	`華夏海灣塑膠股份有限公司` China General Plastics Corp. `法人說明會` 3/27/2018 `議` `程` Itinerary `報告人` Reporter `貴賓報到` VIP Registration 2017`年回顧及`2018`年展望`(`產業面`/`營運面`) 2017 Review & 2018 Outlook `胡吉宏` `副總經理` Otto Hu, VP `公司`2017`年財務資訊` 2017 Finance Information `郭建洲` `經理` C C Kuo, Manager Q & A `林漢福` `總經理` H F Lin, President	`華夏海灣塑膠股份有限公司` China General Plastics Corp. `法人說明會` 3/27/2018 `議` `程` Itinerary `報告人` Reporter `貴賓報到` VIP Registration 2017`年回顧及`2018`年展望`(`產業面`/`營運面`) 2017 Review & 2018 Outlook `胡吉宏` `副總經理` Otto Hu, VP `公司`2017`年財務資訊` 2017 Finance Information `郭建洲` `經理` C C Kuo, Manager Q & A `林漢福` `總經理` H F Lin, President
`時間` Time	`議` `程` Itinerary	`報告人` Reporter
14:00`〜` 14:30	`貴賓報到` VIP Registration
14:30`〜` 15:00	2017`年回顧及`2018`年展望`(`產業面`/`營運面`) 2017 Review & 2018 Outlook	`胡吉宏` `副總經理` Otto Hu, VP
	`公司`2017`年財務資訊` 2017 Finance Information	`郭建洲` `經理` C C Kuo, Manager
15:00`〜` 15:30	Q & A	`林漢福` `總經理` H F Lin, President

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China General Plastic Corp. 2017 Review & 2018 Outlook

Reporter: Otto Hu, VP March 27, 2018

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2017 Industry Review (I)

 Even though the oil cut by OPEC, the WTI price in H1 was down from $54 to $42 per barrel due to the shale oil production increase and global slow demand. The WTI price reached high to $59 per barrel in year end because of continuous oil cut by OPEC and the GDP growth in most of countries.

Except the over supply in June and July, the ethylene price had been stable high owing to the strong supports by SM and PVC.

Crude Oil & Ethylene Monthly Ave. Prices

Unit: US$/MT CFR NEA (Platts)

2017 Industry Review (II)

 Owing to strong demand in alumina industry, the caustic soda in NEA hiked at $730/DMT FOB in November. The high operating rate pushed the high output of EDC and lowered the price. The EDC price was lower than $200 CFR NEA in Q4.  As PVC demand was slow in Q2~Q3, the surplus stock made VCM price even lower. The spread between PVC and VCM was higher than $200/MT.

PVC/VCM/EDC monthly avg. Prices (Platts)

Unit:$/MT CFR CMP(Platts)

2017 Industry Review (III)

 The housing control in China, monsoon in India and Ramadan resulted in a slow PVC demand in H1. Indian government changed the GST regulation since July, which made the Asian PVC market sentiment worse. But the shortages of VCM and PVC in US due to hurricane in Q3 let Asian PVC had opportunity to supply to Middle East and Africa.

After Diwali PVC demand in India improved very much and influenced SEA and China. The global PVC markets had been improving later as well.

2017 Operating Review (I)

 2017 consolidated sales revenue was NT$14.7B, which increased by NT$544M.

 Sales quantity (KT):

	2017	2016	`Growth`
VCM	46	66	(20)
PVC	341	315	26
PVC Products	71	76	(5)
`Alkaline`	59 56 3
`Total`	517	513	4

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PVC Export by Market
Unit:KMT
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Total PVC Monthly Sales

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Unit:KMT
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PVC Sales Mix
Unit:KMT
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VCM & PVC Productions
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PVC(CGPC/CGPC-P)
Unit:KMT CGPC CGPC-P
250
200
150
100
50
0
2014 2015 2016 2017
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CGPC Polymer was awarded the best
export prize in 2017

`Remarks:`

  CGPC Polymer is recognized by the Minister of Economic Affairs as the best
  export growth in 2016 in the industries of rubber and plastics.

2017 Operating Review(II)

 Continuous actions on electricity saving, energy saving, carbon decrease and water saving.

 Planning and completion on public services so as to encourage employees and feedback to the community.

TVCM was awarded by the Ministry of Economic Affairs in 2017 for performance of energy saving and carbon decrease.

