CHUNG HUNG — Annual Report 2021

Feb 25, 2021

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中鴻鋼鐵股份有限公司 CHUNG HUNG STEEL CORPORATIION

2021.02.26

股票代碼 : Stock Code :

2014

中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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免責聲明 Cautionary Statement

本簡報與同時發布之相關訊息，係依公司目前狀況及現有資訊而 做成，因此本公司特別聲明報告內容，僅為資訊流通之目的而公 佈，並非投資建議。對於這些看法在未來若有任何改變或調整時 ，本公司不負責隨時提醒或更新。

The information contained in this presentation and its accompanying announcements is based on present condition and information available at the time the statements were made. The is run for presentation exclusively the of information and not for the of investment purpose providing purpose advice. The Company is not responsible for reminding or updating changes or made to the contents of this if such or adjustments presentation, changes adjustments should occur in the future.

中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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目	錄 Table of Contents
• 公司簡介	Company Overview	1
• 銷售分析	Sales Analysis	10
• 財務概況	Financial Review	15
• 策 略	Strategy	17
• 未來展望	Prospects	18
中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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公司簡介 Company Overview

中鴻鋼鐵股份有限公司（原名燁隆企業股份有限公司， 2004 年 7 月 14 日正式更 名，以下簡稱中鴻）成立於 1983 年 9 月，基於國內鋼鐵上下游整合，中鴻於 1999 年底與中鋼公司策略聯盟， 2000 年正式成為中鋼集團一員。

Chung Hung Steel Corporation (originally named Yieh Loong Enterprise Co., Ltd., was renamed on July 14th, 2004, known as “CHSC” for short) was established in September 1983. For observing the integration of upstream and downstream steel companies in Taiwan, CHSC formed a strategic alliance with CSC at the end of 1999, and officially became a member of the CSC Group in 2000.

中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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公司簡介 Company Overview

中鴻主要產品有熱軋鋼捲、酸洗塗油鋼捲、酸洗退火球化鋼捲、冷軋全硬鋼捲 、冷軋調質鋼捲、鍍鋅鋼捲、碳鋼鋼管 (CNS/JIS/ASTM) 、鍍鋅鋼管、 PE 包覆 鋼管、 API 輸油管、 API 油井套 ( 導 ) 管。產品銷售以供應國內為優先，產品廣泛 運用在五金、建材、汽車、家電、運動器材、鋼製傢俱等眾多產業。

CHSC's main carbon products include hot-rolled steel coils, pickled & spheroidized annealed steel coils, cold-rolled full hard steel coils, cold-rolled tempered steel coils, galvanized steel coils, carbon steel pipes ( CNS/ JIS/ ASTM), galvanized steel pipes, PE-coated steel pipes, API oil pipelines and API pipes for casing and tubing. The products are widely used to manufacture hardware, building materials, cars, household electric appliances, sport equipment, steel furniture and so on. They are primarily prioritized for domestic sales.

中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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公司簡介 Company Overview

中鴻有五個生產廠區，其中熱軋廠（年產能 240 萬公噸）、冷軋廠（年產能 45 萬 公噸）、鋼管廠大發廠區（年產能 4.8 萬公噸）及酸鍍廠（酸洗線年產能 60 萬公 噸、鍍鋅線年產能 30 萬公噸）四個廠區皆位於高雄市；另 2012 年於彰化縣彰濱 工業區（鹿港區）新建一座年產能 20 萬公噸鋼管廠，主要生產石油相關用管， 銷售於國際石油氣鋼管市場。

CHSC has had five factories so far, four of which are located in Kaohsiung City, Taiwan. They are the hot-rolled coil factory with the annual capacity of 2.4 million metric tons, the cold-rolled coil factory with the annual capacity of 450,000 metric tons, the steel pipe factory with the annual capacity of 48,000 metric tons, the pickling and galvanizing factory with the annual capacity of 600,000 metric tons from the pickling line and 300,000 metric tons from the galvanizing line and the new ERW steel pipe factory, established in 2012, located in the Chang Hua Coastal Industrial Park in Lukang, Chang Hua County, Taiwan. With the annual capacity of 200,000 metric tons, the factory primarily manufactures pipes used in the oil industry for the international oil and gas tubular market.

