 2015-05-18 |
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YC Reports Q1 Loss with EPS of -NT$0.25
Reporter Zhang Hui-wen, Taipei
Taiwan's leading tape manufacturer YC Group (4306) announced its Q1 financial report for 2015, revealing consolidated revenues of NT$4.059 billion and a net loss of NT$128 million, resulting in a loss per share of NT$0.25. In comparison, its subsidiary ACHEM (1715) reported Q1 consolidated revenues of NT$2.463 billion and a net profit of NT$66 million, with an EPS of NT$0.17.
YC's Q1 losses were primarily due to a significant drop in crude oil prices since the second half of 2014, coupled with an oversupply in the Chinese film market leading to a sharp decrease in prices and substantial losses from falling raw material prices. However, with oil prices stabilizing and market demand increasing in Q2, the company expects a rebound in overall operations. Additionally, gains from the sale of land in Linkou are anticipated to help turn losses into profits.
Looking ahead, YC anticipates improvement in overall operations for the year. Besides the rebound in oil prices and expansion of new export customers, the company plans to enhance product applications and sales mix to improve profitability. In the construction sector, revenue from the Xinzhuang Wangzhou MORE project is expected to be recognized in Q4 of this year, while sales of the Linkou Wangzhou Premium project have already surpassed 50%. Revenue recognition for these projects is anticipated to gradually contribute to improved earnings in the second half of next year. |
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