LUNG MING — Annual Report 2018

Aug 29, 2018

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Ticker ： 3018 TT

http://www.tkte.com.tw

目 錄 ONTENTS C

0 1 0 2 M&A

Company Profile 0 3 Future Prospect

2

Profile

3

Company Profile

Date of Incorporation

1996.1.5 Chairman

CEO

Ethan Hung Employee

185

Chin‐Huang Lu Total Paid‐up Capital NT$731mn

The Scope of Business

• Electromechanical Integration

• Industry waste/sludge Solidification Treatment

  • Industrial Solution

  • • Robotic & Electronic

4

Group Organization

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Tung Kai
Industry waste/sludge
Electromechanical
solidification
Industrial Solution Robotic & Electronic
Integration
Treatment
ISON
．Guanyin(Taoyuan)
．Gamepire
．Clearance &
transportation ．Bingotimes
．Youstar
5
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四大事業體營收比重

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Y2017/1‐7
1.32%
Y2018/1‐7
2.60%
0.17%
5.15%
12.98%
13.71%
70.71%
93.36%
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6

Income Statement 2016‐2018/H1

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Unit：NT$’000 季度別 Unit：NT$ 季度別
1
1,740,000 0.84
1,540,000
1,340,000
1,140,000
940,000 0.5
0.31
740,000 0.13
540,000
0.13 0.11
0.08
340,000 0.01-0.15 0.02 [0.04]
140,000 0
-60,000
2016/ 2016/ 2016/ 2016/ 2017/ 2017/ 2017/ 2017/ 2018/ 2018/
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
營業收入 368 , 39 288 , 52 587 , 60 527 , 18 365 , 65 431 , 79 349 , 12 408 , 00 256 , 68 465 , 28
稅後淨利 704 ‐7,679 7,224 7,789 6,689 72 1,793 47,523 5,565 22,384 -0.5
EPS(元)
年度別
1,740,000 Unit：NT$ 年度別
1.4
1,540,000
0.88
1,340,000
0.9
1,140,000
940,000 0.28
0.4
740,000
540,000 -0.1
2015 2016 2017
340,000
140,000 -0.6
‐60,000
2015 2016 2017
-1.1
-1.01
營業收入 1,119,875 1,771,713 1,554,582
EPS(元)
稅後淨利 ‐51,683 15,013 56,077
7
Unit：NT$’000
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M&A

8

Robotic & Electronic Organization

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		Company Gamepire Bingotimes Youstar Date of Incorporation 2016/08 1993 2010/06 Capital(NT$) 110mn 180mn 64mn Business Operation Robot arm、Software Sales dealer Robot arm manufacturing Software development Share conversion rates (1:Tung Kai share) 1:0.4 1:2 9

Bingotimes

1. Bingotimes gaming machine owned near 300 domestic and foreign invention patents.

2. Full gaming machine product lines for international professional casino customers. The most GLI certifications company in Taiwan.

3. 3 . Huge develop opportunity in overseas market.

Robotic Series Ball Series Table Series

Simple Series Stand-alone Series

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Entertainment Series
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High-end

Low-end

10

Bingotimes

Note：GLI is a professional independent certification institution with more than 450 members in worldwide. GLI shows restrict test and certify standard on gaming machine consistency for all the membership in the world.

Bingotimes gaming machine owned near ３００ domestic and foreign invention patents

11

02

03

04

Youstar

01

Major business including Software development & Robot arm control.

R&D team near 100 employee.

R&D team had own developed multiple professional techniques suck like successful invented Physical Control, Automatic Control, Manual Control and handset device technique

The first company develop full‐automatic commercial gaming machine in the world.

GISA Ticker： 7493

Tung Kai Robotic and Electronic business core team

Gaming machine products continuously acquire certification by global famous gambling institutions including GLI、BMM、DICJ and PAGCOR. Youstar has near 300 domestic and foreign invention patents with Bingotimes. The Integrated electronic gaming machine system is one of most famous invention patent which can play multiple games and randomly switch on a single platform. The system can improve player’s interest on gaming machine also raise capacity utilization to lower equipment cost.

Multiple innovation software develop engage diversity business area which achieve “free software” and “open source software” idea. Developed Taichung Veterans General Hospital breast X-Ray automatic assist detect system, Peritoneal dialysis care education and training platform, earthquake emergency relief APP system, NPA APP system, And government related APP develop plan.

