According to the recent financial performance report from the International Zhongce Rubber Group Company in Taiwan, the company announced the business results for the third quarter of 2022. The cumulative total revenue for the first three quarters of this year was 13.428 billion New Taiwan Dollars, a decrease of 24.35% compared to the same period last year, which was 17.75 billion New Taiwan Dollars. The cumulative Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) amounted to 1.44 billion New Taiwan Dollars, a decrease of 50.73% compared to the same period last year. The net profit attributable to the parent company was negative, with a loss of 332 million New Taiwan Dollars, whereas it was a profit of 758 million New Taiwan Dollars in the same period last year.
When commenting on the impact of the global economic environment on business performance, the company expressed that, despite the rebound in global new car sales in 2023 compared to the previous year, factors such as inflationary pressure, U.S. interest rate hikes, and sluggish recovery in China have affected downstream industries, leading to continued destocking. Additionally, the high-interest environment significantly increased operating costs, and the growth in new car sales did not meet expectations, making it difficult to transfer costs. Among the major operating regions of the International Zhongce Rubber Group, the Taiwan market showed relative stability, while the U.S. market faced challenges due to weak demand for commercial vehicle tire replacements, competition from low-priced imports in the Indian market, and factors such as significant fluctuations in coal tar prices and weak tire demand in China, putting pressure on the carbon black business and resulting in a substantial decline in performance.
As one of the few global manufacturers using waste tire pyrolysis oil (TPO) to produce carbon black, the International Zhongce Rubber Group implemented an innovative approach by transforming TPO from fuel to raw material oil. In March of this year, the Chongqing plant first replaced TPO with natural gas as fuel, and from May to July, the Linyuan plant also completely switched to gas fuel. By using TPO as a raw material and making technical adjustments for reuse in tire materials, the company achieved the utilization of recycled oil materials.
With the rapid rise of electric vehicles, there is a significant increase in demand for lithium batteries. The developed conductive additive carbon black by the International Zhongce Rubber Group contributes to maintaining the efficiency of battery charge and discharge cycles. Furthermore, the popularity of electric vehicles will increase the demand for energy storage, and the expansion of renewable energy usage will ignite an upgrade wave in the power grid, benefiting the expansion of the wire and cable market. The sales volume of carbon black used in cables by the International Zhongce Rubber Group continues to grow steadily.
The International Zhongce Rubber Group actively expands its technological patent layout, with the PAHs rapid analysis method and EREBOS reactor technology having obtained patent protection in Taiwan. Currently, patents are being applied for in mainland China and the United States. Additionally, two EREBOS post-modification technologies are in the process of patent application in Taiwan. The company will continue to focus on strengthening quality and processes, taking a market-oriented approach, and developing high-tech products to achieve a differentiated advantage in the competitive carbon black market.