Lida — Interim / Quarterly Report 2019

May 16, 2019

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Ticker
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4552
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• • Leading player in the high end general purpose air compressor segment in China.

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Date of

Establishment

Chairman

General Manager

Paid-in Capital

Business Scope

Consolidated Revenue

Production Sites

No. of Employees

May 11, 2012

Wu Chien-Neng (Representative of Yi Yuan Enterprises Ltd)

Chen Yi-Ping

NT$1 billion

Engage in the research, development, manufacturing and marketing of self-branded air compressors through trade names mainly with "Luowei“.

NT$1.28 billion /EPS 0.64(2019Q1)

1. Quanzhou City, Fujian Province - Lida (China) Machine Equipment Co., Ltd.

2. 九江, Jiangxi Province - Lida (Jiangxi) Machine Equipment Co., Ltd.

1,521 (as of Mar. 25, 2019)

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	Main Products	Main Products	Main Products	Main Products	Main Products
	Category		Revenue % (2018Q4)	Revenue % (2019Q1)	Attributes & Application
	Piston- type		33.4%	33.2%	⚫Ease of use, high mobility, affordability. ⚫Wide range of users, from individuals to small- and medium- enterprises.
	Screw- type		50.5%	51.0%	⚫Medium- to large-sized manufacturers, including but not limited to: industrial production, automobile, textile, packaging and petrochemicals. ⚫Higher operating efficiency, especially under continuous operation. ⚫Energy efficiency and ease of operation.
	Scroll- type		13.0%	13.1%	⚫High quality compressed air. ⚫Particularly suitable in safety-conscious applications, such as medical, pharmaceutical, food and beverage, as well as precision industries ⚫Growing industry attention on scroll- type designs. Offers high operating efficiency and dependability, low noise levels, with reduced size and weight. 4

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Air Compressor
Positive
Dynamic
Displacement
Reciprocating Rotary Jet Turbine
Sliding Centrifu Axial
Piston Rolling Rotor Screw Scroll
Vane gal Flow
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Pressurized air, clean air
Petrochemical industry
Sandblasting
Air Tank
Pneumatic tools
Paint spray, electroplating,
injection molding
Power
Food & beverage
Air Compressor
processing
Application
Dehumidifier and
filter
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Laser Cutting
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Dynamic Movie Theater

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Production line
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Robot Arms CNC Machine Center

Paint Spraying

Textile Equipment

Food & Beverage processing

PET Blowing Printing Equipment

Pneumatic Tools

Medical equipment

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2016 年首三季2018

2015年度 2019Q1

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Others, Others, 10.1%
9.7%
Food
Food
Industrial
Industrial
Processing,
Processing,
Manufacturing, Manufacturin
9.9%
10.2%
34.4%
g, 34.2%
CAGR
Pharmaceutic Pharmaceutical,
al, 9.6% 9.4%
Electronics,
Auto Electronics, 7.3%
Package Mining & Package
7.3%
Manufacturin Auto
printing, 4.0% Metallurgy, printing, 4.1% Mining &
8.6% g, 4.8% Metallurgy, 8.5% Manufacturing,
Textile&Appa 4.9%
Chemical & Textile&Appar
Chemical &
rel, 6.4%
el, 6.3%
Petrochemical, 5.2%
Petrochemical, 5.1%
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Source: Lida

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THE FUTURE TREND OF SCREW
COMPRESSORS IN CHINA
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➢ According to the Report of Prospect and Investment Strategy Planning, the western developed countries accounted for 80% of the market share in screw compressor sector. The market share in Japan rose from 27% in 1976 to 85% in 1985. Currently, the market share in China is still in low level and therefore there is huge space for replacement from piston compressors to screw compressors. Currently, the la

➢ The large market in China is 120P or above models. 60P or above models are in replacement stage while most of 75P or above models have completed the replacement process. Taking into the factors of upgrade in production capacity and energy conversation, the conversion from the normal screw compressors to high-end energy-saving screw compressors will continue.

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CAGR Special
compressors
Horse-power
Screw compressors
Scroll
Piston
compressors
Level of industrial automation
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PRODUCT DIVERSIFICATION
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Screw Type F Type Two-Stage Type E Type 中低壓系列

Scroll Type

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SALES MODEL
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Sales of air
-
compressors
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Original large distribution channels

Matured distribution channels - Sales through 70 first-tier local distributors, extending to second-tier and third-tier local distributors throughout China.

