CSSSC — Interim / Quarterly Report 2017

Sep 15, 2017

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2017 Investor Conference

September 15, 2017

Stock Code : 2025.TW

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Disclaimer Notice

This briefing is based on information the Company obtains from various sources. Some information may be affected by future uncertainties resulting in the discrepancies in the original plan and the future prospects.

The change will be released in Market Observation Post System (MOPS).

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Content

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Company Profile
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Operating HighlightsOperating Highlights
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Financial Performance
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Future Prospect
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Q & A
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Company Profile

 Founded : MAY, 1972

 : Stock Listing Day February,1996  Capital : NT $ 3,238 million  Chairman : Mr. Ye Shuo Tong  Employee : 127 people  Main business : Stainless steel cold rolled products manufacturing, trading, and import and export business

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Company History

1972 ： Founded on May 8

1989 ： For cash replenishment and public offering.

• 1990 ： With the construction of capital increase, paid-up capital of 1.1 billion yuan.

• 1991 ： Cold rolling mill began to test production, capital increased to 1.65 billion yuan.

1993 ： Bell-shaped annealing furnace, sub-machine, leveling cutting machine test.

• certification,set up a subsidiary of Chien Yin investment (shares) company.

1997 ： Paid-up capital of 2.662 billion yuan.

• 1998 ： Set up a subsidiary of Chien Yi investment (shares) company.

• 1999 ： Set up a subsidiary of Chien Din investment (shares) company.

2000 ： The second annealing pickling line began to test, paid-up capital of 3.228 billion yuan.

• 2001 ： The second cold rolling mill began to test.

2009 ： Typhoon Morakot wind damage part of the equipment damage,has been completed within one
year.

2011 ： Chien Din Investment (shares) company changed its name to the ecoda (shares) company.

2012 ： The company completed the development of the first electric locomotive, the Ministry of
        Transportation approved by the ordinary light of the machine foot pedal type safety test
        certification, legal listing on the road.

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Raw Material: Stainless steel 300 series hot rolled coil, Width 1250mm, thickness 2.0 ~ 6.0mm

Maximum capacity 10,000 Ton / month

Cold Rolled Products: Width: 1250mm Thickness; 0.3 to 3.5 mm (cold rolled 2B steel plate)

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Operating Highlights
4,000
3,648
2016 years
2,926
3,000 Consolidated revenue growth of
24.66%
Net profit after tax of 92 million yuan
2,000
1,000
Consolidated revenue
92
- Net Profit
409
0
UNIT : NT$ 1 million
-1,000
2015 2016
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Operating Highlights–Sales Profile

UNIT : NT$ 1 million

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86%
28%
3%
-2% -12%
-17% -10% -31%
444 2016
345 337 329 323 327 336 328 320 320 2017
305
285
270 263 268
237 238 238 222
127
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Operating Highlights–Sales Ratio

2017 H1 ratio of domestic and export sales

Export sales 3.51% Domestic sales 96.49%

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		Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000	Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000	Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000	Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000	Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000	Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000	Financial Performance–Consolidated Balance Sheets UNIT : NT$ 1000
			June 30, 2017 Amount	%	December 31, 2016 Amount	%	December 31, 2015 Amount	%
		Current assets	1,098,944	46	913,837	41	1,120,481	44
		Non-current assets	1,290,366	54	1,331,332	59	1,453,224	56
		Total assets	2,389,310	100	2,245,159	100	2,573,705	100
		Current liabilities	1,218,108	51	1,005,940	45	1,410,185	55
		Non-current liabilities	17,761	1	17,761	1	17,577	1
		Total equity	1,153,441	48	1,221,458	54	1,145,943	44
		Total liabilities and equity	2,389,310	100	2,245,159	100	2,573,705	100
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Financial Performance–Consolidated Balance Sheets

		Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000	Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000	Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000	Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000	Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000	Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000	Financial Performance– Consolidated Statements of Comprehensive Income UNIT : NT$ 1000
			Six months ended June 30,2017 Amount	%	Year ended December 31, 2016 Amount	%	Year ended December 31,2015 Amount	%
		Operating revenue	1,607,626	100	3,648,157	100	2,926,372	100
		Operating costs	(1,648,989)	(103)	(3,538,115)	(97)	(3,190,504)	(109)
		Net operating margin(loss)	(41,363)	(3)	110,042	3	(264,132)	(9)
		Operating expenses	(24,629)	(1)	(55,239)	(1)	(53,872)	(2)
		Non-operating income and expenses	(6,960)	(1)	38,992	1	(88,755)	(3)
		Profit(loss) for the period	(73,795)	(5)	91,860	3	(408,797)	(14)
		Earnings per share(in dollars)	(0.26)		0.33		(1.45)
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Financial Performance– Consolidated Statements of cash flows

