Patec — Annual Report 2020

Dec 29, 2020

PATEC PRECISION INDUSTRY CO., LTD.

• （ STOCK CODE ： 2236.TW ）

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Safe Harbor Notice

 PATEC’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially 。 from those contained in the forward-looking statements

 Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

 The company makes no representations or warranties, express or implied, and does not rely on the correctness, impartiality or completeness of the information presented or contained in this data. This data does not constitute an invitation to issue securities.

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Agenda [Company Profile]  Business Performance  Dividend Policy  Sales Contents

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Company Profile



 Basic Info

Established Reg, Capital Employee 26th Sep., 1992 NTD 411 M 1020

 Patec Precision can provide one stop shop to all press facilities. From tooling design, develop, feeding machine, robot transfer for customizing. We can also provide fine blanking and deep drawing machine.

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Company Profile 

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Company Profile

 Forging Synergies

(Fine blanking 、 Cold Forging 、 Deep Drawing 、 Cold Forming)

Continuous Tooling

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http://www.mobile01.com/newsdetail.php?id=18442

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Business Performance

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Consolidated Operating Revenue/Margin Earnings Per Share

ROE/ROA

Consolidated Income Statement Cash Flow Statement

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Business Performance

-Consolidated Operating Revenue/Margin
In NTD
Thousand
Revenur Margin
Profit After Income Tax
2,500,000 35.00%
200,000
2,191,727
2,073,289 30.00%
2,000,000 29.52%
27.78% 1,795,565 150,000
25.00%
24.37%
1,500,000 22.54%22.6 2 %
20.00%
100,000
18.35%
15.00%
1,000,000
833,448
50,000
10.00%
533,429
500,000
294,292 5.00%
0
0 0.00%
(50,000)
2016 2017 2018 20192020Q12020Q22020Q3
2017 2018 2019 2020Q1 2020Q2 2020Q3
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Business Performance -Earnin s Per Share g

PATEC GROUP EPS

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4.50
3.15
2.84
2.53
2.25
1.41
0.85
0.26
0.00
2015 年 2016 年 2017 年 2018 年 2019 年 2020 年 Q3
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Business Performance -ROE/ROA

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Return on Equity Return on Assets
25.00%
8.56% 7.83%
20.00%
7.58%
15.00%
12.57%
11.98% 12.01%
10.00%
3.90%
5.00%
2.74%
1.18%
1.11%
0.00%
2016 年 2017 年 2018 年 2019 年 2020 年 Q3
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-Consolidated Income Statement (Per