12

Youstar

Hardware Tech

• PCB design

• Frame structure design

• Firmware

• Component arrangement tech

Software Tech

• Algorithm

• Graphics engine design

• Graphics tool software

• 3D/VR

• Speech recognition

• AI

• Manual interface

• Natural simulation

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Server & Communication Tech

• Connect mechanism

• Pricing mechanism

• Safety and firewall technique

• Big data storage technique

• Data transmission technique

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13

Youstar

Youstar has best R&D team and keep great leading advantage in gaming machine industry

• Manual Control

• Image recognition Tech Physical Control Medical system device(Somatosen Spectrum system Handset device system

• (Robot arm) sory simulation)

• 已將技術運用在 Automatically Control  醫療影像辨識技  此技術透過捕捉  此技術可透過光  手持式裝置內建許多 (Computer probability) 術，已針對Dicom

• 商用電子遊戲機 與資料庫演算， 譜儀穿透與折射 感測器，皆成功運用 之機械手臂系統  已將物理控制裝置技 、NIFTI醫學影像 可應用至醫療復 原理，萃取波型 於地震防災求援APP 格式處理，開發

• ，並結合牌旗類 健、儀器操作、 比對演算，可應 、台中市政府警察局 術運用於牌旗類遊戲

• 遊戲、骰子遊戲 出醫學影像瀏覽 互動遊戲等。 用至生醫檢測、 警政服務APP、腎臟 ，於市面上銷售 、骰子類遊戲及輪盤 介面Dicom Viewer  目前著手於資料 水體懸浮物檢測 治療行動日誌APP及 運作。 類遊戲的開答裝置， 。 庫建置與分析， 、生化檢測等。 人員差勤回報APP等

• 並於市面上銷售運作  成功運用：乳房X  。 未來可延伸運用 。 未來將導入已開 目前著手於資料 ：車牌辨識、智  已將自動控制裝置技 光特徵點定位與 發之遊戲。 庫的樣本建置與  未來延伸運用：人員 量測功能。

• 慧影像監控、智。 術運用於Slot類遊戲、 目前著手於腦部 分析，未來將持 、車輛、物流定位、 慧辦案等領域 續開發演算法， 災難緊急救援之室內 旗牌類遊戲、骰子類 MRI影像識別與量 並驗證可行性。 定位、即時報案平台

• 遊戲及輪盤類遊戲， 測，可運用於醫 、遠距照護平台及電

• 並於市面上銷售運作 學病灶輔助檢測

• 。 子商務溝通平台。 。

• 未來可延伸運用：醫 14

• 療扶持式手臂之動作

Gamepire

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Gaming
machine
sa esl
Japan
Philippines
Vietnam
Profit Burma…etc
sharing
15
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Future Prospect

16

Future Prospect – Overseas Market

USA、Korea、 Macao、Saipan Others Congo、Nigeria、South 、 Africa Pointe noire Africa Asia South America Brazil、Chile、 Gamepire distribute gaming machine sales Peru which penetrate profit sharing business and enhance Gamepire’s profitability

Japan、Philippines、 Thailand、Malaysia、 Indonesia、Cambodia、 Laos

17

Future‐Japan

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溝ノ口

• Establish in 1953 which belong Square Enix Holdings. Direct selling and franchise TAITO Station around whole Japan nation.

• TAITO innovation “Olympic gaming machine” during Tokyo Olympic fever games in 1964 which create successful busi ness model in Japan. The second Tokyo Olympic game co ming up in 2020 and Japan government officially approval gambling reg u lations to enhance Japan’s economic . • TAITO alliance with Gamepire and imported “Baccarat” an d “Black Jack” gaming machines to the first new opening s tation at タイトー溝ノ口 in Oct 2017. TAITO is ready for the second Tokyo Olympic gambling market opportunity with over $10 billion yen business. TAITO also plans more long‐tern cooperate proposal with Gamepire in the futur e.

18

Future‐ Electromechanical integration business improving

Total order amount reach NT$ 2.6billion Solar Business School

Hospital

．Amount：205mn ．Amount：1 billion

．Amount：154mn

Property ．Amount：133mn

High-end Electomechanical integration - high tech factory and others

．Amount：1.37 billion

19

Future‐ sludge capacity increase license acquired

• The first waste treatment license from past 3 years in North Taiwan area

• Professional D-0902 Inorganic sludge solidfication treatment facility  Guanyin(Taoyuan) plant acquired government license which increase sludge capacity to 43,200 tons per year

• Clearance & transportation combine reuse treatment vertical integrate could big improve profit

Sludge treatment business :

2017 capacity total 18,226 tons, sludge treatment income NT$ 4,658 per ton

2017

2017/ Q4 Capacity increased

Avg monthly capacity 1,518 tons

Avg monthly capacity over 3,960 tons 2018年

1-7月穩定上升， 月均處理量已達2,765噸

20

Future- Sludge treatment in recently years

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4000
3500
3000
2500
2000
1500
1000
單位：公噸 500
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2016 input 208 205 648 440 392 764 907 861 835 1031 1081 1232
2016 capacity 63 222 556 355 483 570 545 1222 1272 1072 842 1495
2017 input 1297 1222 1512 1537 1501 1566 1571 1695 1380 1666 1623 2069
2017 capacity 998 1521 1150 1887 1473 1607 1571 1546 1495 1538 1266 2174
2018 input 2515 2439 2884 2256 2665 3600 2953
2018 capacity 2317 2261 3247 2286 2628 3442 3174
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21