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中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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公司簡介 Company Overview

以市場需求為導向，發揮靈活彈性特長，持續提升產品附加價值及開發利基產 品，追求穩健獲利，一向是中鴻的經營策略及目標，為追求永續發展、強化內 部管理及客戶服務，本公司積極取得外部相關驗證，各廠已通過品質、環保、 、 、 、 能源及職安衛之 ISO 14001 ISO 45001 ISO 50001 CNS 45001 等各項管理系統 驗證，另為消除國家貿易障礙，各產品已取得 JIS MARK 認證，熱軋產品已通過 印尼 SNI 、馬來西亞 SIRIM 、泰國 TIS 及新加坡 FPC 認證，酸洗產品通過 IATF 16949 汽車用鋼認證。

With a market-oriented, demand-conscious, and flexible view, CHSC always aims to optimize the added values of its products, develop niche products, and stably make profits. To pursue its sustainable development and to enhance its internal management as well as customer services, CHSC has aggressively obtained external certification, such as ISO 14001, ISO 45001, ISO 50001, and CNS 45001. To eliminate the obstacles in international trade, it has also obtained the JIS MARK certificate for each product and the SNI (Indonesia), SIRIM (Malaysia), TIS (Thailand), FPC (Singapore) certificates for hot-rolled products, and IATF 16949 certificate for pickling products.

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中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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產製流程

熱軋鋼捲 Hot Rolled Coil

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加熱爐 粗軋機 水幕式冷卻系統
精軋機
Reheating Furnace Roughing Mill Curtain Cooling
扁鋼胚 盤捲箱 Finish Mill System
Coil Box 盤捲機
Slab
Down Coiler
包裝
Packing
熱軋鋼捲 熱軋粗鋼捲
Hot Rolled Coil 調質機 Hot Rolled Band
Skin Pass Mill
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冷軋鋼捲 Cold Rolled Coil

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產製流程

鋼管 Steel Pipe & Tube

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解捲 積料 成形 高週波銲接 內外銲道整平 線上超音波檢測 中週波回火
Uncoil Looping Forming H.F.Welding Weld Scarfing Online Ultrasonic M.F. Annealing
(Inside & Outside) Testing
空 / 水冷卻 精整 切斷 修面 水壓檢測 通徑試驗
Air & Water Rotary Cutting End Facing Hydrostatic Drift
Cooling Sizing Testing Testing
線外超音波檢測 終端檢驗 塗裝 噴誌 包裝
Offline Ultrasonic Final Coating Stenciling Packing
Testing Inspection
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產製流程

酸洗 Pickling

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熱軋鋼捲 銹皮破碎及張力整平機 酸洗 水洗 烘乾 靜電塗油機 熱軋酸洗塗油鋼捲 包裝
Hot Rolled Coil Tension Leveler(Scale Breaker) Pickling Rinsing Air Dryer Oiling Pickled And Oiled Hot Packing
Rolled Coil
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鍍鋅 Galvanizing

熱軋鋼捲 鹼洗段及清洗槽 還原式加熱爐 鍍鋅槽 微細鋅花設備 Hot Rolled Coil Alkaline Cleaning Non-oxidizing Furnace Zinc Pot Mini Spangle And Rinsing

鍍鋅後冷卻區 水淬槽 烘乾機 化學皮膜處理 鍍鋅鋼捲 包裝 After Cooler Water Air Dryer Chromate Rinse Hot Dipped Packing Quenching Galvanized Tank Coil

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	外銷區域分析Export Sales Analysis	外銷區域分析Export Sales Analysis	外銷區域分析Export Sales Analysis	外銷區域分析Export Sales Analysis	外銷區域分析Export Sales Analysis
	2019年1~12月
	排名	銷售國家	銷售金額(百萬元)	銷售量(公噸)	外銷(金額)比率
	Ranks	Country	Amount(NTD million)	Volume(MT)	Export ratio
	1	越南Vietnam	5,327	341,069	25%
	2	美國America	3,278	120,630	15%
	3	馬來西亞Malaysia	2,457	149,232	12%
	4	韓國Korea	2,367	147,594	11%
	5	巴基斯坦Pakistan	1,670	107,859	8%
	6	泰國Thailand	1,529	89,749	7%
	7	菲律賓Philippines	1,096	63,470	5%
	8	孟加拉Bangladesh	845	51,145	4%
	9	其他Others	2,698	147,023	13%
	合計Total		21,267	1,217,771	100%

