QPC — Interim / Quarterly Report 2015

Oct 21, 2015

CH2-O-C-CH=CH2 O HO-CH2-C-CH2-O-C-CH=CH2 O CH2-O-C-CH=CH2 O

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CH2=CH-C-O-CH2 O CH2=CH-C-O-CH2-C-CH2CH3 CH2-O-C-CH=CH2 O O CHHO-2= C HH-C-O-CH2-C-CH2-O-C-CH=CH2 2 CHO2-O-C-CH=CHO 2 O

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Stock Symbol ： 4722

CH2=CH-C-O-CH2 O CH2=CH-C-O-CH2-C-CH2CH3 O CH2=CH-C-O-CH2 O

Last update: 201510

Copyright © 2015 QPC. All rights reserved.

A enda g

• Company Overview - A glance at QPC, Company History, Certification and Regulation Compliance

• Product Mix UPR, Coating Resins, UV Curable Materials, Production Capability

• Marketing -

Global Business, Sales Ratio of Products,

• Operating Performance Sales Revenue, Gross Margin with Operating Income, EPS and Dividends

• Perspective

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Copyright © 2015 QPC. All rights reserved.

Company Overview

A glance at QPC

 Main Products:

Synthetic Resins- UV Curable Materials, UPR, Coating Resins

• Plant Sites:

Qualipoly Chemical Corp. (Taiwan) Qualipoly Technology Corp. (China)

 Capital: 880,000,000 (TWD)

 Sales Revenue (2014): Taiwan: 4.3 Billion; China: 0.8 Billion

• Employees: About 400

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Excellent Import/Export Ranked no.528 over the Company, Officially Manufacture Industry Certificated, 2014 companies, 2014

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Company Overview

Company History

1978 Qualipoly Chemical Corp. was founded.

• 1983 Agreement with AB Syntes (Sweden) for low styrene emission polyester resint

• 1987 Agreement with Ashland, for unsaturated polyester resin. Agreement with Soab AB for alkyd resin and amino resin.

• 1992 Licensing agreement with Ashland for foundry resin.

2001 Listed in GreTai market.

2002 Qualipoly Technology Corp. was founded in China.

2005 Commercialized UV curable materials.

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1999 Licensing agreement with Ashland for putty resin.

• 2003 Licensing agreement with Ashland for Aropol Isophthalic resin.

Completed Production Expansion Project for UV curable materials.

2011

2012 Listed in TWSE market

• 2014 Commercialized Special Acrylic Polymer for electronic application and Adhesive for Solar panels.

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Company Overview

Certification / Regulation Compliacne

~~Certifications~~

ISO 9001:2008

ISO 14001:2004

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ISO 9001:2008 ISO 14001:2004 OHSAS 18001:2007 NO: TWN0944620 NO: TWN6005335 NO: TWN6005338

OHSAS 18001:2007

~~Compliance~~

• EU: Complied with REACH

• US: Complied with TSCA

 China: Complied with China REACH

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Certificates of approval from Korean Register of shipping for lamination resin.

Certificates of approval from Lloyd’s Register of shipping for lamination resin.

Certificates of approval from Nippon Kaiji kyokai for laminating resin.

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Product Mix

Main Produts

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UV curable materials

Unsaturated Polyester Resins

Coating Resins

• Monomer

• Oligomers

 Others

• Casting

• Fiber Glass Reinforced Plastics

• SMC/BMC

• Alkyd Resin

• Acrylic Resin

• Amino Resin

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Product Mix

Main Products

UV Curable Materials

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 Energy Saving

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• Efficiency Production

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• Environmental Friendly

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Product Mix

Main Products

UV Curable Materials

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Mono-functional TDA, LMA, IDMA, ITDMA..etc

Di-functional

TPGDA, HDDA, DPGDA…etc

Multi-functional TMPTMA, PETIA, DPHA…etc

Specialties

• 、

• EO PO series,

• Benzene Free Monomers

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Epoxy Acrylates Full Acrylates

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Aliphatic Urethane Acrylates Aromatic Urethane Acrylates Polyester Acrylates Amine Modified Polyether

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Acrylates

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Additives

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Photo-Initiator

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Product Mix

Main Products

Wood Coating

Paper Varnish

UV Curable Materials

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Product Mix

Main Products

UV Curable Materials

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Plating
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Inks
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Metal Coating
Metal Coating
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Product Mix

Main Products

UV Curable Materials

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Optical Application
Plastic Inks
UV Adhesive
Solder Resist Ink
Electronic Application
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Product Mix

Main Products

Unsaturated Polyester Resin

Casting: Artificial Marbel, Jade, Button and etc. Fiber Glass Reinforced Plastics For weather-resistance: Bathroom, Tanks, Water Tower, Yacht, Boats, Status, Hamlet, Vehicles and etc. For chemical-resistance: Pipes, Tanks and etc

BMC/SMC BMC ─ Lampshade, Electronic Devices/Pars, and etc. SMC ─ Bathtub, Seats, Vehicle Parts, Plates for Heat resistance and etc.

