SPC — Interim / Quarterly Report 2019

Dec 24, 2019

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Success Prime Corporation Stock code:2496

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集團架構

Company Profile

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Company Overview	Success Prime Corporation (2496) founded in 1991
Chairman	Min-Chun Chen
CEO	Education Business Unit：Shu Ling Tseng Optical Fiber Business Unit：HengTai Xiang
Employees	Education Business Unit：260 Optical Fiber Business Unit：40
Capital	NT$ 174,594,000
Major Service Item	Optical Fiber Business Unit：27%(2019/1-11M) Education Business Unit：73%(2019/1-11M)

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集團架構
Organizational
Structure
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Success Prime
Corporation
2496
Optical Fiber Chen-Li Education Prime Education
Chenli Elem
Business Unit Group Consultancy
Chen-Li Education
Consultancy
(Xiamen)
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Optical Fiber Business Unit

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Optical Fiber Business Unit

Prime Corporation is one of the leading optical fiber product manufacturers in Taiwan. It mainly produces optical fiber and optical cable products. With its cutting-edge technology and immense innovative capacity, Prime is able to specialize in both product development and mass production. Its technology includes producing special bending resistance that enables a longer service life of the products it 菁英學院 produces. This feature not only caters to the needs of clients in various fields, it also drives K12 ◆STEM product development by extending product application.

Major sales regions include China, America and Taiwan.

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13.37%
41.43%
30.49%
13.83%
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Fiber
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Cable
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Boxed cable, Indoor cable, outdoor cable, armored fiber optics cable

Single mode optical fiber, Multimode optical fiber, Specialty multimode optical fiber

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Special
coating
materials
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Taiwan Mainland China USA Japan

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Education
Business Unit
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Education Business Unit

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High School (12)・Middle School (11)・Elementary School (2) Physical 立言 張維 陳立 張暘 唐宇 李哲 殷琴 Chen-Li Education Group branches 國文 英文 數學 物理 物理 化學 生物 (TW)

Cross-strait Chenli Elem Service STEMath Maker Coding IBT Drone Provision Area: Kaohsiung Prime Education Consultancy Management High School (4) ・Middle School (4)・Elementary School (6) consulting Area: China Chen-Li Education Consultancy Middle School (5) ・Elementary School (5) ・ 1 on 1 (6) Management (Xiamen) consulting

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Operating Performance

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Condensed Income Statement

Unit: Thousands in NTD

	3Q19	3Q19	3Q18	3Q18	YOY	2019/1-3Q	2018/1~3Q
Operating Revenue	227,478		228,975		-0.65%	655,857	675,523
Operating Costs	120,262		127,720		-5.84%	362,273	346,238
Gross profit	107,216		101,255		5.89%	293,584	329,285
Gross Profit Margin		47.13%	44.22%		－	44.76%	48.74%
Operating Expenses	78,277		78,946		-0.85%	230,279	232,739
Operating Profit	28,939		22,309		29.72%	63,305	96,546
Operating Profit Margin		12.72%	9.74%		－	9.65%	14.29%
Non-operating Income and Expenses	441		1,755		-74.87%	3,958	5,859
Net Income after Tax	27,076		25,366		6.74%	59,928	86,865
After-tax EPS (NTD)		1.54	1.42		8.45%	3.45	4.90

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~~D~~ ividend Polic ~~y~~

10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
	Year 2016	Year 2017	Year 2018
Operating Revenue	218,525	822,409	917,579
EPS After tax (NTD)	2.76	8.92	7.18
Distribution Yield (NTD)	3.0	7.0	4.0
Dividend Payout Ratio (%)	109%	75%	56%	Unit：Thousands NTD

Note: 2016 dividend payments are the sum of capital surplus transferred to capital (0.5 NT$), cash dividends from capital reserve (2.43 NT$) and cash dividends from retained earnings (0.07 NT$)

2017 dividend payments are the sum of capital surplus transferred to capital (0.5 NT$) and cash dividends (6.5 NT$) from capital reserve

2018 cash dividends from retained earnings (4 NT$)

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Future Prospects

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Business Model 1：Taiwan Brick and Mortar Operations

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Preschool Primary Middle High
School School School
Taiwan
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Business Model 2：China’s Consulting Advisory Management

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Preschool Primary Middle High
School School School
China
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Business Model 3：STEMath

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Science Ability Thinking Ability Study Center Grade 1 Tutor Center English Cram School Grade 2 Grade 3

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Business Model 4：Pre-school AI Curriculum

Mainland China・Taiwan Partnership Collaboration with Preschool Licensed Materials・Teachers Training

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Preschool AI Courses (L1, L2, L3)

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Business Model 5：Math is Fun (Math Pie)

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Cram School Licensing
Daycare Camps
60 Preschool Trial Courses
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Business Model 6：China’s Education Materials Customization

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Scholar Education Group stock code: 1769(HK)

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Business Model 7：Licensing China’s Primary School Math Learning Materials

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Distribution Channels
People’s Beijing National Textbook Licensing
Education Normal
Academy
Press University Teachers' Training
Edition
Edition Edition
Online platform
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Thank You

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