FOCL — Interim / Quarterly Report 2017

Sep 26, 2017

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TWSE 2491

FORTUNE ORIENTAL COMPANY LIMITED Investor Conference 26 Sep. 2017

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Safe Harbor Notice

This material has been prepared by Fortune Oriental Company Limited (“FOCL”). Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. FOCL is under no obligation to update or keep current the information contained herein.

The information contained in this presentation is FOCL’s confidential information. Any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful.

No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by the Company as to, the accuracy or completeness of this material and any liability therefore is hereby expressly disclaimed. Statements made in this presentation include forward-looking statements, which include, without limitation, statements about the issues, plans and expectations of FOCL. Without limiting the foregoing, statements including the words “believes”, “anticipates”, “plans”, “expects” and similar expressions are also forward-looking statements. Forward-looking statements reflect, among other things, management’s plans and objectives for future operations, current views with respect to future events and future economic performances and projections of various financial items. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those implied by such forward-looking statements.

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Table of Contents

• Company Profile

• Main Products Introduction

• 2017 Q2 Financial Results

• Q&A

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Company Introduction

Established on Apr. 1995 Date of Listing Sep. 2001

Group Chairman and G.M. Tina,Chen

Paid-up Capital NTD 770,080 Thousand

No. of Employees (Group) 88

Main Products Lighting applications Multimedia information products

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Main Operations Base Head office ： Xindian Dist., New Taipei City Factory ： HWA YA Technology Park Taichung Sales Office Kaohsiung Sales Office

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Main Products Introduction

◎ Lighting applications ： All kinds of light-emitting diode LED lamps, all kinds of fluorescent lamps, can be widely used in building indoor, outdoor lighting and retail lighting and other commercial areas.

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Recessed Ceiling Recessed Ceiling
T8 Tube Luminaires Luminaires Bulbs High Bay Lights Ring lamps
Ceiling-Mounted
Spotlights AR111 MR16 T-Bar Luminaires Panel Lights
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Main Products Introduction

Up Light source, electronic control system, plastic, metal and glass supplier stream

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Professional lighting design and manufacturers Down Lighting design companies, professional lighting engineering companies, stream lighting distributors End-User

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Main Products Introduction

• Multimedia information products ： Multimedia information products used in audio and video

• entertainment, information products, education, culture and life and other commercial areas.

• Investment Property ： Rental income.

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2017 Q2 Financial Results

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Quarterly P&L-Consolidated

(In Thousands of NT Dollars, Except EPS)	2Q,’17 (Reviewed)	1Q,’17 (Reviewed)	2Q,’16 (Reviewed)	QoQ %	YoY %
NET REVENUE	101,997	95,046	86,344	7	18
GROSS PROFIT	24,416	21,792	14,603	12	67
Gross margin	24%	23%	17%
OPERATING EXPENSES	(27,857)	(26,450)	(36,378)	5	(23)
OPERATING LOSS	(3,441)	(4,658)	(21,775)	(26)	(84)
Operating margin	(3)%	(5)%	(25)%
NON-OPERATING INCOME	42947	2604	3460	1549	1141
AND EXPENSES	,	,	,
INCOME (LOSS) BEFORE	39506	(2054)	(18315)	2023	316
INCOME TAX	,	,	,
TOTAL COMPREHENSIVE	39506	2054	18315	2023	316
INCOME (LOSS)	,	(,)	(,)
NET INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent	42,614	(1,204)	(11,401)	3639	474
Net margin after tax	38%	(1)%	(21)%
EPS	0.57	(0.02)	(0.16)

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Half Year P&L - Consolidated

	(In Thousands of NT Dollars, Except EPS)	1H,’17 (Reviewed)	1H,’16 (Reviewed)	YoY %
	NET REVENUE	197,043	166,918	18
	GROSS PROFIT	46,208	29,189	58
	Gross margin	23%	17%
	OPERATING EXPENSES	(54,307)	(69,863)	(22)
	OPERATING LOSS	(8,099)	(40,674)	(80)
	Operating margin	(4)%	(25)%
	NON-OPERATING INCOME AND EXPENSES	45,551	6,035	655
	INCOME (LOSS) BEFORE INCOME TAX	37,452	(34,639)	208
	TOTAL COMPREHENSIVE INCOME (LOSS)	37,452	(37,270)	208
	NET INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent	41,410	(21,812)	290
	Net margin after tax	19%	(23)%
	EPS	0.55	(0.31)

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Revenue Breakdown by Product

Lighting applications	All kinds of light-emitting diode LED lamps, all kinds of fluorescent lamps, can be widely used in building indoor, outdoor lighting and retail lighting and other commercial areas.
Multimedia information products	Multimedia information products used in audio and video entertainment, information products, education, culture and life and other commercial areas.
Investment Property	Rental income.

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Balance Sheet - Consolidated

	In Thousands of NT Dollars	2017/6/30 (Reviewed)	2017/6/30 (Reviewed)	2016/6/30 (Reviewed)	2016/6/30 (Reviewed)
	Current assets	598,916	28%	598,032	27%
	Property, plant and equipment	412,427	19%	1,515,501	70%
	Investment Property	1,074,805	50%	-	-
	Other assets	61,524	3%	65,196	3%
	Total Assets	2,147,672	100%	2,178,729	100%
	Current Liabilities	223,407	10%	246,468	11%
	Noncurrent liabilities	1,194,872	56%	1,281,568	59%
	Total liabilities	1,418,279	66%	1,528,036	70%
	Capital stock	770,080	36%	704,080	32%
	Capital surplus	41,546	2%	41,546	2%
	Retained earnings	(251,656)	(12)%	(271,842)	(12)%
	Non-controlling interests	169,423	8%	176,909	8%
	Total equity	729,393	34%	650,693	30%

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Questions
&
Answers
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