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Product Mix

Main Products

Unsaturated Polyester Resin

Casting:

Artificial Marbel, Jade, Button and etc.

Fiber Glass Reinforced Plastics For weather-resistance: Bathroom, Tanks, Water Tower, Yacht, Boats, Status, Hamlet, Vehicles and etc. For chemical-resistance: Pipes, Tanks and etc

BMC/SMC

BMC ─ Lampshade, Electronic Devices/Pars, and etc. SMC ─ Bathtub, Seats, Vehicle Parts, Plates for Heat resistance and etc.

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Copyright © 2015 QPC. All rights reserved.

Product Mix

Main Products

Unsaturated Polyester Resin

Casting:

Artificial Marbel, Jade, Button and etc.

Fiber Glass Reinforced Plastics For weather-resistance: Bathroom, Tanks, Water Tower, Yacht, Boats, Status, Hamlet, Vehicles and etc. For chemical-resistance: Pipes, Tanks and etc

BMC/SMC

BMC ─ Lampshade, Electronic Devices/Pars, and etc. SMC ─ Bathtub, Seats, Vehicle Parts, Plates for Heat resistance and etc.

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Product Mix

Main Products

Coating Resins

Alkyd Resin

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Anti-drying paints,
NC lacquer,
Baking paints.
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Product Mix

Main Products

Coating Resins

Amino Resin

Can coating, Baking paints.

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Product Mix

Main Products

Coating Resins

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Coating Resins
Acrylic Resin
Thermoset, Thermoplastic,
2K system.
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Product Mix

Other Products

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Foundry Resin Emulsion Specialty
Varnish PU Resins
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Product Mix

Production Capability

Taiwan Factory

UV Curable Materials

Monomers: 20,000 Oligomers: 10,000 Total 30,000 MT

Unsaturated Polyester Resins 30,000 MT

Coating Resins 10,000 MT

Other Products 5,000 MT

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Product Mix

Production Capability

China Factory

Main Products

UPR Amino Resin Alkyd Resin Acrylic Resin Production Capability ： 20,000 ton/year

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Marketing

Global Business

Marketing Over 40 countries

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Domestic Sales
25%
75%
Export
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Marketing

Sales Ratio of Products

2015

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Others Coating UPR UV Curable Materials
2013 2014
6% 6%
21% 19%
41% 43%
32% 32%
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H1 Sales of Products, 2015 1,059,241 47% 651,874 29% 418,114 18% 143,783 6% Thousands, in TWD

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Operating Performance

Sales Revenue

Million, in TWD

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6,000
4,858 4,996
4,856
5,000
4,118
4,000
3,521
3,296
3,516
3,000
2,429
2,000
1,000
0
2007 2008 2009 2010 2011 2012 2013 2014
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Operating Performance

Gross Margin with Operating Income (Y)

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Hundred Millions 2.50 20%
in TWD
18%
2.00
16%
1.50
14%
12%
1.00
10%
0.50
8%
0.00 6%
2010 2011 2012 2013 2014 2015H1
Operating Income 0.87 1.16 1.64 1.52 2.00 1.99
Gross Margin 10.31% 9.93% 11.45% 11.42% 11.20% 17.54%
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Operating Performance

Gross Margin with Operating Income (Q)

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Hundred Millions
in TWD
1.2
20%
?
18%
1
16%
0.8
14%
0.6
12%
10%
0.4
8%
0.2
6%
0
2015Q3
2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2
Operating Income 0.21 0.5 0.56 0.73 1.01 0.97 ?
Gross Margin 10.52% 11.77% 11.79% 13.66% 18.38% 16.75% ?
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Operating Performance

EPS and Dividends

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3
2.5
2
1.5
1
0.5
0
2010 2011 2012 2013 2014
EPS 1.25 1.46 2.5 1.63 2.03
Dividends 0.79 1 1.5 1.2 1.5
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Perspective

• Joint Venture, Acquisition

Marketing Expansion Technology Acquiring

• Environmental, High-Value Added Products Development

Low VOC, Fire-retardant products, New applications

Development of Emulsion

• Technical-Corporation

Corporation with same and different industries/enterprises. Corporation with Schools. Institutes and attending government project.

• Production Expansion, Products Diversification

Short Term Development

Mid/Long-Term Development

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Q&A

Please do not feel hesitate to contact us:

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+886-7-6236199 +886-7-6244228

No.2, Yong Gong 5[th] Road, Yong An District, Kaohsiung City 82841,Taiwan customer@qualipoly.com.tw http://www.qualipoly.com.tw

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