 2015-06-29 |
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Tape giant YC (4306-TW) held its shareholders' meeting today (26th) and approved resolutions for a dividend payout of NT$0.25 per share and a 10% cash capital reduction. Looking ahead to the second half of the year, YC spokesperson Lin Jianyu stated that oil prices have bottomed out, and with the group's vertical integration starting to show results, the outlook and profitability for the second half of the year are optimistic as long as oil prices remain stable.
YC has recently completed its vertical integration within the group, and the industry's economic outlook is gradually improving. Regarding future expansion plans, Lin Jianyu indicated that the focus will be on expanding the capacity of its subsidiary, ACHEM.
According to ACHEM’s plans, the production line for OPP products has been relocated from the Jiading plant to the Ningbo plant, and the Zhangbin plant’s capacity is being expanded. Significant results are expected in the third quarter of this year. The Haian plant for PVC products will gradually start mass production, with profits anticipated to grow in the fourth quarter of this year or the first quarter of next year. Additionally, increased shipments from the Yangmei plant for PE products are expected to boost performance in the fourth quarter.
Currently, ACHEM's OPP capacity is the largest globally, and its PVC capacity ranks second worldwide. The company aims to achieve a global market share of over 10% for OPP products and over 20% for PVC products in the future.
As the benefits of ACHEM's vertical integration become increasingly evident, profitability in the second half of the year is expected to grow, and overall operations are projected to surpass last year's performance, thereby benefiting the parent company, YC.
YC also announced today the sale of an office building and parking spaces in the Neihu District by its subsidiary, Wangzhou Construction. The sale is expected to generate a profit of NT$140 million and will be recognized upon completion of the sale to non-related parties. |
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