ACE — Annual Report 2019

Jun 12, 2019

Jinan Acetate Chemical Co., LTD.

Stock Code：4763

公司簡介

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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

• 六、FUTURE PROSPECTS

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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

• JINAN ACETATE CHEMICAL CO., LTD

• ADD：SHANDONG JINAN

• FOUND TIME：1999.10

• Employees：170

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• MANIN BUSINESS：RESEARCH,PRODUCTION AND SALES OF ACETATE TOW

 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

Jinan Acetate Chemical Taiwan Co.,LTD. Representative's (Cayman) Office Capital：NTD 464,800,000 Establishment day： Establishment day：SEP. 2014 JAN. 2015 100% My Parents Living ACETEK CHEMICAL CO., Technology Limited 80% LTD(Hong Kong) (Hong Kong) Capital ：HKD 1,250,000 Capital：USD 14,937,344 Establishment day：OCT. Establishment day ：FEB. 2012 2016 25% 100% 27.2% ACETEK MATERIAL CO., ELEUNG LIMITED Jinan Acetate Chemical LTD (China) (Hong Kong) Co.,LTD. (China) Capital：RMB 52.8% Capital ：HKD Capital：US 8,514,400 125,000,000 1,333,333 Establishment day ： Establishment day：OCT. Establishment day ： JUNE. 2016 4 NOV. 1986 1999

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About the Company

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In 1999, established JINAN JULONG FIBER CO., LTD., production of nylon aty

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In 2006, acetate tow 2,000 tons  In 2008, tow 3,000 tons  In 2010, tow 4,000 tons

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In 2012, obtain Certification of the chinese high-tech Enterprises； In 2013, tow 8,000 tons In 2014, obtain the top 100 Taiwan enterprises of SHANDONG；tow 9,000 tons； In 2015 Listed on the Taiwan Stock Exchange (TSE)

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In 2016, tow 10,000 tons；Established ACETEK MATERIAL CO., LTD. production of acetek flake Capacity 20,000 tons

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In 2017,issued convertible bonds；tow 11,000 tons；successful mass production of acetate flake in Q3

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In 2019, strategic Alliances with the Italian company LA/ES；tow 13,000 tons

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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 Lunan 8.00% ACETEK
12.00%
Vertical Chemical Co., MATERIAL Thy Glory Limited
Ltd.
integration CO., LTD
Jinan Acetate Chemical
80.00%
、
Co.,LTD.(Jinan Acetate
My Parents Living)
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Industrial upstream and downstream correlation diagram

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Yankuang Lunan Chemical Co., Ltd.

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acetic
anhydride
ACETEK MATERIAL
CO., LTD
acetate flake-
acetate flake-
fiber grade
plastic grade
Thy Glory Limited Jinan Acetate Chemical
、
Eleung Limitd Co.,LTD.
acetate
tow
MACRIFER
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Capacity

Cellulose acetate(flake) Cellulose acetate tow Theoretical capacity 20,000[Theoretical capacity] 13,000 (ton/year) (ton/year) Actual capacity (ton/year) 15000~17000 Actual capacity (ton/year) 13,000 self-use_fiber grade (ton/year) 11,000 Sold-out_plastic grade 4000~6000 Future capacity (ton/year) Unit Price: fiber grade 22,000~25,000 Flake 10,000 (RMB/ton) Unit Price: plastic grade 25,000~40,000 tow 1,000 (RMB/ton)

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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

• 六、FUTURE PROSPECTS

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Production process

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Product Charactor

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ACETATE TOW

With dissoiving 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. 。

rying Doffing

Rolling

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Product Applications Acetate Flake Fiber Grade Plastic Grade

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Product Applications Acetate Tow

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Cigaratte Markets By Volume

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Sales Network

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100.00% 0.08% 2.15% 3.09% 0.63%
90.00% 26.50% 19.89% 15.11% 20.24%
80.00%
15.22% 8.02%
70.00% 18.98%
60.00% 29.03% 其他Other
50.00% 美洲America
40.00%
非洲
71.12%
66.58% Africa
30.00% 58.98%
亞洲
44.39%
20.00% Asia
10.00%
0.00%
20152015 2016 2017 2018年度 2016年度 2017年度 2018年度
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With advanced technology and administration system, Jinan acetate tow has been exported to more than 30 countries over Asia, America and Africa.