UNIT : NT$ 1000

Financial Performance– Consolidated Statements of cash flows UNIT : NT$ 1000 For the six- month period ended June 30,2017 Amount For the year ended December 31,2016 Amount For the year ended December 31,2015 Amount Net cash flows from (used in) operating activities (326,001) 399,334 (654,852) Profit before tax (73,795) 92,110 (408,444) Depreciation 55,538 111,363 112,293 Net cash flows from (used in ) operating activities (4,363) 12,076 (59,740) Cash paid for acquisition of property, plant and equipment (8,941) (5,615) (62,290) Net cash flows from (used in)financial activities 236,614 (405,171) 619,162 Cash and cash equivalents at end of period 39,223 132,973 126,734	Financial Performance– Consolidated Statements of cash flows UNIT : NT$ 1000 For the six- month period ended June 30,2017 Amount For the year ended December 31,2016 Amount For the year ended December 31,2015 Amount Net cash flows from (used in) operating activities (326,001) 399,334 (654,852) Profit before tax (73,795) 92,110 (408,444) Depreciation 55,538 111,363 112,293 Net cash flows from (used in ) operating activities (4,363) 12,076 (59,740) Cash paid for acquisition of property, plant and equipment (8,941) (5,615) (62,290) Net cash flows from (used in)financial activities 236,614 (405,171) 619,162 Cash and cash equivalents at end of period 39,223 132,973 126,734	Financial Performance– Consolidated Statements of cash flows UNIT : NT$ 1000 For the six- month period ended June 30,2017 Amount For the year ended December 31,2016 Amount For the year ended December 31,2015 Amount Net cash flows from (used in) operating activities (326,001) 399,334 (654,852) Profit before tax (73,795) 92,110 (408,444) Depreciation 55,538 111,363 112,293 Net cash flows from (used in ) operating activities (4,363) 12,076 (59,740) Cash paid for acquisition of property, plant and equipment (8,941) (5,615) (62,290) Net cash flows from (used in)financial activities 236,614 (405,171) 619,162 Cash and cash equivalents at end of period 39,223 132,973 126,734	Financial Performance– Consolidated Statements of cash flows UNIT : NT$ 1000 For the six- month period ended June 30,2017 Amount For the year ended December 31,2016 Amount For the year ended December 31,2015 Amount Net cash flows from (used in) operating activities (326,001) 399,334 (654,852) Profit before tax (73,795) 92,110 (408,444) Depreciation 55,538 111,363 112,293 Net cash flows from (used in ) operating activities (4,363) 12,076 (59,740) Cash paid for acquisition of property, plant and equipment (8,941) (5,615) (62,290) Net cash flows from (used in)financial activities 236,614 (405,171) 619,162 Cash and cash equivalents at end of period 39,223 132,973 126,734	Financial Performance– Consolidated Statements of cash flows UNIT : NT$ 1000 For the six- month period ended June 30,2017 Amount For the year ended December 31,2016 Amount For the year ended December 31,2015 Amount Net cash flows from (used in) operating activities (326,001) 399,334 (654,852) Profit before tax (73,795) 92,110 (408,444) Depreciation 55,538 111,363 112,293 Net cash flows from (used in ) operating activities (4,363) 12,076 (59,740) Cash paid for acquisition of property, plant and equipment (8,941) (5,615) (62,290) Net cash flows from (used in)financial activities 236,614 (405,171) 619,162 Cash and cash equivalents at end of period 39,223 132,973 126,734
		For the six- month period ended June 30,2017 Amount	For the year ended December 31,2016 Amount	For the year ended December 31,2015 Amount
	Net cash flows from (used in) operating activities	(326,001)	399,334	(654,852)
	Profit before tax	(73,795)	92,110	(408,444)
	Depreciation	55,538	111,363	112,293
	Net cash flows from (used in ) operating activities	(4,363)	12,076	(59,740)
	Cash paid for acquisition of property, plant and equipment	(8,941)	(5,615)	(62,290)
	Net cash flows from (used in)financial activities	236,614	(405,171)	619,162
	Cash and cash equivalents at end of period	39,223	132,973	126,734

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Future Prospect

Due to the advantage of economic recovery led by
United States and the developed countries as well
as Euro area manufacturing boom expand quickly,
2017 global economic could be superior to
2016’s.

     In the steel part, with the fluctuations in
raw material prices and Mainland China steel
production capacity control policy, it will
support the international steel prices rising
slowly and stainless steel business prospects can
be expected to be better than last year.

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Future Prospect

Recently Global market has been changing
quickly, especially Mainland China
stainless steel market changes the most.
CSSSC’s operation must be well prepared
to adapt the changes by working out the
forecast plan with strategy to make the
business grow stably.

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Chien Shing Stainless Steel Co., Ltd.

Q & A

Thank ！ you

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