China General Plastics Corporation · TWSE:1305
China General Plastics — Q2 2023 Earnings Presentation
22 slides from China General Plastics's earnings presentation, Aug 14, 2023
Slide 1: Investor Conference 2023
2023 China General Plastics Corp. Investor Conference 2023/08/14
Slide 2: Investor Conference Itinerary
China General Plastics Corp. Investor Conference 2023/08/14 Time Itinerary Reporter 14:00〜 VIP Registration 14:30 Otto Hu, Review for Q2 & Outlook for Executive Q3 Vice President 14:30〜 15:00 C C Kuo, Finance Information for H1 Manager 15:00〜 H F Lin, Q&A 15:30 Vice Chairman 2
Slide 3: 2023 Q2 Review & Q3 Outlook
China General Plastics Corp. 2023 Q2 Review & Q3 Outlook Reported by: Otto Hu Executive Vice President August 14, 2023 3
Slide 4: Q2 2023 Review: PVC feedstocks
Q2 2023 Review: PVC feedstocks Ethylene China’s economy is showing signs of fatigue, with the manufacturing PMI contracting for consecutive months. This has led to a decline in China domestic ethylene price. The Asia market is also facing the influx of deep-sea cargoes, causing ethylene prices to
Slide 5: Q2 2023 Review: PVC
Q2 2023 Review: PVC The Chinese PVC imports in Q1 increased a lot, but the demand was not good as expected. The producers have to lower down PVC OP rate and allocated more quantities for export . The situation had not much improved even after Labor holidays. The Indian imported PVC of 900kt reac
Slide 6: Q2 2023 Review: Consolidated Sales
Q2 2023 Review: Consolidated Sales The consolidated sales in H1 2023 was NT$7.120B, which decreased by NT$3.027B YoY (30%↓) . Sales Quantities (KT) Products 2023 H1 2022 H1 Growth VCM/PVC 199 193 6 PVC Products 23 26 (3) Alkaline 27 29 (2) Total 249 248 1 6
Slide 7: Crude Oil & Ethylene Price Trend
Crude Oil & Ethylene Price Trend Unit: US$/bbl WTI Unit:US$/MT CFR NEA (Platts) 130 1,500 Crude Oil Ethylene 110 1,300 90 1,100 70 900 50 700 30 500 10 300 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 7
Slide 8: PVC / VCM / EDC Price Trend
PVC / VCM / EDC Price Trend Unit:US$/MT CFR NEA (Platts) 1,800 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 8
Slide 9: Q3 2023 Outlook: Ethylene
Q3 2023 Outlook: Ethylene Global crude oil prices have been gradually increasing as OPEC+ keeps production cut and additional voluntary output cut by Saudi Arabia and Russia. These actions have reduced the supply to a two-year low, providing support for naphtha prices and the upward movement of et
Slide 10: Q3 2023 Outlook: EDC / VCM
Q3 2023 Outlook: EDC / VCM EDC: In Q2, US EDC production declined by 14.6% on a quarterly basis due to the peak maintenance season. However, a legal dispute among US vinyl producers unexpectedly resulted in a surplus release of EDC, causing price fluctuations. Looking ahead to Q3, demand for vinyl
Slide 11: Q3 2023 Outlook: PVC Supply
Q3 2023 Outlook: PVC Supply The stable price of carbide and the tight supply of VCM support PVC price going up. As most of PVC T/As have been finished in H1, the overall PVC OP rate is running at 73~75%. The PVC inventory in market places is about 450kt, which is still under control. As PVC pric
Slide 12: Q3 2023 Outlook: PVC Demand
Q3 2023 Outlook: PVC Demand Even though the post-COVID demand in China is still slow, the PVC future price has strongly rebounded from ¥5,700 because of encourage manners provided by the government and the global positive market situations. This encourages the spot market and pushes the price to ¥
Slide 13: Q3 2023 Outlook: PVC Products
Q3 2023 Outlook: PVC Products Although the real estate business in Taiwan is still slow, CGPC has secured the new house opens for both released cases and planned new cases. We get deep involve with the building companies for the house designs so as to promote well our construction products. In add
Slide 14: 2023 Outlook: PVC Sold by Month
2023 Outlook : PVC Sold by Month PVC total quantity sold in 2023: YTD in July: more than 228kt YoY decrease: 2% Unit:KMT 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14
Slide 15: 2023 Outlook: Consolidated Sales
2023 Outlook : Consolidated Sales CGPC consolidated net revenue: YTD in July: 8.141B YoY decrease: 30% CGPC Consolidated Net Revenue Unit:NT$ M 2,400 2021 2022 2023 2,100 1,800 1,500 1,200 900 600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15
Slide 16: China General Plastics Corporation 2023 H1 Finance Information
China General Plastics Corporation 2023 H1 Finance Information Reporter: Date: August 14, 2023 C.C.Kuo Manager 16
Slide 17: 2023 HY1 Sales by product
2023 HY1 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.-Jun. Jan.-Jun. FY FY FY Sales 7,120 10,147 -29.8% 17,637 20,222 13,733 Cost of goods sold 6,146 9,147 -32.8% 16,959 15,181 10,374 Gross profit 974 1,000 -2.6% 678 5,040 3,359 gross profit
Slide 19: Financial ratio analysis
Financial ratio analysis 2023 2022 2022 2021 2020 Jan.-Jun. Jan.-Jun. FY FY FY Operating income margin(%) 5.4 0.6 (5.6) 16.4 15.6 Net income margin(%) 3.9 4.1 (1.9) 13.0 13.1 Debt ratio(%) 43 37 40 30 26 Current ratio(%) 252 191 217 264 265 Quick ratio(%) 164 95 129 152 208 Accounts receivable turno
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
VAcrc China General Plastics Corp. The End Thank You Work together to create prosperity ,,
Slide 22: Investor Conference Q&A
China General Plastics Corp. Investor Conference Q&A August 14, 2023 Work together to create prosperity 22
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