ACE — Annual Report 2017

Dec 1, 2017

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Stock code : 4763

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二、MANIN PRODUCT, PRODUCTION PROCESS

AND SALES CONDITION 三、MARKET SITUATION AND INDUSTRIAL STATUS 四、COMPETITION ADVANTAGE 五、ACTUAL PERFORMANCE OF A COMPANY

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BASIC INFORMATION

 LISTED MAIN COMPANY Jinan Acetate Chemical Co., LTD. (Cayman ) Capitalization : TWD 4.648 BILLION DIRECTOR: WANG KOZHANG

 OPRATION COMPANY PRODUCTION & SALES: JINAN ACETATE CHEMICAL CO., LTD ADD: SHANDONG JINAN FOUND TIME: 1999.10.08 Employees: 170

MANIN BUSINESS: RESEARCH,PRODUCTION AND SALES OF ACETATE TOW  OPRATION COMPANY PRODUCTION & SALES: ACETEK METERIAL CO., LTD ADD: SHANDONG Zaozhuang FOUND TIME: 2016.6 Employees: 100 MANIN BUSINESS:PRODUCTION AND SALES OF ACETATE FLAKE

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About the Company

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Jinan Acetate Chemical Co.,LTD.
(Cayman) Jinan Acetate Chemical Co.,LTD.
Capital： NT$464,800,000 Taiwan Representative's Office
Establishment day ：2014,September Establishment day ：2015,January
100%
My Parents Living Technology
Limited
(Hong Kong)
Capital：US 13,564,082
Establishment day：2012,October
27.2%
100%
Jinan Acetate Chemical Co.,LTD.
ACETEK MATERIAL CO., LTD
(China) 52.8%
(China)
Capital：US 8,514,400
Capital：RM 125,000,000
Establishment day：1999,October
Establishment day ：2016,JUNE
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About the Company

• Jinan Acetate Chemical Co., Ltd., a Taiwanese-owned enterprise, specializes in producing acetate tow from Aug, 2006 in China.

• With proprietary know-how, JINAN ACETATE is the only acetate tow producer with scale in China supplying to clients globally to more than 30 countries.

• In 2006，production capacity at 2000 tons/year

• In 2008，expanded to 3000 tons/year

• In 2010，expanded to 4000 tons/year

• In 2013，expanded to 8000 tons/year

• In 2014，expanded to 9000 tons/year

• IN 2016，expand capacity to 10,000 tons/year

• 2017 to expand capacity to 11,000 tons/year

• ACETEK MATERIAL CO.,LTD a Taiwanese&China-owned enterprise, specializes in producing Acetate Flake from June 2017 in China.

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Shareholders Structure

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upstream
raw material
supplier
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strategic
investors
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midstream downstream
manufacture application
Jinan Acetate
25.37%
MACRIFER TRADING
Chemical
DOCIEDAD ANONIMA
Co.,LTD.
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YANKUANG
ACETEK
Vertical LUNAN 8.00% 12.00%
MATERIAL 祈耀有限公司
integration CHEMICALS
CO.,LTD CO., LTD
材料KY
80% ( Jinan Acetate Chemical
、
Co.,LTD. My Parents
Living )
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Start Ceremony for ACETEK MATERIAL CO., LTD

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⼀、COMPANY INTRODUCTION

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三、MARKET SITUATION AND INDUSTRIAL STATUS 四、COMPETITION ADVANTAGE 五、ACTUAL PERFORMANCE OF A COMPANY

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PRODUCT CHARACTOR

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rying

Doffing

Rolling

ACETATE TOW

With wood pulp as raw material, acetate tow is produced from acitified flakes through dissolving, filtering, rolling, cripmping and drying.

• Acetate Tow is a regenerated cellulose with advantage of good cleaning and absorbtion charactor.

• With "Y" type, acetate tow have great filtration ability.

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Product Applications-Acetate Flake

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Product Applications-ACETATE TOW

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Super slim filter rod
超細支嘴棒
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Monoacetate filter rod 普通嘴棒

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Mentha filter rod 薄荷嘴棒

Mentha & charcoal filter rod 薄荷爆珠活性炭嘴棒

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color pen refil

Mentha filter rod 薄荷爆珠棒

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SALES NETWORK

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With advanced technology and administration system, jinan acetate tow been exported to more than 30 countries over Asia, America and Africa. In 2017Q3, company sales amount is around one third on each market of Asia, America and Africa.

