COREMAX — Investor Presentation 2019

Apr 9, 2019

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Code : 4739

Coremax Group

Coremax Corporation 2019 Investor Conference

2019.04.09

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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

 Financial Results

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Company Profile

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Zhangzhou, China - 2011 Ningbo, China – 2004
 Founded in 1992 Plant Size : 21,361m [2] Plant Size : 10,036m [2]
 Capital:NTD 9.29 Billion
 Number of Employees
398 Persons Jiangxi, China– 2000
 Head Office Plant Size : 17,034m [2] Europe Asia
North Hsinchu, Taiwan (HQ) – 1992
11 Wenhua Rd., America Plant Size : 14,190m [2]
Hsinchu Industrial Park
 Main Products
Zhuhai, China – 2001 Africa
Catalyst
Plant Size : 13,334m [2]
South
Australia
Power Battery Materials America
Chemical Fertilizer
Specialty Chemicals
Rayong, Thailand – 2009 Taichung, Taiwan – 1984 Toufen, Taiwan – 1961
Plant Size : 5,288m [2] Plant Size : 7,938m [2] Plant Size : 71,263m [2]
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Group Structure

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Coremax
Corporation
June 1992
100% 80.18% 82.70%
Heng I Chemical Uranus Chemicals
Coremax (BVI)
Co., Ltd. Co., Ltd.
November 2001
May 1961 July 1975
100% 100% 100% 70.06%
100%
Coremax
Coremax Zhuhai Coremax Ningbo Coremax (Thailand) Jiangxi Tianjian
(Zhangzhou)
Chemicals Co., Ltd. Chemicals Co., Ltd. Co., Ltd. Chemicals Co., Ltd. Materials Co., Ltd.
December 2001 September 2004 March 2009 January 2001
October 2011
11.15% 6.85%
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Financial Results

Unit：NTD Thousand

	2017	%	2018	%	YoY
Net Revenue	4,980,823	100.00%	6,310,637	100.00%	27%
Gross Profit	762,320	15.31%	780,810	12.37%	2%
Operating expenses	230,581	4.63%	225,170	3.57%	-2%
Selling expenses	74,160	1.49%	86,422	1.37%	17%
General expenses	141,280	2.84%	116,689	1.85%	-17%
Research and development expenses	15,141	0.30%	22,059	0.35%	46%
Operating Income	531,739	10.68%	555,640	8.80%	4%
non-operating revenue and expenses	(2,641)	(0.05)%	(17,717)	(0.28)%	571%
Net Income before Tax	529,098	10.62%	537,923	8.52%	2%
Income Tax	87,847	1.76%	108,493	1.72%	24%
Net Income after Tax	441,251	8.86%	429,430	6.80%	-3%
EPS	5.40		4.63		-14%

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Unit：NTD Thousand

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Financial Results

	2017	%	2018	%	YoY
Cash,Cash equivalents, Financial assets	466,406	8.05%	534,227	7.33%	15%
Notes receivable, Accounts receivable	733,750	12.66%	708,629	9.73%	-3%
Inventories	1,183,518	20.43%	1,670,664	22.94%	41%
Other current assets	262,728	4.53%	600,281	8.24%	128%
Total current assets	2,646,402	45.68%	3,513,801	48.24%	33%
Property, plant and equipment	3,021,606	52.15%	3,585,346	49.22%	19%
Other noncurrent assets	125,832	2.17%	184,458	2.53%	47%
Total noncurrent assets	3,147,438	54.32%	3,769,804	51.76%	20%
Total assets	5,793,840	100.00%	7,283,605	100.00%	26%
Short-term loans	1,189,830	20.54%	1,741,475	23.91%	46%
Notes payable, Accounts payable	207,979	3.59%	170,201	2.34%	-18%
Other current liabilities	91,411	1.58%	302,084	4.15%	230%
Total current liabilities	1,597,220	27.57%	2,213,760	30.39%	39%
Long-term loans	610,777	10.54%	609,733	8.37%	0%
Other noncurrent liabilities	293,911	5.07%	301,807	4.14%	3%
Total noncurrent liabilities	904,688	15.61%	911,540	12.51%	1%
Total liabilities	2,501,908	43.18%	3,125,300	42.91%	25%
~~Total equity~~					~~26%~~
	~~3,291,932~~	~~56.82%~~	~~4,158,305~~	~~57.09%~~

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Financial Results

Unit：NTD Thousand

會計項目	2017	2018	YoY
Cash flows from operating activities	95,875	(171,890)	(279.29)%
Depreciation expense	173,743	214,334	23.36%
Inventories	(352,635)	(487,014)	38.11%
Other noncurrent assets	(98,272)	(337,580)	243.52%
Cash flows from investing activities	(223,605)	(825,606)	269.23%
Proceeds from government grants - property, plant and quipment	(294,550)	(783,487)	165.99%
Cash flows from financing activities	179,574	1,064,455	492.77%
Capital increased by Cash	-	710,000	-
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	21,450	1,030	(95.20)%
NET INCREASE IN CASH AND CASH EQUIVALENTS	73,294	67,989	(7.24)%

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Financial Results

Unit：NTD Thousand

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2018
Other 18.10% Catalyst 14.87%
2019
Specialty Chemicals 14.42%
Power Battery 37.29%
Chemical Fertilizer… Catalyst
Other 8.91%
Power Battery
Catalyst20.26%
Specialty Chemicals15.28% Chemical Fertilizer
Specialty Chemicals
Chemical Fertilizer 13.70% Other
Power Battery 41.85%
Catalyst Power Chemical Specialty Other Total Sales
Battery Fertilizer Chemicals Revenue
1,278,566 2,641,228 864,536 964,219 562,088 6,310,637
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Financial Results

Catalyst Power Battery Chemical Fertilizer Specialty Chemicals Other

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562,088
964,219
901,585
864,536
718,300
742,846
642,091 762,964
2,641,228
865,806
1,857,152
1,208,612
1,278,566
534,326 740,822
2016 2017 2018
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Financial Results

Gross Margin

Operating Margin

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6.00 10%
9%
5.00
8%
4.00 7%
6% 6%
3.00
4%
2.00
2%
1.00
3.01 5.40 4.63
0.00 0%
2016 2017 2018
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6.00 10%
9%
5.00
8%
4.00 7%
6% 6%
3.00
4%
2.00
2%
1.00
3.01 5.40 4.63
0.00 0%
2016 2017 2018
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Net Margin

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6.00 10%
9%
5.00 8%
4.00 7%
6% 6%
3.00
4%
2.00
1.00 2%
3.01 5.40 4.63
0.00 0%
2016 2017 2018
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EPS
6.00
5.00
4.00
3.00
2.00
1.00
3.01 5.40 4.63
0.00
2016 2017 2018
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CoreMax Your Best Choice! Best Partner!

Thank you for your attention!

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