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Lida Investor Presentation 2016

Nov 22, 2016

52404_rns_2016-11-22_ce3b28ac-3c27-4b7f-93bd-6fabcdbdf79c.pdf

Investor Presentation

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Ticker：4552

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Lida Holdings Limited Corporate Presentation

November 2016

Contents

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Corporate Overview Product and Industry Operation and Business Model Competitive Advantages Operating Results Outlook

2

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l. Corporate Overview

可靠，源於專業 專業，始於創新

3

Basic Information

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Date of Establishment May 11, 2012
Chairman Wu Chien-Neng (Representative of Yi Yuan Enterprises
Ltd)
General Manager Chen Yi-Ping
Paid-in Capital NT$1 billion
Business Scope Engage in the research, development, manufacturing
and marketing of self-branded air compressors through
trade names including"Luowei", "Lida" and "Chao Bao".
Consolidated Revenue NT$7.6 billion (FY2015)
NT$6.1 billion (FY2016Q1-Q3)
Production Sites 1.
Quanzhou City, Fujian Province - Lida (China)
Machine Equipment Co., Ltd.
2.
九江, Jiangxi Province - Lida (Jiangxi) Machine
Equipment Co., Ltd.
No. of Employees 1,495 (as of September 30, 2016)

4

Holding Structure

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Lida Holdings (Cayman) 100% Wellsoon International Limited (BVI) 100% Lida (HK) Holdings

100% China Operating Entities Lida (China) Machine Equipment Co., Ltd. Est. in March 2001 100% Lida (Jiangxi) Machine Equipment Co., Ltd. Est. in February 2012

5

Key Milestones

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1993 Entered the Chinese air compressor industry
1998/10 Established PRC entity "Fujian Quanzhou Lida Machinery Co., Ltd."
1997/11 Registration of the
"Luowei" trademark
1999/10 Registration of the
"Lida" trademark
2001/03 Restructured as Sino-foreign joint venture company
2004/06 "Luowei" brand gained recognition as a "Fujian Province Famous Product"
2006/11 "Luowei" brand received the prestigious national "China Famous Trademark"
recognition
2009/06 Established Hong-Kong holding company, Lida (HK) Holdings
2008/12 "Lida" brand gained recognition as a "Fujian Province Famous Product"
2010/12 Corporate identity changed to Lida (China) Machine Equipment Co., Ltd.
2012/02 Investment in subsidiary Lida (Jiangxi) Machine Equipment Co., Ltd.
2012/05 Established Lida Holdings, a Cayman Island-incorporated entity for the
purpose of Taiwan public listing
2014/07 New Jiangxi plant in full operation
2016/07 Listed in the Taiwan Stock Exchang
6

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ll. Products & Industry

可靠，源於專業 專業，始於創新

7

Air Compressor Classifications

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Reciprocating
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Jet
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Turbine
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Scroll
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Centrifugal
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Axial Flow
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Piston
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Sliding Vane
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Rolling Rotor
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Screw
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8

Air Compressor Process Flow

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Pressurized air, clean air
Petrochemical industry
Sandblasting
Air Tank
Pneumatic tools
Paint spray, electroplating,
injection molding
Food & beverage
Air Compressor
processing
Dehumidifier and
filter
9
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Applications of Air Compressor

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Industry Function Sample Applications
Industrial
Manufacturing		 Pneumatic Power Numerous air-driven tools, such as: pneumatic pick, riveter, tamping machine,
lift, and pneumatic drill

Automated equipment, such as dynamic movie theater seat, robot arm, laser,
printing press,CNC machine center,machine tool and air valve
Food &
Pharmaceutical		 Spraying, e.g. painting and rust removal
PET bottle blowing
Soda carbonation, automated packaging lines
Textile & Apparel Air-powered sewing machines
Sandblastingof denims
Transport Automotive brakes, opening/close of bus doors, railway engineering
equipment
Chemical &
Petrochemical		 Well fracturing, earth frackingfor oil drilling
Synthesis &
Polymerization		 Synthesis and polymerization of chemical raw materials, such as synthetic
nitrogen, methanol and urea
Transmission
Longdistance transmission of naturalgas
Refrigeration &
Gas Separation		 Refrigeration &
Gas Separation		 Refrigerated air, Freon compressor

