CSSSC — Interim / Quarterly Report 2020

Sep 25, 2020

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CHIEN SHING STAINLESS STEEL CO., LTD. 2020 Investor Conference September 28, 2020

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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 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 Highlights
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■ Financial Performance
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■ Market Overview & Future Prospect
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■ Q & A
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Company Profile

★ Founded: MAY 8,1972

★ Capital: NT$2,812 million

★ Chairman: Mr. Ye Shou Tong

★ Employee: 91 people (June,2020)

★ Stock Listing Day: Feb.1996

★ Main business: stainless steel cold rolled
products manufacturing, trading, and import &
export business

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Company History Ⅰ

DATA COMPANY HISTORY 1972 Founded on Ma 8. y 1989 For cash re lenishment and ublic offerin . p p g 1990 With the construction of capital increase, paid-up capital of 1.1 billion yuan. 1996 The company listed on the stock, paid-up capital of 2.42 billion yuan, through the ISO9002 certification, set up a subsidiary of Chien Yin investment (shares) company. 2000 The second annealing pickling line began to test, paid-up capital of 3.228 billion yuan. 2009 Typhoon Morakot wind damage part of the equipment damage, has been completed within one year.

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Company History Ⅱ

DATA

COMPANY HISTORY

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.

2017 The company and three hundred percent subsidiaries on the board of directors on Nov. 27 resolution and corporate mergers and acquisitions law for easy merger, and in Jan. 4, 2018, the Ministry of Economic Affairs approved the merger and change registration, and the paid-up capital amount reached NT$2.812 billion.

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Production Technology & Process

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Maximum Capacity 12,000 (MT/month)

Raw Material Stainless steel 300 series hot rolled coil, Width 1300mm, Thickness 2.0~6.0mm

Cold Rolled Products Width: 1300mm Thickness:0.3~3.5mm (cold rolled 2B steel plate) 7

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Operating Highlights

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4,000
2,838
3,000
Consolidated
Revenue
2,000
Net Profit
1,155
1,000
408
UNIT : NT$ 1 million
0
-178 -158
-514
-1,000
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Six months
ended,2020

2018

2019

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Operating HighlightsSales Profile

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90%
13% 0%
-2% 0%
-16%
-98%
0% 0%
-53%
-78% -41%
2019
UNIT : NT$ 1 million
2020
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184
111 117 116 110 100 118 121
93 89
56 61 70 61 59 64 70
49
41
3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Operating HighlightsSales Ratio

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★2020 Q2 Ratio of Domestic & Export Sales
Export
Sales
0%
Domestic
Sales
100%
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Financial Performance-

Balance Sheets

UNIT : NT$1000	Jun.30,2020 Amount	%	Dec.31,2019 Amount	%	Dec.31,2018 Amount	%
Current Assets	733,073	43	888,845	46	988,769	46
Non-current Assets	975,395	57	1,031,388	54	1,150,395	54
Total Assets	1,708,468	100	1,920,233	100	2,139,164	100
Current Liabilities	1,017,028	59	727,909	38	1,009,124	47
Non-current Liabilities	220,897	13	565,863	30	306,041	14
Total Equity	470,543	28	626,461	32	823,999	39
Total Liabilities and Equity	1,708,468	100	1,920,233	100	2,139,164	100

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PS：2018 Consolidated Balance Sheets、2019&2020 Individual Balance Sheet

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Financial PerformanceStatements of Comprehensive Income

	UNIT： NT$1000	6 months ended Jun.30,2020 Amount	% 6 months ended Jun.30,2019 Amount	%	Year ended Dec.31,2019 Amount %
	Operating Revenue	408,365	100 671,480	100	1,155,098100
	Operating margin(loss)	(140,244)	(34) (83,511)	(12)	(159,593)(14)
	Net operating margin (loss)	(157,137)	(38) (102,207)	(15)	(197,101)(17)
	Profit (loss)for the period	(158,102)	(39) (144,465)	(22)	(177,829)(15)
	Earnings per share(in dollars)	(0.56)	(0.51)		(0.63)
		0
	Comparison of quarterly profit trends	-100000 -50000 2020年Q2 2020年Q1 2019年Q4			Operating profit Net profit before tax UNIT：NT$1000

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Financial ReportWaste Case Description Ⅰ

一、 On April 8, 2019 CSSSC received an indictment from Tainan District Prosecutors Office for violation of the Waste Clean-up Law. The case is still under trial.

二、Implementation progress of waste clean-up (August 31, 2020)

1. Excavation and cleaning works have reached 100%. 2. Clearance work has reached 98%.

2. 53 grids have been removed from the Environmental Protection Agency(total is 60 grids). 1 grid have been partially removed.

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Financial ReportWaste Case Description Ⅱ

三、As of August 31, 2020, The total amount of waste removed is about 20,000 tons.

四、Our company has since received the “Waste Disposal Plan”of Environmental Protection Agency agrees. All employees actively clean-up work. Hope that the waste case can be resolved as soon as possible. Let our company return to normal operating standards

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Market overview &Future Prospect Ⅰ

一、Market overview

1. Affected by COVID-19, European and American markets have delayed procurement of steel. Our company's revenue from January to June this year was 408 million, a decrease of 39.18% from the same period last year.

2. As the COVID-19 slows, At the end of June, various countries successively unblocked. Every country expands easing monetary policy. The price of nickel continues to rise, but the price of stainless steel products failed to rise. As the cost drastically increase, Overall profits must decline.

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Market overview &Future Prospect Ⅱ

二、Future Prospect The COVID-19 is shocking the world, adding a lot of uncertainty, and obviously affecting the operation of the economic systems of all countries in the world. Our company will continue to closely observe the follow-up changes of the epidemic, adjust inventory, strengthen and control internal activities of cost and expense, to enhance the company's resistance to market fluctuations

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CHIEN SHING STAINLESS STEEL CO., LTD.

Q & A

Thank you！

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