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	2017 Public Service Activities `Time` `Times Man-day Hour` `NT$K` Donate to USI Foundation (CGPC & TVCM) March 1 1500 Local street cleaning quarterly 3 60 9 10 Street light/park maintain whole year 1 100 Wetland maintain Whole year 1 100 Beach cleaning Sept. 1 121 3 120 Donate to poor people quarterly 8 120

1. Visit and donate the poor and orphan

2 . Visit and donate the poor

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3. Street cleaning

4. Donate 30 sets of iPad to junior high school for internet education purpose.

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2017 Public Service Activity

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5. Street light maintain

6. Park maintain

7. Wetland maintain

2017 Beach Cleaning

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2018 Industry Outlook (I)

 The good global GDP will support crude demand. And the weak US Dollars and oil cut maintaining by OPEC are expect to stabilize the crude price higher than last year.

 Ethylene price dropped in February because of slow season. However, the market price in Asia has been raising because of the T/A for 6.5M tons of ethylend in Q2.

2018 Industry Outlook (II)

 Caustic soda rebounded from $500 FOB NEA in early January. The market price reached $620 FOB again in early March. So, the high production for caustic soda will have more EDC output. EDC price is expected to be stable in the near future.  Domestic business for chlor-alkali products are good and profitable so far since last year. The PVC film and leather order intakes have been improving since early this year.

2018 Industry Outlook (III)

 Severe environment inspection and higher inland transportation cost in China and VCM/PVC T/A in Asia will result in tight PVC supply and keep price high.

 The strong demand for infrastructure and irrigation is expected to continue consuming more PVC before monsoon in India.

2018 Industry Outlook (IV)

 Asian PVC supply is limited for SEA and Bangladesh. However, the converting demand for pipe, compounding, wire and cable are always strong .

 Owing to the problems on production and logistics, US PVC export offered high at $900 FOB in Q1. Asian PVC producers can win more market share in M. East, S. America and Africa.

2018 Operating Outlook (I)

Target challenge for production & sales:
VCM : 450 KMT  PVC : 400 KMT
Keep full running with our IEM facility in line with good caustic soda market prospect.

 Based on the economic expansion from the government, the demand of pipe and the other construction products is expected to significantly improve.

2018 Operating Outlook (II)

 As global PVC had been booming since last year end, PVC and the other products contributed sales revenue of NT$2.74 billions in the first two months, which increased by 18.7% against same period of last year.

 The high PVC sales growth in the first two months will lead us to keep both VCM and PVC in full running for this year.

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China General Plastics Corporation and Subsidiaries Finance information

Reporter : C.C.Kuo Manager Date : 2018, Mar. 27

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2017 Sales by product (NT$million)

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China General Plastics Corporation and Subsidiaries Consolidated Statements of Income (In millions of NTD, except per share data)

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2017 2016 YoY% 2015 2014
Sales 14,702 14,157 3.8% 13,842 14,560
Cost of goods sold 11,925 11,217 6.3% 11,894 13,423
Gross profit 2,777 2,940 -5.6% 1,948 1,137
gross profit ratio 19% 21% 14% 8%
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		`2017`	`2016`	`YoY%`	`2015`	`2014`
`Sales` `Cost of goods sold`		14,702 11,925	14,157 11,217	3.8% 6.3%	13,842 11,894	14,560 13,423
`Gross profit` `gross profit ratio`		2,777 19%	2,940 21%	-5.6%	1,948 14%	1,137 8%
`Operating expenses`		1,126	1,066	5.7%	1,032	1,041
`Operating income`		1,651	1,874	-11.9%	916	96
`operating income rat`		11%	13%		7%	1%
`Non-operating income(l`		(37)	(52)	-28.5%	7	32
`Income before income t`		1,614	1,823	-11.5%	923	128
`Income taxes`		275	280	-1.8%	111	6
`Net income`		1,339	1,543	-13.2%	812	122
`net income ratio`		9%	11%		6%	1%
`Net income attributable to`
`- China General Plas`		1,270	1,443	-12.0%	768	119
`-noncontrolling int`		69	45	54.9%	45	3
`Earnings`		2.58	3.02	(0.44)	1.64	0.25
`per`	`adjusted`	0.00	2.93	0.00	1.60	0.25

*note:Non-operating income(loss) included discontinued operations i

China General Plastics Corporation and Subsidiaries

Financial ratio analysis


2017 2016 2015 2014
	2017	2016	2015	2014
Operating income margin(%)	11.2	13.2	6.6	0.7
Net income margin(%)	9.1	10.9	5.9	0.8
Debt ratio(%)	35	42	45	47
Current ratio(%)	336	290	245	213
Quick ratio(%)	229	218	172	124
Accounts receivable turnover	39	36	35	34
Inventory turnover days	55	58	60	51

EPS vs DPS

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 This presentation includes the Company’s current information and any development or adjustments thereof will be published according to laws, regulations or rulings. The Company is not obligated to update or revise this presentation.

