China Petrochemical Development Corporation announced a NT$2.56 billion profit from land auctions in Kaohsiung, boosting its financial outlook for the second half of the year. The company completed four auctions in August, contributing approximately NT$0.67 per share in profit, which will be accounted for later this year. Sinopec is optimistic about turning a profit in 2024, leveraging strong revenue from these non-core activities.
In its core operations, the market conditions for caprolactam (CPL) and nylon 6—upstream materials for nylon yarn and tire cloth—have improved. As downstream manufacturers stock up ahead of the “Golden September and Silver October” peak season, China Petrochemical Development expects stronger performance in Q4. However, overcapacity in acrylonitrile (AN) continues to pressure the market, though China Petrochemical Development benefits from lower benzene input costs, giving it a competitive edge.
Despite a net operating loss of NT$258 million in H1 2024, the company’s overall net profit reached NT$462 million, supported by land disposal gains. This marks a significant turnaround from the NT$1.822 billion loss reported last year.
