Taiwan Chemical Fiber Corporation Announces 2026 Second Quarter Consolidated Earnings

Release Date: 1150710 Announcement Date: 1150709 Announcement Time: 14:30:28 Company Code: 1326 Company Name: Taiwan Chemical Fiber Subject: Announcement of the Company's 2026 Second Quarter Self-Consolidated Profit and Loss Clause: Clause 51 Date of Fact: 1150709 Explanation: 1. Date of Fact: 115/07/09 2. Company Name: Taiwan Chemical Fiber Corporation 3. Company Relationship (Please enter the parent company or subsidiary): Parent Company 4. Mutual Shareholding Ratio: Not Applicable 5. Reason for Occurrence: Announcement of the Company's 2026 Second Quarter Self-Consolidated Profit and Loss 6. Response Measures: None 7. Other Matters to be Stated (If the subject of the event or resolution is a publicly issued company or above, this major information also meets the items specified in Article 7, Paragraph 9 of the Securities Exchange Act Enforcement Rules that have a significant impact on shareholders' rights or securities prices): I. Comparison of 2026 Second Quarter Self-Consolidated Profit and Loss with 2026 First Quarter: (a) The consolidated revenue for the second quarter of 2026 was 87.15428 billion NT dollars, an increase of 5.4 billion NT dollars or 6.6% compared to the first quarter of 2026. The quantity difference decreased by 10.43 billion NT dollars, and the price difference increased by 15.83 billion NT dollars. 1. Sales Volume: (a) Taiwan Chemical Fiber: Decreased by 8.62 billion NT dollars ARO-3 and SM-2 plants arranged for regular maintenance, PX, SM production and sales volume, and residual oil resale to Taiwan Plastics, totaling a decrease of 6.95 billion NT dollars; PS, ABS, and PP surged and then fell, market price chaos, and increased ocean freight, affecting customer wait-and-see attitude, sales decreased by 1.58 billion NT dollars; downstream customers of phenol reduced production, sales decreased by 0.23 billion NT dollars. (b) Taiwan Chemical Fiber Ningbo: Decreased by 2 billion NT dollars PS, ABS market surged and then fell, market price chaos, customer wait-and-see attitude, sales decreased by 2.17 billion NT dollars; downstream customers of PIA reduced production, reduced demand for pickup, affecting 0.45 billion NT dollars. In addition, PTA in the first quarter was affected by the demand reduction due to the Spring Festival, and the downstream polyester resumed production in this quarter, sales increased by 0.63 billion NT dollars. (c) Other Subsidiaries: Taiwan Acetic Acid encountered the traditional off-season of downstream, sales decreased by 0.3 billion NT dollars. In addition, Vietnam FIC power generation unit coordinated with the national grid dispatch to increase operating hours, and SPP granules expanded sales in line with the market, totaling an increase of 0.62 billion NT dollars. 2. Selling Price: Mainly due to the Middle East conflict pushing up oil prices, driving up raw material and product prices, and continuously adjusting product combinations and promoting differentiated specifications to improve prices and profits. (b) The consolidated pre-tax profit for the second quarter of 2026 was 7.02 billion NT dollars, a decrease of 0.28 billion NT dollars compared to the first quarter of 2026, mainly due to: 1. Operating profit decreased by 1.2 billion NT dollars: After the US-Iran peace agreement was reached in June and the Strait of Hormuz was opened, oil and petrochemical raw material prices fell, and some competitors cut prices, affecting market price chaos, customer wait-and-see attitude, only replenishing just-in-time needs, affecting product selling prices under pressure to fall, plus large equipment arranged for regular maintenance, production and sales volume decreased, resulting in a decrease in operating profit. 