Transmission		 Transmission of refrigerated air and/or separated air
Mining &
Metallurgy		 Pneumatic Power Drillingequipment, such as rock drill,pneumatic drill & hammer
Blasting
Transmission Transmission of combustiongases, cement, andprovision of air in mines

~~10~~

Real World Use of Air Compressors

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Laser Cutting
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Robot Arms

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CNC Machine Center

Measuring Equipment Accessories

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11

Real World Use of Air Compressors

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Textile Equipment

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Paint Spraying

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PET Blowing

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Pneumatic Tools

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12

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Real World Use of Air Compressors

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Paint Spraying

Dynamic Movie Theater

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PET Blowing

Pneumatic Tools

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13

Size of Chinese Air Compressor Industry

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Unit: RMB 100 million

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500 456
427
398
369
400
340
312
280
300
252
228
193
200 149
100
0
2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
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Source: China General Machinery Industry Association, Compressor Sub-association; Qianinfo Consulting

In tandem with China's economic growth and increased adoption of industrial automation, the market size of the Chinese air is to reach RMB 45.6 compressor industry expected billion by 2019. Various macroeconomic policies launched in recent years, such as "Supply Side Reform" and "New Type Urbanization Plan", will become growth drivers of the air compressor industry.

14

Product Overview

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Product Overview Product Overview
Category Revenue %
(2016Q1-Q3)		 Attributes & Application
Piston-type 46% Ease of use, high mobility, affordability.
Wide range of users, from individuals to small-
and medium- enterprises.
Screw-type 40% 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 12% 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.
15

Growth Rates, by Product

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Unit: NT$ 000's

Unit: NT$ 000's Unit: NT$ 000's Unit: NT$ 000's Unit: NT$ 000's Unit: NT$ 000's Unit: NT$ 000's
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Type 2012 2013 2014 2015 CAGR
Piston Compressor 2,825,968 3,262,922 3,655,178 3,844,830 10.81%
Screw Compressor 1,571,557 2,012,290 2,423,332 2,855,091 22.02%
Scroll Compressor - 213,914 542,384 779,684 90.91%
Others 94,990 118,662 127,525 136,044 12.72%
TOTAL 4,492,515 5,607,788 6,748,419 7,615,649 19.24%

16

Revenue b roducts y p

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  •  F-Variable Screw Compressors ，Revenue 2016Q3: NTD142.38 million ， – compared to 2016Q2: NTD100.14 million ，QoQ+42.18%. Sroll compressors Revenue – 2016Q3: NTD253.57 million, YoY+10.48%, QoQ+3.39% .
Items
Piston		 2016Q1-Q3
Amount
％
2,825,046
46%
2,168,475
35%
303,270
5%
2,471,745
40%
728,238
12%
110,139
2%
6,135,168 100%		 2015Q1-Q3 YoY
-2.55%
5.42%
-
17.33%
50.53%
5.57%
9.62%		 2016Q3
Amount
％
979,575
45%
744,778
34%
142,376
7%
887,154
41%
253,572
12%
40,693
2%
2,160,994 100%		 Unit：N
2016Q2		 TD’000

QoQ
10.31%
8.30%
-
12.92%
6.92%
12.03%
10.96%		 TD’000

QoQ
10.31%
8.30%
-
12.92%
6.92%
12.03%
10.96%
Amount
％		 Amount
％
2,906,454
51%		 967,981 46% 10.31%
Screw
F-Variable
screw
Sub-total		 2,084,108
37%
25,032
-
2,109,140
37%		 740,224 35%
100,137
5%
840,361 40%		 8.30%
-
12.92%
Scroll 544,844
10%		 245,265 12% 6.92%
Others 101,989
2%		 36,693
2%		 12.03%
Total 5,662,427 100% 2,090,300 100% 10.96%

