Press Release for Yeong Guan’s 2020 Q3 consolidated financial results
Dear Investors,
YG Group-KY (1589) hereby announces its financial results for the 3rd quarter of 2020.
2020 Q3 Financial Resultss
◆ Consolidated revenue for this quarter was NT$2.431 billion, an increase of 13.81% from the previous quarter; an increase of 12.10% from
the same period last year.
◆ The tonnage shipped during the quarter was 52,370 tons, an increase of 13.04% from the previous quarter and an increase of 15.77%
from the same period last year. The revenue composition ratio of each product is renewable energy (72.8%), injection molding machines
(11.7%), and industrial machinery (15.5%).
◆ Consolidated gross margin for the quarter was 24%, an increase of 2 percentage points from the previous quarter's 22%; an increase of 6
percentage points from the 18% for the same period last year.
◆ The net operating margin for the quarter was 12%, an increase of 5 percentage point from the previous quarter's 7%; an increase of 7
percentage points from the same period last year’s 5%.
◆ Net profit after tax for this quarter was NT$207 million, net profit after tax for the previous quarter was NT$193 million, and net
profit after tax for the same period last year was NT$80 million; earnings per share for the quarter were NT$1.94, earnings per share
for the previous quarter It was NT$1.82, and the earnings per share in the same period last year was NT$0.75.
◆ The cumulative consolidated revenue for the first three quarters was NT$5.696 billion, the cumulative net profit after tax was NT$287
million, and the earnings per share were NT$2.70.
2020 Q3 Review and 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".
2020 Q1-Q3 Data
Revenue/NT$1000 | 20Q1-3 | 19Q1-3 | YoY |
Renewable Energy | 3,886,107 | 2,895,173 | 34.2% |
Injection Molding Machine | 785,313 | 1,253,230 | -37.3% |
Industrial Machinery | 1,025,044 | 1,522,765 | -32.7% |
Total | 5,696,464 | 5,671,168 | 0.4% |
◆ Due to the strong demand for wind energy products in mainland China and the European and American markets, the renewable energy
revenue continued to grow in the third quarter and YG achieved new records for single-quarter revenue and shipments. The business of
injection molding machines and industrial machinery product was affected by factors such as the COVID-19 epidemic and China-US trade
frictions, which lead to customers reducing demand and inventory.
◆ Looking forward to the fourth quarter, since most of the new wind farms in mainland China are located in the north, the installation
progress will be affected by the winter climate, which will slightly slow down the shipment of wind energy products in the region. The
demand for wind energy customers in Europe and the United States as well as injection molding machines and industrial machinery
continues to trend steadily. Therefore, we expect that shipments in the fourth quarter will grow slightly from the second quarter.
◆ The COVID-19 epidemic situation is getting worse in some countries in Europe and America. YG continues to maintain close contact with
our European and American customers and monitor their status. At present, the operations of our European and American customers has
not been affected by the new wave of COVID-19 infections, and the our shipments to European and American customers remains normal.
Revenue and Shipment by quarter
4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | |
Revenue/NTD K | 1,702,768 | 1,552,357 | 1,950,616 | 2,168,195 | 2,228,818 | 1,130,199 | 2,135,664 | 2,430,601 |
shipment/tons | 36,007 | 32,619 | 40,649 | 45,237 | 45,612 | 24,222 | 46,328 | 52,370 |
Revenue % | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 |
Renewable Energy | 38.8% | 43.3% | 47.9% | 59.4% | 66.6% | 60.7% | 67.0% | 72.8% |
Injection Molding Machine | 29.2% | 26.9% | 24.3% | 16.7% | 14.6% | 17.7% | 14.1% | 11.7% |
Industrial Machinery | 32.0% | 29.8% | 27.8% | 23.9% | 18.8% | 21.6% | 18.9% | 15.5% |
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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