CX TECH — Annual Report 2017

Nov 23, 2017

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錩新科技股份有限公司 CX Technology Corporation

CX Technology

Top Supplier & Manufacturer of Forging and Stamping Products in the World

• Biggest manufacturer of forging speaker components in the world

• Listed company in Taiwan Stock Exchange (Security Code ： 2415)

• Top supplier and manufacturer of forging and stamping speaker components. High R&D abilities in developing back plate, front plate, sell pot and aluminum cone, etc.

• Headquarters- Taipei, back office including marketing, finance departments Factory- Shanghai, Ho Chi Minh and Hai Duong

• Employees: 1,300

• Market share of automotive speaker components in the world: 20%

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	Milestones
	1972 Taiwan plant commenced operation
	1996 Vietnam plant commenced operation
	1998 Listed company in OTC
	2000 Listed company in TW Stock Exchange
	2002 China plant commenced operation
	2011 Vietnam plastic injection plant mass production
	2014 Merrimack River Precision Industrial Corporation commenced operation
	Enterprise Spirit
	新Innovation
	速Speed
	實Substance
	簡Simplicity

2

Board Member

- Chairman Albert Ting

- Director C.Y. Wang

Experience Experience Harvard College (AB in Economics) Chung Yuan Christian UniversityMIT Sloan School of Management (MBA) Department of Chemical Engineering Vice President of Morgan Stanley Chairman of China Steel Corp. Vice Chairman of CX Technology CEO of Ministry of Economic Affairs, State Honorable Director of Chinese Military Owned Enterprise Commission Academy Current Position 2011 Eisenhower Fellow Independent Director of CTBC Bank Current Position Independent Director of Chinatrust Financial Director of CX Technology (Shanghai) Holding Co., Ltd. Chairman of Merrimack River Precision Chairman of Phu Hung Securities Corporation Chairman of Freshfields Corp.

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3

Board Member

- Director Jay Wu

Experience

California State University Department of Business Management General Manager of Nipsea Holdings Independent Director of Taiyen Biotech Co., Ltd.

- Director Y.T. Young

Experience

Sales Manager of Kodak Taiwan Limited Director of CT&D Corp. General Manager of Tan Thuan Corp. Current Position

Director and Consultant of Tan Thuan Corp.

General Manager of Freshfields Corp.

Current Position

Chairman of CX Technology Corp. (VN) Director of Merrimack River Precision Industrial Corp.

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4

Board Member

- Independent Director King Hu Hsieh

Experience

Soochow University - Department of Accounting Partner Accountant of Deloitte Touche Tohmatsu Limited (30years) ROCCPA Standing Director (13th Term) Current Position Head CPA of King Hu CPA Firm Independent Director of Shanghai Commercial & Savings Bank., Ltd.

- Independent Director Jian You Liu

Experience

National Taiwan University Department of Law (BA) National Chengchi University College of Law (Master) Attorney of Higher Examination - Certified Patent Attorney - Certified

Current Position

Attorney at Law of Hong Young Law Office

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5

Manufacturing Bases

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Taipei,
Taiwan
(Corporate Headquarters)
Established 2011
Land area 7,500+ m [2]
Building area 7,500+ m [2] Relocated in year 2013
approx. 220 employees Office area 384+m [2]
approx. 30 employees
Hai Duong,
Vietnam Shanghai,
(Manufacturing) China
(Manufacturing)
Ho Chi Minh,
Vietnam
(Manufacturing)
Established 2002
Established 1996 Land area 33,720+ m [2]
Building area around 19,198+ m [2]
Land area 57,000+ m [2]
approx. 80 employees
Building area 28,080+ m [2]
Main Product: Automotive Parts
approx. 950 employees
Others: Speaker Parts
Main product: Speaker Parts
Others: Automotive and motorcycle parts
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6

Quality Assurance ISO 9001, 14001, 16949

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7

A Global Leader in Stereo Speaker Components

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China (Manufacturing)
Taiwan (Corporate
Headquarters)
Vietnam (Manufacturing)
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8

With over 20% Market Share in Automotive Speaker Components

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9

Diversified OEM Supplier

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Integrated Service • T-Yoke • Metal Frame
• Production Efficiency • U-Yoke • Metal Basket
• • Front-Plate • Copper cap
Reliable Quality
• Aluminum cone
•
Product Diversity
Forging Stamping
Surface
Injection
Treatment
•
Speaker Frame
• •
Grille Assembly Barrel Plating
• •
Hot Stamping Hanger Plating
• •
Plastic Basket, Pad Anodizing
Printing
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10

Speaker Components

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11

CX & MRP manufacture all speaker components except voice coil, damper and magnet.

Cold Forging Products

導磁極/T鐵	導磁座		導磁環	汽車部件
Back Plate	Shell Pot		Core Cap	Auto Parts
			嵌入式鍛造件
			Basket Insert

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12

Stamping Products

導磁環/華司		銅套	鋁製品	嵌入式沖壓件
Front Plate		Copper Cap	Aluminum Products	Basket Insert
		汽車影音設備外罩 Automotive Media Center Housings

