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FH — Management Reports 2019
May 16, 2019
51946_rns_2019-05-16_8aaa72c7-615d-4346-86dd-decb4b16bcb1.pdf
Management Reports
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Global Steel Industry Overview and a Brief Introduction of Feng Hsin Steel Co., Ltd.
2019/05/17
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Company Profile
(1) Company Founded: January, 1969
(2) Capitial: NTD5.8 Billion
(3) Number of Employees: About 864
(4) Location: Houli, Taichung Taiwan (5) Facilities: 85 MT DC Arc Furnace x 1 100 MT AC Arc Furance x 1 Rolling Line x 3 (6) 2018 Annual Production: Semi-Finished Proudct: Billet 1,653,141 MT Finished Product : Merchant Bar 439,864 MT Round Bar 460,775 MT Rebar 676,421 MT
Total 1,577,060 MT (7) 2018 Net Sales: NTD 30,865,647 Thousand
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1. 2003-2019 /3 World Major Crude Steel Producers by Country
Unit: million ton
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019/M3 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mainland China |
222 | 273 | 356 | 421 | 490 | 512 | 577 | 639 | 702 | 731 | 822 | 823 | 804 | 808 | 871 | 928 | 231 |
| Japan | 111 | 113 | 112 | 116 | 120 | 119 | 88 | 110 | 108 | 107 | 111 | 111 | 105 | 105 | 105 | 104 | 25 |
| U.S.A | 94 | 100 | 95 | 98 | 98 | 92 | 59 | 80 | 86 | 89 | 87 | 88 | 79 | 79 | 82 | 87 | 22 |
| India | 32 | 33 | 46 | 49 | 53 | 58 | 64 | 69 | 73 | 77 | 81 | 87 | 89 | 96 | 102 | 107 | 27 |
| S.Korea | 46 | 48 | 48 | 48 | 52 | 54 | 49 | 59 | 69 | 69 | 66 | 72 | 70 | 69 | 71 | 73 | 18 |
| Russia | 61 | 68 | 66 | 71 | 72 | 69 | 60 | 67 | 69 | 70 | 69 | 71 | 71 | 71 | 72 | 72 | 17 |
| Germany | 45 | 46 | 45 | 47 | 49 | 46 | 33 | 44 | 44 | 43 | 43 | 43 | 43 | 42 | 43 | 42 | 10 |
| Others | 360 | 383 | 380 | 399 | 414 | 395 | 310 | 365 | 386 | 373 | 371 | 346 | 337 | 334 | 353 | 363 | 94 |
| Global | 971 | 1,064 | 1,148 | 1,249 | 1,348 | 1,345 | 1,240 | 1,433 | 1,537 | 1,559 | 1,650 | 1,641 | 1,598 | 1,604 | 1,699 | 1,776 | 444 |
World crude steel production in 2018 was 1.776 billion mt, a 4.5% increase from 2017’s 1.699 billion mt. According to World Steel Association’s forecast, global steel demand will increase 。 1.3% to 1.735 billion mt in 2019, and increase 1.0% to 1.752 billion mt in 2020
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Data Source: World Steel Association
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Data Source: World Steel Association
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2. 2003-2019/3 World Major Crude Steel Producers by Country (%)
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019/M3 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mainland China |
23% | 26% | 31% | 34% | 36% | 38% | 47% | 45% | 46% | 47% | 50% | 50% | 50% | 50% | 51% | 52% | 52% |
| Japan | 11% | 11% | 10% | 9% | 9% | 9% | 7% | 8% | 7% | 7% | 7% | 7% | 7% | 7% | 6% | 6% | 6% |
| U.S.A | 10% | 9% | 8% | 8% | 7% | 7% | 5% | 6% | 6% | 6% | 5% | 5% | 5% | 5% | 5% | 5% | 5% |
| India | 3% | 3% | 4% | 4% | 4% | 4% | 5% | 5% | 5% | 5% | 5% | 5% | 6% | 6% | 6% | 6% | 6% |
| S.Korea | 5% | 5% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% |
| Russia | 6% | 6% | 6% | 6% | 5% | 5% | 5% | 5% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% | 4% |
| Germany | 5% | 4% | 4% | 4% | 4% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 2% | 2% |
| Others | 37% | 36% | 33% | 32% | 31% | 29% | 25% | 25% | 25% | 24% | 22% | 21% | 21% | 21% | 21% | 20% | 21% |
| Global | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
World major crude steel producers: 1. China accounts for 50% of the world’s crude steel production, up from 20% in 2002. 2. India’s crude steel production has grown from 3% to 6% , which is a country to be considered with great potential.
