LP — Investor Presentation 2017

Nov 20, 2017

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code:1447

106年法人說明會

Disclaimer Clause

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• DISCLAIMER:

• This PPT encloses the info. of the company’s internal and external data

• and includes the business performance, financial statement, and sales development.

• Lealea doesn’t enclose any financial prediction. There might be variation

• or difference from actual situation if Q&A involves any predictive sales, industrial or financial matters. This is subject to the market demand & supply, price variation, competition, international economy, exchange rate or downstream/upperstream…etc.

• Company prospection in PPT is based on Lealea’s point of view, and it may

• vary by time. Lealea is not responsible for any instant update nor reminder.

Agenda

一. Company Profile 二. Production Capabilities 三. Core Value Product 四. Revenue 五. Field Trend(SWOT) 六. Solution

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Company Profile

Established Year : 1975

Paid-in Capital : NT91.45 billion Chairman : James Kuo Employees : 1343 Date of Listing : 1990 (NO.1447)

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Business philosophy Diligence / Integrity/ Initiative/ Innovation

各 廠 區 產 能 現 狀

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Revenue

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Performance of Li PengEnterprise Unit: thousand	Performance of Li PengEnterprise Unit: thousand	Performance of Li PengEnterprise Unit: thousand	Performance of Li PengEnterprise Unit: thousand	Performance of Li PengEnterprise Unit: thousand
	103	104	105	106(Jan to Sep)
Gross Sales	22,363,188	16,681,998	14,282,759	12,046,070
Gross Profit	747,227	387,535	656,792	473,543
OperatingExpenses	699,944	629,838	665,525	511,920
OperatingIncome	47,283	(242,303)	(8,733)	(38,377)
Total Non-Op.Income	365,734	292,882	(36,607)	(346,766)
Pre-Tax Income	413,017	50,579	(45,340)	(385,143)
Income Tax Expense	65,735	4,389	16,484	(85,579)
Net Income	347,282	46,190	(61,824)	(299,564)
EarningPer Share	0.42	0.02	(0.10)	(0.34)
Gross Profit Rate	3.34%	2.32%	4.60%	3.93%
OperatingIncome Rate	0.21%	(1.45%)	(0.06%)	(0.32%)
ROE	3.24%	0.43%	(0.58%)	(3.08%)

Nylon Business Revenue Trend

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Unit: million

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High End Fabric Business Revenue Trend

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Unit: million

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Core Value Product

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1.Nylon 6 Chips (SD、FD、BR), Engineering Plastic Chips、Nylon 6 Yarn(POY、FDY) 2.Fabric (Garment 75%、Home textile 25%) 3.Yarn Dye

4.Piece Dye

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Industry Trend - Strengths -

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1. The advantage of vertical integration from Polymerization, Spinning, Texturing, Weaving/Knitting, Dyeing, Distribution with rapid R&D, production and Sales. 2. Self-designed Nylon 6 Chip Polymerization with daily production capacity of 500 MT in order to benefit reducing the production cost

2. Long-term business with Top garment brands and annual growing rate is about 15%

3. New affiliation of production for Indonesia LIBOLON in 2018, and supplying nearby garment brands and developing domestic market

Industry Trend

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• Weaknesses -

• Regular specification of Nylon 6 Chip and Yarn to compete the low price of China suppliers 2. Domestic ecology is strictly regulated and the cost increase of labor adjustment

• The ordinary fabric is mass production in South-East Asian market and conversion fee is hardly increased

• CPL price is fluctuated greatly to increase the risk and supply volume is also restricted

• Tariff barrier

Solution

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1. To distribute the sales of Nylon 6 Chip into different markets and increase the development of Plastic Chip 2. Increasing the sales ratio of Home Textile and Functional fabric (current ratio is 25%)

2. New purchase of fabric machine and renew Nylon 6 spinning facility, and increase the development of high value products 4. Lead-in Productivity 4.0 and enhance production efficiency and quality control

3. Developing the application market of BOPA

ANNUAL EXHIBITION

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PERFORMANCE DAYS JapanTex TITAS Index Indonesia Texworld Paris Sourcing at Magic Outdoor Retailer Intertextile Pavilion ECOBUILD+KBB ISPO Winter Heimtextil

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Q&A

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