth. |
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