Nan Ya Plastics : May 2022 non-audited Consolidated Operating Revenue Announcement

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Provided by: NAN YA PLASTICS CORPORATION
SEQ_NO	1	Date of announcement	2022/06/08	Time of announcement	13:30:45
Subject	Nan Ya Plastics Corporation May 2022 non-audited Consolidated Operating Revenue Announcement
Date of events	2022/06/08	To which item it meets	paragraph 51
Statement	1.Date of occurrence of the event:2022/06/08 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 May 2022 non-audited Consolidated Operating Revenue Announcement 6.Countermeasures:None 7.Any other matters that need to be specified: I. MoM Comparison: The consolidated operating revenue in May 2022 was 32,883 million, which increased by 3,186 million (10.7% growth) compared to April, with 3,490 million increases in sales volume variance and 304 million decreases in sales price variance. Since China moved to ease lockdown measures, the sales of electronic material products had increased. Besides, the higher demand for polyester products in the United States pushed up revenue. 1. Electronic material products: increased by 2,997 million (sales volume +3,318, sales price -321). As the Covid-19 control measures in Shanghai, Kunshan, and elsewhere gradually eased, upstream and downstream manufacturers in the electronics industry got back to business, and logistics resumed regular operations. In addition, the demand for automobiles, communications, high-end servers, and game consoles was stable, leading to higher orders for materials. As a result, the sales volume of PCB, CCL, Epoxy resins, Fiberglass yarn, and other products increased significantly compared with the previous month with revenue growth. 2. Polyester products: increased by 715 million (sales volume +572, sales price +143). The great demand for PET resin and Polyester Staple Fiber in the US market and the traditional peak season of PET bottle resin resulted in the South Carolina polyester factory full of orders and higher revenue. In addition, with the ease of lockdown control in China, the consumption activities gradually recovered, further leading to an increase in product sales and revenue growth. 3. Chemical products: decreased by 395 million (sales volume -289, sales price -106). a. BPA: increased by 431 million (sales volume -402, sales price -29). Last month, since the BPA supplied to Kunshan electronic materials for self-use could not be delivered due to the transportation restrictions, external sales increased instead. This month, since the transportation had returned to normal, supplying Kunshan electronic materials for self-use was in priority, resulting in lower external sales relatively. b. Phthalate plasticizers: decreased by 399 million (mainly from sales volume variance). As the price of raw materials fell, customers delayed placing orders, reducing the delivery volume. c. 1.4BG: decreased by 240 million (sales volume -192, sales price -48). With the scheduled turnaround this month, production and sales decreased. d. EG: increased by 753 million (sales volume +769, sales price -16). The orders from Asia in the Texas EG-2 plant increased, contributing to higher sales and revenue growth. 4. Plastic products remained stable. II. YoY Comparison: Compared to 2021/5, revenue decreased by 1,602 million (4.6% decline), which included 1,054 million decreasing in sales volume variance and 548 million decreasing in sales price variance. The price of BPA rose to a peak in May last year, but the supply and demand were relatively stable this year, leading to a decline in price, and its downstream electronic material products price also decreased. Besides, production and sales of EG decreased because of the planned cut in production, leading to a decrease in revenues. 1. Chemical products: decreased by 1,841 million (sales volume -945, sales price -896). a. BPA decreased by 851 million (sales volume +398, sales price -1,249) Sales volume increased while selling price decreased by 38.1% compared with the same period last year. The main reason was that the severe cold weather in North America at the beginning of last year affected the supply of the industry for several months, and the price of BPA rose to a high point last May. This year, the supply and demand returned to normal, causing the falling prices and revenue decline. b. EG: decreased by 726 million (mainly from sales volume variance). Due to the planned shutdown of the Mailiao EG-2 plant and EG-4 plant this May, the overall EG sales and revenue decreased. 2. Electronic material products: decreased by 549 million (sales volume +896, sales price -1,445). The demand for PCB was strong, and the orders remained full. Also, the shipments this May had returned to normal with the easing Covid-19 control measures. As a result, the PCB sales volume and revenue increased compared with May last year. Demands for other electronic material products remained stable. As the price of raw material BPA dropped compared with the previous year, the product price was lowered in response to the cost. 3. Plastic products: decreased by 379 million (sales volume -572, sales price +193) This May, downstream processing industries had gradually resumed regular business after the lifting of Covid-19 restrictions. Revenue increased progressively, while monthly sales were still less than the same period last year. 4. Polyester products: increased by 1,229 million (mainly from sales price variance). Demands in the US market remained strong. With the increasing cost of raw materials (PTA 41.2%), the price of polyester products increased, resulting in revenue growth.