NYDF — Investor Presentation 2021

Oct 26, 2021

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南洋染整股份有限公司 NAN YANG DYEING & FINISHING CO.,LTD 法人說明會 Investor Conference (股票代號:1410)

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免責聲明 Safe Harbor Notice

• 本簡報是建立於本公司從各項來源所取得之資訊。有些資訊可能受未來不確 定性因素影響，致使與原先本公司對於未來前景的說明迥異。未來若有變更 或調整時，請以公開資訊觀測站公告資訊為依據。

• This presentation is based on the information obtained from various sources which the Company believes to be reliable. But at some point in the future, there are a variety of factors which could cause actual results to differ materially from those statements. Therefore, please refer to the information on MOPS website as the main basis if any adjustment has been made.

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1. Company Introduction

2. Industry Overview 3. Financial Overview 4. Subsidiary Industry Overview 5. Subsidiary Financial Overview

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Company Introduction

• Year of Establishment：1964

• IPO in Taiwan Stock Market：1973

• Capital ： NT$ 630,000,000

• Chairman ： June Ho

• The subsidiary company, Nanotech Semiconductor Corp., is established in 1998.(IC assembly and testing factory)

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• Main Sources of Revenue：

The company is a factory that provides professional dyeing and finishing proecess services for knitted cotton, knitted rayon, and chemical fiber fabrics. In addition, the company has sales in finished fabrics for garments.

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1. Company Introduction 2. Industry Overview

3. Financial Overview 4. Subsidiary Industry Overview 5. Subsidiary Financial Overview

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Proportion of Business Revenues

	Business Items	2020	2019
	Dyeing & Finishing services	140,286	166,001
	Sales of Fabrics	1,481	5,923
	Rental	36,178	36,176
	IC Assembly & Testing	238,311	190,005
	Total	416,256	398,105

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Industrial Chain
Second Third
The first stage
stage stage
Man-
Clothing
Raw made Dyeing
Weavin and
、
material fibers and
Spinning Leisure
Natural g
s
finishing
textiles
fiber
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Industrial Chain

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Textile Industry Trend-
Sales Trend for Dyeing & Finishing Services for Knitted Fabrics
Sales Annual rate of increase
Unit：Billion Unit：%
14000 20.00
11901
11352 15.00
12000
10.00
10000 8740
5.00
8000 0.00
5447
6000 -5.00
4000 -3.62 -4.61 -10.00
-15.00
2000 -23.01 -20.00
0 -25.00
2018 2019 2020 2021H1
220 20
200
15
180 202
160 10
140 169 141 5
120 7.40
0
100
75
80 -16.30 -5
60 -10
40
-15
20
0 -16.57 -20
2018 2019 2020 2021H1
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Textile Industry TrendSales Trend for Dyeing & Finishing Services for Knitted Fabrics

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1. Company Introduction 2. Industry Overview 3. Financial Overview 4. Subsidiary Industry Overview 5. Subsidiary Financial Overview

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Sales Revenue Analysis

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	Type of Fabrics	2020
	Cotton Fabric	794,514KG
	Knitted Filament Fabric	128,749KG
	Blended Chemical Fiber Fabrics	415,745KG
	Total Sales Qty	1,339,009KG
	Total Sales: (Excluding Rental Income)	NT$141,767,000

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rical	Sales	Sales	Sales	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics	Analysis Trend for Different Types Of Fabrics
1200
600 800 1000		1061			718				993 515				795			Unit：Ton
															416
0 200 400			221							156			129
			2018							2019			2020
							Cotton Fabric
							Knitted Filament Fabric
							Blended Chemical Fiber Fabrics

Historical Sales Analysis Trend for Different Types Of Fabrics

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Nan Yang Profit Analysis

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Unit：Thousand
330000
300000
270000
240000
210000
180000
150000
120000
90000
60000
30000
0
2019 2020 2021Q1-Q2
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Revenues

Net Income after Tax Net Income After Tax (Excluding Subsidiary profits and Exchange gains and losses )

		2019	2020	2021Q1-Q2
	Revenues	222,986	192,792	100,780
	Net Income after Tax	65,066	59,956	40,269
	Net Income After Tax (ExcludingSubsidiary profits)	58,785	47,607	26,922
	Net Income After Tax (Excluding Subsidiary profits and Exchangegains and losses )	61,428	52,882	29,302

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		an Yang EPS Report	an Yang EPS Report
		After Tax Net Income Unit：Thousand			EPS			Dividends			Unit：NT
80000												1.02
70000												1
60000												0.98
0 10000 20000 30000 40000 50000												0.84 0.86 0.88 0.9 0.92 0.94 0.96
			2019	2020					2021Q1-Q2
				2019				2020			2021Q1-Q2
		After Tax Net Income (Excluding Subsidiary profits)		58,785				47,607			26,922
			Gross Profit Margin	34%				35%			39%
			Net Profit Margin	9%				10%			14%
			EPS	0.94				0.95			0.64
			Dividends	1				0.9			-

