2019 Self-settling Profit Press Release
Dear Investor,
YG Group-KY(1589) hereby announces its self-settlingfinancial results for the year 2019 and the 4th quarter of 2019。
2019 Annual Financial Results
◆ Consolidated revenue for the year was NT$7.90 billion,an increase of 27.5% over last year。
◆ The tonnage shipped this year was 164,117 tons,an increase of 22.9% over the same period last year。
The revenue compositionratio of each product is renewable energy(55.4%),injection molding
machine(20.0%),and industrial machinery(24.6%)。
◆ Consolidated gross margin for the year was 17.3%,an increase of 3.9 percentage points from 13.4% last
year。
◆ The net operating margin for the year was 2.7%,an increase of 6.7 percentage points from last
year's -4.0%。
◆ Net profit after tax for the current year was NT$164 million,an increase of NT$438 million from the
net loss after tax of NT$274 million last year。
◆ Earnings per share for the year were NT$1.54,an increase of NT$4.02 from the net loss per share of
NT$2.48 last year。
◆ 2019 Revenue and annual growth rate:
Revenue/NT $1k | 2019 | 2018 | YoY |
Renewable Energy | 4,379,578 | 1,694,972 | 158.4% |
Injection Modeling Machine | 1,579,157 | 2,225,987 | -29.1% |
Industrial Machinery | 1,941,251 | 2,274,896 | -14.7% |
Total | 7,899,986 | 6,195,855 | 27.5% |
◆ With the substantial efforts of our employees,we were able to turn a profit last year under the
unfavorable environment of the injection molding machine and industrial machinery market。Given
the long-term visibility of renewable energy orders and the strong demand from renewable energy
customers in all regions of the world,we will continue to increase our capacity for onshors and
offshore wind energy products。The renewable energy market accounted for more than 60% of
our revenue in the fourth quarter of 2019, and we expect that renewable energy demand shall
remain our main drive for growth in 2020 as well。In the injection molding machine and industrial
machinery markets, we are relatively conservative about the future outlook due to the global
impact of the COVID-19 outbreak。
2019 Q4 Financial Results
◆ Consolidated revenue for the quarter was NT$2.229 billion,an increase of 3% from the previous
quarter and an increase of 31% from the same period last year。
◆ The tonnage shipped during the quarter was 45,612 tons,an increase of 1% from the previous quarter
and an increase of 27% from the same period last year。The revenue composition ratio of each product
is renewable energy(66.6%)。
◆ Consolidated gross margin for the quarter was 20.6%,an increase of 2.6 percentage points from the
previous quarter's 18.0%;an increase of 5.0 percentage points from the 15.6% for the same period
last year。
◆ The net operating margin for the quarter was 4.4%,a decrease of 0.4 percentage point from the
previous quarter's 4.8%;an increase of 6.1 percentage points from the same period last year -1.7%。
◆ Net profit after tax for the quarter was NT$171 million,net profit after tax for the previous quarter
was NT$80 million,and net loss after tax for the same period last year was NT$60 million;earnings
per share for the quarter was NT$1.63。The earnings per share for last quarter was NT$0.75,and the
net loss per share for the same period last vear was NT$0.55。
Due to the strong recovery of wind power demand,the revenue of renewable energy in the fourth quarter has increased significantly compared with the same period of the previous year。Revenues from injection molding machines and industrial machinery were decreased and its growth uncertain due to factors such as the China-US trade war,which caused our injection molding machines and industrial machinery customers to delay their orders。
2020 Operational Outlook
The following statements about future prospects are based on expectation of the current situation,but at the same time subject
to known or unknown risks or uncertainties,please refer to the attached“Disclaimer”。
◆ For the performance in the first quarter of 2020,due to the outbreak of the COVID-19 virus,the
Chinese government required companies to postpone the start of work after the Spring Festival in
order to control the disease.The employees of YG Group in Mainland China also assisted the local
government in all infection prevention efforts in a timely manner,and the subsidiaries of YG group
in Mainland China also successively obtained permits to resume work from the local government between
February 17 and 21。 In order to ensure that YG Group's subsidiaries are fully protected against the
spread of COVID-19 internally and to effectively avoid secondary shutdowns due to COVID-19 diagnosis
of the company's employees after resumption of work,we have arranged so that once our employees
return to the cities of our factories they need to be quarantined at their residence for a period of time
before theycan return to work。Thus there are no COVID-19 infections occurring in YG Group's
subsidiaries at thepresent。It is expected that our production in March will be restored to 70% of normal
production capacity,and production output will gradually resume to normal。It is expected that the
revenue of the first quarter of 2020 will be greatly affected by the COVID-19 outbreak situation。
◆ Looking forward to the 2020 shipment target,considering with the realities described above,YG
Group estimates that it will grow by 10-20%(180,000-196,000 tons)on the base of 2019 shipments
(164,000 tons)。
Chart 1: Revenue and Shipment by quarter
1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | |
Revenue/NT $1k | 1,272,854 | 1,662,228 | 1,558,005 | 1,702,768 | 1,552,357 | 1,950,616 | 2,168,195 | 2,228,818 |
shipment/tons | 28,322 | 36,471 | 32,762 | 36,007 | 32,619 | 40,649 | 42,237 | 42,612 |
% | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 |
Renewable Energy | 23.6% | 22.2% | 23.5% | 38.8% | 43.3% | 47.9% | 59.4% | 66.6% |
Injection Modeling Machine | 40.8% | 38.7% | 36.3% | 29.2% | 26.9% | 24.3% | 16.7% | 14.6% |
Industrial Machinery | 35.6% | 39.1% | 40.2% | 32.0% | 29.8% | 27.8% | 23.9% | 18.8% |
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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