The consolidated operating revenue of the company in 2015 was US$9,066 million, a decrease of 7.9% from US$9,843 million in 2014. The consolidated profit before taxes was US$1,320 million, an increase of 26.6% from US$1,042 million in the previous year.
The global economy in 2015 continued to be sluggish, with the most stagnant economic growth since the start of the financial crisis in 2009. Major exporting countries around the world exhibited poor performance due to falling energy and bulk material prices, slow trade and capital flows, aggregated fluctuation in global financial markets, and weakened motivation in economic growth. With the exception of the U.S., UK, and a few other countries that showed slight economic growth, most emerging countries around the world exhibited economic downturn and devaluation. Excessive supply and insufficient demand in mainland China as well as severe fluctuations in financial market and stock exchange market have imposed a significant impact on Asia’s economy and, to a certain extent, even the world’s economy.
Despite such a complex, unstable, and harsh external economic environment, our company has been striving to expand both domestic and foreign markets, develop high value and differentiated products, commit to whole production and marketing, and improve percentage of high value products, all of which have contributed to a more prominent profit growth in the first three quarters of 2015 when compared to the same periods in 2014. However, in the 4th quarter of 2015, falling oil prices and decreased demand in mainland China caused the price of EG to fall below its variable cost, resulting in a significant cutback in EG production and an adverse impact on partial profit gain. Nevertheless, since falling oil prices also made the raw material costs of most products to drop accordingly, coupled up with effective market expansion promoted by the sales department, all products yielded increased profit gains amongst a growing sales volume in 2015. Furthermore, increased investment in Formosa Petrochemical Corporation has allowed our company to gain 26.6% more profit than that made last year.