SanDi — Investor Presentation 2019

Dec 30, 2019

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Stock No. 1438

YU FOONG INTERNATIONAL CORPORATION

2019 Investor Conference 2019-12-30

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Disclaimer

The information is for reference only and is not a complete description of the operation of the Company. If the content involves forecasting information, the Company does not imply, declare, nor guarantee its correctness or reliability; therefore, users should make their own judgments and bear the risk.

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Presentation content

☆ Profile ☆ History

☆ Financial Data

• ☆ Business Strategy

☆ Vision

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Profile

■ Established in 1955

■ Stock was Approved for Listing by the Ministry of Finance and Securities and Futures Bureau in 1988

： ■ Paid-in Capital NT$1,024,115,180

■ Number of Shares ： 102,411,518

• Total Net Net Value ： 515,583 thousand

• Stock No ： 1438

• Website ： http://www.yufoong.com.tw

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History

		History
Time		Milestones
1955 ~ 1956	The Company was established in October 1955 and located in Foong Yuan City, Taichung County with an area more than 5,868 pings, a capital stock of NT$7,000,000 and operated by Yuetai Company and Jarfoong Weaving Mill jointly with Mr. Chongnian Lee as the first Chairman andthe production formallyinitiatedinJune1956.
1966 ~ 1969	A piece of land for more than 5,868 pings in Tanzi Township, Taichung County was acquired in 1966 for the construction of a branch factory. Spindles and fabric factory had been renewed constantly through 12-13 years of operation; however, due to the limited space, the factory could not be expanded anymore. After careful evaluation, a decision was made to have Foong Yuan factory sold to Yulien Company. In addition, a piece of land for 35,208 pings were acquired in 1969 in Xinwu Township, Zhongli City, Taoyuan County for the construction of a new factory with new machinery equipment acquired from Europe; also, the company had owned 38,880 spindles and 200 units of loom after few years ofoperation. Capital increasedtoNT$200,000,000.
May 1980	Additional paid-in capital and capital increase from earnings for NT$100,000,000was arranged with stock capital increased to NT$300,000,000.
May 1987	Capital increasewith cash was arranged for an amount of NT$120,000,000and with capital stock increased to NT$420,000,000 and public offering arranged subsequently. Ring spinning equipment and five OE fine spinning machineswere acquired, and with the loom equipment retiredat the sametime.
December 1988	Stockwasapprovedfor listing bytheMinistry of Financeandthe SecuritiesandFuturesBureau.
October 1989	Capital increasewith cash and from additional paid-in capital was arranged for an amount of NT$222,600,000 with the capital stock increased toNT$642,600,000.
August 1993	The Companywas relocated to 7F-1(KaijayBuilding),No. 130,Sec. 4,NanjingE. Road,Taipei City,Taiwan.
February 1996	According to the resolution reached in the 1995 general shareholders’meeting, capital increase from the additional paid-in capital was arranged for an amount of NT$23,776,200 with thepaid-in capital increased to NT$666,376,200.
August 1996	The Company wasrelocatedtothenew office buildingacquiredat3F-3,No.188, Sec. 5,NanjingE.Road,TaipeiCity,Taiwan.

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December 1997	Arranged capital increasewith cash for an amount of NT$180,000,000 with stock issued at a premium price of NT$30.5/share and with the paid-in capital increased to NT$846,376,200.
	The name of the Company was changed from “Taiwan Yu Foong Cotton Mills Co., Ltd.” to “YU FOONG INTERNATIONAL
	CORPORATION.”
June 1998	Capital increase from the additional paid-in capital of the stock issued at premium was arranged for an amount of NT$84,637,600 with the paid-in capital increased to NT$931,013,800.
September 1999	Capital increase from the additional paid-in capital of the stock issued at premium was arranged for an amount of NT$93,101,380 with the paid-in capital increased to NT$1,024,115,180.
August 2007	The Company was relocated to 9F-7, No. 57,Fuhsing N. Road, Taipei City (Young Shen Commercial Building).
August 2012	The Company was relocated to 2F, No. 638, Sec. 6, Minzu Road, Zhongli District, Taoyuan City, Taiwan.