 The information in this presentation is not for investment advices.

Thank You

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Q & A
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AI assistant

CGPC Investor Presentation 2018

51765_rns_2018-03-27_322b100f-2494-4bc4-90e4-88949cd443b0.pdf

2017 Industry Review (I)

Crude Oil & Ethylene Monthly Ave. Prices

PVC/VCM/EDC monthly avg. Prices (Platts)

2017 Industry Review (III)

 2017 consolidated sales revenue was NT$14.7B, which increased by NT$544M.

 Sales quantity (KT):

`Remarks:`

 Continuous actions on electricity saving, energy saving, carbon decrease and water saving.

TVCM was awarded by the Ministry of Economic Affairs in 2017 for performance of energy saving and carbon decrease.

1. Visit and donate the poor and orphan

2 . Visit and donate the poor

3. Street cleaning

2017 Public Service Activity

5. Street light maintain

6. Park maintain

7. Wetland maintain

2017 Beach Cleaning

 The good global GDP will support crude demand. And the weak US Dollars and oil cut maintaining by OPEC are expect to stabilize the crude price higher than last year.

 Severe environment inspection and higher inland transportation cost in China and VCM/PVC T/A in Asia will result in tight PVC supply and keep price high.

 The strong demand for infrastructure and irrigation is expected to continue consuming more PVC before monsoon in India.

 Asian PVC supply is limited for SEA and Bangladesh. However, the converting demand for pipe, compounding, wire and cable are always strong .

 As global PVC had been booming since last year end, PVC and the other products contributed sales revenue of NT$2.74 billions in the first two months, which increased by 18.7% against same period of last year.

 The high PVC sales growth in the first two months will lead us to keep both VCM and PVC in full running for this year.

China General Plastics Corporation and Subsidiaries Consolidated Statements of Income (In millions of NTD, except per share data)

China General Plastics Corporation and Subsidiaries

Financial ratio analysis

EPS vs DPS

 This presentation includes the Company’s current information and any development or adjustments thereof will be published according to laws, regulations or rulings. The Company is not obligated to update or revise this presentation.

Thank You

AI assistant

CGPC — Investor Presentation 2018

51765_rns_2018-03-27_322b100f-2494-4bc4-90e4-88949cd443b0.pdf

2017 Industry Review (I)

Crude Oil & Ethylene Monthly Ave. Prices

PVC/VCM/EDC monthly avg. Prices (Platts)

2017 Industry Review (III)

 2017 consolidated sales revenue was NT$14.7B, which increased by NT$544M.

 Sales quantity (KT):

Remarks:

 Continuous actions on electricity saving, energy saving, carbon decrease and water saving.

TVCM was awarded by the Ministry of Economic Affairs in 2017 for performance of energy saving and carbon decrease.

1. Visit and donate the poor and orphan

2 . Visit and donate the poor

3. Street cleaning

2017 Public Service Activity

5. Street light maintain

6. Park maintain

7. Wetland maintain

2017 Beach Cleaning

 The good global GDP will support crude demand. And the weak US Dollars and oil cut maintaining by OPEC are expect to stabilize the crude price higher than last year.

 Severe environment inspection and higher inland transportation cost in China and VCM/PVC T/A in Asia will result in tight PVC supply and keep price high.

 The strong demand for infrastructure and irrigation is expected to continue consuming more PVC before monsoon in India.

 Asian PVC supply is limited for SEA and Bangladesh. However, the converting demand for pipe, compounding, wire and cable are always strong .

 As global PVC had been booming since last year end, PVC and the other products contributed sales revenue of NT$2.74 billions in the first two months, which increased by 18.7% against same period of last year.

 The high PVC sales growth in the first two months will lead us to keep both VCM and PVC in full running for this year.

China General Plastics Corporation and Subsidiaries Consolidated Statements of Income (In millions of NTD, except per share data)

China General Plastics Corporation and Subsidiaries

Financial ratio analysis

EPS vs DPS

 This presentation includes the Company’s current information and any development or adjustments thereof will be published according to laws, regulations or rulings. The Company is not obligated to update or revise this presentation.

Thank You

More from CGPC

CGPC Investor Presentation 2018

`Remarks:`