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Data Source: World Steel Association
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3. 2010 – 2019/5 International Scrap & Iron Ore Price Trend
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、 Data Source: Xiben New Line Feng Hsin
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4. 2009~2019 Non-Ferrous Metal Price Trend
•Nickel
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Data Source: London Metal Exchange.
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4. 2009~2019 Non-Ferrous Metal Price Trend
- •Zn
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4. 2008~2019 Non-Ferrous Metal Price Trend
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China’s Effect on Global Steel Industry 1. 2013~2019 Mainland China Steel Product Export Statistic
Unit: million ton
| Jan | Feb. | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Monthly AVG |
Compare to 2013 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2013 | 492 | 424 | 528 | 555 | 541 | 529 | 515 | 614 | 492 | 507 | 500 | 537 | 520 | BASE |
| 2014 | 677 | 480 | 676 | 754 | 807 | 707 | 806 | 776 | 852 | 855 | 972 | 1,017 | 782 | 150% |
| 2015 | 1,029 | 780 | 770 | 854 | 920 | 889 | 971 | 973 | 1,125 | 902 | 961 | 1,066 | 937 | 180% |
| 2016 | 974 | 811 | 998 | 908 | 942 | 1,094 | 1,030 | 901 | 880 | 770 | 812 | 780 | 908 | 175% |
| 2017 | 742 | 575 | 756 | 649 | 698 | 681 | 696 | 652 | 514 | 498 | 535 | 567 | 630 | 121% |
| 2018 | 465 | 485 | 565 | 647 | 688 | 694 | 589 | 588 | 595 | 550 | 530 | 556 | 579 | 112% |
| 2019 | 619 | 451 | 633 | 568 | 109% |
Export quantity from Jan-Mar 2019 totaled 17.03 million tons , averaging 5.68 million ton /month, increased 12.5% comparing to 2018.
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Data Source: Xiben New Line
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2. 2013~2019 Mainland China Steel Product Export Trend
Unit: million ton
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Data Source: Xiben New Line
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3.China’s Steel Product Export Statistic
| Item Product |
Item Product |
2019 Jan-Mar Monthly Average | 2019 Jan-Mar Monthly Average | 2019 Jan-Mar Monthly Average | 2018 Monthly Average |
2017 Monthly Average |
|
|---|---|---|---|---|---|---|---|
| Quantity (MT) |
vs 2018 Monthly Average |
vs 2018 Jan- Mar Monthly Average |
Quantity (MT) |
Quantity (MT) |
|||
| Finished Product | 5,675,505 | -1.8% | 12.6% | 5,777,984 | 6,269,686 | ||
| Item Product |
2019 Jan-Mar Monthly Average | 2018 Monthly Average |
2017 Monthly Average |
||||
| Quantity(MT) | vs 2018 Monthly Average |
vs 2018 Jan- Mar Monthly Average |
Quantity(MT) | Quantity(MT) | |||
| Finished Product | 965,633 | -12.0% | -16.1% | 1,097,186 | 1,108,144 | ||
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Taiwan Domestic Bar Product Snapshot
1.Taiwan Bar Product Import Statistic
| Item Product |
2019 Jan〜Mar Monthly Ave. | 2019 Jan〜Mar Monthly Ave. | 2019 Jan〜Mar Monthly Ave. | 2019 Jan〜Mar Monthly Ave. | 2018 Monthly Ave. | 2018 Monthly Ave. | 2017 Monthly Ave. | 2017 Monthly Ave. |
|---|---|---|---|---|---|---|---|---|
| Quantity (MT) |
Monthly Ave. Growth(%) |
Growth (%) |
Price ($/kg) |
Quantity (MT) |
Price ($/kg) |
Quantity (MT) |
Price ($/kg) |
|
| Scrap | 226,144 | -20.0% | -5.5% | 9.28 | 282,733 | 10.27 | 220,266 | 7.94 |
| Billet | 82,542 | -15.7% | 11.0% | 15.82 | 97,924 | 17.04 | 79,456 | 14.14 |
| Rebar | 2 | -98.7% | -99.1% | 94.00 | 149 | 25.75 | 138 | 22.89 |
