CHELIC — Annual Report 2017

Nov 14, 2017

ESTABLISH	NOVEMBER, 1986
TAIWAN STOCK LISTING	SEPTEMBER,. 2014
TAIWAN STOCK EXCHANGE	OCTOBER, 2015
CAPITAL	NT\$ 668,800,000 (DEC., 2015)
PRESIDENT	MR. BARTON YU
GENERAL MANAGER	MR. BARTON YU
MAIN PRODUCTION PLANT	TAIWAN, SHANGHAI, PING HU (BANG YEH)

COMPANY INFORMATION

CHELIC PLANT

•EMPLOYEES: 220 people •PLANT SIZE:15,500 square meters •BUSINESS LINE:R &D center, High precision products.

CHELIC PLANT

•EMPLOEEYS:325 people •PLANT SIZE:40,000 square meters •BUSINESS LINE:Manufacture and sale for varieties of pneumatics components.

PRODUCT

PRODUCT

The air unit being used to filter the air, pressure adjustment and lubricate in pipelines. According to different working environment, air units includes Filter, Regulator, Lubricator and Filter Regulator.

The valve is to control the flow direction of pressured air, to switch direction and to achieve the orders from users. According to variety controlling needs, mechanical valves, hand-operated valves and solenoid valves provides different performance.

Below automation includes: Sliding cylinder:for vertical/horizontal movement Air gripper:for holding Rotary cylinder:for different holding angle

Executive unit is the majority components that implement to loading, gripping, positioning, picking and rotating. According to function, it includes variety cylinders such as standard type, double acting, clamping, rodless, rotary type and gripper type.

Sub-unit includes vacuum items, fittings, tubing and other accessories which are to match with air unit, control unit and executive unit.

PRODUCTS SALES

ITEMS	IMAGES	2016 SALES %	2017 JAN - SEP SALE %	CHARACTERISTICS
EXECUTIVE UNIT		51.34%	51.71%	Compressed the air into mechanical device
CONTROL UNIT		13.63%	14.36%	To control the air to adjust the pressure, flow, direction and sending signal.
AIR UNIT		7.91%	6.57%	To process the compressed air from actuators
SUB-UNIT		15.14%	15.17%	VACUUM AND FITTINGS
ACCESORRY		11.48%	11.29%	ACCESSORIES
OTHERS		0.50%	0.90%	SEMI-MATERIAL

PRODUCT APPLICATIONS

PRODUCT APPLICATIONS

AUTOMATION MACHINE LOADING AND UNLOADING SYSTEM

PRODUCT APPLICATIONS

INDUSTRIAL PERCENTAGE

YEAR	2015		2016		2017 JAN - OCT
INDUSTRY	AMOUNT	%	AMOUNT	%	AMOUNT	%
MACHENICAL EQUIPMENT	541,175	39.59%	468,825	38.23%	449,524	37.78%
ELECTRONICAL	579,668	42.40%	491,074	40.04%	478,014	39.75%
AUTO	71,752	5.25%	68,505	5.59%	78,171	6.50%
FOOD	28,881	2.11%	25,207	2.06%	29,497	2.45%
TEXTILE	55,022	4.02%	66,138	5.39%	71,635	5.96%
PLASTIC	12,838	0.94%	12,556	1.02%	14,193	1.18%
BIO MEDICAL	10,656	0.78%	10,925	0.89%	12,170	1.01%
ENERGY	22,394	1.64%	31,855	2.60%	31,529	2.62%
OTHERS/TRADING	44,676	3.27%	51,325	4.18%	37,833	3.15%
TOTAL	1,367,062	100.00%	1,226,410	100.00%	1,202,566	100.00%

SALES PERCENTAGE

SALES POINT

31 Offices 9 Sales Point in China 3 Offices in Taiwan

CHELIC WORLDWIDE

MAJOR SALES REGION

	2016 SEASON 1 - 3		2017 SEASON 1 - 3
	AMOUNT	%	AMOUNT	%
DIRECT	386,473	39.87%	578,840	53.05%
DISTRIBUTORS	582,974	60.13%	512,360	46.95%
TOTAL	969,447	100.00%	1,091,200	100.00%
DIRECT OFFICES	35 OFFICES		43 OFFICES
DIRECT ACCOUNTS	3651 CUSTOMERS		4324 CUSTOMERS

CURRENCY:NTD

The direct operation offices with 2017 sales strategy brings good performance. The direct sales proportion 53:47 which increase 49% in sales

We pass "A+ Industrial Innovation R&D Program" audit and obtain 1,670 million grants and starts from May 1st, 2017.

