Nan Ya Plastics (1303) investor relations material

Executive summary

• Electronic materials now contribute over 50% of total revenue, driven by AI expansion and cloud hyperscaler CapEx, with significant growth in both volume and price.

• The company operates 99 plants worldwide and employs 28,616 people, reflecting a broad global footprint.

• Strategic diversification into medical materials, composites, and power engineering supports long-term growth.

• Consolidated financial statements reviewed for the six months ended June 30, 2026 and 2025, with a qualified conclusion due to some subsidiaries and investees not reviewed by independent auditors.

• Total assets as of June 30, 2026 were $723,033,450 thousand, up from $610,598,465 thousand as of June 30, 2025.

Financial highlights

• 1H26 consolidated revenue rose to NT$152.24 billion, up from NT$131.27 billion in 1H25, led by electronic materials.

• Operating profit for 1H26 surged to NT$15.10 billion from NT$1.34 billion in 1H25, with all segments showing improved profitability.

• Pre-tax income in 1H26 reached NT$46.84 billion, a sharp turnaround from a loss of NT$3.38 billion in 1H25, boosted by equity income from Nanya Tech and FPCC.

• EPS for 1H26 hit NT$5.17, reversing a loss of NT$0.46 in 1H25, with 2Q26 EPS at NT$3.37.

• Gross profit margin improved to 16% from 8% year-over-year.

Outlook and guidance

• 3Q26 growth is expected to remain tech-driven, with electronic materials, polyester films, and epoxy resins as key drivers.

• Commodity chemicals and polyester face headwinds from seasonal lulls, geopolitical volatility, and feedstock uncertainties.

• High utilization and elevated copper prices are expected to sustain strong ASPs in electronic materials.

• Adoption of new IFRS standards is not expected to have a significant impact on future financial statements.

• The group is evaluating the impact of IFRS 18, effective 2028, which will change income statement presentation and management performance measures.