CE — Interim / Quarterly Report 2017

Nov 21, 2017

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China Electric MFG Corporation Financial Results 2017.11.21

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Copyright ©2016 China Electric Mfg. Corporation. All Rights Reserved

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Presentation Outline

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Ⅰ. Company Profile Ⅱ. Operating Results Ⅲ. Financial Results Ⅳ. Q&A

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Disclaimer

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• This presentation is prepared according to the reviewed financial statements by CE and the financial numbers hereby are based on IFRS, please refer to the published financial statements for full content.

• CE statements that are not historical facts are forward-looking statements that indicate actions or results of actions that may occur in the future, based on current available information and underlying assumptions.

• The presentation and its contents may not be reproduced to a third party without the prior written consent of CE.

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Ⅰ. Company Profile 1. Operational Summary

1. Milestone 3. Advantage 4. Main Product 5. Performance

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1. Operational Summary

• Foundation: February 1st, 1955

• Main Products: Lighting Services and Total Solution

• IPO: January 16th, 1990

• Capital: TWD 3.98 billion

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Taipei Main Station

• Number of employees: 320

• Chairperson: Julie Chou

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Taipei 101

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2. Milestone (1/3)

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• :

• ◎ The First Stage(1955~1961) Focusing Business Φ Established in 1955.

Φ Technical collaboration with Toshiba to produce incandescent lamp in 1956.

• Φ Investment and Technical collaboration with Mitsubishi Electric in 1961.

• :

• ◎ The Second Stage(1962~1969) Launching Product Lines Φ Fluorescent lamp factory began operations in Xin-Zhou in 1963.

Φ Technical collaboration with Japan to produce automotive lamp in 1967.

Φ Technical collaboration with Mitsubishi Electric to produce fluorescent lamp in 1969.

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2. Milestone (2/3)

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: ◎ The Third Stage(1970~1990) Vertical Integration Φ Lighting fixture factory began operation in Taoyuan in 1973. Φ Lighting fixture factory began operation in Xin-Yin in 1989. Φ CE became public listed on the TSE (Taiwan Stock Exchange) in 1990.

• :

• ◎ The Fourth Stage(1991~1999) Energy-Efficient Production Φ Introduced fully automated incandescent lamp production facility in 1991.

Φ Introduced high-speed fluorescent lamp production facility, capable of producing 1 fluorescent lamp per second in in 1994. Φ Joint venture with Mitsubishi to produce ballasts in 1997. Φ Introduced fully automated 3U fluorescent lamp production facility in 1999.

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2. Milestone (3/3)

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• The Fifth Stage (2000~present) Expanding Green Energy

Φ Technical collaboration with ISOFOTON Spain to modularity production in 2001.

Φ Achieved Taiwan National Award in 2002.

Φ Xin-Yin factory Introduced DQ-System production system in 2003.

Φ Taoyuan factory Introduced Energy Efficient automated lighting source production system in 2004. Φ Xin-Yin factory Introduced DQ-System production system from Finland in 2005. Φ Participated The LED lighting Integrated R&D Program with Ministry of Economic Affairs in 2007. Φ Strategic Alliance with CREE in 2009.

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3. Advantage

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Why CE – Four Advantages

• 1.Top-Rated Service ： Nationwide sales network and the best after-sales services.

2. Branding Excellence ：CE’s brand is well recognized by the general public.

3. Quality Assurance ： Received Taiwan Excellence Award and Environmental certification.

4. Reliable Products ： Professional lighting manufacturing experience and complete LED supply chain.

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3. Advantage (1/4)

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◎ Total Service Solution

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Evaluation Shipping
illumination design
Nationwide Delivery ServiceNationwide Delivery Service
demonstrate lighting simulation
Delivered within 2 daysDelivered within 2 days
energy saving evaluation
Installation
After Services
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Nationwide Delivery ServiceNationwide Delivery Service Delivered within 2 daysDelivered within 2 days After Services 50 million liability insurance 0800 customer support

professional installation services

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(1/4) 3. Advantage

◎ Channel flows Local hardware retail store Project based channel Franchise Warehouse oversea market

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(2/4) 3. Advantage

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◎Excellence Branding

In 2002, CE received “Taiwan Excellence Awards” from the Industrial Development Bureau. In 2009 to 2012, CE also won the “Gold Trusted Brand Award” in the Reader’s Digest Trusted Brands Survey for the 4[th] conservative year.

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Taiwan Excellence Awards

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Gold Trusted Brand Award

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(3/4) 3. Advantage

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◎ Quality Assurance

Over the past years, CE has received many awards for its technical innovations and product design. In addition, our production facilities have met the environmental and health International standard such as ISO9001, 14001, JIS and OHSAS18001.