17

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Lida end users b Industr , y y

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2015 2016H1
Others, 15.0%
Others, 16.3%
Machinery and
manufacturing Machinery and
Food
Food 30.6% manufacturing,
Processing,
Processing, 31.4%
12.3%
12.5%
Bio-Pharmaceuticals,
Auto
Auto Manfacturing,
9.7%
Bio-Pharmaceuticals, Manufacturing 6.7%
8.8% 6.5% Construction, 4.6%
Printing &
packing, 4.8 % Construction, Electronics, 7.9%
Electronics, 8.6% Printing &
Textile & Apparel,
5.2%
packing, 5.0 %
Textile & Apparel, 6.7% 7.4%
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Source: Lida

18

Our End Users

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19

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lll. Operation & Business Model

可靠，源於專業 專業，始於創新

20

Sales Networks

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Sales Channels

  • China: a network of 70 key distributors

  • Overseas: importers & trading houses

Major markets

  • China: 25 provinces and centrally-governed cities, including Beijing, Sichuan, Hubei and Jiangsu

  • Overseas: Southeast Asia, Turkey, South Africa

  • Proactive development of Southeast Asian market, Revenue of Asian market in 2016Q1-Q3 was NTD282 million; Revenue of Indonesia has the growth of 10% compared to the corresponding period of 2015.

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100.00%
89.46% 91.70% 90.10% 91.02% 91.09% Local
50.00%
Export
10.54% 8.30% 9.90% 8.98% 8.91%
0.00%
2012年 2013年 2014年 2015年 2016年
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21

Competitive Landscape

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Major foreign players

Name Introduction Major Products
Atlas Copco (Wuxi)
Compressor		 Found in 1873, headquarter located
in Sweden. Atlas Copco (Wuxi) was
set up in 1994.		 Piston, oil-free, screw compressors, oil-
lubricated air compressors, oil-free
centrifugal compressors, control and
monitoring systems and portable screw
compressors
Shanghai Ingersoll
Rand Compressor		 Joint venture between Ingersoll Rand
Compressor (USA) and Shanghai
Compressors. Ingersoll Rand is one
of the top 500 enterprises globally.		 Screw compressors, portable
compressors, centrifugal compressors

Market positioning of major foreign players：

  1. Primarily focus on the large-size compressors; product life cycle from 30 to 40 years.

  2. Product ASP normally double of local players.

  3. Mainly serve large manufacturing clients.

22

Competitive Landscape

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Major local players

Name Introduction Major Products
Zhejiang Kaishan
Compressor		 Found in 2012. Kaishan is the largest
screw compressor manufacturer in
China. It is a publicly traded company
in China.		 Screw air compressor, refrigeration
compressor, screw expander generator,
and process gas compressor.
Shanghai Hanbell
Precise Machinery		 Taiwanese-invested enterprises set up
in 1996. It is a publicly traded company
in China.
Refrigerating compressor, screw
refrigerant compressor, vacuum pump
ZheJiang
Hongwuhuan
Machinery		 Founded in 1997. Products mainly used
in construction, tunneling, power and
mining machinery.
Piston compressor, screw air compressor,
pneumatic rock drill, pneumatic and
hydraulic down hole drill, breakers, drilling
wagon.
Wuxi Compressor Found in 1955, invested by Kobe Steel
Group in 2011.		 Industrial energy compressor, labyrinth
compressor for petrochemical industry,
piston compressor, screw compressor,
centrifugal compressor.

