CX TECH — Annual Report 2021

Dec 7, 2021

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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, stamping and plastic injection of speaker components. High R&D abilities in developing back plate, front plate, sell pot, aluminum cone, and basket etc. • Headquarters- Taipei, back office including marketing, finance departments Factory- Ho Chi Minh, Hai Duong, and		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
Shanghai • Employees: 1,300 • 2020 Market share of automotive speaker components in the world: 20%, which means one-fifth cars in the world have speaker components made by CX.
	Enterprise Spirit 新Innovation 速Speed 實Substance 簡Simplicity

2

Board Member

- Chairman Albert Ting

- Director C.Y. Wang

Experience Experience MIT Sloan School of Management (MBA) Chung Yuan Christian UniversityHarvard College (AB in Economics) 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 Independent Director of CTBC Bank 2011 Eisenhower Fellow Independent Director of Chinatrust Financial Current Position Holding Co., Ltd. Chairman of CX Technology (Vietnam) Current Position Director of CX Technology (Shanghai) Director of General Biologicals Corporation Chairman of Merrimack River Precision Independent Director of Chih Lien Industrial Chairman of Phu Hung Securities Co.,LTD. Corporation Independent Director of GlobalWafers Chairman and General Manager of Co.,Ltd. Freshfields Corp.

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3

Board Member

- Director Joey Chung I Wang

Experience

National Taiwan Ocean University Senior Program for Intelligence Management. BND Germany Master Program and Visiting Scholar, Faculty of Law, Jesus College, University of Cambridge, UK Research Fellow, Center for International Documentation on organized and Economic Crime(CIDOEC), UK National Executive Institute, FBI, USA Ambassador, ROC Representative Office in the Czech Republic Director General, Investigation Bureau, Ministry of Justice Director, Department of International Affairs, Investigation Bureau, Ministry of Justice Current Position Chief Advisor, Phu My Hung Holdings Group

- Director San Rong Lii

Experience Manager, First Commercial Bank, Taiwan General Manager, Macoto Bank Advisor, Taiwan Academy of Banking and Finance

Current Position

Member of Inspection Committee, CX Technology Corp. Member of Inspection Committee, CX Technology (VN) Corp. Member of Inspection Committee, CX Technology (Shanghai) Corp. Member of Inspection Committee, Merrimack River Precision

Member of Inspection Committee, Phu Hung Life Insurance Joint Stock Company Director, Fortuna Development Corp. Director of Central Trading & Development Corp.

4

Board Member

- Independent Director Lin Mei Ling

Experience

Fu Jen Catholic University - Department of Accounting Supervisor of the National Federation of CPA Associations, R.O.C.

Partner & CEO of First Horwath & Company CPAs

Current Position

Partner, Director, and CEO of Crowe Horwath (TW) CPAs Independent Director, Member of Remuneration Committee of APPRO HOTOELECTRON INC.

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- Independent Director Yun Ti Young

Experience

Feng Chia University – Department of Bank Insurance

Sales Manager of KMP Taiwan Company LTD. General Manager of Tan Thuan Corporation Current Position

Director of Tan Thuan Corporation

- 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

5

Manufacturing Bases

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Taipei,
Taiwan
(Corporate
Headquarters)
Established 2011
Land area 12,500+ m [2]
Building area 12,500+ m [2] Relocated in year 2021
approx. 200+ employees Office area 329+m [2]
approx. 30 employees
Hai Duong,
Vietnam Shanghai,
(Manufacturing) China
(Trading)
Ho Chi Minh,
Vietnam
(Manufacturing)
Established 2002
Established 1996 Land area 33,720+ m [2]
Building area around 14,300+ m [2]
Land area 58,000+ m [2]
approx. 15 employees
Building area 34,000+ m [2]
Main Product: Automotive Parts
approx. 900+ employees
Others: Speaker Parts
Main product: Speaker Parts
Others: Automotive and motorcycle parts
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Quality Assurance ISO 9001, ISO14001, IATF16949

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A Global Leader in Stereo Speaker Components

China (Trading) Taiwan (Corporate HQ) Vietnam (Manufacturing)

