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Statement
| 1.Date of occurrence of the event:2022/07/11
2.Company name:Nan Ya Plastics Corporation
3.Relationship to the Company (please enter "head office" or
"subsidiaries"):head office
4.Reciprocal shareholding ratios:N/A
5.Cause of occurrence:Nan Ya Plastics Corporation 2Q22 non-audited
Consolidated Income Announcement
6.Countermeasures:None
7.Any other matters that need to be specified:
I. QoQ Comparison:
Although affected by Covid-19 control measures in Shanghai during April, the
EPS still reached NT$1.81 in 2Q22. It was the third-highest in the history
of the same period, following 2Q21 and 2Q18. In addition, the consolidated
operating income was the second-highest in the history of the same period,
following 2Q21. The illustration of QoQ difference is as follows:
1. The consolidated operating revenue of 2Q22 was 94,732 million, decreased
by 7,360 million (7.2% decline) compared with 1Q22, including 9,099 million
decreasing in sales volume variance and 1,739 million increasing in sales
price variance.
(1) The revenue of chemical products decreased by 5,397 million (-18.4%),
mainly due to the planned cut in production and scheduled turnaround of part
of Mailiao EG plants and 1,4BG plant, plus the decline in the prices of BPA
and other products.
(2) The revenue of electronic material products decreased by 4,042 million
(-9.3%). For PCB products, due to the booming demand for communication and
vehicle plus continuous development in high-end products, the gap between
supply and demand had widened, plus revenue and profit reached a peak again.
Nevertheless, other electronic materials products were affected by the
Covid-19 control measures in China and global inflation, leading to the
revenue decline.
(3) The revenue of polyester products increased by 1,516 million (+8.9%) due
to high demand in the US and high selling prices pushed by rising raw
material prices, leading to an increase in income.
(4) The revenue of plastic products increased by 366 million (+3.3%) due to
moderate growth in performance after the Spring Festival.
2. The consolidated income before tax was 18,705 million, decreased by 1,352
million compared with previous quarter:
(1) Operating income was 10,170 million, a 3,297 million decrease from 1Q22
(-24.5%):
The profits for chemical products decreased due to lower selling prices.
With the strong demand for PCB, tons of orders came, and profits increased
for ten consecutive quarters. For other electronic materials products, the
industrial operation was affected by the Covid-19 control measures in China
and global inflation, leading to a profit decline.
In terms of polyester products, the profits increased due to high demand in
the US, operation at full capacity, and rising selling prices.
Plastic products remained stable, and the income increased slightly.
(2) Investment income under equity method was 4,828 million, a 10 million
increase from previous quarter.
a. Recognized a 3,912 million investment income from FPCC (a 757 million
increase), which had an effect on Nanya's EPS NT$ 0.49.
b. Recognized a 1,925 million investment income from NTC (a 7 million
increase), which had an effect on Nanya's EPS NT$ 0.24.
c. Recognized a 745 million investment loss from Mai Liao Power Corporation
(a 440 million disfavor), which had an effect on Nanya's EPS NT$ -0.09.
d. Recognized a 89 million investment loss from Formosa Industries
Corporation in Vietnam (a 259 million disfavor), which had an effect on
Nanya's EPS NT$ -0.01.
(3) Dividends income: 726 million (709 million more profitable than the
last quarter), which was mainly from FCFC (674 million)
(4) The company sold land this quarter, recognizing a 716 million gain on
disposal of property.
(5) Foreign exchange gain: 1,231 million (46 million more profitable). The
NTD depreciated in 2Q22 more dramatically than 1Q22, which was favorable
to 2Q22.
3. The consolidated net income attributed to shareholders of the parent
company was 14,352 million and the EPS was NT$1.81 in 2Q22.
II. YoY Comparison:
The EPS was NT$3.71 in 1H22, the third-highest in the history of the same
period, following 1H21 and 1H18. The consolidated operating income and
income before tax also surpassed the second-highest in the history of the
same period, following 1H21. The illustration of the YoY difference is as
follows.
1. The consolidated operating revenue in 1H22 was 196,824 million, increased
by 3,125 million, grew 1.6% compared with 1H21, including 5,342 million
decreasing in sales volume variance and 8,467 million increasing in sales
price variance.
(1) The revenue of polyester products increased by 7,116 million (+25.1%):
As the market conditions in the United States boomed substantially and the
cost of raw materials increased, product prices rose significantly.
(2) The revenue of chemical products slightly increased by 88 million
(+0.2%)
(3) The revenue of electronic material products decreased by 2,524 million
(-3.0%):
As the PCB products benefited from the growing demand for automotive
electronics and advanced servers and communication networks, the ABF
substrates were in short supply, leading to significant revenue growth. The
other electronic materials products were affected by the Covid-19 control
measures, resulting in a decrease in revenue.
(4) The revenue of plastic products decreased by 1,369 million (-5.7%) from
the Covid-19 control measures.
2. The consolidated income before tax in 1H22 was 38,762 million, decreased
by 11,739 million compared with 1H21:
(1) Operating income was 23,637 million, although less than the 1H21, it was
still superior to the same period in other years. For the decrease of 15,593
million from 1H21, the illustration is as follows:
The profit of chemical products declined as the severe cold weather in North
America last year affected the industrial supply for several months, which
widened the product margin, while with the recovered industrial supply this
year, the product margin had narrowed down relatively.
In electronic material products, the profit of PCB had increased
significantly due to the growing demand for high-value products, but other
electronic material products were affected by Covid-19 control measures in
China, leading to shipment volume and profit drop.
The decrease in profit of plastic products resulted from the Covid-19
control measures in China.
The profit of polyester products increased, benefiting from the strong
demand for Polyester Staple Fiber and PET resin in the United States,
widening the product margin.
(2) Investment income under equity method was 9,648 million, a 1,673 million
disfavor from 1H21:
a. Recognized a 7,068 million investment income from FPCC (a 212 million
decrease), which had an effect on Nanya's EPS NT$ 0.89.
b. Recognized a 3,844 million investment income from NTC (a 1,236 million
increase), which had an effect on Nanya's EPS NT$ 0.48.
c. Recognized a 1,049 million investment loss from Mai Liao Power
Corporation (a 1,189 million disfavor), which had an effect on Nanya's EPS
NT$ -0.13.
d. Recognized a 50 million investment income from Formosa Olefins L.L.C. in
U.S. (a 544 million decrease), which had an effect on Nanya's EPS NT$ 0.01.
e. Recognized a 82 million investment income from Formosa Industries
Corporation in Vietnam (a 435 million decrease), which had an effect on
Nanya's EPS NT$ 0.01.
(3) Dividends income was 742 million, a 710 million increase compared with
1H21, mainly from FCFC. (Recognized in the third quarter last year)
(4) In the 1H22, the gain on disposal of property was 725 million, but none
in 1H21, which was relatively favorable.
(5) Foreign exchange gain was 2,416 million (3,107 million more profitable
compared with 1H21). The NTD depreciated in 1H22, while it appreciated in
1H21, which was relatively favorable.
3. The consolidated net income attributed to shareholders of the parent
company was 29,395 million and the EPS was NT$ 3.71.
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