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外銷區域分析 Export Sales Analysis
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Production and Sales Statistics 產銷量值表

單位：新台幣千元、公噸 Unit ： NTD Thousands、mt

期間period	2020.1~12	2020.1~12	2020.1~12	2019.1~12	2019.1~12	2019.1~12
產品Products	產能 Capacity	產量 Output	產值 Amount	產能 Capacity	產量 Output	產值 Amount
熱軋鋼捲Hot Rolled coil	2,400,000	2,179,523	28,498,111	2,400,000	2,091,091	31,874,580
冷軋鋼捲Cold Rolled coil	450,000	271,435	4,663,506	450,000	262,834	5,272,745
鋼管Steel Pipe	248,000	58,242	1,188,934	248,000	136,756	3,016,435
鍍鋅鋼捲Galvanized Steel Coil	300,000	26,434	487,205	300,000	14,009	285,985
合計Total	3,398,000	2,535,635	34,837,756	3,398,000	2,504,690	40,449,746

期間period	2020.1~12	2020.1~12	2020.1~12	2020.1~12	2019.1~12	2019.1~12	2019.1~12	2019.1~12
內/外銷Domestic / Export	內銷Domestic		外銷Export		內銷Domestic		外銷Export
產品Products	量 Quantity	值 Amount	量 Quantity	值 Amount	量 Quantity	值 Amount	量 Quantity	值 Amount
熱軋鋼捲Hot Rolled Coil	1,137,823	16,473,061	822,885	11,399,705	748,795	12,152,605	1,013,280	16,272,199
冷軋鋼捲Cold Rolled Coil	234,935	4,207,002	43,481	766,325	222,391	4,178,197	64,332	1,277,102
鋼管Steel Pipe	11,131	240,397	52,860	1,013,013	10,126	271,653	128,859	3,464,883
鍍鋅鋼捲Galvanized Steel Coil	105,998	1,873,640	22,320	432,899	105,273	2,061,136	11,300	252,752
合計Total	1,489,887	22,794,100	941,546	13,611,942	1,086,585	18,663,591	1,217,771	21,266,936

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產業概況 Industry Overview

受到新型冠狀病毒 (Covid-19) 疫情的影響，世界鋼鐵協會 (WSA) 於 2020 年 10 月發佈的鋼鐵需求預測指出， 2020 年全球鋼鐵需求量將萎縮 -2.4% ，下降至 17.251 億公噸；但 2021 年全球鋼鐵需求量則將恢復至 17.951 億公噸，較 2020 年上升 4.1% 。目前國際鋼市走勢稍顯分歧，歐洲行情進入高位整理，中國 及東南亞地區受春節因素影響鋼材需求，然美國鋼價則持續衝高，且全球主 要國家製造業 PMI 多保持擴張，預計下游產業需求仍將穩定成長。 隨著新冠疫苗陸續問世，加上美歐日再啟經濟刺激計劃，預計 2021 年全球景 氣及鋼鐵需求復甦動能將顯著提升。而中鴻主力產品以熱軋底材為核心，占 總產銷量 7 成以上，並可做為直接原料供應公司下製程生產產品後銷售，相 較於下游鋼鐵加工業者，更具有主導及競爭優勢。此外，中鴻近年持續嚴管 各項產銷效益，並逐步強化原料採購及產品差異化，及對內 / 外銷售比重調 配更靈活敏銳，加上臨近之東南亞地區用鋼需求持續成長，整體營運強軔度 將持續提升。

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產業概況 Industry Overview

Due to the impact of COVID-19 pandemic, global steel demand of 2020 is expecting to shrink by - 2.4% to 1,725.1 million tons; but grow by 4.1% to 1,795.1 million tons in 2021, according The World Steel Association’s prediction announced in June, 2020.

The current trend of the international steel market is slightly divergent. The European market has entered a high level and moved sideways. China and Southeast Asia are affected by Chinese new year. However, the steel price in the United States continues to rise, and the manufacturing PMI of major countries in the world continues to expand. The downstream industry demand is expected to grow steadily.

With the advent of COVID-19 vaccine and the re-launch of economic stimulus plans in the United States, Europe and Japan, it is expected that the recovery momentum of the global economy and steel demand will increase significantly in 2021.

