H.C. — Investor Presentation 2019

Dec 5, 2019

關於宜進 About Yi Jinn
Stock Code #1457
Polyester Textured Yarn;
Air Covering Yarn 1,800Ts/M

B

Stock Code #1413

Yi Jinn Group
POY, FDY Direct spinning 4500Ts/M
Chip spinning 2600Ts/M
Polyester chips 1000Ts/M

C

A
Stock Code #4420

Polyester &Nylon textured yarn; Compounded Yarn; 1,400Ts/M

Notes:

簡報內容方式

Yi Jinn
Hung Chou
Q&A
Conclusion

Introductions、Manufacturing
Capacity and Output、Income statement

宜進實業股份有限公司
Yi Jinn Industrial Co., Ltd.
Institutional investors of 2019

Introduction of Yi Jinn

Establishment：1981
Concept：Innovation, Integrity, Growth and Collaboration
Main Operation: Business of man-made and nature fiber, real estate
Purchase factory in Tainan(2011), which produce POY&DTY。
Acquisition Kwang Ming by stocks (2013) in 46.56%
Acquisition Hung Chou by stocks (2015) in 40.57%
Capital：NTD3 billion
Revenue in 2016：NTD4.6 billion
Revenue in 2017：NTD5.05 billion
Revenue in 2018：NTD5.65 billion

Construction

Shareholders

Supervisor

Board of directors

Interior audit

Chairman

CEO

CEO room
Accountant
Sales
Tainan

Out sourcing

加工絲假撚製造過程

Yi Jinn-Tainan factory

Total facilities：20
Average operating：15
Monthly average capacity：1,800 ton
Main product：DTY
| Facilities | Amount |
| --- | --- |
| Murat 33H single-ply | 2 |
| Barmag M900 | 1 |
| Barmag M80 | 3 |
| TMT ATF-21 | 4 |
| TEIJIN HTS-1500 | 8 |
| Barmag FK6-1000 | 2 |

Out source processing

Out sourcing：industrial TAPE
Application：facility of aviation and transportation
Area：USA, Japan, France…etc.
Selling volume：154,538 thousand yards in 2015
145,824 thousand yards in 2016
148,777 thousand yards in 2017 154,804 thousand yards in 2018
78,613 thousand yards in 2019 (Jan~Jun)
Business proportion：10.32%

Income statement of Yi Jinn

Unit：thousand NTD
| Unit：thousand NTD | 2018 | % | First half of 2019 | % |
| --- | --- | --- | --- | --- |
| Sales revenue | 5,646,982 | | 2,651,518 | |
| Costs | 4,949,289 | | 2,335,927 | |
| Gross profit | 697,693 | 12 | 315,591 | 12 |
| Profit | 617,842 | | 453,442 | |
| EPS | 2.13 | | 1.04 | |

Institutional investors of 2019

Introduction of Hung Chou

Establishment：1968
Set up on Dihua street
Produce and sale POY
Acquire by Yi Jinn in 2015
Relocate in Neihu district in order to have better development
Capital：NTD1.3 billion
Revenue in 2016：NTD2.2 billion
Revenue in 2017：NTD3.2 billion
Revenue in 2018：NTD3.65 billion

Construction

Shareholders

Supervisor

Board of directors
Interior audit

Chairman

CEO

Sales
CEO room
Guishan factory
Accountant

聚酯纖維製造

宜進實業股份有限公司
115/05/22
聚酯纖維製造過程
PTA
EG
Spinning
Staple

Direct
Spinning

Polymer

Spinning

POY
DTY

Melt

chips
SSP Chips

Solid-state
polymerization

Hung Chou- Guishan factory

Polymerization capacity：9,000T/month
Recent output：7,000T/month

POY production line capacity：7,200T/month
Recent output：6,200T/month

Main product：
Poly chip & Poly fiber

| Facility | Amount |
| --- | --- |
| Polymerization | 1 line |
| POY production line | 21 line |

Income statement of Hung Chou

Unit：thousand NTD
| Unit：thousand NTD | 2018 | % | First half of 2019 | % |
| --- | --- | --- | --- | --- |
| Sales revenue | 3,651,036 | | 1,690,247 | |
| Costs | 3,367,592 | | 1,576,442 | |
| Gross profit | 283,444 | 8 | 113,805 | 7 |
| Profit | 239,026 | | 73,553 | |
| EPS | 1.83 | | 0.56 | |

SWOT analysis

.High innovation, low cost, strong international marketing
.High ambition
.Flexible operating and vertical integration
.Improvement of techniques, lower operating cost to maintain competitive advantage

.Increasing of domestic and Asian markets
.Develop both F fabric (fashion and function), to be more competitive.
Combination of upstream and downstream industries, easy to develop innovative products
(O)

Opportunities
(S)

Strength

.Too focus on common products
.Mainly focus on production, fewer crucial techniques
.Hard to make market segment
.Hard to join international organization, trading being obstructed
.Low price: highly competitive with South-east country, China and Korea
.High price: high competitive with European country, USA and Japan
.Low Tariff protection, easily be dumped
(T)

Threats
(W)

Weaknesses

宜進實業股份有限公司
Yi Jinn Industrial Co., Ltd.

Yi Jinn has been engaged in fiber industry for 38 years, from the peak to the growth, maintain our spirit of integrity and collaboration by keeping research and development. Integrate raw material, DTY and production of cloth by acquiring Kwang Ming and Hung Chou.

Innovation、Comfort、Healthy Life

2017
Join the production supply chain of the United States well-known 37.5TM technology yarn. This helps body manage the moisture in microclimate to keep body in “37.5 zone” of comfort and performance.
2018
Work with Dazzeon to develop “antibacterial cupric ion yarn”. To enhance stronger and antibacterial materials.

Concept of leading

 Maintaining the attitude of innovation, integrity, growth and collaboration from 1981. Assistance and trust between relations of labor and capital makes company stronger and stronger.
 Our company keep developing high quality and highly adding value products. We would improve our production, and integrate upstream and lowstream in the future, becoming much stronger Yi Jinn.

Position：Chairman of YiJinn, Hung Chou and Kwang Ming
Chairman of Taiwan Textile Federation 14th & 15th
B.O.D. Taiwan Man-made Fiber Industries Association
B.O.D. Chinese National Federation of Industries
Chairman Cheng-Tien Chan

宜進集團近期購置不動產狀況

Thank you for listening!
Q & A