Annum)
In NTD
Thousand
2015 2016 2017 2018 2019
Amount % Amount % Amount % Amount % Amount %
Operating 1,539,48
100 2,009,440 100 2,073,289 100 2,191,727 100 1,795,565 100
Revenue 7
Operating (1,147,3 (1,425,16 (1,461,18 (1,582,96 (1,357,94
(75) (71) (71) (72) (76)
Costs 66) 8) 1) 9) 4)
Operating
392,121 25 584,272 29 612,108 29 608,758 28 437,621 24
Margin
Operating (283,287
(18) (327,522) (16) (380,229) (18) (389,374) (18) (324,601) (18)
Expenses )
Operating
108,834 7 256,750 13 231,879 11 219,384 10 113,020 6
Profit
Non-
operating 31,919 2 16,003 1 12,317 1 11,816 1 18,718 1
Income
Non-
operating (15,179) (1) (37,827) (2) (14,450) (1) (7,615) (1) (19,866) (1)
expenses
Non-
operating 125,574 8 234,926 12 229,746 11 223,585 10 111,872 6
expenses
Income
(47,507) (3) (72,091) (4) (69,831) (3) (59,499) (3) (59,576) (3)
Tax Expense
Profit For The
78,067 5 162,835 8 159,915 8 164,086 7 52,296 3
Year
(NCI) (17,372) 1 (47,904) 2 (29,668) 1 (19,745) 1 (13,499) 1
CI 60,695 4 114,931 6 130,247 7 144,341 6 38,797 2
EPS(in
1.41 2.53 2.84 3.15 0.85
Dollars)
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-Consolidated Income Statement (Per
Quarter)
In NTD
Thousand [[]]
2019Q3 2019Q4 2020Q1 2020Q2 2020Q3
Amount % Amount % Amount % Amount % Amount %
1,321,43
Operating Revenue 474,131 100 100 294,292 100 239,137 100 300,019 100
4
(1,023,97 (77
Operating Costs (333,974) (71) (77) (240,293) (82) (172,920) (72) (231,702)
0) )
Operating Margin 140,157 29 297,464 23 53,999 18 66,217 28 68,317 23
(16
Operating Expenses (70,940) (15) (253,661) (19) (67,510) (23) (56,568) (24) (46,416)
)
Sales (16,427) (4) (58,074) (4) (10,903) (4) (12,623) (6) (8,756) (3)
(11
Admin (44,086) (9) (151,069) (11) (48,055) (16) (36,534) (15) (31,589)
)
R&D (10,232) (2) (42,732) (4) (8,552) (3) (7,411) (3) (7,220) (2)
Impairment loss determined
(195) 0 (1,786) 0 0 0 0 0 1,149 0
in accordance with IFRS 9
Operating Profit 69,217 14 43,803 4 (13,511) (5) 9,649 4 21,901 7
Non-operating Income 7,512 2 11,206 1 5,033 2 19,856 8 9,274 4
Non-operating expenses (3,335) (1) (16,531) 0 (12,428) (4) (1,946) (1) (17,014) (6)
Profit(Loss) Before Tax 73,394 15 38,478 5 (20,906) (7) 27,559 11 14,161 5
Income
(25,134) (5) (34,442) (3) (1,035) (1) (11,848) (5) (187) 0
Tax Expense
Profit(Loss) For The Year 48,260 10 4,036 2 (21,941) (8) 15,711 6 13,974 5
(NCI) (7,043) (1) (6,456) 0 3,218 1 4,754 2 (4,413) (1)
CI 41,217 9 (2,420) 2 (18,723) (7) 20,465 9 9,561 3
EPS(in Dollars) 0.90 (0.23) (0.42) 0.46 0.22
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In NTD Thousand[[]]

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Business Performance
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-Cash Flow Statement
In NTD
Thousand
2015 2016 2017 2018 2019
Amount Amount Amount Amount Amount
Profit Before
125,574 234,926 229,746 223,585 111,872
Income Tax
D & A 54,501 55,951 58,968 59,945 87,947
Income Tax Paid
(45,971) (71,667) (64,218) (70,700) (42,534)
Net cash provided by
165,341 116,864 119,819 33,855 401,312
operating activities
CAPEX (17,166) (61,116) (36,398) (40,920) (27,558)
Net cash (used in)
provided by investing 51,665 (122,412) (16,654) 4,117 (184,611)
activities
Net cash (used in)
provided by financing (31,324) 125,950 38,818 (144,943) (38,550)
activities
Increase (Decrease) in
143,991 61,412 83,980 (129,121) 151,609
cash
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Business Performance -Financial Ratios

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2015 2016 2017 2018 2019
Operating Margin
25.47% 29.08% 29.52% 27.78% 24.37%
Ratio
Operating Profit
7.07% 12.78% 11.18% 10.01% 6.29%
Ratio
Profitability
Earnings Before
8.16% 11.69% 11.08% 10.20% 6.23%
Tax Margin
Net Profit Margin 5.07% 8.10% 7.71% 7.49% 2.91%
Current Ratio 277.57% 332.51% 190.61% 223.19% 237.78%
Quick Ratio 201.43% 247.10% 135.91% 145.67% 168.11%
Solvency
Debt Ratio 27.93% 35.05% 44.51% 37.33% 42.66%
Times Interest
9.27 23.07 21.99 18.66 9.88
Earned Ratio
Account
2.55 3.30 3.08 3.12 2.84
Receivable
143days 111days 119days 117days 129days
Turnover (Times)
Operating Inventory 3.47 4.00 3.24 3.05 2.67
Ability Turnover (Times) 104days 90days 113days 120days 137 天
Account Payable 4.72 6.67 5.96 6.26 6.81
Turnover (Times) 76days 54days 61days 58days 54days
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Dividend Polic y

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Appropriation Of Earnings
Distribution Year Cash Dividends Stock Dividends
2020 0.06086353 0.35503729
2019 0.10244247 0.92198329
2018 0.76268847 0.76268855
2017 1.96331235 0
2016 0.39696420 0.99241051
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Sales Contents

