Formosa Plastics : Announcement of FPC consolidated results in July 2022

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Provided by: Formosa Plastics Corporation
SEQ_NO	3	Date of announcement	2022/08/08	Time of announcement	13:33:38
Subject	Announcement of FPC consolidated results in July 2022
Date of events	2022/08/08	To which item it meets	paragraph 51
Statement	1.Date of occurrence of the event:2022/08/08 2.Company name:Formosa 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: Announcement of FPC consolidated results in July 2022 6.Countermeasures:None 7.Any other matters that need to be specified: 1. Compared consolidated sales in July and June 2022: The consolidated sales of NTD 19.93bn in July 2022 decreased by NTD 3.99bn and was down by 16.7% from June 2022. The both of sales spread of volume and price declined. The reasons were as follows: (1). The sales spread of volume decreased by NTD 2.62bn. The total sales volume of each product of the Company in July 2022 decreased by 59,000 MT from June 2022, given (1) the Company lowered down the operation rate and made the sales and production volume decrease with OL-2 plant turnaround of Formosa Petrochemical Corporation in July as planned, and (2) the weak demand triggered by the global inflation and stock adjustment from industrial chain caused the customers to purchase less. (2). The sales spread of price decreased by NTD 1.37bn. The price of each product of the Company in July 2022 was down by 5~10% from June 2022. Because many countries followed the USA and EU to lift rates, the global real estate, home appliance and electronics industries were slump and terminal demand was weak to drag down the petrochemical product price. 2. Compared consolidated sales in July 2022 and July 2021: The consolidated sales of NTD 19.93bn in July 2022 decreased by NTD 2.48bn and was down by 10.8% from July 2021. The reasons were as follows: (1). The sales spread of volume decreased by NTD 3.99bn. The total sales volume of each product of the Company in July 2022 decreased by 116,000 MT from July 2021. The containers shortage and the port congestion in July 2021 resulted in the supply chain problem, and the energy policy in China made the customers to increase the purchase for their stocks. However, the global inflation and slowing down of economic growth from the beginning of 2022 led to the weak demand and less purchase from customers for de-stocking. (2). The sales spread of price increased by NTD 1.59bn. The price of EVA and caustic soda of the Company in July 2022 was up by 42~108% from July 2021, given (1) because the global energy price raised affected by the war between Russia and Ukraine, the demand on the EVA solar cell encapsulation film became strong as the renewable energy equipment was set up increase, and (2) the market supply deceased because the soared energy price made the European peers' production cost increase and to cut the caustic soda production.