 2015-02-11 |
|
|
YC Group Revenue Slightly Declines, Expected to Gradually Recover This Year
February 10, 2015, 16:53
Reporter: Chang Hui-Wen, Taipei
YC (4306) announced its January consolidated revenue of NT$15.58 billion, down 4.7% from the previous month and 1.8% from the same period last year. Its subsidiary, ACHEM (1715), posted January consolidated revenue of NT$9.35 billion, down 1.65% from the previous month but up 0.5% year-on-year. Another subsidiary, Xinzhou Global (3171), reported January consolidated revenue of NT$1.39 billion, down 6.8% year-on-year.
ACHEM’s January revenue recovery is attributed to the gradual resumption of OPP production at its Ningbo plant, stabilization in the Chinese OPP market, and steady export orders to the U.S. and Japan. With the anticipated operations of the Yangmei PE plant and the Haian plant in China later this year, combined with vertical integration benefits, the company expects its overall operations to show a steady growth trend.
Xinzhou Global, following the integration of its packaging materials business, has seen improved efficiency in Taiwan. Its Baodashi operations in China are showing steady growth and have started to turn a monthly profit. Future expansion into central and northern China is expected to further drive growth for Xinzhou.
YC faces significant pressure this year as the sustained low oil prices have negatively impacted the performance of its film business. If oil prices continue to fall, this will exacerbate the company's operational challenges, making revenue and profit growth more difficult. |
|
