ACE — Interim / Quarterly Report 2018

May 21, 2018

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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

Jinan Acetate Chemical Co.,LTD. (Cayman) Capital： NT$464,800,000 Establishment day ：2014, September

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100%

My Parents Living Technology Limited (Hong Kong) Capital：US 13,564,082 Establishment day：2012, October

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100%

Jinan Acetate Chemical Co.,LTD.

(China) Capital：US 8,514,400 Establishment day：1999, October

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52.8%

Jinan Acetate Chemical Co.,LTD. Taiwan Representative's Office Establishment day ：2015, January

27.2%

ACETEK MATERIAL CO., LTD (China) Capital：RMB 125,000,000 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
midstream downstream
raw material
manufacture application
supplier
Jinan Acetate MACRIFER TRADING
25.37%
Chemical DOCIEDAD
Co.,LTD. ANONIMA
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strategic
investors
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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
80.00%
( 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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Slim filter rod
細支嘴棒
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Monoacetate filter rod 普通嘴棒

Super slim filter rod 超細支嘴棒

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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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2017
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Other
America
3.09%
15.11%
Africa
15.22%
Asia
66.58%
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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.

Annual sales in 2017, Asia accounted for 66.58%, Africa accounted for 15.22% and the Americas accounted for 15.11% .

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Revenue by customers

2016 Main Customers

2017 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%
T.H., 6.02% 9.17%
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CUSTOMER&SUPPLIER

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CUSTOMER
SUPPLIER
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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

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INDUSTRY SUPPLY CHAIN

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midstream
upstream
raw material manufacture
supplier
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downstream
application
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filter rod of cigarette
process product
material：
dissolving ：acetate filtration material of
acetate tow filtration tow and
sewage
•
acetone rolling derivative
non-woven
•
crimping fiber
• pen refil
drying
•
doffing diaper dry layer
•
packaging
medical
hematodialysis
medical gauze
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Cellulose Acetate Tow Global Market

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Jinan
2%
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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

2014 2018Q1

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Operating Margin
26.83% 27.53% 27.57%
24.37% 21.63%
19.17%
16.84% 16.47% Gross Margin
11.87%
8.50%
( In Thousands of New Taiwan Dollars )
1,747,987
1,800,000
1,586,120
1,600,000 1,438,715
1,376,124
1,400,000
1,200,000
Sales
1,000,000
Profit
800,000
Net Income
600,000 369,222 396,040 437,291 426,035 435,335
286,543
400,000 224,035 264,781
166,172
200,000 94,17376,420
0
2014 2015 2016 2017 2018Q1
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EPS

2014 2018Q1

EPS NTD

EPS

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7.00
6.33
6.17
5.60
6.00
5.00
3.70
4.00
3.00
1.66
2.00
1.00
0.00
2014 2015 2016 2017 2018Q1
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Income Statement

(In Thousands of New Taiwan Dollars)

ITEM	2014	2014	2015	2015	2016	2016	2017	2017	2018Q1	2018Q1
Sales	1,376,124	100%	1,438,715	100%	1,586,120	100%	1,747,987	100%	435,335	100%
Gross Profit	369,222	27%	396,040	28%	437,291	28%	426,035	24%	94,173	22%
Op Profit	263,765	19%	242,282	17%	261,311	16%	207,416	12%	37,025	9%
Profit before Income Tax	262,763	19%	302,815	21%	318,939	20%	168,602	10%	72,945	17%
Net Income	224,035	16%	264,781	18%	286,543	18%	166,172	10%	76,420	18%
EPS (NT$)	5.60		6.33		6.17		3.70		1.66

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Balance Sheet

(In Thousands of New Taiwan Dollars)

ITEM	2014	2014	2015	2015	2016	2016	2017	2017	2018Q1	2018Q1
Current Assets	617,557	61%	1,486,210	80%	885,987	55%	1,415,452	58%	1,281,938	55%
Non-current Assets	398,189	39%	371,994	20%	717,670	45%	1,022,030	42%	1,061,527	45%
Total Assets	1,015,746	100%	1,858,204	100%	1,603,657	100%	2,437,482	100%	2,343,465	100%
Current Liabilities	278,509	28%	466,095	25%	222,586	14%	527,200	22%	382,768	16%
Non-current Liabilities	11,142	1%	10,929	1%	12,642	1%	535,121	22%	483,817	21%
Total Liabilities	289,651	29%	477,024	26%	235,228	15%	1,062,321	44%	866,585	37%
Total Equity	726,095	71%	1,381,180	74%	1,368,429	85%	1,375,161	56%	1,476,880	63%

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Financial Ratios

	ITEM	2014	2015	2016	2017	2018Q1
Capital structure	Debt Ratio(%)	28.52	25.67	14.67	43.58	36.98
Liquidity	Current Ratio(%)	221.74	318.86	398.04	268.48	334.91
	Quick Ratio(%)	159.71	267.59	226.98	170.44	200.21
Profitability	Gross margin(%)	26.83	27.53	27.57	24.37	21.63
	Net Margin(%)	16.28	18.40	18.07	9.51	8.50
	EPS(NT$)	5.60	6.33	6.17	3.70	1.66
	ROA(%)	26.68	18.57	16.55	8.62	13.34
	ROE(%)	37.24	25.13	20.84	12.11	21.44
Operating Performance	AR turnover (Times)	9.80	6.15	7.61	6.92	4.99
	Accounts receivable days	37	59	48	53	73
	Inventory turnover(Times)	7.97	5.83	3.84	3.34	3.33
	Inventory turnover days	46	63	95	109	110

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Acetic anhydride chart

Acetic anhydride, Producer price, 2017-01-01-2017-12-25

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THANK YOU !

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