8

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 • E-Coating
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Speaker Components

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

End to End Solution Provider

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Heading Progressive Forging Progressive Stamping CNC Machining
Barrel Plating Hung Plating Anodizing E-Coating
NC Machining Injection Molding Sub Assembly Automated Assembly
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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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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

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2,500,000
NTD (thousand)
2,000,000
587,787 526,246 519,010
626,514
413,851
1,500,000 Q4
595,012 589,686 566,157
Q3
490,600 Q2
1,000,000 743,384
Q1
545,667 549,389 579,827
327,329
500,000
627,724
533,978 532,049 524,270 520,106
-
2017 2018 2019 2020 2021
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Year	2017	2018	2019	2020	2021
Q1	533,978	532,049	524,270	520,106	627,724
Q2	545,667	549,389	579,827	327,329	743,384
Q3	595,012	589,686	566,157	490,600	413,851
Q4	587,787	526,246	519,010	626,514
Total	2,264,461	2,199,388	2,191,283	1,966,569	1,784,959

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Business Overview: Gross Margin

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35%
31%
30%
28%
26%
25%
25% 24%
20%
15%
10%
5%
0%
2017 2018 2019 2020 2021 Q1-Q3
2017 2018 2019 2020 2021 Q1-Q3
Gross Margin 28% 26% 24% 25% 31%
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Business Overview: Operating Income

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NTD (thousand)
400,000
350,000 335,757
300,000
249,735
250,000
229,589
212,533
200,000
176,792
150,000
100,000
50,000
0
2017 2018 2019 2020 2021 Q1-Q3
Year 2017 2018 2019 2020 2021 Q1-Q3
Operating
249,735 212,533 176,792 229,589 335,757
Income
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2019 5[th] Taiwan Mittelstand Award

from Industrial Development Bureau, Ministry if Economic Affairs

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Invested Company- Phu Hung Securities Corp.

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Phu Hung Securities Corporation Introduction

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Trading System &
Main Business
Research Reports
•
In 2008, our group
invested into Au Lac
Securities Company
and changed its Brokerage
name to Phu Hung
English
Securities
Corporation in 2009.
Investment Advisory
•
Obtained securities
underwriting license Chinese
Securities Depository
in 2011 and became
a full-scale securities
company afterwards.
Dealing
Vietnamese
Underwriting
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Phu Hung Securities Corporation

Our Network

• PHS is the first foreign

invested securities company completing the consolidation with a local securities company

• PHS is a high localization company, which has only one foreign employee and the other 291 are all Vietnamese

• 2020 PHS's government bond brokerage market share ranks 4[th]

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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

• • District 1 Branch

20

Business Overview

Charter Capital

Number of customers

• 2020 PHS revenue VND65.72 Bn (USD2,853,000)

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2020 PHS revenue Unit: USD ( ten thousand) Unit: Accounts
VND65.72 Bn
(USD2,853,000)
6,176
78,341
• 2021 from Jan. to Mar.
total revenue is 72,646
VND28.49 Bn 67,126
(USD1,239,000) 62,155
• Will increase VND 1.4 57,427
55,156
trillion(USD 61.08 3,898
million) of charter 46,615 [48,38349,68050,43951,007]
capital in 2021 Q3.
3,032
•
PHS holds 9.5% of
total foreigners’
securities accounts in 2,165
Vietnam
1,299 [1,386]
585
433
217
2 0 0 6 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 6 2 0 1 8 Q 12 0 1 8 Q 42 0 2 0 Q 12 0 2 1 Q 3 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 02 0 2 1 / 0 9
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Business Overview

Market Share

Margin Outstanding

• 2018 July 25, market share 7.61%

Unit: USD (ten thousand)

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1.33%
• 1.32%
Strong risk control
abilities, PHS’ margin 11,750
outstanding has steady 1.22%
grown to more than 5
1.15%1.13%
times during these 6 1.12%1.12%
1.08%
years.
• Revenue increased
0.99%
significantly through
0.92%
margin business in
0.88% 6,038
2017.
4,959
4,741
2,878
2,052 [2,334]
957
588
261 159
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Thank You
謝謝指教
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