| Merchant Bar | 3,702 | -32.1% | -6.2% | 33.48 | 5,455 | 35.52 | 4,067 | 27.92 |
| H-Beam | 5,495 | -7.0% | 3.2% | 19.80 | 5,911 | 19.06 | 7,152 | 16.18 |
| BIC(14mm↓) | 47,391 | 12.1% | 32.7% | 20.46 | 42,271 | 20.50 | 38,770 | 17.30 |
| BIC(14mm↑) | 3,867 | -5.2% | 1.5% | 26.39 | 4,078 | 25.76 | 4,034 | 21.82 |
| Round Bar | 17,675 | -46.7% | -30.7% | 40.59 | 33,175 | 33.06 | 26,638 | 28.85 |
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2.Taiwan Bar Product Export Statistic
| Item Product |
2019 Jan〜Mar Monthly Ave. | 2019 Jan〜Mar Monthly Ave. | 2019 Jan〜Mar Monthly Ave. | 2019 Jan〜Mar Monthly Ave. | 2018 Monthly Ave. | 2018 Monthly Ave. | 2017 Monthly Ave. | 2017 Monthly Ave. |
|---|---|---|---|---|---|---|---|---|
| Quantity (MT) |
Monthly Ave. Growth(%) |
Growth (%) |
Price ($/kg) |
Quantity (MT) |
Price ($/kg) |
Quantity (MT) |
Price ($/kg) |
|
| Billet | - | **-100.0% ** | -100.0% | - | 14,095 | 15.54 | 19,765 | 14.22 |
| Rebar | 9,139 | -43.8% | -71.3% | 16.19 | 16,269 | 17.69 | 14,266 | 15.43 |
| Merchant Bar | 16,756 | -23.3% | -36.2% | 20.04 | 21,839 | 19.33 | 18,522 | 17.13 |
| H-Beam | 11,893 | -26.9% | -49.3% | 21.01 | 16,263 | 19.87 | 13,108 | 17.15 |
| BIC(14mm↓) | 12,506 | -3.1% | -5.6% | 23.43 | 12,908 | 24.04 | 14,341 | 21.31 |
| BIC(14mm↑) | 4,977 | -13.1% | -24.0% | 22.96 | 5,730 | 22.45 | 5,344 | 19.96 |
| Round Bar | 11,570 | -19.6% | -25.9% | 45.74 | 14,397 | 41.74 | 13,897 | 37.85 |
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3. Rebar Apparent Consumption Over the Past 10 Years
千噸
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6,500
6,060
6,000 5,661 5,730 5,794 5,621
5,500 5,232
4,988
5,000 4,692 4,709
4,500
3,896
4,000
3,500
3,000
2,500
2,000
1,337
1,500
1,000
500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Q1
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4.Construction Statistic – Taiwan Building Construction Permit Approval Statistic
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| Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter | Unit:Case;Thousand Square Meter |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | **2018 ** | 2019Q1 |
| Case | 34,453 | 45,934 | 43,802 | 35,124 | 31,667 | 19,474 | 20,516 | 29,696 | 33,161 | 31,669 | 32,991 | 31,994 | 27,643 | 22,511 | 25,035 | 20,136 | 5,844 |
| Total Floor Area |
28,882 | 42,497 | 43,200 | 36,474 | 34,700 | 26,161 | 19,915 | 31,174 | 34,148 | 32,883 | 39,760 | 38,635 | 32,596 | 26,235 | 29,884 | 33,984 | 7,690 |
Data Source: Construction and Planning Agency, MOI , construction business metrics
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5.Feng Hsin Domestic Rebar Market Share Statistic
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FH Market Share FH Sales MT
13% 200,000
187,301
180,000
12% 175,259 176,180 175,259
165,150
160,202 160,000
147,451 149,008 153,419 150,501 156,132
11% 140,000
135,979 136,918
120,000
10%
100,000
9%
80,000
8% 60,000
40,000
7%
20,000
6% 0
2016QAVG 2017QAVG 2018QAVG 2019QAVG 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
2016QAVG 2017QAVG 2018QAVG 2019QAVG 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
FH Sales 147,451 149,008 165,150 175,259 153,419 150,501 135,979 156,132 136,918 176,180 160,202 187,301 175,259
Nation Sales 1,309,052 1,310,281 1,425,694 1,388,772 1,330,989 1,265,722 1,262,036 1,382,378 1,340,241 1,465,178 1,348,290 1,549,067 1,388,772
FH Market Share 11.3% 11.4% 11.6% 12.6% 11.5% 11.9% 10.8% 11.3% 10.2% 12.0% 11.9% 12.1% 12.6%
2019 M4 Feng Hsin Rebar Quarterly Avervage Sales63,756 MT
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Feng Hsin’s Special Bar Sales Performance
