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Financial Results For The 2nd Quarter of 2021

2021-08-20 5830

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 2nd quarter of 2021.

2021 Q2 Financial Results

 

w   Consolidated revenue for the quarter was NT $ 2.235 billion, an increase of 4% from the previous quarter and an increase of 5% from the same period last year. The revenue composition ratio of each product is renewable energy (53.1%), injection molding machines (21.5%), and industrial machinery (25.4%).

w   The tonnage shipped during the quarter was 50,451 tons, an increase of 11% from the previous quarter and an increase of 9% from the same period last year.

w   Consolidated gross margin for the quarter was 20%, a decrease of 6 percentage points from the previous quarter's 26%; a decrease of 2 percentage points from the 22% for the same period last year.

w   The net operating margin for the quarter was 3%, a decrease of 6 percentage point from the previous quarter's 9%; a decrease of 4 percentage points from the same period last year’s 7%.

w   After-tax net profit for the quarter was NT$ 141 million, after-tax net profit for the previous quarter was NT$ 126 million, and after-tax net profit for the same period last year was NT$ 193 million; this quarter ’s earnings per share was NT$ 1.27, net profit per share for the previous quarter was NT$ 1.13, and net profit per share for the same period last year was NT$ 1.82.

w   In the first half of the year, the cumulative consolidated revenue was NT$4.38 billion, the cumulative net profit after tax was NT$ 267 million, and the EPS was NT$2.41.

Operational Outlook

The following statements about future prospects are based on expectations of the current situation, but at the same time subject to known or unknown risks or uncertainties. Please refer to the attached "Disclaimer".

w   Although the COVID-19 epidemic continues to affect the world, most advanced economies have introduced vaccines and eased social distancing measures, and the global economy has achieved strong growth at least in the short-term, with long term outlook more uncertain. Yeong Guan continues to actively maintain frequent contact with customers to understand the latest market trends and needs. Since the mainland Chinese market experienced a surge in onshore wind power installations last year, customer inventories were high this year. The demand for wind turbine in the second quarter has declined compared with the end of last year. Fortunately, this year's mainland China market ushered in a surge in offshore wind power installations that will help increase our shipment volumes. Customer demand for injection molding machines and industrial machinery rose each month during the second quarter, benefiting from the relative slowdown of COVID-19 spread in major countries around the world, which drove a significant rebound in corporate capital investment and private consumption.

w   Looking forward to the third quarter, due to the impact of weather (typhoons, heavy rainfall, etc.) and the indirect impact of the strengthening of the prevention and control measures of the COVID-19 Delta variant in mainland China, the operation of major Chinese ports and the capacity of container shipments will be affected in the short term, thus our export shipment volume of could be delayed temporarily. In response to the port congestion and to meet the needs of European customers, Yeong Guan also actively communicating with customers to find other transportation methods (such as railway) to reduce the impact of port congestion. Regarding the adjustment of the Chinese wind energy market, Yeong Guan continues to actively develop new customers in injection molding machines and industrial machinery sectors, rapidly adjusting our production lines to customers with immediate demand and thus ensure more output. At the same time, Yeong Guan continues to negotiate with customers for price adjustments to reflect the current higher raw material prices and implement lean production concepts in production to strive for maximum productivity.

Revenue and Shipment by quarter


3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

Revenue/NTD K

2,168,195

2,228,818

1,130,199

2,135,664

2,430,601

2,487,810

2,145,708

2,234,752

shipment/tons

45,237

45,612

24,222

46,328

52,370

53,612

45,622

50,451

Revenue %

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

Renewable

Energy

59.4%

66.6%

60.7%

67.0%

72.8%

67.4%

60.3%

53.1%

Injection Molding   Machine

16.7%

14.6%

17.7%

14.1%

11.7%

14.4%

18.4%

21.5%

Industrial   Machinery

23.9%

18.8%

21.6%

18.9%

15.5%

18.2%

21.3%

25.4%


 

 

Safe Harbor Notice

This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Except as required by law, we undertake no obligation to update any forward – looking statements, whether as a result of new information, future events or otherwise.

 


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