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COSMO — Investor Presentation 2023
Dec 7, 2023
52104_rns_2023-12-07_003fd1e0-8220-41b5-b7d4-2b7edc3234a9.pdf
Investor Presentation
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Cosmo Electronics Corp. Investor Conference December 7[th] , 2023 : 【 stock symbol 2466 】
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Disclaimers
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This report might contain forward-looking statements which are based on the expectation that is reasonable when made. However, these statements are not guarantees and are subject to known, unknown risks or the uncertainties that are difficult to predict. The results may not prove to be accurate.
- Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
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Agenda
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Company overview
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Product lines
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Financial Results
Strategy & Prospect
- Q&A
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Company Overview
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Founded on May 25[th] , 1981
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Paid-in Capital :NT $ 1,714,586,970
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Cosmo was listed on TWSE in 2001
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Product Lines
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LED decoration
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U.S.A Indonesia China
Optoelectronic device
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Taiwan China Indonesia
Indonesia development zone
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Biomass Fuel/steam
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Indonesia
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Indonesia
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Optoelectronic Device —Production Milestones
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Optoelectronic Device — Factory Sites
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Taiwan Headquarter (New Taipei City) Taiwan factory 1 (Yilan) Taiwan factory 2 (Yilan)
Indonesia
China
China factory 1 (Kunshan) Indonesia factory China Business Operation ( Sukabumi ) Office (Dongguan)
Channel flows Asia / Europe /Americas Africa / Oceania
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Optoelectronic Products Application
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•
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O/A machine LED lighting
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Power switch • sensor • controller
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• charger • • factory Battery
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• appliance automation control Management system
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Certificate for Safety Regulations
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Decorative Lights—Factory Sites
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Europe
Asia
Americas
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Decorative Lights Factory in Indonesia
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Decorative Lights Factory in Indonesia
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Land area: about 12 hectares
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Factory area: about 8 hectares
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Christmas
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Halloween/Harvest
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Spring/Wedding
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Financial Results
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Financial Results
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Financial Results
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Analysis of revenue by products
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Analysis of revenue by region
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Financial results
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Strategy & ProspectOptoelectronic component
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Increase orders in the industrial control system, AI and Electric vehicle markets
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Tap into 5G and automotive markets as
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business layout
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Improving manufacturing process to increase
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profit
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Invest in R&D of high-end products to increase
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the market share
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Obtain more OEM orders from famous brand
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Indonesia factory has started the first phase of
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production in Q2 2023
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Strategy & Prospect- decorative lights
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Develop new products for diversification
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Develop outdoor Christmas lightings with
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strong sense of design and exquisiteness
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Improve service quality
Acquire new projects from customers
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Investment Environment in Indonesia
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Economic scale
Gross domestic profit (GDP) in Indonesia reach about 1.06 trillion U.S. Dollars, as the largest economy in ARF, the 16th largest in the world.
Population
Indonesia’s population is recorded as 270 million, the median age of the Indonesian population is around 30 years old. It is estimated to have large consuming capacity because of the tremendous domestic market and the high demographic dividend. Indonesia has huge potential in economic and trade investment. Policy Support
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˙ 2020 Omnibus Law:
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˙ Pioneer Industry tax relief
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Indonesia Industrial Park - Location
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Located in the southern part of West Java Province
It takes about 2 hours to get to central Jakarta.
It takes about 2.5 hours to reach Jakarta Soekarno-Hatta International Airport.
It takes about 2 hours and 15 minutes to the largest commercial export port in Jakarta - Tanjung-Priok.
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【Export port】
Tanjung-Priok
130 km
[location]
Jawa
Barat,Sukabumi,
Cikembar
Industrial zone
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Panorama of development zone
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Project progress—set up fence
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Transportation Construction
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●The expressway was originally built to Ciawi. + ●The first section to + Cigombong was opened at the end of 2019. A ●The section to Parungkuda was opened in August 2023. B length: 54km Overall phase: 4 (second phase Cigombong – Cikembar Cibadak 12 m,predict to complete the construction in early of 2023 28
| District Planning | |
|---|---|
| • | The development zone is located |
| in Zhikenbar Town, Sukabumi |
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| County, West Java Province, | |
| Indonesia. ( INDONESIA Jawa |
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| Barat Sukabumi Cikembar ) |
|
| • | The average temperature |
| throughout the year is 25 degrees |
|
| Celsius, and the rainy season is |
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| from September to April of the |
|
| following year (it drizzling every |
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| day during the rainy season, |
|
| usually stopped within 30 to 50 |
|
| minutes) . |
|
| • | The development zone will be |
| separated into commercial areas, |
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| factory areas, commercial areas |
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| and residential areas ; 2 to 4 lanes |
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| road will be built between the |
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| areas for transportation . |
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Advantage 1
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Qualifications for applying industrial or manufacturing production parks with moderate or above pollution permit.
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Plan to build secondary industrial wastewater treatment equipment and clean water reservoir in the industrial zone that comply with national environmental standards.
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Advantage 2 The cost for human resources in west Java region
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Advantage 3
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The government has regulated the development zone where we located as an industrial zone. The total area is approximately 300 hectares.
The development zone owned by us covers an area of 187 hectares currently.
- GSI which is a branch of POU CHEN Group needs to pass through here.
