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

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Provided by: NAN YA PLASTICS CORPORATION
SEQ_NO	1	Date of announcement	2022/07/11	Time of announcement	13:34:23
Subject	Nan Ya Plastics Corporation June 2022 non-audited Consolidated Operating Revenue Announcement
Date of events	2022/07/11	To which item it meets	paragraph 51
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 June 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 June 2022 was 32,152 million, which decreased by 731 million (2.2% decline) compared to May, with 488 million decreases in sales volume variance and 243 million decreases in sales price variance, with different situations in each product sales. The revenue of PCB increased with the growing trend of high-end substrates, while the sales of other electronic material products decreased due to inflation and falling copper prices. Since the chemical products expanded external sales and polyester products raised prices, the revenue of each two increased. 1. Electronic material products: decreased by 1,422 million (sales volume -1,283, sales price -139). For the PCB products, due to the booming demand for communication and vehicle plus continuous development in high-end and sophisticated products, the gap between supply and demand had been widened, driving revenue growth. The revenue of CCL, Copper foil, and Epoxy resins decreased because the global inflation affected ultimate consumption; furthermore, the price of copper decreased, which caused customers to postpone purchasing. In addition, the high energy costs caused downstream industries to reduce production and control inventories, resulting in a decrease in the sales of products and a decline in revenue. 2. Plastic products: decreased by 99 million (sales volume -61, sales price -38). Due to factors such as inflation and rising interest rate, the downstream industries purchased conservatively, and revenue decreased slightly. 3. Chemical products: increased by 396 million (sales volume +829, sales price -433). a. Phthalate plasticizers: increased by 443 million (mainly from sales volume variance). As the company expanded the external market actively, the sales of 2EH and PA increased, leading to revenue growth. b. EG: increased by 291 million (sales volume +380, sales price -89). Some orders for the Texas EG-2 plant in May were postponed to June, resulting in a relative increase in delivery volume. c. BPA: decreased by 272 million (sales volume -98, sales price -174). Due to the scheduled turnaround of the downstream company, FORMOSA CHEMICALS & FIBRE COMPANY, and the product prices influenced by the competitors' new production capacity, the revenue of BPA decreased. 4. Polyester products: increased by 307 million (sales volume -60, sales price +367). Demands for Polyester Staple Fiber in the US market remained strong, the PET bottle resins entered the summer peak season, and the price of raw material PTA rose by 3.9%, which increased the prices of polyester products and revenue. II. YoY Comparison: Compared to 2021/6, revenue decreased by 2,447 million (7.1% decline), which included 2,624 million decreasing in sales volume variance and 177 million increasing in sales price variance, mainly due to the decrease of electronic material products and chemical products, and the increase of polyester products. 1. Electronic material products: decreased by 2,346 million (sales volume -1,106, sales price -1,240). With the strong demand for PCB, tons of order came, contributing to higher revenue. For the other electronic material products, due to the Russian-Ukrainian war and inflation affecting market consumer confidence, upstream and downstream industries slowed down production and procurement, resulting in a decrease in revenue. 2. Chemical products: decreased by 1,324 million (sales volume -543, sales price -781). a. BPA decreased by 859 million (sales volume +74, sales price -933) Due to the increase in the production capacity of competitors and the slowdown in demand in the downstream electronics industry, the selling price of BPA decreased by 35.9% compared with the same period of last year, and the revenue decreased. b. EG: decreased by 674 million (sales volume -627, sales price -47). Due to the planned shutdown of the Mailiao EG-2 plant and EG-4 plant this June, the overall EG sales and revenue decreased. 3. Plastic products: decreased by 222 million (sales volume -435, sales price +213) Global inflation and rising interest rate affected the purchasing power and the willingness to spend, resulting in lower revenue than last June. 4. Polyester products: increased by 1,452 million (mainly from sales price variance). With the great demand for Polyester Staple Fiber and PET resin in the US market and the rising cost of raw materials (PTA+44.4%), the selling price of polyester products roared, and revenue hiked.