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(3/4) 3. Advantage ◎Quality Assurance Quality and Environment System

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ISO	9001	ISO	14001	OHSAS18001	IEC / IECQ QC080000	CNS Mark
						Energy Efficiency

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(3/4) 3. Advantage

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◎Quality Assurance

Green product / International certificate

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MIRDC CE MARK PSE UL
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(4/4) 3. Advantage

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◎ Quality Assurance The most advanced lighting production facility

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Automated fixture production facility

Automated production facility

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4. Main Product

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◎ Fluorescent Source ◎ Incandescent Source ◎ Halogen Source

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◎ LED Lighting Source

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◎ HID Lighting Source

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4. Main Product

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◎ Indoor Lighting

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◎ Outdoor Lighting

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5. Performance

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Application	Performance
Office Lighting	TAIPEI 101
Retail Lighting	SOGO Department stores、FAR EATTERN KFC、McDonald、Carrefour
Education Facilities Lighting	National Taiwan University (NTU)、National Chengchi University (NCCU)
Industrial & Warehouse	Hon Hai / Foxconn Technology Group、CHIMEI
Landscape	The Lalu Hotel、Shihlin Electric&Engineering Corp. Building
Down Lights	Office of the President, Republic of China (Taiwan)、Taipei grand Hotel
Airport & train station	Taipei Mrt、Taiwan Railways、Taiwan Taoyuan International Airport
Roadway Lighting	West Coast Expressway、Yunlin County
Solar Panel	Tainan City Government、Yilan County Government

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5. Performance

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Application	Performance	Product
Office Lighting	TAIPEI 101
Retail Lighting	Far Eastern Departmet Stores
Education Facilities Lighting	Tamkang University(TKU)
Industrial & Warehouse	Hon Hai / Foxconn Technology Group
Landscape	The Lalu Hotel
Down Lights	Office of the President, Republic of China (Taiwan)
Airport & train station	Taipei MRT
Roadway Lighting	West Coast Expressway、Yunlin County
Solar Panel	Tainan City Government

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Ⅱ. Operating Results

1. Revenues Analysis 2. Technology and R&D Overview 3. New Product Development Project

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1. Revenues Analysis
2015 2016 Q317
Rent Rent Rent
Income Income Income
1% 1% 1%
Green
Energy Green
Technology
Energy Green
15%
Technology
Energy Lighting
25%
Technology Product
44% 55%
Lighting Product
Lighting Product
84%
74%
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2. Technology and R&D Overview

Year 2014 2015 2016 Q317	Year 2014 2015 2016 Q317	Year 2014 2015 2016 Q317	Year 2014 2015 2016 Q317	Year 2014 2015 2016 Q317
TWD	137,139	124,238	116,255	71,355

Research Achievement：

• ◎Developed 14 of Energy Efficiency Certified T5 Lighting Fixtures. ◎LED T-BAR lighting Development(Panel Lighting and Side Type). ◎Developed 8 of Energy Efficiency Certified Lighting Fixtures.

• ◎LED Modularity Lighting Source.

◎LED Roadway Lighting , Spotlights , T-BAR lighting , Landscape Lighting Development.

• ◎Dimming LED Fixtures Development. ◎LED,T5 Power Development and Achieve the PSE Japanese Certification.

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3. New Product Development Project

• Full output power LED Source Development and Modularity Lighting Fixtures.

• Energy Efficiency Certified LED Lighting Source and Panel Lighting.

• Tunnel Lighting Development.

• Smart Lighting System.

• Multi-functions Product Development.

• Residential /Smart Building/Community Lighting Control System and Emergency Lighting.

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Ⅲ. Financial Results

1. Aggregate Balance Sheet 2. Aggregate Income Statement

2. Financial Index

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1. Aggregate Balance Sheet

1. Aggregate Balance Sheet	1. Aggregate Balance Sheet	1. Aggregate Balance Sheet	1. Aggregate Balance Sheet
Unit : TWD Thousands
2015 2016 Q317
Current Asset	2,825,485	3,059,144	3,771,179
Current Liabilities	1,928,426	2,167,642	2,205,226
Share Capital	3,984,392	3,984,392	3,984,392
Capital Reserve	514,132	514,132	936
Total Equity	5,211,609	4,235,149	4,235,606

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2. Aggregate Income Statement

2. Aggregate Income Statement	2. Aggregate Income Statement	2. Aggregate Income Statement	2. Aggregate Income Statement
Unit : TWD Thousands
2015 2016 Q317
OperatingIncome	2,689,618	2,676,319	1,985,294
Gross Income	636,417	575,813	417,238
Net Income	12,005	(858,087)	(173,924)
Total Comprehensive Income	(76,242)	(976,460)	(147,626)
Earnings Per Share	0.03	(2.15)	(0.43)

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3. Financial Index

2015 2016 Q317	2015 2016 Q317	2015 2016 Q317	2015 2016 Q317
Debt Asset Ratio	29.71	36.65	35.55
Current Ratio	146.52	141.13	186.21

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Q&A

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The End

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