 2015-06-15 |
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By Zhou Yilang, Taipei
YC Group's subsidiary ACHEM will hold its shareholders' meeting tomorrow. According to reports, group President Li Zhixian will step down from his positions as Chairman of ACHEM and Newzhou Global, and will explain the future operational plans for YC Group on the 17th.
YC Group stated that, starting from the first quarter of this year, crude oil prices have rebounded. With new export customers being explored and product applications and sales combinations being improved to enhance profitability, the construction sector is expected to see revenue recognition in the fourth quarter with the completion of the New Taipei Wang Chou MORE project. Additionally, sales of Lin Kou Wang Chou's premium products are performing well, surpassing 50%, and revenue recognition is anticipated in the latter half of next year. These factors are expected to gradually improve future revenue and profitability.
YC's Performance Expected to Increase
Li Zhixian recently stated that YC will move towards becoming a holding company, with the manufacturing and sales of tape being handed over to professional managers. Aside from managing the construction investment in Wang Chou Construction himself, his elder son Li Shuwei will oversee it, while his younger son Li Qizheng will serve as Vice President at Wan Chou Chemical and ACHEM, learning about the production business. ACHEM and Newzhou Global will be managed by professional managers.
Li Zhixian, who began his career in business, acquired the leading tape manufacturer AHH in 2008. With the company now stable, it is interpreted that he has decided to hand over authority to professional managers, allowing him to focus on expanding business internationally. He plans to take charge of the global operations of the second-largest tape production group, founded by Yi Fuen (former Director of the Air Force Intelligence Department), aiming to make it the largest tape group in the world.
Regarding this year’s operational outlook, YC Group stated that as the benefits of vertical integration become more apparent and export orders remain stable, coupled with the certification and normal shipment of major international customers at the Ningbo plant, overall operations are expected to grow compared to the first quarter. In the second half of the year, ACHEM's performance is expected to improve over the first half, driven by the gradual ramp-up of production capacity at the Haian plant, increased shipments of new products such as PE (polyethylene), and the gradual realization of performance gains from new specialized products. |
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