Dear Shareholders,
As the shareholder of China Synthetic Rubber Corporation (CSRC), you are
cordially invited to attend the Annual General Shareholders’ Meeting (AGM) which
will be held on June 25, 2010. The ROC Company Act requires at least 50% quorum
for holding the AGM. Hence, your attendance or proxy submission is vital to the
AGM. We appreciate your timely attendance and take this as a strong motivation
for us to optimize shareholders’value. |
 |
|
With global financial turmoil in 2009, the demand in carbon black (CB) market
decreased. Although the CB market was gradually recovered in the 2H09, all
makers are facing margin pressures due to intense price competition. Under such
a challenging environment, CSRC continues to focus on the accountability,
teamwork and execution of “Eagle Style Management Principles”, and still make
good accomplishment in the profit of the year 2009. |
|
In 2009, CSRC produced 86K tons and sold 103K tons carbon black, respectively.
The total sales, including power, steam cogeneration and Biotechnology, amounted
to NT$4.34 billion, a 9% decrease from that of 2008. Operating profits amounted
NT$630m and non-operating income amounted NT$114m. Profits before taxes amounted
NT$ 744m and profits after taxes amounted NT$813m. EPS recorded NT$1.85. |
|
In respect of the core business, operating profits decreased by NT$122m in 2009
mainly attributed to the shrinking demand in CB market. Non-operating income
decreased by NT$ 255m mainly due to the lower contribution from subsidiaries. |
|
CSRC, which has seven carbon black plants with total capacity at 680k tons, is
the world’s fifth largest carbon black producer. We successfully developed two
high treadwear CB, fiber-class masterbatch, and high content EVA masterbatch. In
addition, we made progresses in inventing value-added products, such as high
treadwear with low heat Generation, high tint, high conductive CB, carbon
nanotubes and etc.. All our efforts is to enhance value added products and
customer service, select favorable market to expand the plant investment,
introduce the energy recovery to the carbon black production process, and reduce
production cost to a more competitive posture, towards the world's most
competitive CB manufacturers. |
|
In 2010, the global economy has gradually recovered, especially in China, India
and other emerging countries, and the industries of automobile and tire
industries are still rapidly developed. In order to response the market demand,
we actively expand our productions in the factories of China and India. |
|
CSRC will continue to enhance the technical quality and manufacturing methods,
to develop high margin and high value-added new products, to practice energy
saving and lower cost of strategies. By stabilizing market share and achieving
profitability targets, we expect to create the greatest interest of all the
shareholders. In 2010, the operating target of the company is 105K tons of CB
sales and production, as well as 61m tons of steam production. I would urge
shareholders to continue to support and supervise advanced. |
|
|
|
|