China General Plastics Corporation · TWSE:1305
China General Plastics — Investor Conference 2022
24 slides from China General Plastics's conference presentation, Mar 22, 2022
Slide 1: China General Plastics Corp. Investor Conference
華夏海灣塑膠股份有限公司 China General Plastics Corp. Investor Conference 2022/3/22 Time Itinerary Reporter 14:00〜〜 VIP Registration 14:30 胡吉宏 執行副總 2021 Review & Q1 2022 Outlook Otto Hu, 14:30〜〜 Executive VP 15:00 郭建洲 經理 2021 Finance Information C C Kuo, Manager 林漢福 副董事長 15:00〜〜 Wrap up / Q & A H F Lin, 15:30 V
Slide 2: 2021 Review & Q1 2022 Outlook
China General Plastics Corp. 2021 Review & Q1 2022 Outlook Reported by: Otto Hu March 22, 2022
Slide 3: 2021 Review: PVC Feedstock
2021 Review: PVC Feedstock Ethylene In 2021, extreme climate change significantly disrupted US petrochemical production and raising concerns of global supply. Therefore, ethylene price held at relatively elevated levels compared to last year. As Crude oil demand is gradually improving amid increas
Slide 4: 2021 Review: PVC
2021 Review: PVC As the shutdowns in Texas due to snow storm in last February and the Asian T/A in last March and April, the PVC supply was short in last Q1. Covid-19 happened again last April in India influenced overall Asian PVC supply and demand. The US Gulf attacked by Hurricane Ida and the Ch
Slide 5: 2021 Review: Consolidated Sales
2021 Review: Consolidated Sales The consolidated sales in 2021 was NT$20.222B, which increased by NT$6.488B YoY (47%↑) . Sales Quantities (KT) 2021 2020 Growth VCM/PVC 387 365 22 PVC Products 63 63 0 Alkaline 60 58 2 Total 510 486 24 5
Slide 6: 2021 Review: PVC Sales Mix
Unit: KMT 450 400 350 300 250 200 150 100 —Domestic —Export —Captive —Total eee 2018 2019 2020 2021
Slide 7: Crude Oil & Ethylene Price Trend
Crude Oil & Ethylene Price Trend Unit:US$/bbl WTI Unit:US$/MT CFR NEA (Platts) 7
Slide 8: PVC/VCM/EDC Price Trend
PVC/VCM/EDC Price Trend Unit:US$/MT CFR NEA (Platts) 8
Slide 9: Q1 2022 Outlook: Ethylene
Q1 2022 Outlook: Ethylene The ethylene production and export volume in US has hit record high for past two consecutive years amid rapidly capacity expansion. In 2022, more than 4 million mt/yr of ethylene capacity is expected to start-up in US. Combined with the plan expansion in Asia, overall new
Slide 10: Q1 2022 Outlook: EDC/VCM
Q1 2022 Outlook: EDC/VCM Braskem’s chlor alkali plant may fully resumed the production. In 2021, Brazil’s EDC import is lower 42% (YoY) to 206 kmt. EDC: US EDC production in Q4 2021 increase 12.1% compared to last quarter, the highest quarter since Q3 2015. Global EDC supply would be more balanc
Slide 11: Q1 2022 Outlook: PVC Supply (I)
Q1 2022 Outlook: PVC Supply (I) Chinese PVC O/R had been going up from the bottom in last October. Current rate is about 80%, which is not so high as 85% in last Q1. The current PVC inventory in East Coast is lowest in last five year. Chinese PVC production is expected running at rather low lever
Slide 12: Q1 2022 Outlook: PVC Supply (II)
Q1 2022 Outlook: PVC Supply (II) The US PVC running had been abnormal until last October. The inventory hit the bottom in last November. As the peak season in US is coming, the PVC production and sales are almost break-even currently. However, the PVC sellers are more interesting to deal with Asia
Slide 13: Q1 2022 Outlook: PVC Demand
Q1 2022 Outlook: PVC Demand The Eastern Chinese domestic PVC after Chinese New Year increased by ¥600 and the import PVC increased by US$60 in the same period. Buyers of import PVC aimed at cargoes from Taiwan, Korea and Japan. The new offer for April shipment is expected to increase again. The
Slide 14: Q1 2022 Outlook: PVC Products
Q1 2022 Outlook: PVC Products The overall global demand is improving. But the PVC film business is limited due to the international shipping problems. The price increases of PVC and plasticizer have obviously been pushing the film purchases especially for tape applications this year. The demand in
Slide 15: 2022 Outlook: PVC Sold by Month
2022 Outlook : PVC Sold by Month PVC total quantity sold in 2021: YTD in February: YoY increase: Unit:KMT 15
Slide 16: 2022 Outlook: Consolidated Sales
2022 Outlook : Consolidated Sales CGPC consolidated net revenue: YTD in February: YoY increase: Unit:NT$ M 16
Slide 17: Finance information
China General Plastics Corporation and Subsidiaries Finance information Reporter : C.C.Kuo Manager Date : Mar. 22, 2022
Slide 18: 2021 Sales by product (NT$million)
2021 Sales by product (NT$million) 18
Slide 19: Consolidated Statements of Income
China General Plastics Corporation and Subsidiaries Consolidated Statements of Income (In millions of NTD, except per share data) 2021 2020 2019 2018 YoY% FY FY FY FY Sales 20,222 13,733 47.2% 15,118 15,193 Cost of goods sold 15,181 10,374 46.3% 13,148 12,490 Gross profit 5,040 3,359 50.0% 1,969 2,7
Slide 20: Financial ratio analysis
China General Plastics Corporation and Subsidiaries Financial ratio analysis 2021 2020 2019 2018 FY FY FY FY Operating income margin(%) 16.4 15.7 5.1 10.4 Net income margin(%) 13.0 13.1 4.6 8.9 Debt ratio(%) 30 26 29 33 Current ratio(%) 264 265 288 300 Quick ratio(%) 152 208 193 215 Accounts receiva
Slide 21: EPS vs DPS
4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 mmm Cash dividend per share -——Earning per share mmm Stock dividend per share 4.25 2.95 > we 2018 1.22 2019 2020 2021 21
Slide 22: Disclaimer
Disclaimer This presentation includes the Company’s current information and any development or adjustments thereof will be published according to laws, regulations or rulings. The Company is not obligated to update or revise this presentation. The information in this presentation is not for invest
Slide 23: Thank You
Thank You 23
Slide 24: Q&A
O&xeA