23

Competitive Landscape

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Items Lida
(4552 TW)		 Kaishan
(300257 CH)		 Hanbell
(002158 CH)
Revenue,
by region
(2015)		 China 91%
Overseas 9%		 China 95%
Overseas 5%		 China 93%
Overseas 7%
Sales model Distributors 100% Mainly distributors with
some direct sales		 Mainly direct sales with
some sales through
distributors
Target
customers		 Machine manufacturing,
food processing
pharmaceutical, auto
industry, textile and
garment, automation
industry		 Metallurgical industry,
chemical industry, large
scale construction
industry		 Refrigerant compressors,
primarily supplied to air-
conditioner
manufacturers
Revenue,
by product
(2015)		 Piston 50%
Screw 37%
Scroll 10%
Others 2%		 Piston 7%
Screw 69%
Others 24%		 Screw refrigerant 65%
Air compressors 21%
Others 14%

24

Market Share

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  1. According to statistics from China General Machinery Industry Association, the global market size of the air compressor industry was approximately US$35 billion in 2014.

  2. According to statistics from Compressor Magazine, China’s air compressor industry market size reached RMB31.2 billion (including piston, screw and other type of air compressors). The industry expected to continue growing steadily, and expected to achieve RMB34 billion of sales in 2015.

  3. Based on industry data, Lida’s market share in China reached 4.4% in 2014. Overall, foreign players account for approximately 50% of market share in China.

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Lida is a leading
Foreign
50% player in the
general-purpose
Others air compressor
29.86% segment!
KaiShan Lida
HanBell
6.33% 4.40%
3.06%
HongWuHuan WuXi
2.52% 3.83%
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Basis of calculation: Lida 2014 revenue Information source: Qianinfo Consulting, Lida

25

Competitive Advantages

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Production R&D Strength Experience

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Reliability & Quality

Mature and stable distribution network

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26

New Product – Screw Compressor

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F-Variable Frequency Compressor

Ability to set air pressure at any desired level and output at constant pressure, providing greater energy savings

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Typical Cost Structure of Air Compressor Over Lifetime of Use

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Purhcase
Maintenance Cost, 14%
Cost, 9%
Energy Cost,
77%
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Lida Advantage

  1. 23%-40% more energy efficient compared to traditional air compressors.

  2. 13%-20% more energy efficient compared to F-Variable Frequency compressors offered by competitors.

Source: Lida, peer websites

27

New Product – Scroll Compressor

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Scroll Compressor

Reduced size, longer operating life and higher dependability

  • High volumetric efficiency.

  • Low torque variation and less vibration.

  • Ease and lower cost of maintenance.

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Dual cooling systems

  • Automated system adjustment according to operating conditions.

  • Intelligent suite of protection system, including temperature, phase, over-voltage etc.

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Radial flexible compensating mechanism offers 10% efficiency ain g

  • Lower and more stable operating temperature improves compression efficiency by 1~5%

  • Improved electrical system performance by 2~5% when operating at 80-90% loading

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28

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lV. Operating Results

可靠，源於專業 專業，始於創新

29

Revenue and Profit

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Unit: NTD’000
Revenue Net profit
8,000,000
7,615,649
7,000,000
6,748,419
6,135,168
6,000,000
5,607,788
5,000,000 4,492,515
4,000,000
3,000,000
2,000,000
758,945 934,530
587,118 740,376
1,000,000 453,239
0
2012 2013 2014 2015 2016H1
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30

Revenue and Profit

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Unit: NTD’000

2015Q1-3vs2016Q1-3

2015年Q3vs2016Q3

0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000		 5,662,428
6,135,168
703,404
740,376
2015Q1-3
2016Q1-3
Revenue
Net profit
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000		 Revenue
Net profit		 Revenue
Net profit
2,036,995
2,160,995
249,162
248,025
2015Q3
2016Q3

31

Profitabilit Indicators y

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0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%		 Gross profits margin
Operating margin
Net profits margin		 Gross profits margin
Operating margin
Net profits margin		 Gross profits margin
Operating margin
Net profits margin		 Gross profits margin
Operating margin
Net profits margin		 Gross profits margin
Operating margin
Net profits margin
23.71%
2377%
24.90%
22.19%

.
24.27%
15.37%
17.38%
17.10%
18.29%
17.71%
12.27%
12.07%
10.09%
10.47%
11.25%
2012
2013
2014
2015
2016Q1-3

32

Profitabilit Indicators y

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2016Q2 as the selling prices of some products rise in 2016Q3.

