 2015-03-12 |
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Orders Recovering, New Production Boosting ACHEM’s Operations in March
March 11, 2015
By Peng Hsuan-Yi
Due to the impact of the Lunar New Year holiday, YC Group (4306) saw a 27.45% year-on-year decrease in consolidated revenue for February. Its subsidiaries, ACHEM (1715) and Xinzhou Global (3171), also experienced revenue declines of 17.4% and 3.8%, respectively. ACHEM stated that with the Chinese market stabilizing and export orders from the U.S. and Japan steadily increasing, March revenues are expected to recover to normal levels. This year, with the addition of the Yangmei PE plant and the Haian plant in China to operations, the benefits of vertical integration are gradually becoming evident, driving improved performance.
However, YC Group faces challenges as the continued low crude oil prices have led to a simultaneous decline in the performance of its film business. Additionally, the oversupply in China’s film market persists, adding pressure to this year's operations. The group's operational momentum will primarily rely on contributions from investments.
YC Group noted that following the integration of Xinzhou Global’s packaging business, its operational efficiency in Taiwan has significantly improved. After restructuring, the performance of the packaging business in China has reached break-even on a monthly basis, and plans are underway to expand business operations in central and northern China, further boosting revenue potential. |
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