- Feng Hsin’s Special Bar Sales Market 2.The main Feng Hsin’s downstream industry
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Feng Hsin’s Special Bar Sales Market
1.2015~2018 Sales
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MT
430,000
420,000
410,000
400,000
390,000
380,000
370,000
2015 2016 2017 2018
MT
Year 2015 2016 2017 2018
QTY. 380,600 395,700 387,100 426,800
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2.Percentage of alloy steel products increases
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Alloy steel %
31%
30%
29%
28%
27%
26%
25%
24%
23%
22%
2015 2016 2017 2018
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MT
Low carbon Middle carbon Free cutting Alloy
2018 Total
steel steel carbon steel steel
% 30% 38% 4% 28% 100%
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The main Feng Hsin’s downstream industry 1.Proportion of Feng Hsin’s downstream industry
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Hand tool,
23% [Others, 1%]
Fastener
(moto above),
22%
Automotive
parts, 10%
Mechanical
parts, 44%
Fastener Automotive Mechanical
2018 Hand tool Others Total
(moto above) parts parts
% 22% 10% 44% 23% 1% 100%
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2.Application of Feng Hsin’s products
1.Lock nut application
2.Automotive Components
3.Mechanical Components
4.Hand tool
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Lock nut application
1.Nylon insert nut, Nylon insert flange nut
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2.Hex socket bolt, High strength bolt
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Automotive Components
1.Control arm
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2.Swinging arm 3.Excavator crawler
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Mechanical Components
1.Linear Guideway, Ball Screws
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2.Hydraulic Cyliner set 3.Axis
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Hand tool
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Feng Hsin Financial Analysis 1. Consolidated Balance Sheet
Unit: NTD Thousand
| Date | 2019.3.31 | 2019.3.31 | 2018.12.31 | 2018.12.31 | 2017.12.31 | 2017.12.31 |
|---|---|---|---|---|---|---|
| Item | Amount | % | Amount | % | Amount | % |
| Current Assets | 9,289,030 | 40.93% | 9,679,017 | 42.45% | 7,743,516 | 37.46% |
| Non-current Assets | 3,448,549 | 15.19% | 3,001,162 | 13.16% | 3,001,162 | 14.52% |
| Property,Plant and Equipment |
9,905,060 | 43.64% | 9,953,300 | 43.65% | 8,845,656 | 42.79% |
| Other Non-current Assets |
53,013 | 0.23% | 101,589 | 0.45% | 1,080,025 | 5.22% |
| Total Assets | 22,695,652 | 100.00% | 22,802,756 | 100.00% | 20,670,359 | 100.00% |
| Current Liabilities | 2,976,913 | 13.12% | 3,982,719 | 17.47% | 2,879,029 | 13.93% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | |||
| Non-currentLiabilities | 387,726 | 1.71% | 181,870 | 0.80% | 185,034 | 0.90% |
| Total Liabilities | 3,364,639 | 14.83% | 4,164,589 | 18.26% | 3,064,063 | 14.82% |
| Capital Stock | 5,815,994 | 25.63% | 5,815,994 | 25.51% | 5,815,994 | 28.14% |
| Additional Paid-in Capital | 614,131 | 2.71% | 615,583 | 2.70% | 448,351 | 2.17% |
| Legal Reserve | 3,863,847 | 17.02% | 3,863,847 | 16.94% | 3,591,351 | 17.37% |
| Special Reserve | 46,888 | 0.21% | 46,888 | 0.21% | 98,711 | 0.48% |
| Retained Earnings,Unappropriated |
9,291,848 | 40.94% | 8,612,358 | 37.77% | 7,698,777 | 37.25% |
| Retained Earnings | 13,202,583 | 58.17% | 12,523,093 | 54.92% | 11,388,839 | 55.10% |
