 2015-05-18 |
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YC Group Subsidiary New Chao Reports Increased Profits
Economic Daily News, Reporter Pan Yijing / 15th
Taiwan's leading tape manufacturer YC Group (4306) announced today that its consolidated net loss for Q1 of this year was NT$1.28 billion, with a net loss of NT$0.25 per share, marking a second consecutive quarter of losses. However, the performance of its subsidiaries was notable, with ACHEM (1715) reporting a consolidated net profit of NT$0.66 billion for Q1, with earnings per share (EPS) of NT$0.17. New Chao, another subsidiary, delivered a strong performance with a consolidated net profit of NT$0.22 billion, a 37.5% year-on-year increase, and EPS of NT$0.38.
ACHEM's revenue was affected by the drop in crude oil prices, which led to a reduction in revenue scale. Additionally, the company recognized investment losses from the OPP Ningbo Plant and Wanzhou Petrochemical, and last year's Q1 results included land sale gains in Linkou. As a result, ACHEM's consolidated net profit for Q1 was NT$0.66 billion, down 5.7% quarter-on-quarter and 44.5% year-on-year, with EPS of only NT$0.17.
New Chao, specializing in packaging materials, was the only subsidiary of the group to show growth. Its Q1 consolidated net profit was NT$0.22 billion, a 37.5% increase from NT$0.16 billion in the same period last year, and a 1.4-fold increase quarter-on-quarter, resulting in EPS of NT$0.38.
New Chao reported significant profit growth for Q1 due to a decrease in packaging material costs, a dense network of operations in Taiwan, and improving operations in China, which led to a substantial increase in gross margin. The net profit grew by 40% compared to last year, reflecting the company’s operational synergies.
Regarding the parent company YC, the Q1 net loss of NT$1.28 billion was primarily due to the sharp drop in crude oil prices since the second half of last year, combined with an oversupply in the Chinese film market, which significantly decreased prices and led to substantial losses from falling raw material costs. |
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