Innovative service sales model

Assist distributors to develop integrated direct sales service method for sales of energy-saving products.

Export sales through importers

Through importers and large - exhibitions The sales orders mainly come from Asia and Europe.

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Main building of Beijing 2008 Olympic Games

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ENHANCE BRAND AWARENESS
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ComVac Asia (Nov 2018), Shanghai

WMF (Sep 2018), Shanghai

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ENHANCE BRAND AWARENESS
HANNOVER MESSE 2019 China Import and Export Fair
2019
CAGR
Taiyuan Coal (Energy) Industrial Technology
and Equipment Exhibition 2019
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Unit: NT’000

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2,500,000 3.00
2,153,567
1,964,794 2.52 2.50
2,000,000 1,887,308
2.10
1,537,312 2.00
1,500,000 1.84
1,279,793
1.50
1,000,000 1.24
1.00
500,000 360,085 0.64
306,907 324,523 0.50
249,842
104,625
0 0.00
2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
Revenue Operating Profits Net Profits EPS
◼ YoY-32.2% ◼ YoY-65.9% ◼ YoY-65.0%
◼ QoQ-16.8% ◼ QoQ-58.1% ◼ QoQ-48.1%
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30.0%
25.0% 23.9% 23.7% 23.2% 23.6%
19.0%
20.0%
16.3% 16.7% 16.5% 16.3%
15.0%
12.8%
10.0% 8.2%
9.8% 9.7%
8.1%
5.0%
5.0%
0.0%
2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
Gross Margin Operating Profits Margin Net Profits Margin
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100%
9.9%
13.8% 12.3% 14.5%
90% 18.2%
80%
70%
60%
50%
90.1%
86.2% 87.7% 85.5%
40% 81.8%
30%
20%
10%
0%
2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
China Other Regions
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100%
2.4% 2.4% 2.8% 3.1% 2.7%
90% 12.9% 12.8% 13.1% 13.0% 13.1%
80%
70%
60% 47.3% 48.4% 48.6%
50.5% 51.0%
50%
40%
30%
20%
37.4% 36.4% 35.5%
33.4% 33.2%
10%
0%
2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
Piston Screw Scroll Others
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28.0%
26.9%
26.2%
26.1%
25.8%
25.5% 25.5%
26.0% 25.0%
26.0%
24.0%
22.8%
22.0%
20.8%
20.2%
20.0%
19.6%
20.0% 19.1%
18.0%
16.0%
13.4%
14.0%
12.0%
2018Q1 2018Q2 2018Q3 2018Q4 2019Q1
Piston Screw Scroll
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5years Steel Prices in China

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Unit: NTD’000

Items		2019Q1	2018Q4 2018Q1 YoY(%) QoQ(%)
		Amount ％	Amount ％ Amount ％ TWD RMB TWD RMB
Revenue		1,279,793 100.0%	1,537,312 100.0% 1,887,308 100.0% -32.2% -31.5% -16.8% -19.2%
Gross profits		242,723 19.0%	362,977 23.6% 451,110 23.9% -46.2% -45.7% -33.1% -35.1%
Operating profits		104,625 8.2%	249,842 16.3% 306,907 16.3% -65.9% -65.6% -58.1% -59.4%
Income before tax		103,277 8.1%	204,713 13.3% 286,385 15.2% -63.9% -63.6% -49.6% -51.3%
Income tax		(38,935) -3.0%	(80,830) -5.3% (102,298) -5.4% -61.9% -61.6% -51.8% -53.3%
Net profits		64,342 5.0%	123,883 8.1% 184,087 9.8% -65.0% -64.7% -48.1% -50.0%
EPS		0.64 0.0%	1.24 1.84 0.0%

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Unit: NTD’000

Items 2018Q1	2019Q1
Cash 2,489,424	2,634,647
Trade receivables 847,725	824,302
Inventories 290,213	268,669
Other current assets 2,048,968	1,864,187
Fixed assets 672,963	783,191
Other assets 174,158	235,455
Total assets 6,523,451	6,610,451
Short-term borrowings 51,117	50,380
Tradepayables 519,977	575,654
Other current liabilities 742,046	684,165
Total liabilities 1,313,140	1,310,199
Share capital 1,000,000	1,000,000
Capital reserves 1,548,200	1,548,200
Retained earnings 2,890,611	3,040,471
Other reserves -228,500	-288,419
Total equity 5,210,311	5,300,252

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Thank You.

Q&A

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