Current development scope:

A.To develop the air consumption pressure and controlling

B.High efficiency vacuum system technical development

C. Digital electronical proportional valve with Internet of things

R&D manpower
From	PhD	Master degrees	Bachelor degree	College degree	Total
2017 SEP.	3	12	15	8	38

FINANCIAL STATUS

CURRENCY: NTD

	2016 SEASON 3	2017 SEASON 3	2016 JAN - SEP	2017 JAN - SEP
REVENUE	307,327	408,514	969,447	1,091,200
GROSS PROFIT	145,391	164,015	420,137	426,902
NET INCOME	41,884	63,941	128,448	126,202

• 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2016 SEASON 3 2017 SEASON 3 2016 JAN - SEP 2017 JAN - SEP REVENUES GROSS PROFIT NET INCOME

2015 2016

PING HU INVESTMENT

PLANT LOCATION

• Land and Construction
• We acquired about 63 mu of state-owned land at Pinghu area and established Chelic (Zhejiang) Co., Ltd. In the July,2017. At the time, we had overall planning and expected the first phase of construction of about 23,000 square meters will be completed in early 2019. Second phase of construction subject to availability .

• Mergers and Acquisitions BANGYE operating assets

• Chelic Shanghai Invested 18% stake in the Shanghai Bangye Pneumatic and Hydraulic Components Co.Ltd. (Shanghai bangye) and established new company of Zhejiang Bangye Technology Co. Ltd. in the August,2017; beginning to buy all the working assets (including equipment, inventory, mold, client, trademark etc.) of Shanghai Bangye in the same year in October. Besides, Wu Bangyi, the largest shareholder, invested 20% of the shares and served as manager.
• Seeking other strategic alliances with potential companies
• Continuing look for upstream and downstream related industries which have high quality. To be provided by forward-looking manufacturers with maximum support for technology and products. Negotiate the possibility of cooperation and join the project. Achieve the goal of sharing profits together

A. Increase production capacity, increase consolidated revenue and profit of the Group

A-1 33 million to buy 80% of management power of Bangye, the future can be increased group's revenue and profit steadily every year.

A-2 The second phase of the project will increase the Group's interest with more quality companies in Pinghu.

B. . Vertical integration plus reduce costs

B-1 Mode,die casting, and outsourcing part of gold processing can be vertical Integration through this investment project.

B-2Labor ,electronic cost etc. in Pinghu cheaper than Shanghai at least 30%.

C. Acquired a process license that Shanghai no longer need to approve

C-1 Anode

C-2 Paint process

C-3 Die-casting

D. Across to other industries beyond aerodynamic industry

Cut through the die-casting mold into other industries --- especially the automotive industry

2017 NEW PRODUCT LAUNCH

Electronic Regulator CVTR Series

FEATURES & SUBSTITUTIONS

ADVANTAGES & APPLICATIONS

ADVANTAGES

• Adjust continuously for pressure and flow
• Components and manpower reduction
• Remote control and process control

APPLICATIONS

• Pressure control for executive components
• Clutch control
• Pressure testing device
• Speed control for lifter
• Pressure control for buffer of punch machine
• Tension control for lapping machine
• Pressure control for balancer

2017 China International Industry Fair CHELIC Demonstration

NEW PRODUCT

NEW PRODUCT

FC flow sensor can adopted in mechanical, auto, measure equipment, tools, precision equipment, production equipment and semi-conductor industry widely.

2016&2017 TAIWAN EXCELLENCE

2018 TAIWAN EXCELLENCE