Announcement of FPC unaudited consolidated results in Q4 and year of 2024

 Announcement of FPC unaudited consolidated
results in Q4 and year of 2024

1.Date of occurrence of the event:2025/01/10
2.Company name:Formosa Plastics Corporation
3.Relationship to the Company (please enter "head office" or
  "subsidiaries"):head office
4.Reciprocal shareholding ratios:N/A
5.Cause of occurrence:Announcement of FPC unaudited consolidated results
in Q4 and year of 2024
6.Countermeasures:None
7.Any other matters that need to be specified (the information disclosure
  also meets the requirements of Article 7, subparagraph 9 of the Securities
  and Exchange Act Enforcement Rules, which brings forth a significant impact
  on shareholders rights or the price of the securities on public companies.):
1. Compared unaudited consolidated sales in Q4 2024 and Q3 2024:
(1). The consolidated sales of NTD 50.33bn in Q4 2024 decreased by
NTD 0.16bn and was slightly down by 0.3% from Q3 2024. The reasons were
as follows:
1. The sales spread of price decreased by NTD 1.81bn.
The price of each product of the Company in Q4 2024 was down by 5~16% from
Q3 2024, given (1) the   peers restarted production after turnaround with
new capacities into the market, causing increased supply, (2) the price of
Dubai crude oil and the average contract price of ethylene and propylene in
Q4 2024 were down by 6.2%, 1.8% and 3% respectively from Q3 2024.
2. The sales spread of volume increased by NTD 1.65bn.
A. The sales volume of PVC in Q4 2024 increased by 30,000 MT from Q3 2024
because the PVC plants of Mailiao, Linyuan and Ningbo had arranged
turnaround in August.
B. The sales volume of EVA in Q4 2024 increased by 15,000 MT from Q3 2024,
given (1) the Company successfully developed solar encapsulation film in
Q4 2024 and expanded sales in Asia market, and (2) the traditional peak
season for shoe material demand in Q4.
C. The sales volume of PP in Q4 2024 increased by 14,000 MT from Q3 2024
because China  implemented the stimulus economic policies to improve
domestic demand, including replacement of home appliances and automobiles,
making the demand of PP increased.
(2). The operating loss of NTD 1.38bn in Q4 2024 decreased by NTD 0.13bn
from Q3 2024. The consolidated pre-tax loss of NTD 0.91bn in Q4 2024
decreased by NTD 2.33bn from Q3 2024. The pre-tax EPS was NTD -0.14 and
the consolidated after-tax profit of NTD 0.23bn in Q4 2024, turning
profitable compared to Q3 2024, and the profit increased by NTD 3.33bn
from Q3 2024. The after-tax EPS was NTD 0.04. The reasons were as follows:
A.The Company's operating at a continuous loss, because the cost of
ethylene and propylene remained high and the new capacities from peers,
making the market oversupply with low price, even though
the number of turnaround plants in Q4 2024 were decreased from Q3 2024,
increasing the operating rates and production and sales volume.
B. Investment profit of NTD 0.32bn in Q4 2024 increased by NTD 1.91bn
compared to NTD -1.59bn in Q3 2024, given:
a. Investment profit from Formosa Petrochemical Corporation in Q4 2024 was
NTD 0.36bn increased by NTD 1.22bn from the investment loss NTD 0.86bn in
Q3 2024.
b. Investment loss from Formosa Plastics Corporation, U.S.A. in Q4 2024
was NTD 0.32bn decreased by NTD 0.43bn due to bullish ethane and natural
gas prices, making higher material cost and narrowed margins.
c. Investment loss from Fujian Fuxin Special Steel Corporation in Q4 2024
was NTD 0.31bn decreased by NTD 1.33bn from the investment loss NTD 1.64bn
in Q3 2024.
C. The cash dividends in Q3 2024 were NTD 0.86bn.
D. The FX gain of NTD 0.57bn in Q4 2024 increased by NTD 1.01bn from the
FX loss of NTD 0.44bn in Q3 2024.
2. Compared unaudited consolidated sales in 2024 and 2023:
(1). The consolidated sales of NTD 200bn in 2024 increased by NTD 0.9bn
and was up by 0.5% from 2023. The reasons were as follows:
A. The sales spread of volume increased by NTD 2.76bn.
a.The total sales volume of PP of the Company in 2024 increased by
120,000 MT from 2023, given (1) the Ningbo PDH plant completed and started
production in early 2024 and the materials of propylene supply was
sufficient, and (2) China continuously implemented the stimulus economic
policies, making sales and production volume both increased.
b. The total sales volume of PVC of the Company in 2024 increased by
44,000 MT from 2023, because PVC plants in Taiwan completed the
debottlenecking project, making sales and production volume both increased.
B. The sales spread of price decreased by NTD 1.86bn.
The average price of EVA of the Company in 2024 was down by 22% from 2023,
given (1) the demand of EVA sharply decreased due to the US government
implemented anti-dumping and anti-subsidies investigations on solar
modules from four Southeast Asian countries, and (2) the lower price
due to new capacities from EVA peers commenced production.
(2). The operating loss of NTD 4.16bn in 2024 increased by NTD 0.13bn from
the operating loss in 2023. The consolidated pre-tax loss of NTD 2.45bn
in 2024 decreased by NTD 9.45bn and was down by 135% from 2023. The pre-tax
EPS was NTD -0.39 and the consolidated after-tax loss of NTD 1.27bn in 2024
decreased by NTD 8.61bn and was down by 117% from 2023. The after-tax EPS
was NTD -0.2. The reasons were as follows:
A. The Company's operating at a continuous loss in 2024, given (1) the
sluggish real estate market and weak domestic demand in China because of
the lower-than-expected economic recovery, and (2) the oversupply market and
low petrochemical product price due to the new capacities from peers
continued to be commenced.
B. Investment income of NTD 1.79bn in 2024 decreased by NTD 6.15bn from 2023,
given:
a. Investment income from Formosa Petrochemical Corporation in 2024 was
NTD 1.72bn, decreased by NTD 4.51bn from 2023.
b. Investment income from Formosa Plastics Corporation, U.S.A. in 2024 was
NTD 0.3bn decreased by NTD 0.9bn from 2023 mainly due to the decline in
petrochemical product prices.
c.  Investment loss from Fujian Fuxin Special Steel Corporation was
NTD 3.23bn in 2024 increased by NTD 0.74bn from NTD 2.49bn in 2023.
C. Cash dividend of NTD 1.06bn in 2024 decreased by NTD 2.61bn from 2023.
D. The FX gain of NTD 0.6bn in 2024 increased by NTD 0.62bn from the FX
loss of NTD 0.02bn in 2023.