China General Plastics Corporation · TWSE:1305
China General Plastics — Q3 2023 Earnings Presentation
22 slides from China General Plastics's earnings presentation, Nov 14, 2023
Slide 1: 2023 Investor Conference
2023 Investor Conference 2023/11/14
Slide 2: Investor Conference Itinerary
China General Plastics Corp. Investor Conference 2023/11/14 Time Itinerary Reporter 14:00〜14:30 VIP Registration Review for Q3 & Outlook for Q4 Otto Hu, Executive Vice President 14:30〜15:00 Finance Information for Q1~Q3 C C Kuo, Manager Q&A 15:00〜15:30 H F Lin, Vice Chairman 2
Slide 3: Q3 Review & Q4 Outlook
China General Plastics Corp. Q3 Review & Q4 Outlook November 14, 2023 Reported by: Otto Hu 3
Slide 4: Q3 2023 Review: PVC feedstocks
Q3 2023 Review: PVC feedstocks Ethylene Driven by rising oil prices, keep the Asia ethylene market on steady upward trend. However, the downstream derivative demand was sluggish and China’s stimulus measures has limited effect. As a result, spot ethylene prices in Asia have been volatile. EDC In
Slide 5: Q3 2023 Review: PVC
Q3 2023 Review: PVC Chinese PVC demand was still not good as expected in Q3. More sales shifted to overseas markets and forced the prices going lower. The exports till Q3 was 6% increase YoY. The PVC inventory in China had been high. The PVC demand in India had been getting better in Q3. But the
Slide 6: Q3 2023 Review: Consolidated Sales
Q3 2023 Review: Consolidated Sales The YTD consolidated sales till Q3 was NT$10.486B, which decreased by 3.645B YoY (26%↓). Q1~Q3 Sales Quantities (KT) 2023 2022 +/- VCM/PVC 294 286 8 PVC Products 34 39 -5 Alkaline 41 44 -3 Total 369 369 0 6
Slide 7: Crude Oil & Ethylene Price Trend
Crude Oil & Ethylene Price Trend Unit:US$/bbl WTI Unit:US$/MT CFR NEA (Platts) 130 1,500 Crude Oil Ethylene 110 1,300 90 1,100 70 900 50 700 30 500 10 300 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 7
Slide 8: PVC / VCM / EDC Price Trend
PVC / VCM / EDC Price Trend Unit:US$/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-19 Apr-19 Jul-19 Oct-19 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 8
Slide 9: Q4 2023 Outlook: Ethylene
Q4 2023 Outlook: Ethylene Recently, crude oil prices have fluctuated sharply due to the escalation of the Middle East situation. The market believes that the possibility of the war expanding in the short term is relatively low, and it coincides with the demand off-season, oil prices have fallen ba
Slide 10: Q4 2023 Outlook: EDC / VCM
Q4 2023 Outlook: EDC / VCM EDC: In Q3, the EDC production in US increased by 20% from the previous quarter, reaching a highest volumes of the past two years, and the supply seems to be easing. However, major EDC producer in the Middle East have reduced contract supply due to production issues. In
Slide 11: Q4 2023 Outlook: PVC Supply
Q4 2023 Outlook: PVC Supply The carbide prices have been going down after Chinese Golden Holidays in October. However, the bottom of ¥2,700 looks strong support on PVC prices. The PVC OP rate is staying at 74~77% and PVC inventory in East Coast is 420kt. The inventory is high than last year but no
Slide 12: Q4 2023 Outlook: PVC Demand
Q4 2023 Outlook: PVC Demand The Chinese economics had not improved as expected even though the actions taken by the government. However, the situation looks change after the Chinese debt of RMB one trillion was announced to run in Q4. The sales for domestic markets have been better and price for e
Slide 13: Q4 2023 Outlook: PVC Products
Q4 2023 Outlook: PVC Products Existing Products: Pipe demand is expected stable in Q4. The promotion and sales will focus on new housing, power plant, sewage disposal pipeline, MRT station expansions. Film business is still slow due to high inflation. CGPC has been strengthening and won good marke
Slide 14: 2023 Outlook: Consolidated Sales
2023 Outlook: Consolidated Sales The YTD consolidated net revenue till October was NT$11.532B, which decreased by 24%. The net revenue for October increased by 8% MoM, which was close to the level of last year. Unit:NT$ M 2,400 2021 2022 2023 2,100 1,800 1,500 1,200 900 600 Jan Feb Mar Apr May Jun J
Slide 15: 2023 Outlook: PVC Sold by Month
2023 Outlook:PVC Sold by Month The YTD PVC sold till October was about 320kt, which increased by 1% YoY. The quantity sold in October increased by 12% MoM, which was also better than last year. Unit:KMT 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15
Slide 16: 2023 Jan. – Sep. Finance information
China General Plastics Corp. 2023 Jan. – Sep. Finance information Date : 2023, Nov. 14 Reporter: C.C.Kuo Manager 16
Slide 17: 2023 Jan. – Sep. Sales by product
2023 Jan. – Sep. Sales by product (NT$million) 17
Slide 18: Consolidated Statements of Income
Consolidated Statements of Income (In millions of NTD, except per share data) 2023 2022 2022 2021 2020 YoY% Jan.-Sep. Jan.-Sep. FY FY FY Sales 10,486 14,131 -25.8% 17,637 20,222 13,733 Cost of goods sold 9,040 13,715 -34.1% 16,959 15,181 10,374 Gross profit 1,446 416 247.6% 678 5,040 3,359 gross pro
Slide 19: Financial ratio analysis
Financial ratio analysis 2023 2022 2022 2021 2020 Jan.-Sep. Jan.-Sep. FY FY FY Operating income margin(%) 5.0 (6.4) (5.6) 16.4 15.6 Net income margin(%) 4.1 (2.1) (1.9) 13.0 13.1 Debt ratio(%) 41 39 40 30 26 Current ratio(%) 222 221 217 264 265 Quick ratio(%) 139 126 129 152 208 Accounts receivable
Slide 20: 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 21: The End Thank You
China General Plastics Corp. The End Thank You 2023/11/14 Work together to create prosperity 21
Slide 22: Investor Conference Q&A
China General Plastics Corp. Investor Conference Q&A 2023/11/14 Work together to create prosperity 22
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