 2017-03-31 |
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Taiwan's leading tape manufacturer YC Group has announced its financial results for 2016. Xinzhou Global (3171) reported consolidated revenue of NT$1.694 billion for the year, with a net profit after tax of NT$82 million and earnings per share (EPS) of NT$1.39. Achem (1715) reported consolidated revenue of NT$11.16 billion, with a net loss after tax of NT$114 million and a loss per share of NT$0.28. Yan Zhou (4306) reported consolidated revenue of NT$18.77 billion, with a net loss after tax of NT$100 million and a loss per share of NT$0.22.
For Xinzhou Global, revenue for 2016 was NT$1.694 billion, with a net profit of NT$82 million, reflecting a 2% decline compared to 2015, and an EPS of NT$1.39. The decline in Xinzhou Global's operations was mainly due to weaker economic conditions in Taiwan, which led to underwhelming growth in the Taiwan region. In mainland China, adjustments to the customer structure and the removal of underperforming small and medium-sized clients, combined with a focus on medium and large clients, led to operational declines during this transitional period. Looking forward, as the economic conditions in Taiwan recover and customer structure adjustments in mainland China are completed with ongoing product certifications, the company expects to return to a growth trend.
Achem reported consolidated revenue of NT$11.16 billion for 2016, with a net loss after tax of NT$114 million, reflecting a 7% decline compared to 2015, and an EPS of -NT$0.28. Despite stable performance in its tape business, Achem faced losses due to one-time write-offs related to the disposal of underperforming production lines at the Ningbo plant, increased relocation costs at the Jiading plant, and foreign exchange losses. Looking ahead, after accounting for the adverse impacts of plant relocations and equipment sales, and with continued growth in export orders and a rebound in the mainland market, along with the addition of the Haian plant to operations in 2017, the company expects to see a recovery in overall performance.
YC reported consolidated revenue of NT$18.77 billion for 2016, with a net loss after tax of NT$100 million, reflecting a 7% increase in revenue compared to 2015 and a 35% increase in operating profit, with an EPS of -NT$0.22. YC's film and tape businesses in Taiwan continued to perform steadily, but losses from its subsidiary Achem's petrochemical sales, particularly in the acrylic market, combined with a significant depreciation of the Chinese yuan, led to results that fell short of expectations for 2016. Looking forward, with stable oil prices and the anticipated profit boost from the completion of the Linkou Ultra-premium Project in the second half of the year, the company expects significant growth in overall performance. |
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