China General Plastics Corporation · TWSE:1305
China General Plastics — Q3 2024 Earnings Presentation
24 slides from China General Plastics's earnings presentation, Nov 26, 2024
Slide 1: Investors Conference
2024 Investors Conference 2024/11/26
Slide 2: Investor Conference Itinerary
China General Plastics Corp. Investor Conference 2024/11/26 Time Itinerary Reporter 15:30〜16:00 VIP Registration Review for Q3 & Outlook for Q4 J H Wu, Manager 16:00〜16:30 Finance Information for Q1~Q3 C F Li, Manager 16:30〜17:00 Q&A Otto Hu, President 2
Slide 3: 2024 Q3 Review & Q4 Outlook
China General Plastics Corp. 2024 Q3 Review & Q4 Outlook November 26, 2024 Reporter : J.H. Wu 3
Slide 4: Q3 Review: PVC upstream raw materials
2024 Q3 Review: PVC upstream raw materials Ethylene : China has frequently rolled out fiscal and consumption stimulus measures, but the effect on boosting the economy is limited. Manufacturing PMI has contracted for months and the weak demand for ethylene derivatives and related plastics has cause
Slide 5: Q3 Review: PVC General Market Conditions (I)
2024 Q3 Review: PVC General Market Conditions (I) The excess capacity of China's top five commonly-used plastics has aggravated the spillover into the international market. The PVC inspections paragraph has been set up and the operating rate has gradually increased (from 73% to 80%). However, due
Slide 6: Q3 Review: PVC General Market Conditions (II)
2024 Q3 Review: PVC General Market Conditions (II) India's monsoon disruption suppressed the rigid demand for pipes and infrastructure. However, with a sharp decline in Asian freight rates, the delayed implementation of BIS, rumors of temporary ADD, and the pressure on China’s inventory to sell at
Slide 7: Q3 Review: Consolidated Sales
2024 Q3 Review: Consolidated Sales The YTD consolidated sales till Q3 was NT$ 8.543 B，which decreased by 1.943 B YoY( 19 %↓)。 Q1~Q3 Sales Quantities(KT) 2024 2023 +/- VCM / PVC 233 294 -61 PVC Products 29 34 -5 Alkaline 100% 44 41 3 Total 306 369 -63 7
Slide 8: 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 Oct-24 8
Slide 9: 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 Oct-24 9
Slide 10: Q4 Outlook: Ethylene
2024 Q4 Outlook: Ethylene Energy agencies have lowered their forecasts for global crude oil consumption growth several times. China's crude oil imports and refinery processing volumes have declined, coupled with a slowdown in global manufacturing. China's excess petrochemical capacity is further a
Slide 11: Q4 Outlook: EDC / VCM
2024 Q4 Outlook: EDC / VCM EDC : Asian caustic soda prices have risen to an annual high, driven by demand from aluminum refining, which is expected to boost alkali and chlorine operating rates. Additionally, the new EDC production capacity in South Korea will be put into operation by the end of th
Slide 12: Q4 Outlook: PVC Supply
2024 Q4 Outlook: PVC Supply China’s commonly-used plastic continues to have high operating rate, imbalance between production and sales, and unchanged oversupply. In Q4, China’s alkali and chlorine operating rate increased (↑82.2%). Considering PVC slight overhaul and new production capacity input
Slide 13: Q4 Outlook: PVC Demand (I)
2024 Q4 Outlook: PVC Demand (I) China government has implemented a series of economic stimulus policies in an attempt to rescue the housing market, promote the economy, achieve GDP targets, and approved RMB 10 trillion for local government debt swap. However, manufacturing PMI has continued to con
Slide 14: Q4 Outlook: PVC Demand (II)
2024 Q4 Outlook: PVC Demand (II) As the rainy season ends, India’s demand for agriculture, pipelines and infrastructure begins to start. However, due to the high import source and sufficient supply in the early stage, rising freight rates and the preliminary ruling of ADD, the Indian side's prepar
Slide 15: Smart manufacturing and Sustainable management
Smart manufacturing and Sustainable management Infra • IoT Smart Production Flexible Manufacturing AI gen the Baseline & Smart Factory • Data Lake，Data Intelligent production scheduling Twin Transition Boundary • Equipment automation Warehouse Digitalize Goal • Heterogeneous system Integration produ
Slide 16: Patenting High Value-added New Products (1/2)
Patenting High Value-added New Products (1/2) Chroma Cool Unit: kg/yd Luminaire Baby safety seat leather Defentex Chroma Luminaire Baby safety Defentex Cool seat leather 122,801 12,287 31,172 1,977 16
Slide 17: Patenting High Value-added New Products (2/2)
Patenting High Value-added New Products (2/2) Car foot mat Unit: kg/yd Anti-slip leather Waterproof membrane Cutting Car foot mat Waterproof Anti-slip Cutting version membrane leather version 26,122 13,780 1,953 6,430 17
Slide 18: 2024 Q1~Q3 Finance Information
China General Plastics Corp. 2024 Q1~Q3 Finance Information November 26, 2024 Reporter :C F Li, Manager 18
Slide 19: Q1~Q3 Sales by Products
2024 Q1~Q3 Sales by Products (NT$million) 19
Slide 20: Consolidated Statements of Income
Consolidated Statements of Income Unit:NT$million , except per share data 2024 2023 2023 2022 2021 YoY% Jan.-Sep. Jan.-Sep. FY FY FY Sales 8,543 10,486 -18.5% 13,707 17,637 20,222 Cost of goods sold 8,308 9,040 -8.1% 12,030 16,959 15,181 Gross profit 235 1,446 -83.7% 1,677 678 5,040 Gross profit rat
Slide 21: Financial Ratio Analysis
Financial Ratio Analysis 2024 2023 2023 2022 2021 Jan.-Sep. Jan.-Sep. FY FY FY Operating income margin(%) -6.7 5.0 3.4 -5.6 16.4 Net income margin(%) -4.4 4.1 2.9 -1.9 13.0 Debt ratio(%) 47 41 42 40 30 Current ratio(%) 133 222 204 217 264 Quick ratio(%) 83 139 127 129 152 Average days of collection
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 inve
Slide 23: The End Thank You
China General Plastics Corp. The End Thank You 2024/11/26 Work together to create prosperity 23
Slide 24: Investor Conference Q&A
China General Plastics Corp. Investor Conference Q&A 2024/11/26 Work together to create prosperity 24
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