COREMAX — Investor Presentation 2017

Nov 3, 2017

Coremax Group

Stock Code: 4739
Coremax Corporation
2017 Q3 Investor Conference

Presented by：Dennis Weng
Date：2017.11.7

Notes:

Safe Harbor Notice

The presentation and discussion contain certain forward-looking statements with respect to the results of operation, financial condition and current expectation. The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to the impact of competitive products and pricing, ability to ramp new products into volume, industry wide shifts in supply and demand for products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks.
This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer.
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Agenda

Company Profile
Group Structure
2017 Q3 Financial Results（Certified by Accountant）
Consolidated Statements of Comprehensive Income
Sales Breakdown by Products
Consolidated Gross Margin
Consolidated Operating Expenses
Consolidated Operating Income
Consolidated Net Income
Consolidated EPS
Important Event

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Company Profile

Zhangzhou, China - 2011
Plant Size : 21,361m2
Ningbo, China – 2004
Plant Size : 10,036m2

Jiangxi, China– 2000
Plant Size : 17,034m2
Jiangxi, China– 2000
Plant Size : 17,034m2
Europe
Asia
Hsinchu, Taiwan (HQ) – 1992
Plant Size : 14,190m2
North America

Africa
Zhuhai, China – 2001
Plant Size : 13,334m2
South America
Australia

Taichung, Taiwan – 1984
Plant Size : 7,938m2
Rayong, Thailand – 2009
Plant Size : 5,288m2
Toufen, Taiwan – 1961
Plant Size : 71,263m2
Founded in 1992
Capital:NTD8.61 Billion
Number of Employees
376 Persons
Head Office
11 Wenhua Rd.,
Hsinchu Industrial Park
Main Products
Catalyst
Power Battery Materials
Chemical Fertilizer
Specialty Chemicals

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Group Structure

83.6%
100%
80.18%
100%
100%
70.06%
100%
100%
11.15%
6.85%

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Consolidated Statements of Comprehensive Income

Unit：NTD Thousand
| Item | 2017Q1-Q3 | 2017Q1-Q2 | 2016Q1-Q3 | QoQ | YoY |
| --- | --- | --- | --- | --- | --- |
| Sales Revenue | 3,656,712 | 2,359,195 | 2,982,446 | 55% | 23% |
| Gross Margin | 15% | 14% | 9% | 0.01 | 0.06 |
| Operating Expenses | 165,444 | 110,652 | 156,768 | 50% | 6% |
| Operating Margin | 10% | 9% | 3% | 0.01 | 0.07 |
| Non-operating incomes and expenses | 11,022 | 3,521 | 154,820 | 213% | -93% |
| Net Income | 317,604 | 188,166 | 212,183 | 69% | 50% |
| Net Margin | 9% | 8% | 7% | 0.01 | 0.02 |
| EPS | 3.92 | 2.36 | 2.76 | 66% | 42% |
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2017Q3 Sales Breakdown by Products

Unit：NTD Thousand
| Catalyst | Power Battery | Chemical Fertilizer | Specialty Chemicals | Others | Total Sales Revenue |
| --- | --- | --- | --- | --- | --- |
| 156,109 | 518,959 | 232,107 | 156,686 | 233,656 | 1,297,517 |
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2017Q1-Q3 Sales Breakdown by Products

Unit：NTD Thousand
| Catalyst | Power Battery | Chemical Fertilizer | Specialty Chemicals | Others | Total Sales Revenue |
| --- | --- | --- | --- | --- | --- |
| 462,179 | 1,298,283 | 623,763 | 549,224 | 723,262 | 3,656,712 |
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Quarterly Sales Breakdown by Products

YoY:43.36% ； QoQ:11.96%
YoY:58.79% ； QoQ:40.04%

YoY:15.39% ； QoQ:32.13%
YoY:-8.07% ； QoQ:-28.59%
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Consolidated Gross Margin

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Consolidated Operating Expenses

Unit：NTD Million
YoY:6% ； QoQ:50%

Operating Expenses

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Consolidated Operating Income

Unit：NTD Million

YoY:272% ； QoQ:68%

Operating Margin

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Notes:

Consolidated Net Income

Unit：NTD Million

YoY:50% ； QoQ:69%

Net Margin

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Notes:

Consolidated EPS

Unit：NTD

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Notes:

Important Event

At 10/31, # 47392, convertible bondⅡ, roughly NT $36.2 million has not been converted, the expected conversion shares of about 682,000 shares.
After the $36.2 million converted, the capital will be NT $868 million.

The company's third power battery material production line is operation now, the current production rate is about 50%, still under process adjustment stage.

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CoreMax Your Best Choice! Best Partner!

Thank you for your attention!
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Notes: