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

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Provided by: NAN YA PLASTICS CORPORATION
SEQ_NO	1	Date of announcement	2022/08/08	Time of announcement	13:30:52
Subject	Nan Ya Plastics Corporation July 2022 non-audited Consolidated Operating Revenue Announcement
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: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 July 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 July 2022 was 27,971 million, which decreased by 4,181 million (13.0% decline) compared to June, with 2,885 million decreases in sales volume variance and 1,296 million decreases in sales price variance. There was a difference from the original forecasts estimated to remain constant compared to last month. It was mainly due to the considerable reduction in production of EG caused by loss, and the significant reduction in the sales volume and price of BPA, resulting in a decrease in overall revenue compared with June. In terms of sales of other products, some increased, while the others decreased. The demand for PCB was high leading to an increase in revenue. The price of Epoxy resins decreased in reaction to dropping material costs. The delivery volume of polyester products decreased due to the Independence Day holiday in the US. 1. Chemical products: decreased by 2,327 million (sales volume -1,715, sales price -612). a. EG: decreased by 1,000 million (sales volume -981, sales price -19). The production of EG reduced because of the losses, and the sales of EG also decreased. Moreover, the production of the Texas EG-2 plant decreased because the upstream material Ethylene plant was under overhaul, leading to declining revenues. b. BPA: decreased by 655 million (sales volume -382, sales price -273). As the market expected that the Russian-Ukrainian war and the global inflation wouldn't resolve in a short time, the consumption willingness reduced, and the sales volume and selling price of products declined. c. Phthalate plasticizers: decreased by 558 million (sales volume -376, sales price -182). The market supplies increased because competitors resumed work after the scheduled turnaround, leading to a decrease in revenue. 2. Polyester products: decreased by 894 million (sales volume -789, sales price -105). Demands for Polyester products in the US market remained stable. However, affected by the downstream shut down during the Independence Day holiday, the volume of shipments and revenues decreased this month. 3. Electronic material products: decreased by 736 million (sales volume -181, sales price -555). The revenue of PCB products increased as the orders for communication networks and computer-related products were stable. Nevertheless, the selling price and sales revenue of Epoxy resins decreased due to decreasing material prices. Revenue of other electronic material products either remained or decreased slightly. 4. Plastic products: decreased by 160 million (sales volume -136, sales price -24). With an expected dropping in material prices, customers deferred placing orders and prioritized destocking, leading to a decrease in revenue. II. YoY Comparison: Compared to 2021/7, revenue decreased by 8,825 million (24.0% decline), which included 7,701 million decreasing in sales volume variance and 1,124 million decreasing in sales price variance. The main reason was that last year's revenue grew rapidly and repeatedly hit record highs while economic growth momentum slowed down this year. In terms of PCB and US market polyester products, the operating performance was stable and revenue increased. However, the sales of other products decreased compared to last year. 1. Chemical products: decreased by 4,934 million (sales volume -3,839, sales price -1,095). a. BPA decreased by 2,124 million (sales volume -1,152, sales price -972) Due to the increase in competitors' production capacity and the declining demand of the downstream PC and electronics industry, the revenue decreased. b. EG: decreased by 1,659 million (sales volume -1,557, sales price -102). Due to the planned shutdown of the Mailiao EG-1 plant and EG-4 plant this July, the overall EG sales and revenue decreased. 2. Electronic material products: decreased by 4,109 million (sales volume -2,354, sales price -1,755). Due to the continuous development of high-end products with complicated manufacturing processes and long lead time, the supply and demand gap extended and the revenue of PCB increased. In terms of other electronic material products, compared to the operating performance peak last year, the downstream electronics industry became conservative and controlled inventories carefully, resulting in declining orders and revenue. 3. Plastic products: decreased by 357 million (sales volume -536, sales price +179) The Russian-Ukrainian war, global inflation, and rising interest rate affected the purchasing power, resulting in lower revenue than last July. 4. Polyester products: increased by 740 million (sales volume -808, sales price +1,548). The climbing Consumer Price Index affected consumption willingness. Sales in Asia decreased while local purchasing increased in the US as the import of polyester products declined because of port congestion and expensive shipping costs. Therefore, orders for the South Carolina polyester plants grew, and the selling price rose, increasing revenue.