Nan Ya Plastics Corporation held its shareholders’ meeting today, approving a cash dividend of NT$0.7 per share. Chairman Wu Chia-Chau announced that Nanya is transforming into an electronics-focused company and has established a “Sustainable Operation and Development Group” to spearhead product, business, low-carbon, and digital transformations. Future products will primarily center around electronic materials.
For 2023, Nan Ya reported consolidated revenue of NT$259.75 billion, a 26.9% year-on-year decrease. Pre-tax profits dropped 80.8% to NT$9.13 billion, with after-tax earnings per share (EPS) at NT$0.8, the second lowest since listing. Wu Chia-Chau acknowledged the challenging business environment but expressed optimism for better results in the second half of the year.
High inflation and rapid interest rate hikes in 2023 led to declining consumption and demand, with competitors expanding capacity and increasing market supply. Nan Ya faced a tough year with conservative purchasing behavior and destocking among manufacturers, reflecting difficult business conditions.
Nan Ya’s main business segments include electronic materials, chemicals, polyester products, and plastic processing. Plastic processing has diversified into medical, electronic materials, and new energy vehicles, achieving stable profits. However, chemical products saw a decline due to reduced global demand and increased competition from Chinese manufacturers. Polyester products also faced profit reductions due to inflation and high interest rates impacting terminal consumption.
Despite poor demand for consumer electronics in 2023 and the ongoing US-China technology war, Wu noted future opportunities in 5G to 6G, electric vehicles, AI, and semiconductor packaging for electronic materials. Nan Ya aims to develop high-speed communications, AI application materials, biotechnology, medical health materials, and low-carbon products.
Nan Ya has completed investment projects including release films, ABF carrier plates, and medical whitening blood bags in Taiwan, and a new soft tape machine in Texas, expecting to generate over NT$12 billion annually. Future investments will continue to focus on new businesses and products to drive growth.
