Slide 1: Investors Conference
2024 Investors Conference 2024/8/16
Slide 2: Investor Conference Itinerary
China General Plastics Corp. Investor Conference 2024/8/16 Time Itinerary Reporter 15:30〜16:00 VIP Registration Review for Q2 & Outlook for Q3 J H Wu, Manager 16:00〜16:30 Finance Information for H1 C F Li, Manager 16:30〜17:00 Q&A Otto Hu, President 2
Slide 3: 2024 Q2 Review & Q3 Outlook
China General Plastics Corp. 2024 Q2 Review & Q3 Outlook August 16, 2024 Reporter : J.H. Wu 3
Slide 4: Q2 Review: PVC feedstocks
2024 Q2 Review: PVC feedstocks Ethylene: China's Q2 economic growth was weaker than expected. The weak demand for ethylene derivatives has lead to buyers’ wait-and-see attitude and diminished the impact of Cracker’s annual repair and accidents on supply in Asia. Price of ethylene has declined with
Slide 5: Q2 Review: PVC
2024 Q2 Review: PVC China sets spring inspections for PVC and the operating rate rose after declined at first. However, due to China’s weak macroeconomic construction, the PO for plastic process, the real estate investment, and the real estate construction are sluggish, dragging down the domestic
Slide 6: H1 Review: Consolidated Sales
2024 H1 Review: Consolidated Sales The consolidated sales in 2024 H1 was NT$ 5.981B，which decreased by 1.139B YoY(16%↓)。 Sales Quantities(KT) 2024 H1 2023 H1 +/- VCM / PVC 166 199 -33 PVC Products 20 23 -3 Alkaline 100% 30 27 3 Total 216 249 -33 6
Slide 7: Crude Oil & Ethylene Price Trend
Crude Oil & Ethylene Price Trend Unit:US$/bbl WTI Unit:US$/MT CFR NEA (Platts) 130 1,500 Crude Oil Ethylene 110 1,300 90 1,100 70 900 50 700 30 500 10 300 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 7
Slide 8: PVC / VCM / EDC Price Trend
PVC / VCM / EDC Price Trend Unit:US$/MT CFR NEA (Platts) 1,950 1,800 EDC VCM PVC 1,650 1,500 1,350 1,200 1,050 900 750 600 450 300 150 0 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 8
Slide 9: Q3 Outlook: Ethylene
2024 Q3 Outlook: Ethylene OPEC+ extends crude cuts through year-end and oil prices still weaken due to global economic depress. During the demand-off season of downstream, most of the MTO & CTO production in China has been suspended recently. Crackers and derivatives companies in Asia also reporte
Slide 10: Q3 Outlook: EDC / VCM
2024 Q3 Outlook: EDC / VCM EDC: China's caustic soda exports in Q2 increased by more than 20% YoY, which has resulted in a weakening regional prices and subsequently caused alkali and chlorine businesses in Asia to reduce their operating rates. Hurricanes at the upstream Vinyl manufacturer in the
Slide 11: Q3 Outlook: PVC Supply
2024 Q3 Outlook: PVC Supply China's PVC has higher inspection and repair volume in July-August. Despite the introduction of new capacity, the operating rate was still in the lower-middle range, i.e. 73%. The market price is constrained by the high cost of calcium carbide and VCM and the social inv
Slide 12: Q3 Outlook: PVC Demand
2024 Q3 Outlook: PVC Demand China's Q2 Manufacturing PMI continues to contract for three months with GDP and Industrial Production Index declining. However, considering the official continued to stimulate domestic demand, the implementation of the real estate program, the strengthening monetary an
Slide 13: Smart manufacturing and Sustainable management (1/2)
Smart manufacturing and Sustainable management(1/2) We are actively introducing AI technology to achieve multiple economic benefits, including promoting smart manufacturing, achieving energy saving, carbon reduction and environmental protection, improving product stability, and simultaneously enha
Slide 14: Smart manufacturing and Sustainable management (2/2)
Smart manufacturing and Sustainable management(2/2) Establishing AI factory 1. Process optimization & safety monitoring 2. AOI image recognition 3. Intelligence factory Distillation Column Systems of TVCM Electrical Panel AOI with Thermal Imaging Situation Room at Main Absorption tower proce
Slide 15: Patenting High Value-added New Products (1/2)
Patenting High Value-added New Products (1/2) Leather products are guided by customer needs and market trends, and will continue to carry out innovative research to develop highly functional products and register for patents, including slow- warming leather, translucent leather, oyster powder anti
Slide 16: Patenting High Value-added New Products (2/2)
Patenting High Value-added New Products (2/2) translucent translucent leather - leather - car motorcycle cooling leather - temperature difference imaging 16
Slide 17: 2024 H1 Finance Information
China General Plastics Corp. 2024 H1 Finance Information August 16, 2024 Reporter :C F Li, Manager 17
Slide 18: HY1 Sales by Products
2024 HY1 Sales by Products (NT$million) 2024 H1 Inc./(dec.)- Alkalin compared to 2023 H1 $451 200 8% Alkalin PVC products +$8 $1,461 0 24% -200 PVC products PVC/VCM -$90 $4,069 -400 68% -600 -800 -1,000 PVC/VCM -1,200 -$1,057 18
Slide 19: Consolidated Statements of Income
Consolidated Statements of Income Unit:NT$million , except per share data 2024 2023 2023 2022 2021 YoY% Jan.-Jun. Jan.-Jun. FY FY FY Sales 5,981 7,120 -16.0% 13,707 17,637 20,222 Cost of goods sold 5,487 6,146 -10.7% 12,030 16,959 15,181 Gross profit 494 974 -49.3% 1,677 678 5,040 Gross profit ratio
Slide 20: Financial Ratio Analysis
Financial Ratio Analysis 2024 2023 2023 2022 2021 Jan.-Jun. Jan.-Jun. FY FY FY Operating income margin(%) (0.9) 5.4 3.4 (5.6) 16.4 Net income margin(%) 0.9 3.9 2.9 (1.9) 13.0 Debt ratio(%) 44 43 42 40 30 Current ratio(%) 162 252 204 217 264 Quick ratio(%) 99 164 127 129 152 Average days of collectio
Slide 21: 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 inve
Slide 22: The End Thank You
China General Plastics Corp. The End Thank You 2024/8/16 Work together to create prosperity 22
Slide 23: Investor Conference Q&A
China General Plastics Corp. Investor Conference Q&A 2024/8/16 Work together to create prosperity 23