13

Business Overview: Revenue

- 500,000 1,000,000 1,500,000 2,000,000 2,500,000	403,293 502,511 487,048 520,194 533,978 469,813 557,723 522,523 600,527 545,667 493,200 555,116 585,685 645,307 595,012 487,951 518,506 566,769 581,871 2013 2014 2015 2016 2017/Jan. to Sep. Q4 Q3 Q2 Q1 NTD (thousand)	403,293 502,511 487,048 520,194 533,978 469,813 557,723 522,523 600,527 545,667 493,200 555,116 585,685 645,307 595,012 487,951 518,506 566,769 581,871 2013 2014 2015 2016 2017/Jan. to Sep. Q4 Q3 Q2 Q1 NTD (thousand)	403,293 502,511 487,048 520,194 533,978 469,813 557,723 522,523 600,527 545,667 493,200 555,116 585,685 645,307 595,012 487,951 518,506 566,769 581,871 2013 2014 2015 2016 2017/Jan. to Sep. Q4 Q3 Q2 Q1 NTD (thousand)	403,293 502,511 487,048 520,194 533,978 469,813 557,723 522,523 600,527 545,667 493,200 555,116 585,685 645,307 595,012 487,951 518,506 566,769 581,871 2013 2014 2015 2016 2017/Jan. to Sep. Q4 Q3 Q2 Q1 NTD (thousand)	403,293 502,511 487,048 520,194 533,978 469,813 557,723 522,523 600,527 545,667 493,200 555,116 585,685 645,307 595,012 487,951 518,506 566,769 581,871 2013 2014 2015 2016 2017/Jan. to Sep. Q4 Q3 Q2 Q1 NTD (thousand)	403,293 502,511 487,048 520,194 533,978 469,813 557,723 522,523 600,527 545,667 493,200 555,116 585,685 645,307 595,012 487,951 518,506 566,769 581,871 2013 2014 2015 2016 2017/Jan. to Sep. Q4 Q3 Q2 Q1 NTD (thousand)
Year		2013	2014	2015	2016	2017/Jan. to Sep.
Q1		403,293	502,511	487,048	520,194	533,978
Q2		469,813	557,723	522,523	600,527	545,667
Q3		493,200	555,116	585,685	645,307	595,012
Q4		487,951	518,506	566,769	581,871
Total		1,854,257	2,133,856	2,162,025	2,347,899	1,674,657

14

Business Overview: Gross Margin

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35%
30%
25%
20%
15% 31%
27%
24%
23%
10% 21%
5%
0%
2013 2014 2015 2016 2017/Jan. to Sep.
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2017/ [Jan. to ]
Year 2013 2014 2015 2016
Sep.
Gross Margin 21% 23% 24% 31% 27%
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15

Business Overview: Operating Income

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NTD (thousand)
400,000
350,000
300,000
250,000
200,000
342,860
150,000
100,000
167,506 172,976
141,174
50,000 100,111
-
2013 2014 2015 2016 2017/Jan. to Sep.
2017/ [Jan. to ]
Year 2013 2014 2015 2016
Sep.
Operating
100,111 167,506 41,174 342,860 172,976
Income
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16

2017 The National Brand Yushan Award

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17

Invested Company- Phu Hung Securities Corp.

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Brief Introduction

• Currently PHS is the only

• securities company in Vietnam which provides trading system and research reports in 3 languages (Vietnamese, Chinese and

English)

• From 2011 to 2016, PHS market share increases 45%

• 2017 market share is 1.03%

• Strong risk control abilities, PHS ’ margin outstanding has steady grown. During these 6 years, margin outstanding has grown nearly 10 times.

(VND691Bn/ USD30.35MM)

• Company name: Phu Hung Securities Corporation (PHS)

• Capital: VND 320Bn (around USD 14.1Mn)

• HQ in HCM city, and branches in HN and Hai Phong

• 23 Mangers (including Vietnamese and foreigners and managers in branches), 1 Senior Audited Consultant, 167 employees

• ’

• • PHS market share rank: 22[nd] in total 79 securities companies

3[rd] in total foreign securities companies

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CX invested in Capital
Changed name
Au Lac increased to
to PHS
Securities Co. VND 300 Bn
Q1 2009
Q3 2008 Q1 2010
obtained securities Consolidated An Capital
underwriting Thanh increased to
license Securities Co. VND 320 Bn
Q1 2011 Q1 2016 Q2 2016
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19

Phu Hung Securities Corporation Introduction

• In 2014, Hanoi Stock Our Business （ 1 ） Exchange approved PHS to get the Securities Investment Business government bond • Brokerage trading business. We • Margin trade can provide the • primary securities Securities Depository market bonds bid anh • Investment Advisory secondary market • Shareholder Certificate bond trading. • Management In October 2014, PHS became the Based on the financial situation and seventh on top ten investment experience of each securities companies customer, PHS provides convenient, with the best safe and affordable services to help government bond all of our customers to achieve shorttrading performance and long-term investment objectives. on HNX.

Our Business （ 2 ）

Corporate Financial Business

• Equitization Advisory

• Share Issuance Advisory

• Listing Advisory

• Merger & Acquisition Advisory

• Business survey & evaluation

• Underwriting

PHS provides domestic and foreign companies with reliable financial advisory services, and the most efficient plan for enterprises to improve their organizational financial structure and to raise additional 。 capital

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20

Phu Hung Securities Corporation Introduction

Our Network

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• Hanoi • Hanoi Branch

• • Thanh Xuan Branch

• Hai Phong • Hai Phong Branch

• Ho Chi Minh City • H.O. Trading Office

• • Tan Binh Branch

• • District 3 Branch

21

Business Overview

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•
In 2008, our group Charter Capital Number of customers
invested into Au Lac
Securities Company, in
2009 officially changed its 58,476
name to Phu Hung
Securities Corporation.
• In 2011, PHS obtained 500 56,860
securities underwriting
license and became a
comprehensive and
integrated securities
company. After the
development of the 320
market and the 300
52,690
operational requirements,
52,039
PHS gradually increased
to its charter capital to 51,182
VND 320Bn
•
2017 will plan to increase
49,792
its charter capital to VND 135
500Bn
100
50
47,599
2011 2012 2013 2014 2015 20162017/9
2006 2008 2009 2010 2016 2017
Unit: Bn VND Unit: Account
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Thank You
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