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2017/2018 Revenue by customers

2017 Main Customers

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2018 Main Customers
Global
Filters
14%
EASTERN
KOREA
14%
other SHINHUNG
34% OOO 7%
SERTOW
11% other 东莞斯曼
6%
Global Filters 50%
TOPTAC
10%
5%
LLC T.H
3% 4%
WF SINCO EASTERN
YAOHOU
EDZEN KOREA 7% 3%
3% TOPTAC IDEAL
T.H 6% SHINHUNG 東莞久欣
3% 上海紫匯 LLC 3%
4% 5% 2% 3% 3%
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Customers

Suppliers

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一、 COMPANY INTRODUCTION

二、 MANIN PRODUCT, PRODUCTION PROCESS

AND SALES CONDITION

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四、COMPETITION ADVANTAGE

五、 ACTUAL PERFORMANCE OF A COMPANY

• 六、FUTURE PROSPECTS

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Industry Supply Chain Acetate Flake

• Upstream Material：dissolving pulp、acetic anhydride

raw material supplier

• Process： Pretreatment, vinegar, hydrolysis, deposition, molding, washing, extrusion, midstream

• Product：acetate flake

• manufacture

• Fiber grade： Filter wire bundles, high-grade fabrics, non-woven mFilter wire .

• bundles, high-grade fabrics, non-woven masks, etc.asks, etc

downstream • Plastic Grade： Spectacle frame, hand tool machine handle, screwdriver handle, shoe lead, etc.

application

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Industry Supply Chain Acetate Tow

Upstream raw material supplier

• Material：acetate flake、aceton、TiO2

• Process：dissolving, filtration, rolling, crimping, drying, doffing, packaging

• midstream

• manufacture • Product：acetate tow and derivative fiber

• Cigarette filter rod, refill downstream application

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Cellulose Acetate Tow Global Market

The cellulose acetate tow is a oligopoly market, international companies market share of more than 85%.

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Jinan Acetate
2%
Daicel
Celanese (CE US)
14%
Eastman (EMN US)
Celanese
Solvay Solvay (SOLB BR)
39%
(Rhodia)
Daicel
(4202 JP)
15%
others
Eastman
30%
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Data sources：Company Data, SRI, Morgan Stanley Research

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一、 COMPANY INTRODUCTION

二、 MANIN PRODUCT, PRODUCTION PROCESS

AND SALES CONDITION

三、MARKET SITUATION AND INDUSTRIAL STATUS

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五、 ACTUAL PERFORMANCE OF A COMPANY

• 六、FUTURE PROSPECTS

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COMPETATION ADVANTAGE

Competitor：Fiber Grade：Celanese、Eastman 、Solvay及Daicel；Plastic Grade： Eastman 、Daicel and Sichuan Push

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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、COMPETITION ADVANTAGE

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六、FUTURE PROSPECTS

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、 Revenues Operating Profit Gross profit margin and operating profit margin

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In Thousands of NTD；%
Sales Gross Margin Operation Margin
1,800,000 1,747,987 1,739,194
1,586,120
1,600,000
1,438,715
1,400,000
1,200,000
1,000,000
800,000
600,000
457,740
27.53 27.57
400,000 26.14
24.37 24.23
200,000 16.84 16.47
11.87 11.51
9.32
0
2015 2016 2017 2018 2019Q1
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EPS

EPS

EPS	EPS	EPS	EPS	EPS	EPS
0 1 2 3 4 5 6 7 2015 2016 2017 2018 2019Q1 6.33 6.17 3.70 4.85 1.52
		2015	2016	2017	2018
EPS (NTD)		6.33	6.17	3.70	4.85
Dividend	CASH	5.0	5.0	5.0	4.0
	STOCK	0	0	0	1.0

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Financial Ratios

	ITEM	2015	2016	2017	2018	2019Q1	26
Capital structure	Debt Ratio(%)	25.67	14.67	43.58	44.25	41.40
Liquidity	Current Ratio(%)	318.86	398.04	268.48	233.11	246.67
	Quick Ratio(%)	267.59	226.98	170.44	156.32	154.06
Profitability	Gross margin(%)	27.53	27.57	24.37	24.23	26.14
	Net Margin(%)	18.40	18.07	9.51	12.88	14.23
	EPS(NT$)	6.33	6.17	3.70	4.85	1.52
	ROA(%)	18.57	16.55	8.62	10.45	11.91
	ROE(%)	25.13	21.19	12.11	17.48	19.46
Operating performance	AR turnover (Times)	6.15	7.60	6.92	5.04	5.30
	Accounts receivable days	59	48	53	72	69
	Inventory turnover(Times)	5.83	3.84	3.34	3.57	4.30
	Inventory turnover days	63	95	109	102	85

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一、 COMPANY INTRODUCTION

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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Future Prospects

Increase strategic Partners

• Extend closer partnership with cigarette factory to expand capacity of acetate tow and develop heat-not-burn tobacco products (IQOS)

Production capacity of acetate flake expanded with acetate tow

• Expand the other capacity of acetate flake, 10,000 tons

Research and development of biodegradable cellulose acetate

• In addition to the existing fiber grade and plastic grade of the cellulose acetate

application areas, in order to be in response to the trend of global plastic limiting, and expand the market application of cellulose acetate, we plans to development CA (cellulose acetate membrane), mainly used in food packaging and lithium diaphragm, in preparation for the next phase of EU degradable consumer packaging requirements

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THANK YOU !

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