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Advantage 4
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0.072
The cost of electricity in Indonesia is low : https://www.globalpetr olprices.com/Indonesia /electricity_prices/
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Advantage 5 Experience
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Learn from the experience of PT Cosmo Technology, a subsidiary of Cosmo Electronics Corp.
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The cost for human resources is considerably low in Southeast Asian countries, and the worker is hard-working and highly obedient.
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Recruitment is easy.
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The Employee Turnover is low. Many employees have been in the factory since opened.
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The employees are loyal in both work and personality, and our core technology is not easy to leak out after technical management.
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The enterprises are mainly Taiwan-funded and also listed in Taiwan, which are relatively secure for Taiwanese businessmen.
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The relationship with the local government and military is stable and close, safety is guaranteed, and the official business is processed quickly.
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Advantage 6 initial setup assistance
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PT Cosmo Technology has set up local factories for many years and is able to assist with setting up factory operation models and share experiences
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Experiences of applying local required documents and the operations of corresponding government system
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Systems (such as payroll and Customs systems)
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Certificate Application
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Recruitment
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Tax declarations
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Set up factory
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Customs clearance
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Ocean freight
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Set up low-tax area
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Learning local cultures
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Advantage 7
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Flexibility and customization on land size
as below:
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Shipping fees
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| Type | Items | Statements | Indonesian | Price(Rp) | Price(US D) |
Total(USD) | |
|---|---|---|---|---|---|---|---|
| Import 40FT |
Fees for land freight |
Cartage fees | Truking | 3,800,000 | 253.33 | 591.04 | |
| Customs fees: Document fees x number of documents |
Jasa EMKL | 200,000 | 13.33 | ||||
| Administrative fees | Administrasi | 100,000 | 6.67 | ||||
| Security fees | Kawalan | 150,000 | 10.00 | ||||
| Tax | PPN 11% | 49,500 | 3.30 | ||||
| Shipping Company |
Unloading containers & terminal operating fees & others |
THC & Others | 3,003,930 | 200.26 | |||
| Terminal company |
Terminal Handling Charge& Others(load on container truck) |
Lift On/Penumpukan | 507,649 | 33.84 | |||
| Container Yard |
Terminal Handling Charge& Others(unload container truck) |
Lift Off/ Kumpulkan wadah kosong |
1,054500 | 70.30 | |||
| Export 40FT |
Fees for land freight |
Cartage fees | Truking | 3,800,000 | 253.33 | 850.82 | |
| Customs fees: Document fees x number of documents |
Jasa EMKL | 200,000 | 13.33 | ||||
| Administrative fees | Administrasi | 100,000 | 6.67 | ||||
| Security fees | Kawalan | 150,000 | 10.00 | ||||
| Tax | PPN 11% | 49,500 | 3.30 | ||||
| Container Yard |
Terminal Handling Charge and others(load on container truck) |
Lift On/Penumpukan | 999,930 | 66.60 | |||
| Terminal company |
Terminal Handling Charge& Others(unload container truck) |
Lift Off/Kumpulkan wadah kosong |
595,238 | 39.68 | |||
| Shipping Company |
Container Handling Charge and others |
Biaya Forward | 6,868,542 | 457.90 | |||
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Project progress—related certificate in industrial zone
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| project | progress | progress | ||
|---|---|---|---|---|
| OSS system(essential certificate) | Completed | |||
| SPPL(land usage permit) | Completed | |||
| Mater Plan | Completed | |||
| Environmental assessment | Completed | |||
| Traffic assessment | Completed | |||
| PKS or MOU(cooperation agreement) | Completed | |||
| Land appraisal | Completed | |||
| Locationpermission | Completed | |||
| IPPT(usage permit of land allocation/permission of break ground) |
Completed | |||
| Certificate of industrial zone | Completed | |||
| Permission of highway exists | Completed | |||
| tree-felling permission | Completed | |||
| Permission of release the sewage | Completed | |||
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The Indonesian issued a regulation that factories are required to be located in industrial zones
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SUKABUMI issued a regulation that factories are required to be located in industrial zones
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Tax Induction as below:
Tax Incentive
| Investment amount (Indonesian Rupiah) |
Investment amount (Millions of USD) |
Exemption period |
Tax benefits |
Tax benefits within two years after exemption period |
|---|---|---|---|---|
| One hundred billion |
7.08 | Five years | 50% income tax deduction |
25% tax deduction |
| Five hundred billion |
35.4 | Five years | 100% income tax deduction |
50% tax deduction |
| One trillion | 70.8 | Seven years | 100% income tax deduction |
50% tax deduction |
| Five trillion | 354 | Ten years | 100% income tax deduction |
50% tax deduction |
| Fifteen trillion |
1,062 | Fifteen years | 100% income tax deduction |
50% tax deduction |
Thirty trillion |
2,124 | Twenty years | 100% income tax deduction |
50% tax deduction |
Omnibus Law in 2020: Indonesian
government announced that Omnibus Law is enacted in November 2020 to attract foreign investment, create jobs and promote economic growth.
Tax Induction in : Pioneer Industry
Pioneer industry include: upstream basic metal (non-steel) industry, petrochemical industry, inorganic chemical industry, agricultural chemicals industry, pharmaceutical industry, components industry of semiconductor, computer parts, key communication equipment, health care equipment and machinery-related.
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Strategy & prospect- development
area
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Choose the suitable and reputable clients.
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The amount of land available for sale in the industrial
zone has reached approximately 40 hectares.
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