SINON — Call Transcript 2019

Sep 24, 2019

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2019

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Sinon Corporation Investor Conference Stock Code:1712 2019/9/25

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Main Point

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STEP STEP STEP
01 02 03
Company Profile Financial Results Q&A
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Company Profile

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Basic Information

• Year Established:1955.

• Year Listed on TWSE: Dec./1989.

• Headquarter Location: Dadu Dist., Taichung, Taiwan.

• Chairman：Mr. HORNG PO-YEN.

• • Paid-in Capital：NT$4.205 Billion

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Business Philosophy

Delivering Integrity and Equity, Bringing Prosperity and Growth.

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Business Scopes

Chemical Synthesis

• Working with World Renowned Multinationals to Advance the Production Process and Technology.

• Develop a Sustainable Environment.

Food Safety

• To Safeguard Foods and Fresh Produce Straight from the Grower to the Table.

• To Be the Reliable Provider of Safe, Healthy, Excellent & Quality Merchandises.

Biological Fermentation

 Microbiological Crop Protection Products.  02 ECO-Friendly.

01

Crop Protection  04 03

• Assisting Growers with Crop Protection Know-How to Harvest Fresh Safe Produce.

• Excellent-Quality Crop Protection Products.

• Global Presence.

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Business Scopes

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Business Scopes

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Business Scopes

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Business Scopes

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Business Scopes

Organic Certified

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Business Scopes

• Educate Farmer

• Contract Production.

• Fruit and Vegetable

• Processing Plant

• ISO22000. CAS Certified.

• HACCP. TGAP Certified.

• Organic Handling Certified.

• Self- Agricultural Technology.

• Self- Experimental Farms.

• Self-Laboratory

• Rapid Screening for Pesticide Residues.

• Multiple Chemical Analysis.

• Safe Farms

• JGAP Certified.

• TGAP Certified.

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 Safe Application of Pesticides Technical . Support Team

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Business Scopes

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(in 2018) Revenues by Region

Unit ： % of sales

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5%
Europe
6%
9% North-East
Asia
China
14%
America 57%
8% Taiwan
Asia(Other)
1%
Other
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Revenues by Products Unit ： % of sales Jan.-Aug./2018 Jan.- Aug./2019 Sales NT$12.39 billion Sales NT$11.46 billion

3.2% 7.3% 10.4% 9.0% 26.1% 24.5% 59.2% 60.3% Crop Protection Supermarket

Houseware & Foodservice

Other

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Financial Results

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	Dividend Payout	Dividend Payout	Dividend Payout	Dividend Payout
Item	2013	2014	2015	2016	2017	2018
Net Revenue (NT$ billion)	15.72	17.29	17.73	16.29	17.28	18.13
Net Income
Attributable to : Shareholders of the	0.46	0.51	0.35	0.55	0.58	0.73
Parent(NT$ billion)
Basic EPS(NT$)	1.37	1.51	1.03	1.60	1.50	1.74
Stock Dividend p/s(NT$)	0.795	0.895	0.600	0.939	1.002	1.300
Payout Ratio(%)	58.0%	59.3%	58.3%	58.7%	66.8%	74.7%
Annual Avg. Stock Price (NT$)	15.23	17.17	15.26	14.43	16.32	17.03
Yield Rate (%)	5.2%	5.2%	3.9%	6.5%	6.1%	7.6%

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	Consolidated P/L Unit：NT$	Consolidated P/L Unit：NT$	Consolidated P/L Unit：NT$	billion，%
Item	2018 H1	%	2019 H1 %	YoY(%)
Net Revenue	9.45	100.0%	8.74 100.0%	-7.4%
Gross Profit	2.70	28.6%	2.31 26.4%	-14.5%
Income from Operations	0.66	7.0%	0.46 5.2%	-31.4%
Income before Income Tax	0.57	6.0%	0.49 5.6%	-13.9%
Net Income	0.47	4.9%	0.40 4.6%	-13.3%
Net Income
Attributable to : Shareholders of the	0.463	4.9%	0.402 4.6%	-13.1%
Parent
Basic EPS(NT$)	1.11		0.96

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Quarterly Revenues

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Unit：NT$ billion，Quarterly
5.5
5.0
4.5
4.0
3.5
Q1
3.0
Q2
2.5
Q3
2.0
Q4
1.5
1.0
0.5
0.0
2013 2014 2015 2016 2017 2018 2019
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0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%		Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)	Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)	Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)	Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)	Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)	Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)	Profitability Analysis 25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3% 4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0% 2.8% 3.0% ~~2.0%~~ 3.5% 3.4% 4.0% 4.9% 2013 2014 2015 2016 2017 2018 2019H1 Gross Margin(%) Operating Margin(%) Net Margin(%)
		25.4% 25.3%26.4% 27.5% 27.3%27.1%27.3%
		4.6% 4.3% 3.8% 4.0% 5.1% 5.2% 5.0%
		2.8% 3.0% ~~20%~~ 3.5% 3.4% 4.0% 4.9%
				~~.~~

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Debts Ratio

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68.0%
66.6%
65.4%
66.0%
64.7%
64.0%
62.7%
62.0%
60.0%
58.0%
56.2%
56.0% 54.9%
54.7%
54.0% 52.8%
52.0%
50.0%
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2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 2019Q1 2019Q2

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Q&A

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Thank You.