CEC — Annual Report 2020

Apr 20, 2021

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CHINA ECOTEK CORPORATION(1535) Investor Conference Start Time 14:30

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Coming soon

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http://www.ecotek.com.tw/cec_csr/index.php 創造對環境友善、讓客戶信賴的全方位工程公司

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The content provided in this presentation, including all prospective opinions will not update related information because of any latest news, future events, or under other conditions.

Ecotek is not responsible for updating or correcting the content of this presentation.

Neither can the content of this presentation expressly or impliedly guarantee its accuracy, completeness or reliability, nor can it represent the company’s full statement about the industry or the following critical development.

2021/4/20 © 2015 中宇環保工程股份有限公司 C.E.C. All Rights Reserved.

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CONTENT

1. Business Overview

2. Financial Highlight 3. Future Prospects

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2021/4/20 © 2015 中宇環保工程股份有限公司 C.E.C. All Rights Reserved.

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1. Business Overview

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2021/4/20 © 2015 中宇環保工程股份有限公司 C.E.C. All Rights Reserved.

Business Overview

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M&E Engineering

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Green Energy & Environmental Engineering

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Operation &Maintenance

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Refractory Engineering

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Biotech & Food Engineering

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M&E Engineering

  - **Upgrade M&E technical level. Strengthen strategic partnership. Cooperate with subcontractors and enlarge business scope. Extend the business  range of M&E engineering.**

  - **Start with the Group and expand outside the Group, we promote turnkey construction for M&E equipment so revenue and profit will increase.**

• During 2021 Q1 : Major On-going Projects

• CSC New-built Coal Mine Closed-type Building, Ph1-Conveyor Project

• • CSC Retrofit Project of Conveying Coal/Iron Ore

• CSC Betterment Work of Ph1&2 Crusher System Pollution Control

• CSC Revamp Project of No. 1&2 Sinter Furnace Equipment

• CSC Ph1&2 Mixing Line Doubling Track Project

• CSC Revamp Project of M27, C1o, S6 Conveyor

• CSC #1 Power Plant Cooling Tower (CT-6) Project

• DSC Retrofit Project of Material Yard Conveyor

• SinDa Marine Structure Co. Utility Facility Renovation Project

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M&E Engineering

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CSC #1 & #2 Sinter Plant Equipment Revamp

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CSC Coal Iron Ore Conveyor System

DSC Raw Material Yard

SinDa Marine Structure Co.

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Green Energy & Environmental Engineering

  - **Upgrade air pollution technique of de-NOX, de-SOX and dust collection. Expand the operation area.**

  - **PV System Engineering targets on the Group projects and extends outside the Group, CEC continuously pushes for site turnkey project.**

  - **Continuously develop sewage and pure water treatment project.**

• During 2020 Q1: Major On-going Projects

• CSC Group PV Construction Project

• CSC #1SP FGD EPC Project

• CSC Additional Biological Filter for Effluent Water

• CSC Additional COD Removal Tank for Coke Plant

• DSC #1SP EP Equipment Project

• DSC Additional Sludge Dryer for Water Treatment Plant

• ShuLin Refuse Incineration Plant, ROT Project EP System EPC

• (VN) FHS Coke Plant FGD Project

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Green Energy & Environmental Engineering

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De-SOx

Electrostatic Precipitator

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De-NOx

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PV
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De-Dust
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Operation & Maintenance

  - **On-site O&M work at CSC and DSC provides stabilized profit.**

  - **Keep up O&M work at public construction for sewage and Advanced water treatment.**

• During 2021 Q1: Major On-going Projects

• CSC Group On-site Maintenance

• CSC RMTP & Recycling Plant Operation

• CSC Recycling Yard Operation

• CSC Industrial Waste Water Treatment Plant O&M

• DSC Waste Water Treatment Plant O&M

• Cheng-Ching Lake Advanced Water Treatment Plant O&M

• Kinmen county, Tai-hu Advanced Water Treatment Plant O&M

• New Taipei City San-ying Water Resource Recycling Center O&M

• Kaohsiung City, Kangshan Qiaotou Sewage Treatment Plant O&M

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Operation & Maintenance Cheng-ching Lake Advanced Gang-Shan Water Treatment Plant Sewage Treatment Plant

King-men Tai Lake

San-ying Water Resource Recycling Center

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Refractory Engineering

• Strengthen the professional technique, searching for sources of global refractory materials and expanding business about refractory turnkey construction.

• Develop & invest refractory formula. Train engineering team, and enhance value chain.

◆ During 2021 Q1: Major On-going Projects

• CSC #21Hot-air Furnace Revamp Project

• CSC #31Hot-air Furnace Revamp Project

• CSC #33Hot-air Furnace Revamp Project

• CSC Y41Reheating Furnace Revamp Project

• CSC No.1 Sinter Plant Chimney Liner Restore Project

• DSC #22Hot-air Furnace Refractory Restore Project

• (VN) FHS Converter Furnace Refractory EPC Project

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Refractory Engineering

Furnace Liner Revamping

Air-heating Furnace

Reheating Furnace

Blast Furnace

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Biotech & Food Engineering

Biotech construction of whole plant provides complete service for

(1) design

(2) commissioning

• (3) liability test, etc.

