LAN FA — Investor Presentation 2018

Sep 14, 2018

2018 INVESTOR CONFERENCE 聯發紡織 LAN FA TEXTILE CO., LTD.

Agenda

� Company Profile

� Company History

� Main products

• Business Overview

• Q & A

==> picture [140 x 140] intentionally omitted <==

==> picture [137 x 134] intentionally omitted <==

==> picture [142 x 121] intentionally omitted <==

2

Company Profile Company Name: LAN FA TEXTILE CO., LTD. Established Year: December 11, 1972 Date of Listing: October 26, 1994 Paid-in Capital: NT$3.586 billion Land Assets: Luzhu, Taoyuan, Zhubei factory, Hangzhou factory

==> picture [217 x 135] intentionally omitted <==

==> picture [208 x 133] intentionally omitted <==

3

1972:	The company was established dealing with producing the various knitted cloth.
1985:	Entered into the polyester processing yarn industry, and introduced high-speed BARMAG friction- type machine made in Western-Germany.
1992:	Introduced a UNITEN'S computerized tension inspection machine.
2000:	30 high-speed BARMAG AFK1 friction-type false twisting machines made a commission test for quantity production in Zhubei factory(1,100M/Min),8 Autefa AGV auto-carriers were put into the operation in the production line.
2001:	Finished the auto-inspection system of the package conveyance and auto-storage management system(6,400 storage spots,8,300 tons for storage capacity).
2002:	30 BARMAG AFK2 high-speed friction-type false twisting machines made a commission test for quantity production (1,310M/Min).
2006:	Hangzhou Lan Fa Textile Co., Ltd. was established in Hangzhou Economic and Technological Development Area.
2007:	Hangzhou Lan Fa Textile Co., Ltd. officially put into production.
2017:	Hangzhou factory added 10 sets eAFK high-speed friction-type false twisting machines with 384 motors each.

4

Main products

• Hollow Core Fibers

• Quick-Dry Fibers

• Anti-Bacterial Fibers

• Uv-Cut Fibers

• Flame Retardant Fibers

• Fine denier DTY

• Recycle

• Elasticity&Stretch Series

==> picture [277 x 186] intentionally omitted <==

• DOPE DYED BK

5

	2018(1~6)	2017(1~6)
Net Revenue	1,785,401	1,612,501
Operating Cost	1,738,628	1,581,057
Gross Profit	46,773	31,444
Operating Expenses	92,582	78,219
Operating Income (Loss)	(45,809)	(46,775)
Non-operating Income and Expenses	195,429	(13,801)
Income (Loss) Before Tax	149,620	(60,576)
Income Tax Expense (Benefit)	13,225	(4,734)
Net Income (Loss)	136,395	(55,842)

Business Overview Consolidated revenue

Unit: NTD in thousands

==> picture [661 x 379] intentionally omitted <==

----- Start of picture text -----

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Jan. Feb. Mar. Apr. May Jun. Jul. Aug.
2018 336,009 181,770 358,717 282,381 336,367 289,684 288,284 328,243
2017 186,820 282,359 296,886 278,149 270,776 300,901 272,018 284,651
----- End of picture text -----

7

Thank you Q & A

8