2015Q1-3&2016Q1-3 G.P. comparison

2016Q2&2016Q3 G.P. comparison

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Gross profits margin Gross profits margin
Operating margin
30.00% 30.00% Operating margin
Net profits margin
Net profits margin
25.17%
24.27%
25.00% 25.00% 23.81%
23.96%
20.00% 18.65% 20.00%
17.71%
17.58%
17.12%
15.00% 15.00%
12.07%
12.42%
11.20% 11.48%
10.00% 10.00%
5.00% 5.00%
0.00% 0.00%
33
2015Q1-3 2016Q1-3 2016Q2 2016Q3
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33

Prices of Cold Rolled Steel in China

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， Graph 1: Price of cold rolled steel USD/Tons

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Source: Bloomberg

34

Gross Profits Mar in b Products g y

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50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2012 2013 2014 2015 2016Q1-3
Piston 20.56% 22.08% 23.02% 23.57% 22.04%
Screw 24.37% 26.01% 24.49% 25.81% 25.64%
Scroll 19.01% 22.60% 25.64% 26.51%
Others 34.34% 38.11% 36.93% 39.13% 36.08%
Total 22.19% 23.71% 23.77% 24.90% 24.27%
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35

Gross Profits Mar in b Products g y

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Items 2016Q1-3 2015Q1-3 2016Q3 2016Q2
Piston
Screw
Scroll
Others
Total		 22.04%
25.64%
26.51%
36.08%
24.27%		 23.98%
26.05%
25.40%
39.23%
25.17%		 20.51%
26.86%
25.94%
32.54%
23.96%		 22.03%
24.53%
26.59%
36.25%
23.82%

36

Balance Sheet

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Unit: NTD’000 Unit: NTD’000
Items 2012 2013 2014 2015 2016Q3
Cash 409,213
945,189
1,474,402
1,179,482
2,656,885
Trade receivables 499,188
629,374
720,605
799,463
869,846
Inventories 239,940
275,063
258,653
231,324
315,189
Other current assets 427,358
8,846
421,943
1,609,153
1,648,135
Fixed assets 232,142
487,541
510,467
483,323
433,726
Other assets 40,701
62,871
44,590
42,461
59,858
Total assets 1,848,542
2,408,884
3,430,660
4,345,206
5,983,639
Short-term borrowings 714,545
98,459
106,932
104,895
98,553
Trade payables 296,631
388,735
438,950
459,892
553,506
Other current liabilities 286,393
931,412
419,947
550,965
669,958
Non-current liabilities 114,385
－		 － － -
Total liabilities 1,411,954
1,418,606
965,829
1,115,752
1,322,017
Share capital 465,541
465,541
900,000
900,000
1,000,000
Capital reserve 0
352,753
536,966
536,966
1,548,200
Retained earnings (52,675) 164,335
923,280
1,740,810
2,301,186
Other reserves 23,722
7,649
104,585
51,678
(187,764)
Total equity 436,588
990,278
2,464,831
3,229,454		 37

4,661,622

Balance sheet

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2016Q2
Amount
％
1,463,604
31.28
812,966
17.37
323,273
6.91
1,583,435
33.84
453,435
9.69
42,257
0.91		 Unit：NTD’000
2015Q3
Amount
％
1,654,463
36.72
833,817
18.50
312,092
6.93
1,149,859
25.52
506,477
11.24
49,258
1.09
4,505,966
100.00
108,696
2.41
544,610
12.09
741,827
16.46
1,395,133
30.96
900,000
19.97
536,966
11.92
1,509,684
33.50
164,183
3.64
3,110,833
69.03
Items 2016Q3
Amount
％
2,656,885
44.40
869,846
14.54
315,189
5.27
1,648,135
27.54
433,726
7.25
59,858
1.00
Cash
Trade receivables
Inventories
Other current assets
Fixed assets
Other assets
Total assets 5,983,639
100.00		 4,678,970
100.00
Short-term borrowings
Trade payables
Other current liabilities		 98,553
1.65
553,506
9.24
669,958
11.20		 101,745
2.17
562,789
12.03
582,143
12.44
Total liabilities 1,322,017
22.09		 1,246,677
26.64
Share capital
Capital reserves
Retained earnings
Other reserves		 1,000,000
16.71
1,548,200
25.87
2,301,186
38.47
(187,764)
-3.14		 900,000
19.24
536,966
11.48
2,053,161
43.88
(57,834)
-1.24
Total equity 4,661,622
77.91		 3,432,293
73.36

