 2017-05-15 |
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Taiwan's leading tape manufacturer YC Group has announced its financial results for the first quarter of 2017. For the first quarter of 2017, Xinzhou Global (3171) reported consolidated revenue of NT$379 million, a net profit after tax of NT$5 million, and earnings per share (EPS) of NT$0.08. Achem (1715) reported consolidated revenue of NT$2.558 billion, a net loss after tax of NT$17 million, and a loss per share of NT$0.04. YC (4306) reported consolidated revenue of NT$4.166 billion, a net loss after tax of NT$14 million, and a loss per share of NT$0.03.
Xinzhou Global's revenue for the first quarter was NT$379 million, with a net profit of NT$5 million. Revenue declined by 8% compared to the same period last year, and EPS was NT$0.08. The decline in Xinzhou Global's operations was mainly due to the adjustment of customer structures in mainland China and ongoing product certifications for medium and large customers, which led to a decline in revenue during this transitional period. Additionally, rising raw material costs and significant appreciation of the New Taiwan Dollar affected overall profitability. Looking ahead, with the completion of customer certifications in mainland China and a substantial decrease in raw material prices in the second quarter, the company is expected to return to a growth trend.
Achem reported consolidated revenue of NT$2.558 billion for the first quarter, with a net loss after tax of NT$17 million. Revenue declined by 5% compared to the same period last year, and EPS was -NT$0.04. Achem's tape business remained stable, maintaining steady profitability. However, approximately 70% of Wan Zhou Chemical's revenue is from exports, and the strong appreciation of the New Taiwan Dollar by nearly 6% in the first quarter led to foreign exchange losses and decreased revenue. This resulted in a loss for the first quarter of 2017. Looking forward, with stabilized exchange rates, continued growth in export orders, a rebound in the mainland market, and the addition of the Haian plant to operations in 2017, the company expects to see a rebound in overall performance in the second quarter.
YC reported consolidated revenue of NT$4.166 billion for the first quarter, with a net loss after tax of NT$14 million. Revenue increased by 5% compared to the same period last year, and EPS was -NT$0.03. YC's operations in Taiwan's film and tape business continued to be profitable, but the performance of its subsidiary Achem's petrochemical sales, particularly in the acrylic market, was adversely affected by a nearly 6% appreciation of the New Taiwan Dollar in the first quarter. This led to results that fell short of expectations for the first quarter of 2017. Looking ahead, if oil prices remain stable and the anticipated profit boost from the completion of the Linkou Ultra-premium Project in the second half of the year materializes, the company expects significant growth in operations from the second to the fourth quarter. |
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