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Revenue by customers

2016 Main Customers

2017Q3 Main Customers

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Edzen
Interprises,
Others, 24.14%
24.69%
Trade Line,
2.36%
CV., 2.39%
Ciga filtre,
Eastern,
13.21%
3.88%
PMC, 4.45%
TOPTAC,
4.64% Global Filters,
TTL, 5.06% 9.17%
T.H., 6.02%
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CUSTOMER&SUPPLY

客戶 供應商

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⼀、COMPANY INTRODUCTION 二、MANIN PRODUCT, PRODUCTION PROCESS

AND SALES CONDITION 四、COMPETITION ADVANTAGE 五、ACTUAL PERFORMANCE OF A COMPANY

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INDUSTRY SUPPLY CHAIN

midstream

upstream

raw material supplier

manufacture

process product dissolving ：acetate filtration tow and • derivative rolling fiber • crimping • drying • doffing • packaging

material：

acetate tow acetone

downstream application

filter rod of cigarette filtration material of sewage non-woven pen refil diaper dry layer medical hematodialysis medical gauze

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Cellulose Acetate Tow Global Market

(4202 JP) (SOLB BB) (CE US) (EMN US)

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⼀、COMPANY INTRODUCTION 二、MANIN PRODUCT, PRODUCTION PROCESS

AND SALES CONDITION 三、MARKET SITUATION AND INDUSTRIAL STATUS 四 五、ACTUAL PERFORMANCE OF A COMPANY

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COMPETATION ADVANTAGE

Competitor：Celanese、Eastman 、Solvay及Daicel

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Customization capabilities

• Supply completed technical service ,small order quantity and various specifics according to customer's requirement

• Advanced after-sale service, trace the product quality and provide complete technical service and guidence

professional reasearch team and expericed production

• With self research, self design abality and some technical patents, JINAN is the only manufacture with proprietary intellectual property rights in China

• In the production and research, JINAN has more than 10 years production experiance

Business niche market

• The company regard the new contries as niche markets, make stable development

low production cost

• factory and equipment cost is lower than the international competitors

• labor cost in manland is lower than international competitors

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⼀、COMPANY INTRODUCTION 二、MANIN PRODUCT, PRODUCTION PROCESS

AND SALES CONDITION 三、MARKET SITUATION AND INDUSTRIAL STATUS 四、RESEARCH SITUATION 五

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、 Revenues Operating Profit

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26.83% 27.53% 27.57% 26.24% Operating Margin
19.17%
16.84% 16.47%
13.73% Gross Margin
1,586,120
1,600,000
1,438,715 (NT$ thousand)
1,376,124
1,400,000
1,165,669
1,200,000
1,000,000
Sales
800,000 Profit
Net Income
600,000 437,291
369,222 396,040
400,000 224,035 264,781 286,543 305,905
200,000 97,336
0
2014 2015 2016 2017Q3
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EPS

2014-2017

EPS NTD

EPS

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7.00 6.33
6.17
5.60
6.00
5.00
4.00
3.00
2.24
2.00
1.00
0.00
2014 2015 2016
2017前三季
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Income Statement

項目	2014	2014	2015	2015	2016	2016	2017Q3	2017Q3
Sales	1,376,124	100%	1,438,715	100%	1,586,120	100%	1,165,669	100%
Gross Profit	369,222	27%	396,040	28%	437,291	28%	305,905	26%
Op Profit	263,765	19%	242,282	17%	261,311	16%	160,059	14%
Profit before Income Tax	262,763	19%	302,815	21%	318,939	20%	108,825	9%
Net Income	224,035	16%	264,781	18%	286,543	18%	97,336	8%
EPS (NT$)	5.60		6.33		6.17		2.24

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Balance Sheet

(NT$ thousand)

ITEM	2014	2014	2015	2015	2016	2016	2017Q3	2017Q3
Current Assets	617,557	61%	1,486,210	80%	885,987	55%	1,270,764	56%
Non-current Assets	398,189	39%	371,994	20%	717,670	45%	1,008,577	44%
Total Assets	1,015,746	100%	1,858,204	100%	1,603,657	100%	2,279,341	100%
Current Liabilities	278,509	28%	466,095	25%	222,586	14%	425,101	19%
Non-current Liabilities	11,142	1%	10,929	1%	12,642	1%	552,474	24%
Total Liabilities	289,651	29%	477,024	26%	235,228	15%	977,575	43%
Total Equity	726,095	71%	1,381,180	74%	1,368,429	85%	1,301,766	57%

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Financial Ratios

項目	項目	2014	2015	2016	2017Q3
Capital structure	Debt Ratio(%)	28.52	25.67	14.67	42.89
Liquidity	Current Ratio(%)	221.74	318.86	398.04	298.93
	Quick Ratio(%)	159.71	267.59	226.98	177.90
Profitability	Gross margin(%)	26.83	27.53	27.57	26.24
	Net Margin(%)	16.28	18.40	18.07	8.35
	EPS(NT$)	5.60	6.33	6.17	2.24
	ROA(%)	26.68	18.57	16.55	7.05
	ROE(%)	37.24	25.13	20.84	9.72
Operating Performance	AR turnover (Times)	9.80	6.15	7.60	8.10
	Accounts receivable days	37	59	48	45
	Inventory turnover(Times)	7.97	5.83	3.84	2.85
	Inventory turnover days	46	63	95	128

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THANK YOU !

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