Far Eastern New Century (1402) Q2 2026 earnings summary

Executive summary

• 1H26 basic and diluted EPS were NT$1.15 each, versus NT$0.66 and NT$0.65, respectively.

• Production returned to profitability in 2026; 2Q26 production operating profit was NT$1.1B, its highest since 2Q22.

• A NT$1.9B gain was recorded from a real estate disposal in Kuanyin District in 1Q26.

• Auditors issued a qualified review conclusion because certain subsidiaries, joint operations and associates were not reviewed.

Financial highlights

• H1 revenue was NT$130.565B versus NT$123.801B; net income was NT$10.938B versus NT$7.657B.

• Q2 revenue was NT$69.273B versus NT$60.086B; net income was NT$5.385B versus NT$3.120B.

• H1 operating income was NT$10.117B versus NT$9.898B; Q2 profit from operations was NT$5.22B, up 44% year over year.

• H1 total comprehensive income was NT$15.336B, reversing a NT$5.146B loss; OCI included NT$9.314B in hedge losses.

• H1 operating cash flow was NT$15.842B versus NT$17.873B; cash and equivalents ended at NT$43.643B.

Outlook and guidance

• Demand for virgin and recycled PET is strengthening, supported by resilient and diversified supply chains.

• Regulatory trends and mandates in major markets are expected to drive further global demand for recycled PET.

• Sustainability target: 50% of products and raw materials to be green by 2030.