Fri, Dec 22, 2017 - Page 12 News List

Yi Jinn to book disposal gain from facility sale

By Kuo Chia-erh  /  Staff reporter

Polyester yarns maker Yi Jinn Industrial Co Ltd (宜進) yesterday said it expects to book a disposal gain of NT$512.56 million (US$17.09 million) from the sale of the company’s plant in China’s Hangzhou for NT$806.59 million.

The 20,000 ping (66,115.8m2) property in Hangzhou has capital of US$20.5 million, the company said in a filing with the Taiwan Stock Exchange.

The company owns a 98.71 stake in the facility, Yi Jinn spokesman Albert Chang (張恆嘉) said.

The transaction is forecast to contribute earnings per share (EPS) of NT$1.69 in the first quarter of next year, based on Yi Jinn’s 301.65 million issued shares, the company said.

Since entering the Chinese market in 1988, Yi Jinn has sought to achieve asset revitalization and replenish its operational capital through property transactions, the company said, adding that production of polyester products at the Hangzhou plant stopped about 10 years ago.

RENTAL INCOME

In a separate filing, the company said it would buy an office within a building located in Taipei’s Nangang Software Park (南港軟體園區) for NT$610 million.

The company plans to rent the office to Futai Engineering Co Ltd (富台工程), a deal that is expected to give the company a stable rental income of nearly NT$18.88 million per year from a 10-year lease agreement, with a rental yield of 3.1 percent, it said.

The company’s net profit in the first three quarters of this year totaled NT$218.75 million, a 162.6 percent surge from NT$83.29 million the previous year, while sales over the period increased 9.33 percent from NT$3.43 billion to NT$3.75 billion, and operating income rose more than sixfold from NT$22.91 million to NT$176.17 million, company data showed.

Gross margin was 10.89 percent, up from 7.24 percent the previous year, the data showed.

Yi Jinn attributed the strong performance to an upward trend in global petrochemicals prices backed by rising oil prices, as well as a disposal gain of nearly NT$220 million from the sale of its Tainan plant and property to Kerry TJ Logistics Co (嘉里大榮物流) for NT$656.88 million in the first quarter.

Trading in Yi Jinn shares was halted yesterday.

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