China Paper Pulp (1905) today held the first-quarter conference meeting of 2017. The company announced that the first-quarter consolidated revenue was NT$5.75 billion, down 6.6% quarter-over-quarter. The decline was due to the Chinese New Year and the 228 holiday both reducing working hours in the period. However, also due to pulp prices being higher than prior-year figures, revenue was seen still increased by 3.7% quarter-over quarter. Negatively impacted by the mounting cost of pulp and energy, and compounded by the Hualien earthquake, as well as the increasing need for purchasing pulp from outside, the cost of goods sold this quarter went up 7% compared to the figure in 2017. On the other hand, first quarter’s gross margin rate declined to 7.8%, down 2.6 percentage points compared to the prior year’s figure, and net profit margin rate of 1.0%, declined 2.6 percentage points compared to the prior year’s figure.
Gain on currency exchange and the change of profit recognition to equity method made a positive impact on the company’s non-operating income and expenses, bringing net-income from non-operational activities for the first quarter to NT$50 million. Net profit after tax for the first quarter was NT$76 million, of which the company owns NT$45 million, and the single-quarter earnings per share was NT$0.04.
In the second quarter, part of CHP’s plants will be undergoing routine calibration. At the same time, environmental protection regulations are getting increasingly stringent among international institutions and thus will keep pushing up the prices of raw materials. Whatever happens, Chung Hwa Pulp will continue to enhance the company’s overall operational performance by monitoring the risks caused by the changes of raw-material prices, making timely adjustments in its production and sales, solidifying the company’s operational strategies, and improving the company’s production quality, therefore creating an edge in its product competitiveness.
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Deputy General Manager Ray Chen Tel: 02-2396-2998 Ext 3877
Finance Manager Guanjun Lin Tel: 02-2396-2998 Ext 3749
