GREATWALL — Investor Presentation 2017

Sep 22, 2017

Great Wall Enterprise Co., Ltd. Investor Conference

• Company Profile
• Financial Summary
• Competitive Edge and Development Strategy
• Q & A

Disclaimer

• 1. This presentation contains certain forwardlooking statements that are based on current expectations and are subject to known and unknown risks and uncertain ties that could cause actual results to differentially from those unexpected or implied by such statements.
• 2. Expect as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or others.

Dachan Great Wall Group

• Established in 1957
• Public Listed in 1978 (Great Wall Enterprise Co., Ltd.)
• Public Listed in Hong Kong in 2007 (Dachan Food (Asia) Limited)

6 Business Groups

• Agriculture Business Group
• Meat Business Group
• Food Business Group
• Food Service and Food Court Business Group
• Southeast Asia Business Group
• East Asia Business Group(Dachan Food(Asia) Limited)

In 2016, revenue over 75 billion

Dachan Great Wall Group

Category	2016
Feed	320 tons
Chicken Meat	120 million chickens
Food Processing	7,000 tons
Flour	250,000 tons
Restaurants	90

Financial Summary

2012~2017H Income Statement (Consolidated)

Amount:Million NTD	2012	2013	2014	2015	2016	2017H
Net Revenue	86,533	90,478	91,741	78,252	75,796	36,741
Cost of Revenue	79,567	82,823	83,743	69,848	65,868	31,901
Gross Profit	6,966	7,655	7,998	8,404	9,928	4,840
Operation Exp.	5,810	6,815	6,849	6,862	7,184	3,470
Operation Income	1,156	840	1,149	1,542	2,744	1,370
Net Non-Operating Income	232	1,753	343	(573)	397	(20)
PBT	1,389	2,593	1,492	969	3,141	1,349
PAT	1,130	2,257	1,000	486	2,561	1,003
PAT Attributable to Shareholder of the Parent	756	1,796	1,163	591	2,058	884
EPS	1.47	3.42	1.70	0.87	3.01	1.29

2012年~2017H Income Statement (Consolidated) Amount:Million NTD

Year	Revenue	Gross Profit		PAT (Attributable to Shareholder of the Parent)	EPS
		Amt.	%	Amt.	%
2012	86,533	6,966	8.05%	756	0.87%	1.47
2013	90,478	7,655	8.46%	1,796	1.99%	3.42
2014	91,741	7,998	8.72%	1,163	1.27%	1.70
2015	78,252	8,404	10.74%	591	0.76%	0.87
2016	75,796	9,928	13.10%	2,058	2.72%	3.01
2017H	36,741	4,840	13.17%	884	2.41%	1.29

2012年~2017H Income Statement (Parent Company Only)

Amount:Million NTD

		Gross Profit		Operation Income		PAT
Year	Revenue	Amt.	%	Amt.	%	Amt.	%	EPS
2012	22,622	1,784	7.89%	576	2.55%	756	3.34%	1.47
2013	23,471	2,144	9.13%	854	3.64%	1,796	7.65%	3.42
2014	23,834	2,378	9.98%	969	4.07%	1,163	4.88%	1.7
2015	22,339	2,424	10.85%	1,017	4.55%	591	2.65%	0.87
2016	24,514	3,303	13.47%	1,694	6.91%	2,058	8.40%	3.01

2012~2017H Performance (Consolidated)

Revenue(Million NTD) Gross Profit(%)

2017H Income Statement

Amount:	2017.1-6			2016.1-6			Difference
Million NTD	Amt.	%		Amt.	%		%
Revenue	36,741	100.0%		36,172	100.0%		1.6%
Cost	31,901	86.8%		31,347	86.7%		1.8%
Gross Profit	4,840	13.2%		4,825	13.3%		0.3%
Operation Exp.	3,470	9.4%		3,551	9.8%		-2.3%
Operation Income	1,370	3.7%		1,274	3.5%		7.5%
Net Non-Operating Income	(20)	-0.1%		136	0.4%
PBT	1,349	3.7%		1,410	3.9%		-4.3%
PAT	1,003	2.7%		1,244	3.4%		-19.4%
PAT Attributable to Shareholder of the Parent	884	2.4%		1,026	2.8%		-13.8%
EPS	1.29			1.50