Nan Yang EPS Report

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InventoryRatio	InventoryRatio	InventoryRatio
			2018	2019	2020
		Current ratio(%)	888.78	1043.52	1100.50
		Quick ratio(%)	874.77	1022.98	1085.85
		Debt ratio(%)	15.88	15.91	15.55
		A/R Turnover	8.10	6.35	7.65
		Days Sales in A/R	45.06	57.48	47.71
		A/P Turnover	10.42	7.13	7.87
		Inventory Turnover	17.64	14.27	14.93
		Average Days In Sales	20.69	25.58	24.45

	2019	%	2020	%	2021Q2	%
Raw Material	25,477	24%	19,281	22%	10,613	23%
Direct Labor Costs	15,042	14%	13,048	15%	6,874	15%
Electricity Expense	14,079	13%	12,705	14%	6,047	13%
Fuel cost	9,247	9%	6,780	8%	4,195	9%
Environmental protection related costs	7,146	7%	7,339	8%	3,202	7%
Total Operating Costs	107,075	67%	89,610	67%	45,741	67%

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1. Company Introduction 2. Industry Overview 3. Financial Overview 4. Subsidiary Industry Overview 5. Subsidiary Financial Overview

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Semiconductor industry chain

Second stage

Third stage

The first stage

IC Assembly &Testing

IC design IC manufacturing

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1. Company Introduction 2. Industry Overview 3. Financial Overview 4. Subsidiary Industry Overview 5. Subsidiary Financial Overview

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Sales Revenue Analysis

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2020 16.00% Sales NT 37,501,000 84.00% IC Assembly & NT 200,810,000 Testing Shipments 429,596,807 pcs Ceramic package Plastic package NT 238,311,000

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Revenue -IC Assembly & Testing
Revenue Shipments
250,000 400,000
200,824
182,458 350,000
200,000
300,000
121,602
250,000
150,000
200,000
100,000
150,000
100,000
50,000
50,000
0 0
2019 2020 2021H1
2021H1
2019 2020
IC Assembly &
182,458 200,824 121,602
Testin
g
Shipments
312,403 375,631 234,996
average unit price 0.58 0.53 0.52
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Revenue -Sales
單位：仟元 Revenue Shipments 單位：千 pcs
37,487
40,000 60,000
35,000
50,000
30,000 24,352
40,000
25,000
20,000 30,000
15,000
20,000
10,000 7,547
10,000
5,000
0 0
108 109 110上半年
2021H1
2019 2020
Sales 7,547 37,487 24,352
Shipments
10,080 54,639 35,806
average unit price 0.75 0.69 0.68
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||||||
|---|---|---|---|---|
|Gross profit margin|
|Gross Profit Margin|單位：|%|
|32%|Operating Profit Margin|
|28%|
|24%|
|20%|
|16%|
|12%|
|8%|
|4%|
|0%|
|2019|2020|2021H1|
|2019|2020|2021H1|
|Gross Profit|38,221|55,809|40,652|
|Net Income after Tax|6,808|14,485|16,151|
|Net Income after Tax|
|(Excluding Exchange gains and losses|10,058|20,616|17,826|
|)|
|Gross Profit Margin|20%|23%|28%|
|Operating Profit Margin(Excluding|
|5%|9%|12%|
|Exchange|gains|and|losses|)|

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Gross profit margin

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NANOTECH EPS Report

2019 2020 2021H1 Capital expenditures 3,888 20,734 20,463 (thousand) 0.34 0.73 1.63 EPS - 0.40 0.70 Dividends

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InventoryRatio	InventoryRatio	InventoryRatio
			2018	2019	2020
		Current ratio(%)	755.11	723.92	473.36
		Quick ratio(%)	691.72	657.19	431.03
		Debt ratio(%)	12.49	29.18	30.55
		A/R Turnover	4.62	4.29	5.19
		Days Sales in A/R	79.00	85.08	70.33
		A/P Turnover	20.52	16.37	19.68
		Inventory Turnover	9.89	8.36	9.55
		Average Days In Sales	36.91	43.66	38.22

		Cost Structures
			2019	%	2020	%	2021Q2	%
		Gold wire	18,948	13%	26,489	16%	14,668	16%
		Lead Frame	13,792	9%	26,969	17%	15,413	17%
		Mold Compound	1,266	1%	5,574	3%	3,277	4%
		Direct Labor Costs	23,821	16%	25,877	16%	14,891	16%
		Depreciation expense	31,937	21%	25,755	16%	12,951	14%
		Total Operating Costs	148,596	60%	160,774	68%	91,217	67%