FOCL — Interim / Quarterly Report 2018

Dec 14, 2018

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TWSE 2491

FORTUNE ORIENTAL COMPANY LIMITED Investor Conference 14 Dec. 2018

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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

• 2018 Q3 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 790,080 Thousand

No. of Employees (Group) 83

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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2018 Q3 Financial Results

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Quarterly P&L-Consolidated

(In Thousands of NT Dollars, Except EPS)	3Q,’18 (Reviewed)	2Q,’18 (Reviewed)	3Q,’17 (Reviewed)	QoQ %	YoY %
NET REVENUE	78,185	76,309	94,958	2	(18)
GROSS PROFIT	19,816	14,686	24,130	35	(18)
Gross margin	25%	19%	25%
OPERATING EXPENSES	(21,350)	(27,222)	(25,233)	(22)	(15)
OPERATING LOSS	(1,534)	(12,536)	(1,103)	(88)	39
Operating margin	(2)%	(17)%	(1)%
NON-OPERATING INCOME	(4554)	(5672)	(3812)	(20)	19
AND EXPENSES	,	,	,
INCOME (LOSS) BEFORE	(6088)	(18208)	(4915)	(67)	24
INCOME TAX	,	,	,
TOTAL COMPREHENSIVE	6076	17898	4915	66	24
INCOME (LOSS)	(,)	(,)	(,)	()
NET INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent	(4,634)	(12,504)	(3,397)	(63)	36
Net margin after tax	(8)%	(24)%	(5)%
EPS	(0.06)	(0.16)	(0.04)

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Year to 3Q P&L - Consolidated

	(In Thousands of NT Dollars, Except EPS)	YT3Q,’18 (Reviewed)	YT3Q,’17 (Reviewed)	YoY %
	NET REVENUE	243,942	292,001	(16)
	GROSS PROFIT	56,701	70,338	(19)
	Gross margin	23%	24%
	OPERATING EXPENSES	(72,699)	(79,540)	(9)
	OPERATING LOSS	(15,998)	(9,202)	74
	Operating margin	(7)%	(3)%
	NON-OPERATING INCOME AND EXPENSES	(13,585)	41,739	(133)
	INCOME (LOSS) BEFORE INCOME TAX	(29,583)	32,537	(191)
	TOTAL COMPREHENSIVE INCOME (LOSS)	(29,674)	32,537	(191)
	NET INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent	(21,576)	38,013	(157)
	Net margin after tax	(12)%	11%
	EPS	(0.28)	0.50

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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	**2018/9/30(Reviewed) **	**2018/9/30(Reviewed) **	2017/9/30(Reviewed)	2017/9/30(Reviewed)
	Current assets	545,660	26%	583,324	27%
	Property, plant and equipment	399,536	20%	409,446	19%
	Investment Property	1,051,285	51%	1,070,101	51%
	Other assets	62,176	3%	61,516	3%
	Total Assets	2,058,657	100%	2,124,387	100%
	Current Liabilities	1,320,422	64%	211,486	10%
	Noncurrent liabilities	29,619	2%	1,188,423	56%
	Total liabilities	1,350,041	66%	1,399,909	66%
	Capital stock	790,080	38%	770,080	36%
	Capital surplus	41,546	2%	41,546	2%
	Retained earnings	(281,272)	(14)%	(255,053)	(12)%
	Equity attributable to shareholders of the parent	550,354	26%	556,573	26%
	Non-controlling interests	158,262	8%	167,905	8%
	Total equity	708,616	34%	724,478	34%

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Questions
&
Answers
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