CHEM — Annual Report 2021

Dec 22, 2021

This English translation is prepared in accordance with the Chinese version and is for reference purposes only. If any inconsistency appears between the Chinese original and the English version, the Chinese version shall prevail.

Company Overview

• Established in 1956
• Group Capital: 4.77 billion
• Group Revenue: 20 billion/yr
• Power Equipment, Engineering and Energy Management
• TSE: Code 1513, listed since 1994
• Headquarter: Linkou, Taiwan
• ISO 9001/9002/14001/AS 9100

Financial Highlights

Fiscal Year	Dividends (TWD)	Profitability	2020	2019	2018
2005	1.5
2006	1.4	ROE	16.57%	8.28%	7.42%
2007	1.4
2008	0.88	ROA	6.47%	3.67%	3.56%
2009	1.0
2010	1.0	GPM	21.35%	16.69%	15.87%
2011	1.0	OPM	11.18%	5.29%	4.75%
2012	1.0
2013	0.8 (cash dividends) 1.25 (cash capital reduction)	Profit Margin	10.08%	5.16%	4.59%
2014	1.2	2021 Q1-Q3
2015	1.0			Consolidated Revenue
2016	1.0		NTD 12.86b, EPS 2.87
2017	1.0
2018	1.0	Numbers, Vision and Mission. 
2019	1.2
2020	2.2

Financial Highlights

Parent Company, 2017-2021

	Operating Income	Net Income	EPS	17.6b
2017	9,225,672	488,165	1.19	13.6b
2018	10,119,536	544,837	1.33
2019	9,745,724	635,299	1.55
2020	17,609,224	1,527,368	3.59
2021 Jan-Sep	13,614,498	1,673,181	2.87	'17 '18 '19 '20 '21(Jan-Sep)
\$NT, In thousand				■ Operating Income \$NT, billion

Organizational Changes

for Green Energy Business

B= \$NT, billion

2021 Nov.

Heavy Power		Power Metering		Power Engineering		Operating Mechanism
Contracted To deliver	16.27b	Contracted To deliver	274m	Contracted To deliver	4.09b	Contracted To deliver	109m
Payment Collected 100% / ready to finalize	24,640,826	Contracted to Deliver FY2020*	150,253,163	J101 Project	1,901,015	Contracted to Deliver FY2020*	111,206,070
Estimated from Project Execution	16,247,871,641	Accumulated in Sales 2021	319,971,753	J102Project	4,007,222,878	Accumulated in Sales 2021	110,465,428
Accumulated	281,431,516	Accumulated in Contracted Value 2021	196,066,663	J103Project	90,145,143	Accumulated in Contracted Value 2021	112,143,010

in Total 20.8 Billion

	2020	2021	2022
Estimated but not closing at	5.81b	7.26b	7.01b
Contracted to Deliver %	100%	94%	58%	FY = Financial Year B = Billion
To be Contracted %	0%	6%	42%	M = Million

Engineering, Procurement & Construction

23 Full Turnkey Substations

design, engineering, procurement, constructing, installing & test for all civil & electrical projects included

Achievement & Milestones

• Hydroelectric power plant in Ku-Kuan and Chin-Shan
• Total of 71 Sets of Wind Energy Generator installation with 99.46 MW
• 11 Sets Wind Energy Generator installation with 33MW in Penghu (off island)

Golden Quality Medal Award by "Public Construction Commission"

The 5th annual award (2004) The 7th annual award (2006) The 8th annual award (2007) The 9th annual award (2008) The 11th annual award (2010) The 12th annual award (2011) The 15th Premium (2015) The 16th Excellence (2016) The 17th Premium (2017) The 17th Excellence (2017) The 19th Excellence (2019) The 20th Excellence (2020) Special Contribution Award (2020)

Spin-Off Plan for PV business (SPVs)

Tainan Project in Chi-ku Site - Bird View

H2 Generating Technology

Milestones

Please refer to Chinese version for details of Tech Roadmap & Product Scope.

项目	铅酸电池	燃料电池
使用成本	10年内:22万(含空调/报废2次等)	10年内: 20万(无需空调等)
应急效率	2-3小时	大于60小时(可在线添加燃料)
企业效益		应急通信用户100人扩大到100万以上
社会成本		安装方便/安全/环保/应急情况不争抢油料

13 Please refer to Chinese version for details of deployment, alliances and core strength.

H² Dispenser for Carbon Removal - Application

H2 -Driven Forklift Total Solution

Distributed Refueling Station in Containers

Micro-Grid Solution

Household Use

Community Use Commercial Use

SMG-05-075 • PGM-45-72 PGS-100-144 /PGS-300-288

Light FC Vehicle – Commercial Use

Food Delivery Service or Logistic Service to be changed into FC light vehicles using

Island Mode Micro-Grid – DJY Island

Green energy for Island Mode Micro-Grid, the DJY Isle Project – Turn-Key Solution

The maximum penetration rate of solar power increased from 32% up to 92.8% and had won APEC 2017 ESCI-KSP Smart Grid–Silver Award – Dongjiyu.

Estimated >1 billion people are still in need of power supply in ASEAN countries. This solution serves as the key tech for the market demand.

Hybrid Mode Micro-Grid – Community in S.A.

Naledi Trust Community, Kroonstad, Free State Location : Naledi Trust Community, Kroonstad, Free State, South Africa from Aug. 2014 till now

• Unaffected from weather, 24/7 uninterrupted power supply
• Technical feasibility proven, commercial requirement identified
• Smart-Generation, Smart-Storage, Smart-Dispatching ²⁰

Strategic Alliance

For FUEL CELL & Hydrogen Business in June 2017

Strategic Alliance

Spin-Off Plan for H² Business

DDH Parking Mngmt + COP

Maintenance & Operating Service

Maintenance & Operation

For Solar Energy Projects

CHENG-HSIN Engineering & Services

	Maintenance & Operating	Wha Dun Building Management Service	CHENG-HSIN Engineering & Services
Actual Revenue 2020	412m	80m	748m
Operating Budget 2021	305m	70m	735m

M= \$NT, Million

CNC Group

CNC Group

Chamber

Vertical Multi-Tasking Turning Center ( 5 Axis) ( Mazak e-1550 V/10)

CNC Five-face machining center

Capability Status for Manufacturing

Process		Technique	Assessment	Major Customer
CHEM China	Welding	Carbon Steel Stainless Steel Aluminum Alloy		中微 UCT
	Machining	Machining	All Approved	AKT
	Polishing	Jitterbug Raceway polishing		F Fiti
	Surface Treatment	Chemical Cleaning/ Anodize/Electro Polish		理想
CHEM Linko	Welding	Carbon Steel Stainless Steel Aluminum Alloy	Approved U-stamp. UT. .	AMAT Semi ULVAC
	Machining	Machining	Approved AS9100. Nadcap. S200. S1000. GT193	AIDC AEF EGAT
	Polishing	Jitterbug Raceway polishing	Approved AMAT	EBARA
CHEM Tainan	Welding	Carbon Steel Stainless Steel Aluminum Alloy	Approved AMAT UT. .	AMAT ULVAC
	Machining	Machining	Approved
	Polishing	Jitterbug Raceway polishing	Approved AMAT

Urban Renovation Projects

Center of Taipei City Area – Dunwha S. Rd. & Civic Blvd. Center of Taipei City Area – Sanchong Site (In Progress)