HK — Investor Presentation 2021

Dec 17, 2021

Stock Cord：1618

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･
CONSCIENCE･PERPETUAL
HONESTY･STEADY
2 0 2 1 . 1 2 . 1 5

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DISCLAIMER

 I N A D D I T I O N T O H I S T O R I C A L I N F O R M A T I O N , T H I S N O T E C O N T A I N S F O R W A R D - L O O K I N G S T A T E M E N T S A N D I S T H E R E F O R E S U B J E C T T O R I S K S A N D U N C E R T A I N T I E S . 。

• T H E I N F O R M A T I O N P R O V I D E D I N T H I S P R E S E N T A T I O N W I L L N O T B E U P D A T E D B Y A N Y N E W S T A T U S 。

 T H E C O M P A N Y D O E S N O T E X P R E S S , I M P L I E D O R W A R R A N T T H A T T H E I N F O R M A T I O N P R O V I D E D I N T H I S P R E S E N T A T I O N I S C O M P L E T E A N D D O E S N O T R E P R E S E N T A C O M P L E T E D I S C U S S I O N O F T H E C O M P A N Y ' S B U S I N E S S C O N D I T I O N S A N D S U B S E Q U E N T S I G N I F I C A N T O P E R A T I O N A L D E V E L O P M E N T S . 。

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AGENDA

•
Company Profile
一

•
Sales & Marketing
二

•
Competitive Advantages
三

•
Financial Performance
四

五

•
Market and Business Outlook

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• Company Profile 一

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Historical ：

Stock Code：1618

C A P I T A L ：N T $  1 , 9 2 6 , 9 1 7 , 4 7 0

(BASE DATE：2021/08/26
   CASH CAPITAL REDUCTIONBASE NT$481,729,370)
E M P L O Y E E S ：2 1 8 ( 2 0 2 1 / 0 9 / 3 0 )

1997-
1989-
15KV、25KV cable
Established
approved by TPC

1998-
Stocks published

2000-
Listed on the
Taiwan Stock
Exchange

2019-
got approval of ISO-14001
got approval of ISO-45001

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2009-
345KV EHV cable
approved by TPC

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2002-

69KV、161KV EHV cable
approved by TPC
got approval of ISO-9001

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Taipei office:
      Financial dept
      Sales dept
      Audit dept

(Add：3F.,No.36-9,Sec.1,

      Dist.,Taipei)

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Factory：

Manufacture dept Central Quality Control Committee (Add：No.32, Jingjian 5th Rd., Guanyin Dist., Taoyuan )

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Interior/Industrial
electrical wiring
reference from website：https://www.taipower.com.tw/tc/page.aspx?mid=211

Product & Service

Application

XLPE power cable
Installation of
cable and accessory

345kV, 161kV, and 69kV power generation,
transmission and distribution lines
22kV/11kV electric transmission and
distribution lines

Interior/Industrial electrical wiring
for low voltage

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二

Product & Service

Application

AAC bare conductor
ACSR bare conductor
ACSR/AW bare conductor
TACSR bare conductor
TACSR/AW bare conductor
Aluminium strip, Aluminium wire

Overhead transmission line

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Application

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二

Product & Service

PVC insulated and sheathed cable
PVC insulated cable
PVC flat cable, IV cable
PVC flexible control cable
Flexible control cable with Screen

General building wire，
factory/industrial wiring
and equipment control

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• 二 Sales & Marketing- Fiber Optic/Communicable cable supply chain

Telecommunication Facilities

New Building

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Fiber to Home
+
Buildings Lan Cable Networks
Self-support fiber
Fiber to building
optic cable or
+
Communication Cable
Lan Cable Networks
Indoor Communication Cable
manhole
Fiber Optic Drop Cable
PE-PVC Drop Cable Fiber Optic
Drop Cable
Hand
hole
Hand
Trunk Cable Feeder Cable
hole
ex. Fiber Optic Cable ex. Fiber Optic Cable
ex. FS-STP Communication Cable ex. FS-JF-LAP communication Cable
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• Sales & Marketing- Fiber Optic/Communicable cable supply chain 二

Product & Service

Application

Loose Tube Duct Cable
Direct Burial Cable
Aerial Cable
Drop Cable
Cat.5e,Cat.6,Cat.6A, Cat.7 (CMP,
PVC, LSZH)
Telecommunication Cables

Telecommunication fixed network
line

Mobile Telecommunication network
CATV network

Road/Railroad/Mass Rapid
Transit communication control
Optical local area network

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Revenue ratio by product

2019 Revenue ratio

2021Q3 Revenue ratio

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PVC wire, PVC wire
Others(Acces PVC wire Others(Acce 14.4%
PVC wire,
sories), Aluminum ssories),
11.3% Aluminum Cable
Services 16.8% Cable, 4.0% Aluminum Cable 24.6%
Aluminum
Revenue,
3.8% XLPE Power Cable Cable, 2.5% XLPE Power Cable
Fiber Optic Services
Cable, 8.3% Lan Cable Revenue, Lan Cable
XLPE Power
2.8%
Lan Cable, Cable, 42.3% Fiber Optic Cable Fiber Optic XLPE Power Fiber Optic Cable
13.6% Cable, 3.4% Cable,
Lan Cable,
43.2%
Services Revenue 9.1% Services Revenue
Others(Accessories) Others(Accessories)
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 Access to domestic and foreign certification, product range, in line with Taiwan and Europe and the United States around the standard standards.

