DE LICACY — Investor Presentation 2017

Sep 20, 2017

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2017/9/21

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http://www.delicacy.com.tw

Outline

Ⅰ. About De Licacy Ⅱ. R&D Ⅲ. Equipment Ⅳ. Products Ⅴ. The Pros and Cons of Competition Ⅵ. Finance Ⅶ. Diverse Investment Ⅷ. New Developments Ⅸ. Focus Management

About De Licac - y History

1982 De Licacy was founded in summer. 1984 Operation was fully streamlined by adding preparation-stage equipment. 1987 Officially entered into the weaving and dyeing of staple fibers. 1987 Actively expand export business and got away from OEM business. 1988 Branched out into weaving and dyeing of synthetic and staple fibers. 1996 Shares were traded in Taiwan Stock Market in January. 1999 Got Europe’s “Oeko-Tex Standard 100” environmental certification. 2006 Coating & Lamination factory was established. 2008 Adopted ERP system. 2012 Awarded to bluesign® system partner. 2014 Elected Mr. Chia-Ming Yeh as the president 2015 the board of directors passed the major resolution to Vietnam investment 2016 joint venture with Tainan Enterprises Co., LTD for garment factory

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About De Licacy – Organization Chart

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DL
2006.Q4 2014.Q2 2014.Q4 2015.Q4
LUCKY UNIQUE
TUNG MING CHADTEX Delicacy,
ENTERPRISE
TEXTILE CO., INDUSTRIAL Vietnam
CO.,LTD.
LTD CO., LTD
2006.Q2
Delicacy,
Apex Textile Co.,
Hangzhou
Zhejiang
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About De Licacy – Distribution

Sales Division

TAIPEI OFFICE

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SHANGHAI OFFICE

Facilities in TAIWAN

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DL, TAINAN

TUNG MING ,

TAOYUAN

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CHADTEX TAINAN

LUCKY UNIQUE TAINAN

Facilities in Oversea

DL, Hangzhou

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Apex Textile, Zhejiang

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DL, Vietnam

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About De Licacy – Facilities

Abou	t De Licacy–Facilities	t De Licacy–Facilities	t De Licacy–Facilities	t De Licacy–Facilities
	Piece Dyed				Yarn Dyed
	Textured Yarn	Weaving	Dyeing	Finishing	Package/ Beam Dyeing	Weaving	Finishing
DL, Tainan	V	V	V	V	V	V
TUNG MING , TAOYUAN							V
CHADTEX TAINAN		V	V
LUCKY UNIQUE TAINAN	V	V
Apex Textile, Zhejiang		V	V	V
DL, Hangzhou		V	V	V	V	V	V
DL, Vietnam	V	V	V	V	V	V	V

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About De Licacy– Certification

 Oeko-Tex Standard 100 & bluesign ®

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De Licacy’s textiles achieved Oeko-Tex Standard 100 since 1999 and continuously renewed each year.

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De Licacy’s was awarded to bluesign® system partner in 2012, ensuring DL textiles meet the highest environmental standards.

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R&D

• Well known for innovation and design capabilities.

• Investing 3% of turnover in R&D each year.

• 120 R&D staffs.

• Working closely with professional and technical consultants.

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R&D - Physical-Mechanical Test Room

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▲ Snagging Tester

▲ Constant Temp. & Humi. Chamber

Equipped with the temperature and humidity control system. Certified professionals are hired to test the physical properties of the fabrics.

▲ Abrasion Resistance Tester

▲ Laundry Tester

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▲ Tensile Strength ▲ Water Resistance Meter Tester

▲ Scanning Electron Microscope

▲ Tearing Tester

▲ Pilling / Random Tumble

▲ Rain Tester

R&D - Laboratory

• Laboratory is equipped with full set of electronic testing equipment and can measure all the properties of colors accurately.

• Develop fabrics with the newest color trends.

• Provide customers the most satisfying color lab dip.

E ui ment - Yarn q p

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Twisting False Twisting
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Spinning
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E ui ment - q p Dyeing & Weaving

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Beam Dyeing
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Pack Dyeing
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Warping Weaving
Beaming Weaving
>
>
>
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Drawing

Dyeing

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E ui ment - q p Finishing & Extra Finishing

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• • •

• Tenter Setting • Ciré Micro Sanding

• • • •

• Airo Finishing Sanding Shearing Coating

• • • •

• Finished Products Brushing Bonding

• Lamination

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E ui ment - q p Inspection

1. Physical testing 2. Inspect: density, width, weight 3. Fabric check 4. Color check 5. 4 points inspection

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Inspection

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、 、 Products - Casual & Fashion Interiors Textile Eco Green

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Produc	s - Casual & Fash
•Shape Memory	•Dense Felt Like
•Ombre Yarn Dyed	•Metallic Luster
•Synthetic Yarn Dyed	•Mat Weaving
•Multi Yarn Dyed	•Velvet & Chenille
•Super Soft Hand	•Suede
•Suiting/ Dress	•Black Out
•Fancy Finish	•Flame Retardant
•Extra Finish •Leather Like	•Water Repellent / Oil Repellent / Soil Release