38

Income Statement

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Items
Revenue
Gross
profits
Operating
profits
Profits
before tax
Income
tax
Net
profits
EPS(Note)		 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000 Unit：NTD’000
2012 2013 2014 2015 2016Q1-3
Amount ％ Amount ％ Amount ％ Amount ％ Amount ％
4,492,515 100%
996,710
22%

690,602
15%

671,795
15%
218,556
5%
453,239
10%

5.92		 5,607,788
100%
1,329,677
24%
974,685
17%
898,959
16%
311,841
6%
587,118
10%
7.67		 6,748,419
100%
1,604,375
24%
1,154,017
17%
1,144,557
17%
385,612
6%
758,945
11%
9.15		 7,615,649
100%
1,896,336
25%
1,392,685
18%
1,403,075
18%
468,545
6%
934,530
12%
10.38		 6,135,168
100%
1,489,269
24%
1,086,278
18%
1,113,558
18%
373,182
6%
740,376
12%
7.98

Note: EPS was calculated based on the retrospective weighed average no. of shares. The retrospective weighed average no. of shares for 2012, 2013, 2014, 2015 and 2016H1 76,545,000, 76,545,000, 82,908,000, 90,000,000 and 92,778,000 39 respectively.

Income Statement

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2015Q1-3
Amount
％
5,662,428 100%
1,424,976 25%
1,056,194 18%
1,056,867 18%
353,463
6%
703,404 12%
7.82		 YoY
8.35%
4.51%
2.85%
5.36%
5.58%
5.26%
2.05%		 Unit：NTD’000
2016Q2
QoQ
Amount
％
2,090,300 100%
3.38%
497,695
24%
4.04%
357,935
17%
6.11%
357,724
17%
8.37%
123,571
6%
12.99%
234,153
11%
5.92%
2.60
-3.08%		 Unit：NTD’000
2016Q2
QoQ
Amount
％
2,090,300 100%
3.38%
497,695
24%
4.04%
357,935
17%
6.11%
357,724
17%
8.37%
123,571
6%
12.99%
234,153
11%
5.92%
2.60
-3.08%
Items 2016Q1-3
Amount
％
6,135,168 100%
1,489,269
24%

1,086,278
18%
1,113,558
18%
373,182
6%
740,376
12%
7.98		 2015Q1-3 2016Q3
Amount
％
2,160,995 100%
517,820
24%
379,822
18%
387,654
18%
139,629
7%
248,025
11%
2.52		 2016Q2
Amount
％		 Amount
％
Revenue
Gross
profits
Operating
profits
Income
before tax
Income
tax
Net
profits
EPS		 5,662,428 100%
1,424,976 25%
1,056,194 18%
1,056,867 18%
353,463
6%
703,404 12%
7.82		 2,090,300 100%
497,695
24%
357,935
17%
357,724
17%
123,571
6%
234,153
11%
2.60		 3.38%
4.04%
6.11%
8.37%
12.99%
5.92%
-3.08%

40

Income Statement (in RMB)