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Financial Data

	Financial Data	Financial Data	Financial Data	Financial Data	Financial Data
	Consolidated Income StatementUnit: NT$ Thousand
Year Item	Condensed Financial Data of the last five years (Audited and Attested by the Certified Public Accountant)					Financial data as of 2019Q3 (audited by the Certified Public Accountant)
	2018	2017	2016	2015	2014
Operating income	17	43	62	23,596	12,419	10
Gross profit	(36)	(25)	(17)	17,735	9,495	(36)
Operating profit and loss	(8,196)	(7,934)	(7,946)	8,940	1,240	(6,322)
Non-operating income and expense	(3,683)	2,365	912	3,814	3,169	(2,932)
Net income (loss) before tax	(11,879)	(5,569)	(7,034)	12,754	4,409	(9,254)
Net income of the continuing department	(11,879)	(5,569)	(7,034)	12,754	4,409	(9,254)
Loss of the discontinued department	-	-	-	-	-	-
Net income (loss)	(11,879)	(5,569)	(7,034)	12,754	4,409	(9,254)
Other comprehensive profit and loss – current (after tax)	-	-	-	-	-	-
Total comprehensive profit and loss – current	(11,879)	(5,569)	(7,034)	10,982	3,646	(9,254)
Net income attributable to the shareholders of theparent company	(11,879)	(5,569)	(7,034)	10,982	3,646	(9,254)
Net income attributable to the non-controlling equity	-	-	-	-	-	-
Total comprehensive profit and loss attributable to the shareholders of theparent company	(11,879)	(5,569)	(7,034)	10,982	3,646	(9,254)
Total comprehensive profit and loss attributable to the non-controllingequity	-	-	-	-	-	-
Earnings per share	(0.12)	(0.05)	(0.07)	0.11	0.04	(0.09)

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Consolidated Balance Sheet Unit: NT$ Thousand

			Consolidated Balance SheetUnit: NT$ Thousand	Consolidated Balance SheetUnit: NT$ Thousand	Consolidated Balance SheetUnit: NT$ Thousand	Consolidated Balance SheetUnit: NT$ Thousand
Year Item			Condensed Financial Data of the last five years (Audited and Attested by t Accountant)				he Certified Public	Financial data as of 2019Q3 (audited by the Certified Public Accountant)
			2018	2017	2016	2015	2014
Current assets			562,606	574,126	579,183	583,788	608,383	554,153
Property, plant, and equipment			32,293	32,817	32,513	35,060	13	31,886
Intangible assets			-	-	-	-	-	-
Other assets			36	48	1,114	1,089	1,119	27
Total assets			594,935	606,991	612,810	619,937	609,515	586,066
Current liabilities	Before appropriation		1,298	1,475	1,725	1,818	1,995	1,683
	After appropriation		1,298	1,475	1,725	1,818	1,995	Not yet distributed
Noncurrent liabilities			68,800	68,800	68,800	68,800	69,183	68,800
Total liabilities		Before appropriation	70,098	70,275	70,525	70,618	71,178	70,483
		After appropriation	70,098	70,275	70,525	70,618	71,178	Not yet distributed
Equity attributable to the shareholders of theparent company			-	-	-	-	-	-
Stock capital			1,024,115	1,024,115	1,024,115	1,024,115	1,024,115	1,024,115
Additional paid-in capital			81,330	81,330	81,330	81,330	81,330	81,330
Retained earnings		Before appropriation	(558,608)	(568,729)	(563,160)	(556,126)	(567,108)	(567,862)
		After appropriation	(558,608)	(568,729)	(563,160)	(556,126)	(567,108)	Not yet distributed
Other equities			-	-	-	-	-	-
Treasurystock			-	-	-	-	-	-
Non-controllingequity			-	-	-	-	-	-
		Before appropriation	524,837	536,716	542,285	549,319	538,337	515,583
Total equity		After appropriation	524,837	536,716	542,285	549,319	538,337	Not yet distributed

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Business Strategy

When formulating marketing strategies and developing potential markets, the Company established a profit center management system. This system enables more effective trimming of expenses and operating costs. Our corporate finances are transparent and we do not engage in lending relationships with financial markets. At �- present, we do not have any construction projects underway but we do have land available for planning. Our goal is to provide comprehensive services of the highest possible benefit to our customers. Ongoing research and development combined with better quality in all operational aspects will secure sustainable corporate operations into the future.

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Vision The Company has a tradition ofstable, conservativebusiness values that includes building a stronger financial structure and strict control over capital expenditures, with an end goal of sustainable operations. Our primary operational goal this year is to extract greater value from our land. Property prices in Zhongli District have not fallen as 㵀Ό a result of economic contraction. Rather, the price of industrial land has rapidly risen as some overseas Taiwanese manufacturers impacted by the US-China trade war have returned to Taiwan with an urgent need to build local manufacturing sites. Management is planning how to extract the most value from the Company’s land, whether through sale, construction of apartments or buildings, or lease.

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Q &A

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㵀Ό
THANKS!
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