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• Recycle Polyester

• • Dupont Sorona Natural Charcoal

• • Bamboo

• • Organic Cotton

• • Tencel/ Modal

• • DLCool

• • PFOA / PFOS Free W/R

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Products - Performance & Protect

• Excellent Stretch • Mechanical Stretch • Nylon Cottony • Wicking & Quick Dry • 3D Double Weaving • High Density • Feather Weight • Water Repellent • Down Proof • Anti-UV • Wrinkle Free • Multi Function • 3 Layer Soft Shell • 2 Layer Lamination • 2.5 Layer • 2 Layer Bonding • Functional Coating

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De Licacy– Comparison of Fabric Type

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NOW
PAST
現今
Sports Fashion
10% 10%
時尚休閒
Fashion
Fashion 10%
45%
Home
傢飾用布
Home
25% 運動布
Home
45% Sports Sports
25%
65% 65%
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The Pros and Cons of Com etition p

Pros

• Completed production lines enhance product competitiveness

• Advanced production innovation achieves by strong R&D capabilities

• Production management well so to control and present high quality output

Cons

• Workforce aging causes the difficulty of recruiting workers

• Market needs change rapidly

• Order coming centralized affects the lead-time flexibility

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Financial Abstract- Combined Annual Revenue/ Gross Profit

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80 18.79% 20.00%
18.39%
18.00%
70
16.00%
14.86%
14.19%
60
13.11% 14.00%
11.76%
50
： 12.00%
：
40 10.00%
56.85 71.28 75.5
47.68 44.27 45.89 8.00%
30
6.00%
20
14.19
13.11 4.00%
8.1
10 6.3 6.6
5.4 2.00%
0 0.00%
20112011年 20122012 年 20132013 年 20142014 年 20152015 2016年 2016年
營收revenue 毛利gross profit 毛利率gross profit rate
Dollar
Unit
100 (%)
NT$ 100 million
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Financial Abstract- Combined Monthly Revenue

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900
800
718
700 666
620
604 604
570
600 569
547
2012
2013
500
2014
400 2015
2016
300
2017
200
100
0
1 月 2 月 3 月 4 月 5 月 6 月 77 月 8 月 9 月 10 月 11 月 1212 月
Dollar: NT$ 100 million
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Financial Abstract- Capital Expenditure

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1,800,000
1,600,164
1,600,000
1,400,000
1,200,000 1,132,829
：
1,000,000
889,677
800,000
600,000
358,352
400,000
200,000 119,324 122,537 102,034 138,652
0
20102010 20 年 201 1 年 1 20122012 年 20132013 年 20142014 年 20152015 年 20162016 2017 年 2017 年 Q 22
Year
Dollar
NT$ Thousand
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Capital Expenditure= Cash flow to acquire real estate, factories, equipment+ payables on equipment+ intangible assets+ long-term payables on lease payment

Financial Abstract- Dividend Policy

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4.5
4.14
4
3.5
3
2.5
2
：
1.5
1.4 1.45
1
0.5
0.31
0.24
0
-0.18
-0.5
2011 2012 2013 2014 2015 2016
現金股利 cash dividend 股票股利 stock dividend EPS
Dollar
NTD
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Diverse Investment
Shanghai
Shanghai Invest
Invest HSL China 14.67% Residence and
16.67% Commercial
Metropolitan Fund
office
(Service
Apartment) DL 100%
US$ 10 million 49% Shanghai
Lansheng
Cambodia Building to lease
100%
Office
(GM FACTORY)
50%
JEI JOM ENTERPRISE 100% 50%
CO., LTD
Cooperative
Zhejiang
Partner:
Vietnam Establish
Tainan Enterprises
Co., LTD Vietnam (Start-up) Changxing Apex
Vietnam
Textile Co.
(Start-up)
(Planning) Deli Star US$ 2.5 million
International Ltd.
Nutransfer
Garment Cooperative
(Vietnam)
Partner:
International Factory
Samsung,
Co., Ltd. Indonesia
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New Develo ments p

Developed and Sales

AERO-TECH upgrade version AERO-TECH 360

AERO-TECH have three generations: 1[st] Generation: Mech-Stretch

• 2[nd] Generation: AERO-TECH 180

• 3[rd] Generation: AERO-TECH Upgrade version  Texture diversity

AERO-TECH 360  Extreme Stretch

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New Develo ments p

Debut

CILLIANT FABRIC (Health Care Product) Integrate with Delicacy Aero-Tech technique to present a new type of Health Care Product

UMORFIL (Moisture Skin-care Product) To use supramolecular technology to integrate ocean collagen peptide into fiber, create the unique bionic functional fiber - Nature Anti-static, Skin-friendly, good Stretchability

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New Develo ments p

In Progress AERO -TECH ICE Increase the cooling feel to create the better comforts

Long-term Program Medical Smart Textile

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Focus Mana ement g

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Thank You!

De Licacy