Future‐ Growing sludge treatment requirements

EPA announce sludge output report：

EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：	EPA announce sludge output report：
2015 D‐0901 Organic sludge 336,900 Tons per year 28,075 Tons per month D‐0902 Inorganic sludge 964,147 Tons per year 80,346 Tons per month D‐0903 Non‐hazardous sludge 23,302 Tons per year 1,942 Tons per month D‐0999 Sludge mixture 66,072 Tons per year 5,506 Tons per month 2016 D‐0901 Organic sludge 302,959 Tons per year 25,247 Tons per month D‐0902 Inorganic sludge 1,043,851 Tons per year 86,988 Tons per month D‐0903 Non‐hazardous sludge 19,456 Tons per year 1,621 Tons per month D‐0999 Sludge mixture 57,687 Tons per year 4,807 Tons per month 2017 l d D‐0901 Organic s u ge 311,562 Tons per year 25,964 Tons per month D‐0902 Inorganic sludge 1,022,237 Tons per year 85,186 Tons per month D‐0903 Non‐hazardous sludge 16,891 Tons per year 1,408 Tons per month D‐0999 Sludge mixture 68,261 Tonsperyear 5,688 Tonsper month Year Code Waste Type Report reuse Self Joint overseas Total report sludg e treatment(ton) Report storage (ton) 2011 D‐0902 Inorganic sludge 728,601 135,453 359,509 ‐‐ 1,223,564 335,447 2012 D‐0902 Inorganic sludge 728,166 82,791 420,783 ‐‐ 1,231,741 387,387 2013 D‐0902 Inorganic sludge 699,218 62,102 381,898 ‐‐ 1,143,218 509,792 2014 D‐0902 Inorganic sludge 648,982 69,845 423,212 32 1,142,071 471,894 2015 D‐0902 Inorganic sludge 538,959 51,729 364,166 ‐‐ 964,147 481,186 2016 D‐0902 Inorganic sludge 450,989 73,624 367,687 35 1,043851 632,701 2017 D‐0902 Inorganic sludge 540,666 71,677 409,895 ‐‐ 1,022,237 577,740 EPA announce sludge output storage keep increasing Not enough sludge treatment companies 22
Year	Code	Waste Type	Report
			reuse	Self	Joint	overseas	Total report sludg e treatment(ton)	Report storage (ton)
2011	D‐0902	Inorganic sludge	728,601	135,453	359,509	‐‐	1,223,564	335,447
2012	D‐0902	Inorganic sludge	728,166	82,791	420,783	‐‐	1,231,741	387,387
2013	D‐0902	Inorganic sludge	699,218	62,102	381,898	‐‐	1,143,218	509,792
2014	D‐0902	Inorganic sludge	648,982	69,845	423,212	32	1,142,071	471,894
2015	D‐0902	Inorganic sludge	538,959	51,729	364,166	‐‐	964,147	481,186
2016	D‐0902	Inorganic sludge	450,989	73,624	367,687	35	1,043851	632,701
2017	D‐0902	Inorganic sludge	540,666	71,677	409,895	‐‐	1,022,237	577,740

Future‐Vertical & Horizontal Integration

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01 02 04
03
Increasing Increas ng i Vertical Business
Services
Capex Expansion
Integratio
n
Monthly capex from Hazardous wastes Portable oil pollution
Integrate clearance
1,435 tons 3,600
treatment remediation technique
tons and transportation
Develop business in
Reuse treatment
China market
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23

Future‐ISON

Automation

• Industie 4.0

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IoT
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High Gross Margin

• Industrial network solution provider

• • Vertical integration market solutions

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Factory
CCTV
Automation
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Intelligent Transportation System 24

Global Industrial Automation Size

Industrial Automation 100B (USD) Industrial Networking 17B (USD) Network Industrial Ethernet Equipment Switch/Converter Cable Software 7B (USD)

PLC/DCS/PAC Remote IO Sensor/Meter Controller Cable/SI Equipment/Robot Software

25

Future‐ISON customize product lines

• (small amount、diversification、customize)

• • Industrial Ethernet switches

• Industrial Media Converter

• Industrial Wireless

• Embedded Computer

26

Future‐ overseas business expansion

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Europe
2018/2Q:6.96% International
2018/1Q:0.83%
Y2017:17.45% Business
Y2016:10.26%
Mid‐east
2018/2Q:81.82%
2018/1Q:91.41%
Y2017:37.79%
Y2016:51.28%
East‐Asia
Others 2018/2Q:11.22%
2018/2Q:0.00% 2018/1Q:6.55%
2018/1Q:1.20% Y2017:42.64%
Y2017:2.12% Y2016:35.90%
Y2016:2.56%
27
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