2. Consolidated non-operating net income increased by 0.92 billion NT dollars: (a) Cash dividends increased by 0.8 billion NT dollars, mainly Taiwan Plastics increased by 0.44 billion NT dollars, Taiwan Plastics increased by 0.24 billion NT dollars. (b) Equity method investment income increased by 0.72 billion NT dollars, mainly Taiwan Plastics increased by 0.42 billion NT dollars, Mailiao Gas Power increased by 0.31 billion NT dollars. (c) Foreign exchange gains decreased by 0.035 billion NT dollars (-/this quarter; 0.035 billion NT dollars/last quarter). (c) The net profit attributable to the parent company for the second quarter of 2026 was 6.0925 billion NT dollars, with earnings per share of 1.04 NT dollars, a decrease of 0.03 NT dollars per share compared to the first quarter of 2026. II. Comparison of 2026 First Half Self-Consolidated Profit and Loss with 2025 First Half: (a) The consolidated revenue for the first half of 2026 was 16.89409 billion NT dollars, an increase of 1.645 billion NT dollars or 10.8% compared to the first half of 2025. The quantity difference decreased by 0.509 billion NT dollars, and the price difference increased by 2.154 billion NT dollars. 1. Sales Volume: (a) Taiwan Chemical Fiber: Decreased by 0.069 billion NT dollars Downstream customers of OX, PTA, and PIA had poor market conditions and reduced production, reducing demand for pickup, sales decreased by 0.42 billion NT dollars; PS, ABS, and PP promoted lean production, production and sales volume decreased by 0.313 billion NT dollars. In addition, PX expanded sales, increased by 0.482 billion NT dollars; SM self-use decreased and external sales increased by 0.116 billion NT dollars; Phenol ketone arranged for regular maintenance last year, production and sales were normal this year, increased by 0.053 billion NT dollars. (b) Taiwan Chemical Fiber Ningbo: Decreased by 0.362 billion NT dollars ABS supply surplus and price-cutting competition from competitors, reduced production and sales volume to control inventory, affecting 0.195 billion NT dollars; downstream customers of PTA and PIA reduced production, reduced demand for pickup, affecting 0.141 billion NT dollars; residual oil production and sales adjustment reduced external sales by 0.02 billion NT dollars. (c) Other Subsidiaries: Fuma decreased by 0.111 billion NT dollars, mainly due to the weakening of terminal consumption of long-fiber fabric and high inventory of brand customers, resulting in reduced orders. Taiwan Acetic Acid had poor market conditions, sales decreased by 0.022 billion NT dollars. In addition, Vietnam FIC increased by 0.055 billion NT dollars, mainly due to the expansion of SPP granules to industrial yarn specifications and market-based order acquisition, and the increase in operating hours of power generation units in line with the national grid dispatch. 2. Selling Price: The geopolitical conflict between the US and Iran pushed up oil prices, driving up raw material prices and increasing the proportion of differentiated products, pulling up the average selling price. (b) The consolidated pre-tax profit for the first half of 2026 was 14.31 billion NT dollars, an increase of 2.18 billion NT dollars compared to the first half of 2025, mainly due to: 1. Operating profit increased by 0.8 billion NT dollars: Continuously optimizing product combinations and promoting lean production, adapting to product market conditions, adjusting production and sales in a timely manner to seek profits, plus after the outbreak of the US-Iran war, pushing up oil prices and product selling prices, expanding the profit margin between product selling prices and raw material costs. 2. Non-operating net income increased by 1.38 billion NT dollars: (a) Equity method investment income increased by 1.088 billion NT dollars, mainly Taiwan Plastics increased by 1.06 billion NT dollars, Fuma Science increased by 0.029 billion NT dollars. (b) Foreign exchange losses decreased by 0.26 billion NT dollars (0.034 billion NT dollars/first half of 2026; -0.226 billion NT dollars/first half of 2025). (c) Cash dividends increased by 0.034 billion NT dollars, mainly due to the advance payment of Taiwan Plastics dividends this year, increasing by 0.024 billion NT dollars. (c) The net profit attributable to the parent company for the first half of 2026 was 12.33754 billion NT dollars, with earnings per share of 2.11 NT dollars, an increase of 3.35 NT dollars per share compared to the first half of 2025.