| Other Equities | (301,695) | -1.33% | (316,503) | -1.39% | (46,888) | -0.23% |
| Total Equities | 19,331,013 | 85.17% | 18,638,167 | 81.74% | 17,606,296 | 85.18% |
| PE | 33.24 | 32.05 | 30.27 |
Data Source: Feng Hsin
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2. Consolidated Income Statement
Unit: NTD Thousand
| Item\Year | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
|---|---|---|---|---|---|---|
| Net Sales | 29,899,588 | 30,171,468 | 23,380,189 | 20,932,650 | 24,741,937 | 30,865,647 |
| Gross Profit | 2,311,087 | 2,563,544 | 3,016,191 | 3,162,911 | 3,815,324 | 4,171,060 |
| Operation Income | 1,620,357 | 1,806,193 | 2,255,473 | 2,342,327 | 3,033,481 | 3,335,672 |
| Non-operating Income& Expense |
108,526 | 174,041 | 144,070 | (145,347) | 208,665 | 301,704 |
| Income Before Income Tax |
1,728,883 | 1,980,234 | 2,399,543 | 2,196,980 | 3,242,146 | 3,637,376 |
| Net Income | 1,446,331 | 1,668,131 | 2,003,635 | 1,815,794 | 2,724,957 | 2,942,415 |
| Other Comprehensive Gains and Losses |
13,108 | (18,367) | (32,636) | (69,503) | 41,444 | 5,141 |
| Gains and Losses for the Period |
1,459,440 | 1,649,764 | 1,970,999 | 1,746,291 | 2,766,401 | 2,947,556 |
| Earnings per Share (NTD)after tax |
2.49 | 2.87 | 3.45 | 3.12 | 4.69 | 5.06 |
Data Source: Feng Hsin
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3. Feng Hsin 2009 - 2018 Net Sales
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40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Data Source: Feng Hsin
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4.Feng Hsin 2009–2018 E.P.S. And Dividend Trend
6.00
5.06
5.00
4.59 4.69 Earning Per
Shaer
4.06 4.00
4.00
3.45 3.50 Earning Per
3.00 3.00 3.12 3.00 Shaer
2.87
3.00 2.75 2.78
2.63
2.50 2.49 2.50 2.50
2.00
2.00
1.00
0.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Data Source: Feng Hsin
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5. Feng Hsin 2009 - 2018 Product Sales Percentage
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60%
50%
Domestic Rebar
Sales
Domestic Round Bar
40%
Sales
Domestic Merchart
Bar Sales
30%
20%
10%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Data Source: Feng Hsin
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6. Feng Hsin’s Scrap and Finished Product States
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Data Source: Feng Hsin
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7. Taiwan’s Scrap and Finished Product Price Difference States
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Data Source: Feng Hsin
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8.Sales Quantity and Sales (Ton/Million)
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Data Source: Feng Hsin
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9.2019 JAN~APR Operating Income & Pretax Profit Comparison
| Unit: NTD Thousand | Unit: NTD Thousand | ||
|---|---|---|---|
| Item\Year | 2019/1~4 | 2018/1~4 | Growth% |
| Net Sales | 9,461,727 | 9,364,130 | 1.04% |
| Cost of Sales | 8,421,221 | 8,108,489 | 3.86% |
| Gross Profit | 1,040,506 | 1,255,641 | -17.13% |
| Operating Expense | 249,073 | 272,189 | -8.49% |
| Operation Income | 791,433 | 983,452 | -19.52% |
| Non-operating Income& Expense |
216,805 | 46,134 | 369.95% |
| Income Before Income Tax | 1,008,238 | 1,029,586 | -2.07% |
Data Source: Feng Hsin
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Company Production, Marketing and Future Development Strategies
1.Production
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A. New product development to expand product offering, production flexibility to maximize customer needs.