Main product of Chung Hung Steel (CHS) is hot rolled base materials, which is about 70% of the total production and sales, also could be used as raw materials for its own production line. By comparison with downstream steel manufactures, CHS has more dominant and competitive advantage. In addition, CHS has been controlling strictly the efficiency of business operations in recent years, also strengthen on raw materials procurement and product differentiation, as well as much flexible and sensitive on adjusting the ratio of domestic and exporting sales. Meanwhile, the steel demand of nearby Southeast Asia region is growing continuously, Chung Hung Steel will keep improving operating resilience.

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Financial Review 財務概況

財務概況 Financial Review	財務概況 Financial Review	財務概況 Financial Review
單位：千元 Unit : NTD Thousands
期間Peroid 項目Item	2020/1~12	2019/1~12
營業收入淨額	36,790,154	40,470,129
Net Sales
營業成本	35,335,654	39,225,201
OperatingCosts
營業毛利	1,454,500	1,244,928
Gross Profit
營業費用	1,116,288	1,462,517
OperatingExpenses
營業淨利(損)	338,212	-217,589
Profit(Loss)from Operations
營業外收(支)	190,053	228,474
Non-operatingincome(Expenses)
稅前淨利	528,265	10,885
Profit Before Income Tax
稅後淨利	528,260	10,791
Net Profit For The Period

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股利政策 Dividend Policy

本公司年度決算如有盈餘，於完納稅捐，彌補累積虧損後，依法提列法定盈餘公積，但法定盈餘 公積已達本公司實收資本額時，得不再提列，其餘再依法令規定提列或迴轉特別盈餘公積；如尚 有餘額，併計上年度未分配之盈餘作為可供分配盈餘，由股東會決議分派股利或保留之。

每年就可供分配盈餘提撥不低於 30% 分配股東股息紅利，惟累積可供分配盈餘低於實收股本 3% 時 ，得不予分配。

本公司產業發展成熟，故前項股東紅利之分派，將採現金股利及股票股利適度比例發放，其中現 金股利額度不低於百分之五十。

In the event of surplus earnings after closing of annual accounts, due taxes shall be paid, and losses incurred in previous years shall be compensated. Upon completion of the preceding actions, the remainder surplus shall be allocated as statutory reserve in accordance with the law. However, in the event that the accumulated statutory reserve is equivalent to or exceeds the Company's total paid-in capital, such allocation may be exempted. The remainder may be set aside or reversed as special surplus reserve in accordance with laws and regulations. The remaining profit, if any, shall be included in the earnings available for distribution along with previous years’ undistributed earnings, and the shareholder's meeting shall determine whether to distribute dividends or retain the earnings.

The Company shall allocate no less than 30% of the distributable earnings for shareholder dividends and bonuses each year. However, the distribution may be canceled if the accumulated earnings available for distribution are less than 3% of the paid-up capital.

The development of the Company's industry has matured. Therefore, the distribution of the shareholder dividends specified above shall be distributed with appropriate ratios of cash dividends and stock dividends. Cash dividends shall be no lower than 50%.

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策 略 Strategy
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中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司。

Chung Hung maintains ethical business operations and strives to become a sustainable, reliable, and approachable steel company.

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業務目標 生產目標 財務目標
Commercial Production Financial
1.持續開發重點產品
1.掌握客戶需求
Sustain development of key products
Aim for customers demands
2.提升產品品質及製程技術
2.保持靈活彈性銷售策略 1.內部管理確實
Improve product quality and technology
Maintain the flexible sales strategy 3.朝向產品差異化 Complete Internal Management
3.確保通路穩定 Toward product differentiation 2.降低營運成本
Ensure stable sales channels 4.精進利基產品
Implement operating cost reduction
Enhance niche products
4.提升市場競爭力
5.創造市場優勢
Increase the market competitiveness
Create market advantage
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未來展望 Prospects

中鴻未來將持續提升產品品級及品質，加強客戶服務，建立 良好客戶夥伴關係，創造產品差異化，並積極推動節能減廢， 善盡企業社會責任。

In the future, CHSC will upgrade the quality and grades of products, focus on enhancing customer services, establish good partner relationships with customers, create product differentiation, proactively conserve energy and reduce carbon emissions, and fulfill its corporate social responsibility.

中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司

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感 謝 聆 聽 !

Thanks for your attention.

中鴻堅持正派經營，努力打造成為一個持續發展、值得信賴、樂於交往的鋼鐵公司