 2015-08-14 |
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(Reporter Zhang Huiwen, Taipei) Taiwan's leading tape manufacturer YC Group (4306) announced that for the first half of 2015, its consolidated revenue was NT$8.68 billion, with a consolidated net profit after tax of NT$224 million, resulting in an earnings per share (EPS) of NT$0.44. Its subsidiary Achem (1715) reported consolidated revenue of NT$5.15 billion and a consolidated net profit after tax of NT$100 million, with an EPS of NT$0.25.
For the second quarter, YC’s consolidated revenue was NT$4.62 billion, an increase of 13.8% from NT$4.06 billion in the first quarter. The consolidated net profit after tax was NT$350 million, a significant improvement from a loss of NT$130 million in the first quarter, with an EPS of NT$0.69. In the first quarter, YC's performance was affected by the decline in international oil prices, which led to lower film prices, and Achem's petrochemical operations also suffered losses due to the drop in oil prices, resulting in disappointing overall profitability for the quarter. However, the second quarter saw improved profitability due to a slight rebound in oil prices and additional non-operating income from the sale of land and buildings in Linkou. This resulted in an overall turnaround for the first half of the year.
Achem's consolidated revenue for the second quarter was NT$2.68 billion, up 8.9% from NT$2.46 billion in the first quarter. However, its consolidated net profit after tax was NT$30 million, a 50% decrease from NT$60 million in the first quarter, with an EPS of NT$0.08. Achem’s profit decline for the first half of the year was primarily due to the drop in oil prices, a cautious customer outlook, and weak domestic demand in China, which led to low order visibility. Additionally, Achem’s petrochemical operations and Ningbo plant continued to incur losses, leading to the recognition of some losses.
Looking ahead, international oil prices are expected to remain low, and with Achem’s petrochemical operations still in a loss-making state, both YC and Achem will continue to be affected. The oversupply in the Chinese film market also puts pressure on YC's operations. However, with the completion and revenue recognition of the 'Wangzhou MORE' project in Xinzhuang in the second half of the year, it is anticipated that revenue and profitability will stabilize. Achem is facing challenges due to the sluggish Chinese economy, cautious customer orders, and the impact of the Chinese stock market crash, leading to a conservative approach to accounts and shipments. The company expects significant challenges for its overall operations in the second half of the year. |
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