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B. Feng Hsin’s quality policy: All Feng Hsin’s personnel work together, quality first concern and customer priority.
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C. New rebar mill formally operated at 2018.Directly rolling will improve quality, save energy ,reduce cost and enhance competitiveness.
2.Sales
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A. Actively participating in public construction and construction tender, through cooperating with processing manufacturer to get orders and enhance rebar market share target.
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B. Continue to Expand semi-finished products and finished goods export market to maximize profit.
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C. Keeping long term relationship and contracts with scrap suppliers to have stable supply and quality.
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D. Maintaining well-established relationship with distributors and customers to provide better customer service to support steady sales and market share.
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E. Improve performance after continuous renovation of steelmaking and rolling equipment, Feng Hsin enhance efficacy and quality and let Round bar products cut into higher-level and broader fields.
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Company Production, Marketing and Future Development Strategies
3.Future Development and Strategy
In pursuit of sustainable development, Feng Hsin set short term and long term strategies to provide compliance for all employees.
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Short term strategies
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Develop new type and product.
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Reduce cost, enhance quality and expand market share.
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Energy saving and carbon reduction, reduce pollution, enhance waste water recycle and forward to zero water discharge.
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Be neighborly and green environment to enhance Feng Hsin’s image.
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Long term strategies
Diversified management to extend Feng Hsin’s core advantage and forward to global.
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4.Finished and future investments
1.Increase competitiveness.
Unit: 100 Million NTD
| No. | Investment/Upgrade | Estimate/Actual Amount |
Investment/Upgrade Reasons | Estimate/Actual Completion Date |
|---|---|---|---|---|
| 1 | No. 2 DC Furnace Converter Update |
0.80 | 1.Update of 20 years old equipment to keep Available up . 2.Increase of 9.3% after upgrade. |
2015/07 |
| 2 | No. 2 Melting Shop: 1. LF (Ladle Furnace) relocation 2. VD (Vacuum Degassing) addition |
4.80 | 1. New product development; Can produce entry level spring steel 2. Expand SBQ product end application. Current steel grades via VD can be used in: a. Automobile parts (after market) b. High grade fasteners c. high grade hand tools 3. Improve product quality, increase competitiveness internationally and domestically |
LF Relocation- 2015/08 VD addition- 2015/12 |
| 3 | No.2 meltins shop Cvane replacement . |
1.80 | 1.Old Crane's collum need upgrade and replacement for safety issues . 2.Original capacity of 100t upgrade to 130t increase of satety measures . |
2015/08 |
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1.Increase competitiveness
Unit: 100 Million NTD
| No. | Investment/Upgrade | Estimate/Actual Amount |
Investment/Upgrade Reasons | Estimate/Actual Completion Date |
|---|---|---|---|---|
| 4 | Billet Magnetic Particle Inspection (MPI) Equipment |
0.64 | 1. To solve billet’s surface impurities that can’t be inspected and improve on polish technique 2. After MPI and surface polishing, greatly reduce product defective and claims, increase on product competitiveness. |
2016/03 |
| 5 | Merchant Bar Mill’s Rough and Medium Mill AC Motor |
1.50 | 1. Rough and Medium Mill have a total of 12 AC motors, all have been in service for 19 years. All back up motors have had maintenance record, and the mill currently does not have any new back up motors. 2. To reduce both motor maintenance interval and cost. |
2016/09 |
| 6 | SBQ Mill’s RSB addition and New Coil Machine |
8.21 | To replace current equipment with new to increase competitiveness by improving surface and internal quality. |
2017/9 |
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1.Increase competitiveness.
