Formosa Chemicals Announces 2026 Q2 Consolidated Financial Results

1. Factual Date: 115/07/09

2. Company Name: Formosa Chemicals and Fibers Corporation

3. Relationship with Company (Please Enter '本公司' or 'Subsidiary'):本公司

4. Mutual Shareholding Ratio: Not applicable

5. Reason for Occurrence: Announcement of the Company's 2026 Q2 Consolidated Financial Results

6. Response Measures: None

7. Other Matters to be Disclosed (If the subject of the event or resolution is a publicly issued company or above, this material information simultaneously meets the criteria under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act, regarding matters having significant impact on shareholders' rights or securities prices):

I. Comparison of 2026 Q2 Consolidated Results with 2026 Q1:

(1) 2026 Q2 consolidated revenue reached NT$87.15428 billion, an increase of NT$5.4 billion (6.6%) compared to Q1 2026. Volume differences contributed to a decrease of NT$10.43 billion, while price differences contributed to an increase of NT$15.83 billion.

1. Sales Volume:

(a) FCFC (Taiwan): Decreased by NT$8.62 billion

Scheduled maintenance at ARO-3 and SM-2 plants led to reduced production and sales of PX, SM, and raffinate oil returned to Formosa Petrochemical, totaling a decrease of NT$6.95 billion. PS, ABS, and PP prices surged then fell back, causing market price confusion and rising ocean freight costs, leading to customer hesitation and reduced sales by NT$1.58 billion. Phenol downstream customers halted operations or reduced production, decreasing sales by NT$230 million.

(b) FCFC Ningbo: Decreased by NT$2 billion

PS and ABS prices surged then dropped, causing market confusion and customer hesitation, reducing sales by NT$2.17 billion. PIA downstream customers reduced production, lowering pickup demand and impacting sales by NT$450 million. However, PTA demand decreased in Q1 due to the Lunar New Year, but downstream polyester resumed production this quarter, increasing sales by NT$630 million.

(c) Other Subsidiaries:

Taiwan Acetic Acid faced traditional off-season demand from downstream industries, reducing sales by NT$300 million. In contrast, Vietnam FIC's power generation units operated more hours per national grid dispatch schedules, and SPP granules expanded sales based on market conditions, collectively increasing revenue by NT$620 million.

2. Sales Price:

Primarily driven by Middle East conflicts pushing crude oil prices higher, which in turn lifted raw material and product prices. The company also continued optimizing product mix and promoting differentiated specifications to enhance pricing and profitability.

(2) 2026 Q2 consolidated pre-tax profit was NT$7.02 billion, a decrease of NT$280 million compared to Q1 2026, mainly due to:

1. Operating profit decreased by NT$1.2 billion:

After the U.S. and Iran reached a peace agreement in June and reopened the Strait of Hormuz, crude oil and petrochemical raw material prices declined. Some competitors engaged in price-cutting, causing market price confusion. Customers adopted a wait-and-see approach, purchasing only for immediate needs, which pressured product selling prices downward. Additionally, scheduled maintenance of large units reduced production and sales volumes, resulting in lower operating profit.

2. Consolidated non-operating net income increased by NT$920 million:

(a) Cash dividend income increased by NT$800 million, primarily due to increases from Plastics (NT$440 million) and Formosa Plastics (NT$240 million).

(b) Equity-method investment gains increased by NT$720 million, mainly from Plastics (NT$420 million) and Mailiao Power (NT$310 million).

(c) Foreign exchange gains decreased by NT$350 million (NT$0 this quarter; NT$350 million last quarter).

(3) Net profit attributable to owners of the parent in Q2 2026 was NT$6.0925 billion, with earnings per share (EPS) of NT$1.04, a decrease of NT$0.03 per share compared to Q1 2026.

II. Comparison of 2026 H1 Consolidated Results with 2025 H1:

(1) 2026 H1 consolidated revenue reached NT$168.90409 billion, an increase of NT$16.45 billion (10.8%) compared to H1 2025. Volume differences contributed to a decrease of NT$5.09 billion, while price differences contributed to an increase of NT$21.54 billion.

1. Sales Volume:

(a) FCFC (Taiwan): Decreased by NT$690 million

Downstream customers for OX, PTA, and PIA faced weak market conditions and reduced production, lowering pickup demand and decreasing sales by NT$4.2 billion. PS, ABS, and PP implemented lean production, reducing production and sales volumes by NT$3.13 billion. However, PX sales expanded, increasing revenue by NT$4.82 billion. SM internal usage decreased, increasing external sales by NT$1.16 billion. Phenol and acetone, which underwent scheduled maintenance last year, operated normally this year, increasing sales by NT$530 million.

(b) FCFC Ningbo: Decreased by NT$3.62 billion

ABS oversupply and peer price competition led to reduced production and sales to control inventory, impacting sales by NT$1.95 billion. PTA and PIA downstream customers reduced production, lowering pickup demand and impacting sales by NT$1.41 billion. Raffinate oil production and sales adjustments reduced external sales by NT$200 million.

(c) Other Subsidiaries:

Famei decreased by NT$1.11 billion, primarily due to weakened end-consumer demand for long-fiber fabrics and high inventory levels among brand customers reducing orders.

Taiwan Acetic Acid faced weak market conditions, reducing sales by NT$220 million. In contrast, Vietnam FIC increased by NT$550 million, primarily due to expanding industrial-grade SPP granule sales and securing orders based on market conditions, along with increased power generation unit operating hours per national grid dispatch schedules.