 2015-07-13 |
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Tape industry leader YC Group (4306) announced a consolidated revenue of NT$1.535 billion for June, up 2.17% month-over-month. However, the consolidated revenue for the first half of the year decreased by 13.38% compared to the same period last year. Its subsidiary Achem (1715) reported a consolidated revenue of NT$850 million for June, down 6.32% from the previous month, with a year-to-date decline of 7.74%. Xinzhuo (3171) achieved a consolidated revenue of NT$154 million for June, up 5.02% from the previous month, though its year-to-date revenue dropped by 3.99%.
YC analysts noted that the rebound in oil prices and stabilization in the film market have led to a recovery in overall operations, with the second quarter performing better than the first. The company expects stable performance moving forward. With Achem's expansion plans at the Haian plant and global market development, as well as Xinzhuo’s focus on packaging material channels and cloud services, YC plans to enhance overall operational efficiency by aggressively recruiting top global talent.
YC stated that Wan Chao, a subsidiary, has been impacted by weak domestic demand in China, leading to slowed sales. Additionally, the relocation of the OPP production line from the Jiading plant to the Ningbo plant has not yet been fully reflected in revenue. The company expects to see a return to normal levels once the equity transfer is completed in July. With recent vertical integration benefits and the new chairman of Wan Chao, Lin You-sheng, actively expanding into global markets and enhancing production capacity and new product shipments, the third quarter of this year and 2016 are expected to show significant growth.
YC also highlighted that Xinzhuo has achieved stable growth in Taiwan, and in China, the company has been actively expanding into East China (Shanghai), Central China (Wuhan), and North China (Tianjin), targeting large manufacturing clients. Since May, Xinzhuo has been receiving and shipping orders, with optical products set to ship in July. This has led to a more than 5% increase in revenue in June, and the "Bao Dashi" stores in China have shown a profit for the month. New Chairman Jiang Wenrong aims to make Xinzhuo the largest packaging materials distributor across the Taiwan Strait. The company plans to not only focus on high-end clients and collaborate with major Chinese e-commerce platforms but also to enhance its cloud business technology and services. The outlook for the second half of the year is expected to be better than the first half. |
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