| 1.Increase competitiveness. | 1.Increase competitiveness. | 1.Increase competitiveness. | 1.Increase competitiveness. | 1.Increase competitiveness. |
|---|---|---|---|---|
| Unit: 100 Million NTD | ||||
| No. | Investment/Upgrade | Estimate/Actual Amount |
Investment/Upgrade Reasons | Estimate/Actual Completion Date |
| 1 | New Rebar Mill | 30.10 | 1. To expand on small size rebar market share 2. Direct rolling to save on gasoline usage 3. Low-temp rolling to reduce cost of alloy in high tensile rebar |
2018/03 |
| 2 | Merchant bar mill's Universal Block Upgrade |
0.62 | 1.Improve on Channel Bars Quality . 2.Decrease on roller costs and save on time used when changing rolls . |
2018/06 |
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2.Improvements on Air Pollution ,Waste Water and Carbon Emissions
Unit: 100 Million NTD
| No. | Investment/Upgrade | Investment/Upgrade | Investment/Upgrade | Estimate/Actual Amount |
Investment/Upgrade Reasons |
Investment/Upgrade Reasons |
Investment/Upgrade Reasons |
Estimate/Actual Completion Date |
|---|---|---|---|---|---|---|---|---|
| 1 | Heating Furnace LNG upgrade for merchant bar and SBQ mills |
1.95 | 1.Reduce air pollution to follow future laws . 2.Save on energy . |
2017/12 |
||||
| 2 | Terminal waste water treatment |
0.31 | 1.Set up company-wide shared terminal wastewater treatment. 2.Reduce waste water for compliance with laws and regulations |
2019/01 | ||||
| Unit:Ton 揮發性有機物 (VOCs) 328 147 150 159 |
||||||||
| Airpollution emissions | Unit:Ton | |||||||
| Year | 粒狀物 (Par) |
硫氧化物 (SOx) |
氮氧化物 (NOx) |
揮發性有機物 (VOCs) |
||||
| limit | 150 | 497 | 490 | 328 | ||||
| 2016 | 30 | 448 | 381 | 147 | ||||
| 2017 | 21 | 342 | 282 | 150 | ||||
| 2018 | 30 | 187 | 158 | 159 |
Since renovation of mills, air pollution emissions are reducing.
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Awarded the "Best Outstanding Award for Industrial Greenhouse Gas Reduction in the Year of 2018”
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On November 30, 2018, the Industrial Development Bureau, Ministry of Economic Affairs held the "2018 Industry Greenhouse Gas Reduction Results Presentation and Green Technology and Engineering Practice Seminar". More than 500 participants participated. 13 industrial greenhouse gas reduction manufacturers are awarded for praised their efforts and contributions to gas reduction.
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This year, Feng Hsin is awarded “Best Outstanding Award for Industrial Greenhouse Gas Reduction” ,China Steel Corporation which has won the model of reduction in performance, Taiwan Semiconductor Manufacturing Company Limited and Nan Ya Plastics Corporation and other outstanding manufacturers who won the award for excellent management of reduction management jointly took the stage to receive the awards and jointly cheered for carbon reduction results.
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3.Others
Unit: 100 Million NTD
| No. | Investment/Upgrade | Estimate/Actual Amount |
Investment/Upgrade Reasons | Estimate/Actual Completion Date |
|---|---|---|---|---|
| 1 | Tai Sugar Scrap Yard rental | 2.35 | Benefits of renting Tai Sugar scrap yard: 1. To replace Taichung port scrap yard & Northern scrap yard, with a total saving on renting cost of 16.32 million ntd. 2. Utilize the space in Tai Sugar scrap yard to separate impurities from scrap to save on trash processing material and electricity, yearly combine of saving 8.09 million ntd. |
2015/12 |
| 2 | New Administration Office Building |
4.85 | To cooperate with building the new rebar mill, the old office buildinghas beendemolished |
2019/09 |
Above total investment amount is 5.793 billion dollars.
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Thank You
for Your Attention
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