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Sales Contents

Major Products Major Customers

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Sales Contents – Products Items

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100% 3% 8% 8% 7% 13% 11% 6% 90% 6% 4% 5% 4% 5% 80% 70% 60% 50% 91% 86% 85% 88% 88% 40% 82% 30% 20% 10% 0%

88% 88%

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4 Wheels

2 Wheels

Machine and Others

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

Future Plan

 Press Machine

MAX FGL UKL 、 、 、 MAX-100 MAXFGL-200 FGL-300 UKL-300W UKL- 、 200 FGL-450 FGL-600 400W FGL-800 、 FGL-1000 UKL-600W Capacity 100~200 200~1000 300~600 (tone) Work Energy 50~200 50 ~ 100 35~70 (spm) Slide 、 、 1300700 16009 1100600 ~ 30001100 300013 Dimension 00 21001100 00 (mm) Total 、 Deflection 0.5 0.7 0.7 ~ 1.4 1.5 (mm)

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

Sales Contents – Major Products

 2 Wheels

Shock

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Brake

Starters

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Sales Contents – Major Products

• 

• Automobile safety partsThe product life cycle of automobile safety parts is 6~8 years.

• These need 100% full-inspection, require 0 ppm, and have difficulties of technology and production.

• Patec will continue to research new technology/production, and develop components of Continuously Variable Transmission (CVT) Engine

• ,gearbox, etc. Exhaust Door Lock/Seat/Chassis Brake Wiper Linkage

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Company Profile

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• 85%Revenue from Automobile parts

Automobile

• China keep growing; Europe recover

Benefit from MQB platform Market Growth, MQB, Emission Standards

• EURO 6 ； National Stage V, VI

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Numerous Tier 1 vendor code

 MQB

Tier 1

Reduce development costs, reduce

• MQB platform increase volume

 Decrease Core supplier

maintenance and inventory costs

VW, AUDI, SKODA, SEAT

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share about 60% auto parts

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Sales Contents – Major Customers

• Major Customers

• Top 3 Faurecia(top8) 、 Inteva(top71) 、 Akebono(top98) all are global automobile suppliers

 Patec is also a qualified supplier of Benteler(top 24), Bosch (top 1), Mitsuba(top 70), Hitachi(top 26), Valeo(top 11), and Nissin(top 100).

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100%
90%
34.20% 31.64% 33.07% 33.44%
37.09%
80% 39.95%
70%
3.27% 5.99% 5.20%
60% 4.03% 6.26% 3.38% 12.05%
3.98%
5.74% 2.35% 3.14% 14.11%
4.99%
50% 7.54% 16.70%
11.31%
14.90% 10.42%
9.38% 0.01% 9.43%
40% 6.78%
4.60% 2.81%
30%
20% 37.86% 36.80% 35.42% 42.28% 34.87% 35.01%
10%
0%
2017 2018 2019 2020Q1 2020Q2 2020Q3
Others Benteler Eberspaecher Akebono Inteva
Faurecia
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

Sales Contents – Major Customers  Patec 50% revenue comes from VW According China Securities research 、 、 FORD GREATWALL JEELY and Guangzhou big jump

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next production cycle : VW SUV 2017~2019 VW China will release 10 new SUVs 2018 the new models and replacement models great grow together New automobiles are using MQB platform, the parts sale to MQB will grow VW Group vehicle sales situation

Million

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1,200
1,074 1,083
1,031 1,034
973 993
1,000 907
816
800 714
655
629
600
400 398 418 421 42 3
368 355
327
282
225
200 192
140
-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Global Sales China Sales
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Medical Instrument

Comparison of existing storage methods after cleaning and disinfection of existing surgical instruments Textile Surgical fabric

Surgical sterilization boxes

Nonwoven fabric

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Medical Instrument

 Medical sterile container market size and business opportunities • Mainland China currently has about 31,700 hospitals, according to National Health Commission of the People’s Republic of China, statistical data as at December 10[th] , 2017, Grade III hospitals (1151) and Grade II hospitals (4321).

Under the promotion of Chinese government policies, Grade III hospitals will give priority to use medical sterile containers.

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• Taiwan currently has 26 medical centers and 84 regional hospitals are also the first to adopt medical sterile containers.

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Being The Leader and Innovator Of Metal Processing To learn more about PATEC Please visit www.patec-intl.com