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 Strong unity turnkey integration capabilities, and a wealth of turnkey performance .

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 Pursuit of quality and persistence.

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 Focus on value and service, use the best equipment and management to provide the highest production efficiency, the fastest delivery, and the best quality.

345kV特高壓電纜押出機

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25kV高壓電纜押出機

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 Emphasis on the cultivation of talents and a safe and secure working environment 。

Friendly and safe

Environmental
sustainability

Spacious and bright
operating workshop

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•
Financial Performance
四
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PROFITABILITY (EPS)

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1.2
1
1
0.8 0.71
0.6
0.35
0.4 0.28
0.22
0.2
-0.04
0
-0.2
2016 2017 2018 2019 2020 2021Q3
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Sales

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2,500,000 -8.08%
2,211,551
2,032,856
2,000,000
去年度
1,500,000
今年度
1,000,000
500,000
-
第一季 第二季 第三季 前三季合計
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Cash Dividend & Dividend yield VS 2021 cash capital ductionbase ：NT$ 2/share

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3.74%
4.00% 3.38%
3.24%
3.50% 3.01%
2.59%
3.00%
2.50%
2.00% divided
yield
1.50%
1.00%
0.50%
0.00%
2016 2017 2018 2019 2020
Dividend
0.3 0.3 0.3 0.3 0.3
(NTD)
Divided Yield=cash dividend per share / average closed stock price of the year
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Cash Flow

Cash Flow	Cash Flow	Cash Flow
thousands
	Nine months,2021	2020
Cash and cash equivqlents at beginning of period	684,882	669,334
Net cash flows from (used in) operating activities	( 167,662)	413,289
Net cash flows from (used in) investing activities	36,391	( 318,510)
Net cash flows from (used in) financing activities	( 75,508)	( 78,998)
Effect of exchange rate changes on cash and cash equivalents	( 21)	( 233)
Cash and cash equivqlents at end of period	478,082	684,882

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2021 INVESTOR CONFERENCE

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Financial Analysis

	2021/9/30	2020
Debts Ratio	17.01%	8.37%
Current Ratio	295.15%	627.46%
Quick Ratio	174.04%	426.48%
Average collection days	67	56
Average inventory days	139	116
Ratio or return on total assets	4.57%	5.01%

(1)Debts to assets ration = total liabilities/total assets

(2)Current ratio = current assets/current liabilities

(3)Quick ratio = (current assets - inventory - prepaid expenses)/current liabilities

(4)Average collection days = 365/accounts receivable turnover rate

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(5)Average sales days = 365/inventory turnover rate

(6)Return on assets = [net profits after tax + interest expense x (1 - tax rate)]/average total assets

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SHIFTED INVESTMENT AND DIVIDEND INCOME

I N V E S T E D A M O U N T

D I V I D E N D I N C O M E

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thousand
thousand
900,000 32,901
35,000
800,000 28,766
30,000
700,000
600,000 25,000 21,284
500,000 20,000 16,761
LISTED
400,000
15,000 DIVIDEND
300,000 UNLISTED
10,000
200,000
5,000
100,000
- -
2018 2019 2020 2021Q3
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 In the future, the demand for electricity will continue to be strong. Actively participating in various public works and UHV power transmission and transformation projects are expected to bring stable growth to our company’s operations.

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圖片來源：https://www.taipower.com.tw/tc/page.aspx?mid=223 (台電網站)

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 Continue to deploy and expand new overseas customers,and establish customer trust and mutually beneficial relationships. It is expected that overseas cable sales and cooperation opportunities will gradually increase.

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Europe
Korea
Japan America
Taiwan
Southeast Asia
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 Strengthen the integration of internal resources, activate land and plant utilization, effectively manage and control operating costs, and improve profitability.

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 Flexible and quick response to respond to the rapid changes in the domestic and international environment under the epidemic, reduce operational risks, and create profitable growth.

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Steady Epidemic Raw material
prevention market demand
operation
Immediate response
measures
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Q&A

CONTACT INFORMATION
-
TEL：(02)23956603
-
HTTP://WWW.HOLD
KEY.COM.TW

2021 INVESTOR CONFERENCE