• During 2021 Q1: Major On-going Projects

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Interior
Decor
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• Adimmune Corporation Cell Factory

• Virbac Co. Process &

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Pipeline
Cleaning
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Air-con
Venting
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• Development Laboratory

• Formosa Laboratories Co. Plant, M&E

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Plant
Project
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• TaiMed Biologics Co. Pharmaceutical Plant

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Utility
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Weak
Current
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• Caliway Co. Pilot Plant

• CPDC Fine Chemical Plant

• Toufen City

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Fire-
fighting
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Water
Supply
Drainage
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Biotech & Food Engineering

Caliway Biopharmaceutical Co.

Formosa Laboratories, Inc.

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Adimmune Co.

TaiMed Biologics

Virbac

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2. Financial Highlight

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2021/4/20 © 2015 中宇環保工程股份有限公司 C.E.C. All Rights Reserved.

Financial HighlightSales Distribution

Taiwan Oversea Unit: NT$, Thousand

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10,813,583
9,315,910
8,836,360
96%
75%
76%
2018 2019 2020
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Vietnam
Country 4%
Taiwan
96%
Category Others
1% Environment Protection
Engineering
Operation and
21%
Maintenance
31%
M&E Engineering
47%
In-progress
Construction Overseas
1%
Domestic
99%
Construction contracts were signed but not yet
recorded on 31th,December,2020 is 8,702,963. 18
(NT$, Thousand)
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Financial Highlight– Consolidated Income Statement

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Unit: NT$, Thousand

	2020/01/01-12/31	2020/01/01-12/31	2019/01/01-12/31	2019/01/01-12/31	YOY
Sales Revenues	8,836,360	100%	9,315,910	100%	-5%
Operating costs	8,318,011	94%	8,784,938	95%	-5%
Gross Profit	503,964	6%	510,725	5%	-1%
Operating expenses	439,240	5%	478,245	5%	-8%
Operating Income	64,724	1%	32,480	0%	99%
Total non-operating income	174,736	2%	131,092	2%	33%
Profit before income tax	239,460	3%	163,572	2%	46%
Income tax expense	42,025	1%	36,714	1%	14%
Profit for the period	197,435	2%	126,858	1%	56%
Total basic earnings per share	1.60		1.03

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Financial Highlight– Dividend Payout Ratio

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Unit: NT$

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6.00 160%
5.51
5.06
4.90 4.84 139% 140%
5.00
4.44 4.50
120%
4.11 117%
3.89
4.00 3.71
3.50 3.50 100%
3.39
3.20
90%
3.00
3.00 2.70 80% 82% 83% 84% 80%
2.55
71% 73% 72% 71% 69% 73%
2.00
59% 2.00 60%
1.80 1.80
2.00
1.60
1.51
1.35
1.25 1.20 40%
1.10
1.03
1.00 0.79
20%
- 0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EPS Cash DPS Cash Divided Payout Ratio
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Remark:

Cash DPS by NT$1.35 in 2020. Approved by Board of Directors in Feb. 25[th] 2021, and will report to Shareholders for recognition in June 22th 2021. Besides, EPS by NT$ 1.60 is also reviewed & approved by accountant. 20

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3. Future Prospects

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2021/4/20 © 2015 中宇環保工程股份有限公司 C.E.C. All Rights Reserved.

Future Prospects

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Future Prospect願景 To create an all-around engineering company 追求成長持續創新，提供全方位工程服務， that benefits the environment and wins 與客戶共創價值，成為客戶信賴的企業 customers’ trust.

策略主軸 Strategy Focus 發展「工程領域」、「操作維護」、「循環經濟」 Engineering, O&M, Circular Economy as “Power of Triple Balance” Strategy 三足鼎立的成長策略

Upgrade Engineering Management Efficiency

• Strengthen execution

• ability and decrease risks of construction

• ⚫ Improve the ability of engineering management. Bring in visualized analysis.

Business Expansion

• Strive for business of

• equipment revamping work within the Group.

• ⚫ Expand sales item and marketing area.

• ⚫ Explore business of circular economy, such as green energy and water treatment.

Enforce Technical Research & Development

• Unite CSC R&D department

• and improve the technology of energy-saving, water and air pollution control.

• ⚫ Join the integral design within the Group. Upgrade the ability of self-design.

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Future Operation & Business Opportunities

01 M&E Engineering

02

Green Energy & Environmental Engineering

⚫ CSC Coke Plant Revamp Project

• ⚫ CSC Coke Yard & Convey System Revamp Project

• ⚫ CSC Coal Sample Preparation ⚫ CSC new-built CDQ Project

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Operation & Maintenance

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Refractory Engineering

• ⚫ CSC TG9 、 TG10 Project ⚫ CSC PV Project ⚫ Waste Water Treatment Revamp

• ⚫ Air Pollution Control FGD&SCR System and Dust Control Equipment Revamp Project

Public Works(Purified Water, Recycled Water, Seawater Desalination)

⚫

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• ⚫ CSC On-site Maintenance

• ⚫ Recycling Yard O&M

• ⚫ RMTP O&M

• ⚫ Water Treatment Plant O&M (CSC, DSC, Cheng-ching Lake, Kinmen, San-ying, Gang-xiao)

• ⚫ CSC Coke & Furnace Plant

• ⚫ CSC Coke Plant & CDQ Revamp

• ⚫ Refractory Engineering for CSC, DSC Hot-air Furnace, Blast Furnace

• ⚫ National Biotechnology Research Park

• ⚫ Hsinchu Science and Industrial Park

• ⚫ Central Taiwan Science Park

⚫ South Smart Biotech Medical Cluster Ping-tung Agricultural 23 Biotechnology Park

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