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SSFC Investor Presentation 2017

Aug 15, 2017

51787_rns_2017-08-15_6fbff39d-1260-41bf-a4e5-8175a56e85d9.pdf

Investor Presentation

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Shinkong Synthetic Fibers Corporation

〜 〜 Innovation is the path to Intelligence

2017.08.15

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Disclaimer

• Shinkong Synthetic Fibers Corporation does not release any financial forecast. However, the statement of the company’s business, finance condition and Q&A in this presentation may differ from future actual results. This causes from market demand, prices fluctuations, competitions behavior, global economic situations, exchange rate fluctuations, supply chain and other factors or risks beyond the company’s control.

  • ~~s~~

  • Future prospects in this presentation reflect the company perspective based on the condition until now. If any change or adjustment of views later in the future, the company undertakes no obligation to update.

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AGENDA

SSFC INTRO BUSINESS OVERVIEW

FUTURE PROSPECT Q & A

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SSFC INTRO

Date of Establishment April 25, 1967
Date of Listing Listed on TWSE on August 31, 1973
Paid-up capital NT$ 16.18 billion
Group Employees 3,686(Taiwan) / 420(China) / 151(Thailand) / 4,257 (Total)
Main products SSFC divide into 2 main categories –Fibers and Plastics.
Fibers : Fully drawn yarn (FDY), partially oriented yarn (POY),
polyester draw textured yarn (P-DTY), polyester staple fiber (PSF),
industrial yarn.
Plastics: PET bottle grade resin, PET bottles, A-PET sheets,
polyester films, and engineering plastics.
Other investment
businesses
Engineering service, Optronics , Finance, and Other services.

4

Main Enterprises : Main products: 、 、 Fiber Group SSFC Shinpont Industry POY Industrial Yarn Huachun Fibers in Hangzhou DTY PET stable Fiber Spandex

Plastic Group Main Enterprises: SSFC Pan Asian Plastics Corp. Shinkong Industry in Hangzhou TSIC

Main Products: PET resin Engineering Plastics PET Sheets PET preform

29% 20% 2016 51%

Optronics Group

Main Enterprises: Shinkong Materials, Ubright Optronics Corp., Sbright Optronics Corp.,

Main Products: Optical Films ~~~~ ~~Brightness Enhancement Film~~ Release Film ITO Film TAC Film

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BUSINESS OVERVIEW Advantages

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To Partner
with Big Brands
in Developing
Products
Streamline
Environmental
Wide selections
Innovation
awareness and
of Product line-
and
Energy Efficiency
up All-around
Developments With 6C +5F
Service
Integrated
Industrial
Chain
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P E T R e s i n

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Film grade
PET Resin
PET Resin
S S P Aseptic
Hot-filling
Modified
PET Bottle PET RESIN
PET Resin
(preform)
Low Melting point
High Heat-Resistant
High Transparency
PET Sheet
Eco-Friendly
Food Grade PET resin
Electronics
Low Heavy Metal
Medical
Energy Saving
CPET
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Aseptic/heat-resistant grade:

Preserve the best flavor of drinks with safety and hygiene.

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Modified Resin: Low Crystallization PET Variety

Eco Grade:

Eco-Friendly Fast Reheat Energy Saving

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Film Grade: High Transparency Dimensional Stability Functionality

Pan Asian Plastics Corporation:

PET preform and sheet production have up & downstream integrated and value added.

PET Bottle and Preform: Main supplier of domestic drink makers.

PET Sheet: Electronics and Medical applications avoid price competition.

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E n g i n e e r i n g p l a s t i c s

Glass Fiber Reinforced Grade

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Elastomer Resin
Grade
Flame Retardant
Grade PBT RESIN
Green Resin
Bio Material
Compounding PBT
Optical Fibers Resin
Functional Master Batches
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Flame Retardant Grade

Green Resin Bio Material

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Elastomer Resin

With the elasticity of rubber and processability of Engineering Plastics

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Waterproof membrane
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CVJ
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Shoe sole 3D printing filament

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Plastic bags Buckles

Plastic Tableware Paper cups

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Green Resin Bio Material

Fibers

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Non-Petrochemical Origin, bio-degradable and eco-friendly

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Optical fibers
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Optical Fibers Resin

Easy processability and dyeing. Fast crystallization

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Glass Fiber Reinforced Grade

Characters:

Auto connectors

-Dimensional Stability -Impact and Abrasion Resistance -Toughness and Weather Resistance

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Flame Retardant Grade

Characters:

Electric fan Fan cases Connectors

-Flame Retardant

Functional Master Batches

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-Electric Insulativity -Rigidity and Durability

Characters:

  • -High Processability

  • -Apperances

-Enhance Functionality

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P E T F i b e r s / D T Y

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High tenacity dope dyed yarn

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Abrasion resistant high tenacity yarn

HTY

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High tenacity yarn (Low shrinkage)

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High Modulus Low Shrinkage yarn

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High tenacity anti-wick yarn

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Flame retardant industrial yarn

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Consolidated Financial Statements

(In Millions of New Taiwan Dollars)

2012
2013
2014
2015
2016
Total revenues
41,581
42,251
44,350
36,971
34,435
Net profit
666
1,152
1,365
749
748
Profit percentage
2.72%
4.03%
4.14%
2.24%
2.84%
0
10,000
20,000
30,000
40,000
50,000
2012
2013
2014
2015
2016
Total revenues 41,581 42,251 44,350 36,971 34,435
Total revenues
0
500
1000
1500
2000
2500
2012
2013
2014
2015
2016
Net profit
666
1,152
1,365
749
748
Net profit
2012
2013
2014
2015
2016
Total revenues
41,581
42,251
44,350
36,971
34,435
Net profit
666
1,152
1,365
749
748
Profit percentage
2.72%
4.03%
4.14%
2.24%
2.84%
0
10,000
20,000
30,000
40,000
50,000
2012
2013
2014
2015
2016
Total revenues 41,581 42,251 44,350 36,971 34,435
Total revenues
0
500
1000
1500
2000
2500
2012
2013
2014
2015
2016
Net profit
666
1,152
1,365
749
748
Net profit
2012
2013
2014
2015
2016
Total revenues
41,581
42,251
44,350
36,971
34,435
Net profit
666
1,152
1,365
749
748
Profit percentage
2.72%
4.03%
4.14%
2.24%
2.84%
0
10,000
20,000
30,000
40,000
50,000
2012
2013
2014
2015
2016
Total revenues 41,581 42,251 44,350 36,971 34,435
Total revenues
0
500
1000
1500
2000
2500
2012
2013
2014
2015
2016
Net profit
666
1,152
1,365
749
748
Net profit
2012
2013
2014
2015
2016
Total revenues
41,581
42,251
44,350
36,971
34,435
Net profit
666
1,152
1,365
749
748
Profit percentage
2.72%
4.03%
4.14%
2.24%
2.84%
0
10,000
20,000
30,000
40,000
50,000
2012
2013
2014
2015
2016
Total revenues 41,581 42,251 44,350 36,971 34,435
Total revenues
0
500
1000
1500
2000
2500
2012
2013
2014
2015
2016
Net profit
666
1,152
1,365
749
748
Net profit
2012
2013
2014
2015
2016
Total revenues
41,581
42,251
44,350
36,971
34,435
Net profit
666
1,152
1,365
749
748
Profit percentage
2.72%
4.03%
4.14%
2.24%
2.84%
0
10,000
20,000
30,000
40,000
50,000
2012
2013
2014
2015
2016
Total revenues 41,581 42,251 44,350 36,971 34,435
Total revenues
0
500
1000
1500
2000
2500
2012
2013
2014
2015
2016
Net profit
666
1,152
1,365
749
748
Net profit
2012
2013
2014
2015
2016
Total revenues
41,581
42,251
44,350
36,971
34,435
Net profit
666
1,152
1,365
749
748
Profit percentage
2.72%
4.03%
4.14%
2.24%
2.84%
0
10,000
20,000
30,000
40,000
50,000
2012
2013
2014
2015
2016
Total revenues 41,581 42,251 44,350 36,971 34,435
Total revenues
0
500
1000
1500
2000
2500
2012
2013
2014
2015
2016
Net profit
666
1,152
1,365
749
748
Net profit
0 2012 2013 2014 2015 2016
Total revenues 41,581 42,251 44,350 36,971 34,435

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Consolidated Financial Statements

(In Millions of NTD)

(In Millions of NTD)
2017 H1 2016 H1 +/- %
Total Assets 134,449 127,380 6%
Total Liabilities 100,342 94,405 7%
Total Equity 34,107 32,975 3%
Revenues 17,422 16,743 4%
Net Profit after tax
365
419 -13%
Attributed to :
Owner of the 324 347 -7%
company
Non-controlling
interests
41 72 -43%
EPS 0.20 0.21 -5%

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FUTURE PROSPECT

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Young
Mentality
Operation
System
Rationalization Efficiency
Equipment Smart
Automation Manufacturing
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Expansion Plans

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Quantity
Investment Expected
Area Item Increase
(In Millions of NTD) Start-up
MT r
( /y )
TWN PBT Expansion 1,089 2017 Q4 60,000
5 PBT
THAI Compounding 500 2020 Q1 18,000
Lines
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