2017H Balance Sheet

Amount:	2017Q2		2016Q2
Million NTD	Amt.	%	Amt.	%
Cash and Cash Equivalents	2,869	8%	3,714	10%
Accounts and Notes Receivable	5,592	15%	5,274	14%
Inventories	6,697	18%	5,729	15%
Total Other Current Assets	4,335	11%	4,517	12%
Total Current Assets	19,494	52%	19,234	50%
Total Non-Current Assets	18,219	48%	18,912	50%
Total Assets	37,713	100%	38,146	100%
Short-term Loans	7,156	19%	4,634	12%
Accounts and Notes Payable	7,334	19%	4,634	12%
Total Other Current Liabilities	1,639	4%	6,491	17%
Total Current Liabilities	16,129	43%	15,759	41%
Long-term Loans	1,220	3%	2,388	6%
Total Other Non-Current Liabilities	286	1%	378	1%
Total Non-Current Liabilities	1,506	4%	2,767	7%
Total Liabilities	17,635	47%	18,526	49%
Total Shareholder's Equity	20,078	53%	19,620	51%

大成集團經營範圍 From Farm To Table

Dachan has established a complete supply chain and a global operation mechanism. Dachan is able to implement a full-dimensional, interdependent food chain structure that integrates the three links of feed, meat and food.

The successful verticalintegrated-broiler-rearingprogram establishes a completely supply chain which starts from breeding, hatching, contract rearing, feed production nutraceutical feed, rearing supervision, electrical slaughter to end-product processing.

• Precise Enterprise Resource Management System
• Implementation of ERP
• Applicable to 20 SBU's , providing sales as well as profit estimate on daily basis

• Advanced Technology
• Focus on R&D, introducing leading agricultural biotechnology products
• National certified laboratory
• Advanced equipments
• Professional experimental farm

• Advanced Technology

• Focus on R&D, introducing leading agricultural biotechnology products
• National certified laboratory
• Advanced equipments
• Professional experimental farm

TFDA & TAF Certification

Quality Inspection Center

• Advanced Technology

• Focus on R&D, introducing leading agricultural biotechnology products
• National certified laboratory
• Advanced equipments
• Professional experimental farm

Equipments

Item	Number
液相層析串聯質譜儀(LC/MS/MS)	2
氣相層析串聯質譜儀(GC/MS/MS)	1
高效液相層析儀( HPLC)	2
氣相層析儀 (GC)	1
原子吸收光譜儀 (AA)	1
近紅外線光譜分析儀(NIR)	6
氮分析儀	1
熱量計	1

Equipment II/II

Liquid Chromatograph / Tandem Mass Spectrometer 液相串聯質譜儀(LC/MS/MS)

Gas Chromatography/Tandem Mass Spectrometry 氣相層析串聯質譜儀(GC/MS/MS)

High Performance Liquid Chromatography 高效液相層析儀(HPLC)

• Advanced Technology

• Focus on R&D, introducing leading agricultural biotechnology products
• National certified laboratory
• Advanced equipments
• Professional experimental farm

• Vertical Integrated System
• Broiler Chickens and Native Chickens: Taiwan、China
• Layers
• Pigs
• Waterfowls
• Seafood:Southeast Asia

• Other Food Related Business
• Flour Milling
• Oil
• Food Processing
• Restaurant
• Shopping Mall Management

• Food Safety and Corporate Social Responsibility
• Whole quality control with traceability through purchasing, production management and endproduct
• Close cooperation with contract farmers and emphasis on food safety, environmental protection and social responsibility。