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2015Q1-3
Amount
％
1,128,257 100%
283,931 25%
210,450 18%
210,584 18%
70,429
6%
140,155 12%		 YoY
10.57%
6.65%
4.96%
7.52%
7.74%
7.41%		 Unit：NTD’000
2016Q2
QoQ
Amount
％
404,377 100%
12.00%
100,431
24%
8.13%
74,878
17%
6.35%
74,196
17%
10.41%
24,738
6%
17.98%
49,458
11%
5.36%		 Unit：NTD’000
2016Q2
QoQ
Amount
％
404,377 100%
12.00%
100,431
24%
8.13%
74,878
17%
6.35%
74,196
17%
10.41%
24,738
6%
17.98%
49,458
11%
5.36%
Items 2016Q1-3
Amount
％
1,247,516 100%
302,826
24%

220,882
18%

226,429
18%
75,882
6%
150,547
12%		 2015Q1-3 2016Q3
Amount
％
452,927 100%
108,596
24%
79,634
18%
81,923
18%
29,186
7%
52,107
11%		 2016Q2
Amount
％		 Amount
％
Revenue
Gross
profits
Operating
profits
Income
before tax
Income
tax
Net
profits		 1,128,257 100%
283,931 25%
210,450 18%
210,584 18%
70,429
6%
140,155 12%		 404,377 100%
100,431
24%
74,878
17%
74,196
17%
24,738
6%
49,458
11%		 12.00%
8.13%
6.35%
10.41%
17.98%
5.36%

41

Financial Ratio Anal sis y

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Items 2016Q1-3 2015Q1-3 2016Q3 2016Q2
Trade receivables
turnover days
Stock turnover
days
Net profits
margin(%)
Return on
equity(%)
EPS(NTD)		 37
16
12.07
18.76
7.98		 37
18
12.42
17.73
7.82		 35
18
11.48
6.13
2.53		 35
19
11.20
6.79
2.60

42

Ratio Anal sis y

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Items Year
Company		 2012 2013 2014 2015 2016
Q1-Q3
Revenue Lida 4,492,515 5,607,788 6,748,419 7,615,649 6,135,168
KaiShan 7,582,292 9,412,969 9,817,193 8,243,332 6,068,553
HanBell 3,282,639 4,102,403 4,869,666 4,474,689 3,472,539
Trade
receivables
turnover days
(days)		 Lida 37 37 37 36 37

KaiShan		 59 62 108 185 211

HanBell		 119 109 102 117 102
Inventories
turnover days
(days)		 Lida 26 22 19 16 16

KaiShan		 128 130 150 181 212
HanBell 84 89 79 89 101
Net profits
margin(%)		 Lida 10.09 10.47 11.25 12.27 12.07
KaiShan 18.65 18.29 16.69 10.90 6.30
HanBell 15.22 17.56 18.52 17.63 18.2543

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V. Outlook

可靠，源於專業 專業，始於創新

44

Outlook

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  • The Group expressed that the Group was benefited from the upgrade for the automation of factories, as well as the recent improvement of various economic indicators in China, such as Purchasing Managers’ Index (PMI) and Producer Price Index (PPI). PMI recorded above 50 during August to October 2016, showing that the manufacturing sector was expanding. PPI also recorded the increase of 0.10% and 1.20% for September 2016 and October 2016, compared to the corresponding month of last year.

  • Initiation of several high-profile national level development policies by the Chinese government, including 13[th] Five-Year Plan, China Manufacturing 2025, One Belt One Road, Supply Side Reform, and New-type Urbanization, all serve to promote industrial automation, reduce emission, and enhance energy efficiency. As industries upgrade, we expect a new wave of demand for air compressors.

  • The Group began to launch two new scroll-type air compressors in July 2016. The revenue of them for the three months ended 30 September 2016 was NT$23.83 million, showing a good response from customers. The Group expected F-variable frequency screw compressors and scroll-type air compressors will be the critical engines for the growth of the Group in future.

  • Already raised the sales prices for some products in 2016Q3 to partly offset the effect of decrease in gross profits margin due to the increase in steel price in 2016Q2. The steel price continues to rise in 2016Q4. Therefore, the Group considers to raise the prices of products in January 2017.

45

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Thank you

46

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