08.2020 Group Briefing
2020 General Shareholders’ Meeting of Oriental Union Chemical Corporation - improve the basic competitiveness, innovate, transform and focus on high value products
Oriental Union Chemical Corporation / provided by
Oriental Union Chemical Corporation held the 2020 general shareholders’ meeting on June 16. Last year, the overall supply of main product MEG exceeded the demand and the product price was weak. Fortunately, in recent years, we have promoted the basic competitiveness and transformed the operation strategy of high value products, developed downstream special chemicals and gas related products, so that steady profits were made throughout the year. The consolidated turnover in 2019 is NT $2234122700 (the same below), 30% less than the previous year. The net profit after tax attributable to Oriental Union Chemical Corporation is NT $33618000, EPS is NT $0.04, and cash dividend per share allocated that was approved in the shareholders' meeting was 0.3 yuan.
In the face of the COVID-19 outbreak at the beginning of the year, consumer demand shrank and supply chain was disrupted. The demand for oil is decreasing due to the economic recession, and the oil price slumped coupled with the failure of reduction agreement between Russia and OPEC. International agencies have been revising down the global economic growth forecasts, and the petrochemical industry is not optimistic. With the alleviation of global epidemic in recent days, the ethylene production capacity of China and the United States has increased, the market ethylene supply has become more abundant and the price has declined, the price of glycol products has recovered to a stable level, which is conducive to the expansion of product interest margin, and the market situation has improved. Effective supporting response can be made depending on the market; while the gas industry and specialty chemicals industry have continued to make steady profits. In 2020, the company adheres to a prudent attitude and strives to ensure its growth.
Oriental Union Chemical Corporation continues to implement a number of expansion plans, including the addition of large-scale onshore raw material ethylene storage tanks to solve the multiple sources of raw materials, the expansion of gas business pipeline. With niche products as the focus of the sales, and the overall profit is expected to grow significantly. In response to changes in the market, diversification of special chemicals will be carried out, and the profit of special chemical products in 2019 doubled compared with the previous year. This year, we will actively invest in high-value products such as construction chemicals, special daily chemical lotion products, electronic application chemicals and fine chemicals for PU materials, so as to enhance the added value of special products. We expect that the profits from special chemical products will increase in 2020.
Oriental Union Chemical Corporation will integrate R & D, technology, production, business and other professional teams, provide customers with more complete technical services and better product quality, ensure the company's long-term competitiveness through continuous innovation and transformation, and strive to pursue growth and profit to achieve the corporate vision of sustainable operation.