Formosa Chemicals & Fibre : Declare of FCFC’s Consolidated Profit and Loss in the 1st Quarter of 2022

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Provided by: FORMOSA CHEMICALS & FIBRE CORPORATION
SEQ_NO	2	Date of announcement	2022/04/11	Time of announcement	14:10:53
Subject	Declare of FCFC's Consolidated Profit and Loss in the 1st Quarter of 2022
Date of events	2022/04/11	To which item it meets	paragraph 51
Statement	1.Date of occurrence of the event:2022/04/11 2.Company name:FORMOSA CHEMICALS & FIBRE CORPORATION 3.Relationship to the Company (please enter "head office" or "subsidiaries"):head office 4.Reciprocal shareholding ratios:N/A 5.Cause of occurrence:Declare of FCFC's Consolidated Profit and Loss in the 1st Quarter of 2022 6.Countermeasures:none 7.Any other matters that need to be specified: I.Comparison of consolidated profit and loss in the 1st quarter of 2022 and the 4th of 2021： 1.Operating revenue increased 0.74 billion in the 1st quarter with a growth rate of 0.8%. Among the increase, price increase accounted for 3.48 billion while the sales volume affected 2.74 billion instead. 2.Aspect of sales volume (1)FCFC：-5.4 billion Low utilization and less raffinate sales together affected 2.47 billion. Scheduled overhauls for phenol, PP and SM also cut down the revenue by 2.26 billion. In reconciled with the stock, sales of PIA and OX decreased by 0.92 billion. (2)FCNB：+1.42 billion MX and PIA resumed from the dual control this quarter, increasing 1.51 billion. After the completion of the debottlenecking, phenol continued to optimize its production condition, contributing 0.43 billion. However, PTA and ABS were both affected by CNY holidays and the shipment delay, decreasing by 0.56 billion. (3)Other subsidiaries： FICC emptied its stock so that the revenue increased by 0.41 billion. Besides, market demand for FIPC's products went strong, bringing an increase of 0.35 billion. In FTC, orders returns to filament fabric contributing an extra 0.78 billion. On the other hand, cord fabric was affected by CNY and the market, decreasing by 0.41 billion. 3.Impact of selling price variance： With the constraints of increasing supply and limited demands, quotations of ABS, PC and HAC went weak. Yet, prices of other petrochemical and spinning products increased owing to the rising production costs. II.Consolidated profit before income tax in the 1st quarter of 2022 was 8.17 billion, increasing by 2.95 billion with a growth rate of 56.7% compared with the last quarter. Reasons are as follows： 1.Operating margin increased 0.99 billion： Affected by the Russian Invasion, quotations of crude oil and petrochemical products were both pushed up. Also, improvement of processing charges brought up the quarterly revenue. 2.Consolidated non-operating profit increased by 1.96 billion (1)Investment profit of Equity Method increased by 0.98 billion. Among it, FPCC and MLPC accounted for 1.13 and 0.16 billion respectively. (2)Profit of exchange increased by 0.95 billion. (0.97 billion/1Q2022; 0.2 billion/ 4Q2021) 3.Net profit after income tax attributed to owners of the parent in the 1st quarter was 6 billion 63 million 290 thousand. Profit Attributable to Common Shareholders of the Parent was NTD 1.04, NTD 0.43 more than last quarter with a growth rate of 70.5%. II.Comparison of consolidated profit and loss in the first quarter of 2022 and in 2021： 1.Operating revenue increased by 13.4% in 1Q22 compared with 1Q21. Among the increase, the price raise supported 12.41 billion while the sales amount affected 1.16 billion instead. 2.Aspect of sales volume (1)FCFC：-3.15 billion Low utilization and less raffinate sales together affected 2.77 billion. Reconciliation of PIA, OX and BZ lowerd down the demand from downstream by 1.21 billion. Scheduled overhauls for phenol and PP also cut down the revenue by 0.78 billion. Other than the above, SM increased its export by lowering down its supply to FCNB, contributing 1.23 billion. Also, PTA increased its export by 0.43 billion. (2)FCNB：+2.44 billion New production line of PIA and optimized condition of phenol together brought another 2.66 billion to the quarterly revenue. However, PTA was affected by shipment delay, decreasing by 0.22 billion. (3)Other subsidiaries： In FIC Vietnam. poly products and cotton silk decreased by 0.4 billion due to the rising costs. As for FTC, cord fabric were affected by 0.65 billion owing to the shortage of automobile chips. Other than that, filament increased by 0.4 billion thanks to the revovery of ready-to-wear industry. 3.Aspect of Selling Price Except for acetone and ABS, prices of crude oil, raw material and FCFC's main products were pushed high because of the recovery, inflation and the Russian Invasion. 2.Consolidated before income tax in 2021 was 50.12 billion, increasing by 25.36 billion (102.4%) on a YOY basis. 1.Operating margin increased 19.14 billion In 2021, the average economy recovered from the measures of COVID prevention in 2020 such as country lockdowns. However, the order of the international trade and supply chain were disrupted, driving the market demand conservative after a soar-up. Despite that, operating revenue still performed better than it in 2020. 2.Consolidated profit before income tax in the 1Q22 was 8.17 billion, decreasing by 8.59 billion on a YOY basis. (1)Operating margin decreased 8.31 billion Although the prices of crude oil and raw materials keeps rising, product quotations were limited as a result of competitors new productivity. Also, inflation became even worse due to the Russian Invasion, making the market more conservative. (2)Non-operating net income decreased by 0.28 billion (1)Investment profit of Equity Method decreased by 1.46 billion. FPCC and MLPC accounted for 1.09 and 0.31 billion respectively. (2)Profit of exchange increased by 1.12 billion. (0.97 billion/1Q22；-0.15 billion/1Q21) 3.Net profit after income tax attributable to owners of the parent in the first quarter was 6 billion 63 million 290 thousand. Profit attributed to common shareholders of the parent was NTD 1.04, NTD 1.16 less than the first quarter of 2021.