Nan Ya Plastics : 1Q22 non-audited Consolidated Income Announcement

Close

Today's Information

Provided by: NAN YA PLASTICS CORPORATION
SEQ_NO	2	Date of announcement	2022/04/11	Time of announcement	13:31:40
Subject	Nan Ya Plastics Corporation 1Q22 non-audited Consolidated Income Announcement
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: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 1Q22 non-audited Consolidated Income Announcement 6.Countermeasures:None 7.Any other matters that need to be specified: I. QoQ Comparison: The EPS was NT$1.90 in 1Q22, the second-highest in the history of the same period, following NT$2.23 in 1Q21. In the first quarter of last year, the abnormal climate in North America impacted the market supply, leading to a significant product margin. Although the industrial supply was relatively abundant this year, with smooth demand momentum, products remained great profit, and overall profit reached the second-highest in the history of the same period. Although the profit in the first quarter was favorable, the EPS still decreased by 13.9% compared with 4Q21, mainly due to the fruitful result of 4Q21, the impact of the Spring Festival, and changes in the Covid-19 pandemic. The illustration of QoQ difference is as follows: 1. The consolidated operating revenue of 1Q22 was 102,092 million, decreased by 5,951 million (5.5% decline) compared with 4Q21, including 3,911 million decreasing in sales volume variance and 2,040 million decreasing in sales price variance. (1) The revenue of electronic material products decreased by 3,913 million (-8.2%). The performance of PCB remained robust due to the strong demand for communication and automotive, while other electronic materials were affected by the Spring Festival, resulting in lower shipment volume. (2) The revenue of chemical products decreased by 2,747 million (-8.6%), mainly due to the Spring Festival, the impact of the rising severity of the pandemic in some areas, downstream customers with more holidays, and the price fluctuation of some products. (3) The revenue of plastic products decreased by 1,303 million (-10.5%) due to the fewer days for production and sales during the Spring Festival. (4) The revenue of polyester products increased by 2,046 million (+13.7%) due to strong demand in the US market and the rising price of raw materials, which pushed up the product price. 2. The consolidated income before tax was 20,057 million, decreased by 3,160 million compared with previous quarter: (1) Operating income was 13,605 million, a 5,535 million decrease from 4Q21 (-28.9%): The profits for PCB increased due to prosperous demand. Other electronic material products remained in regular operations, but gains dipped slightly due to fewer days of production and sales during the Spring Festival. The market demand for chemical and plastic products was stable, but the profit this quarter declined mainly due to the Spring Festival. In addition, the unstable pandemic situation in some areas, and the soaring crude oil and raw material prices caused by the conflict between Russia and Ukraine all increased operating costs and decreased profitability consequently. In terms of polyester products, the revenue and profit rose against the trend, mainly due to the smooth demand for PET bottle resins and Polyester Staple Fiber in the Americas. The increase in local purchases in the US market caused by the high sea freight and the increase in raw material costs pushing up product prices resulted in a significant increase in revenue of the South Carolina plant in the United States. (2) Investment income under equity method was 4,820 million, a 907 million increase from previous quarter. a. Recognized a 3,155 million investment income from FPCC (a 1,398 million increase), which had an effect on Nanya's EPS NT$ 0.40. b. Recognized a 5 million investment income from Formosa Olefins, L.L.C (a 321 million decrease). c. Recognized a 305 million investment loss from Mai Liao Power Corporation (a 157 million decrease), which had an effect on Nanya's EPS NT$ -0.04. (3) Foreign exchange gain: 1,184 million (1,277 million more profitable). The NTD depreciated in 1Q22, while it appreciated in 4Q21. As a result, the first quarter was relatively favorable. 3. The consolidated net income attributed to shareholders of the parent company was 15,043 million and the EPS was NT$1.90 in 1Q22. II. YoY Comparison: The EPS was NT$1.90 in 1Q22, which decreased by 14.8% compared with 1Q21. The illustration of the YoY difference is as follows. 1. The consolidated operating revenue in 1Q22 was 102,092 million, increased by 12,381 million, grew 13.8% compared with 1Q21, including 3,360 million increasing in sales volume variance and 9,021 million increasing in sales price variance. (1) The revenue of chemical products increased by 5,019 million (+20.6%): The surge in oil prices pushed up product prices. (2) The revenue of electronic material products increased by 4,157 million (+10.6%): Due to the continuous growth of advanced communication and automotive demand, the ABF substrate was in short supply, leading to significant revenue growth. Other electronic materials also remained considerable revenue and profits. (3) The revenue of polyester products increased by 3,746 million (+28.3%): As the market conditions in the United States boomed substantially, product prices rose significantly. (4) The plastics decreased by 425 million (-3.7%) 2. The consolidated income before tax in 1Q22 was 20,056 million, decreased by 1,718 million compared with 1Q21: (1) Operating income was 13,605 million, a 2,630 million decrease from last year (-16.2%): The profit of chemical products declined as the severe cold weather in North America last year affected the industrial supply, which widened the product margin, while without such an abnormal condition this year, the product margin had narrowed down relatively. In addition, although the price of the products climbed due to the soaring oil price caused by the conflict between Russia and Ukraine this year, the margin was also offset by the high cost of raw materials, resulting in no positive impact on profit. The profit of electronic material products had grown since the demand for ABF substrates continued to expand, and the market conditions for other electronic materials also remained smooth. Besides, with the new production capacity of ABF substrates and Copper foils adding to the operation promptly, the quarterly profit of electronic material products accounted for more than 60% overall, leading to a higher contribution. The profit of polyester products increased, benefiting from the demand growth in the United States, plenty of orders from the South Carolina plant, and the soaring product price. The profits of plastic products remained even. (2) Investment income under equity method was 4,820 million, a 511 million decrease from 1Q21: a. Recognized a 3,155 million investment income from FPCC (a 981 million decrease), which had an effect on Nanya's EPS NT$ 0.40. b. Recognized a 1,919 million investment income from NTC (a 1,123 million increase), which had an effect on Nanya's EPS NT$ 0.24. c. Recognized a 305 million investment loss from Mai Liao Power Corporation (a 305 million decrease), which had an effect on Nanya's EPS NT$ -0.04. (3) Foreign exchange gain was 1,184 million (1,284 million more profitable compared with 1Q21). The NTD depreciated in 1Q22, while it remained flat in 1Q21. As a result, the first quarter was relatively favorable. 3. The consolidated net income attributed to shareholders of the parent company was 15,043 million and the EPS was NT$ 1.90.