Preface

The global automotive wheel leader, Chao Hsin, recently announced its financial performance for the previous year. With a net profit of 755 million NTD, an annual increase of 24.2%, and an earnings per share (EPS) of 3.3, the company has optimally restructured its cost base. Last year's operating profits saw a near 30% annual increase. As per market forecasts, the upcoming implementation of the EU Carbon Border Adjustment Mechanism (CBAM) in 2026 presents a promising outlook. Chao Hsin remains optimistic about expanding demand for low-carbon materials such as recycled aluminum, which will offer them a unique edge in the market.

Lazy bag

Chao Hsin's revenue last year was 74.74 billion NTD, marking a small decrease of 3.9% from the previous year. However, their operating profit grew by 29.5%, and Q4 revenues reached 19.28 billion NTD with a year-on-year decrease of 12.6%, leading to a net profit of 153 million NTD and an EPS of 0.62.

Main Body

The automotive sector experienced adjustments in order intensity in the latter half of last year. As a result, some custom wheel orders were delayed. Despite this, Chao Hsin's RESAICAL® recycled aluminum demonstrated strong order momentum and a wide range of market applications. The use of recycled aluminum constituted 34% of their total material use, a 4% increase from the previous year, thereby aiding in optimizing their cost structure.

By simultaneously enhancing production efficiency, optimizing order structure, and strictly controlling costs, Chao Hsin achieved significant metrics improvement last year. Their operating gross profit margin rose to 26.81%, operating profit margin reached 13.08%, and the net profit margin attained 10.11%.

Looking ahead, Chao Hsin aims to leverage RESAICAL® recycled aluminum, offering low-carbon solutions to customers. The company has gained formal recognition from seven luxury automotive brands: Porsche, JLR, BMW, Toyota, Lexus, Stellantis, and Rolls-Royce, expanding its competitive advantage.

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