U-TECH — Interim / Quarterly Report 2018

Dec 27, 2018

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Stock number ： 3050

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鈺德科技股份有限公司 U-Tech Media Corporation Y18 Earning Conference 107/12/25

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Disclaimer

� This information within this document is prepared by U-Tech Media Corporation (“U-Tech ” ) without independent verification. The information provided in this presentation, including views and perspectives, reflects the U-Tech’s view to the future. These futuristic opinions and expectations may be beyond U-Tech’s judgment due to ， uncontrollable risks, uncertainties and different assumptions which thus leads to an unexpected results that out of expectation; readers s h a ll not re y so e y on t l l l hi s presentat on or ma i f ki ng nvestment i decisions.

• U-Tech is not responsible for reminding, updating or correcting any changes or adjustments in the future for the contents of this presentation. U-Tech and any of its affiliates, consultants or representatives shall not be liable for any loss resulting from any information presented or contained in this material. The information presented or included in this presentation may be changed without notice and does not guarantee its correctness. This information does not constitute an issuance of securities.

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Outline

• Company Profile

• Operating base

• Certification performance

• Company competitiveness

• Financial structure

• Change the investment situation

• Development strategy and business plan

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Operating base

• Establish time: August 1994

• Capital: NT $ 1.45 billion

• Main products: pre-recorded CD / DVD / -

• Blue Ray Disc (BD)

• Company Factory:

• Domestic: Tao-yuan Hua-ya Science and Technology Park

• Foreign: Korea

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Operating base

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U-Tech Korea

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U-Tech Hua-Ya Headquarters

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Certification performance

• Certified by McDonald's Social Responsibility Certification, awarded the highest level "Green Level" certification through the certificate

• Acquired the ISO9001, ISO14001, OHSAS 18001 certification

• Acquired the SONY Green Partner environmental quality assurance s y stem

• Acquired the BDA (Blu-ray Disc Alliance) BD50 certification

• Acquired the International Toy Industry Association (ICTI) to verify that the first pre-recorded media disc factory through the verification of manufacturers

• Certiifed by the International Recording Media Association (IRMA) as the first Asian anti-piracy demonstrative manufacturer

• Acquired the certification of DVD Forum Class B certification labs

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Company competitiveness

• The largest pre-recorded media factory in Taiwan

• Asia's first pre-recorded disc media factory certified by the International Recording Media Association

• An authorized pre-recorded disc media factory in the Asia Pacific area by Hollywood film publishers

• � The first pre recorded media disc factory in Taiwan that was certified by ICTI, International Toy Industry Association

• The first and only one pre-recorded disc media factory providing one-stop integrated services in Taiwan

• The first pre-recorded disc media factory in Asia -except Japan- that was certified by Blu-ray Disc Alliance for producing single-layer (25GB) and double-layer(50GB) Blu-ray discs

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－ Financial structure Income Statement

In NT$,000s

Item Year Year 2015 Year 2016 Year 2017 3Q Year 2018 Sales revenue 951,160 948,476 815,563 571,207 Cost of goods sold 655,714 603,948 572,954 421,686 Gross profit 295,446 344,528 242,609 149,521 Operating expense 280,348 220,182 226,452 132,543 Operating profit（loss） 15,098 124,346 16,157 16,978 Non-operating income/exp. 162,500 （27,095） 125,249 46,083 Pre-tax income（loss） 177,598 97,251 141,406 63,061 Income tax 35,836 9,876 12,602 6,761 Net income（loss） 141,762 87,375 128,804 56,300 Basic EPS 0.84 0.57 0.86 0.39

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－ Financial structure financial analysis

			Year 2015	Year 2016	Year 2017
	Financial structure	Debts / Assets(%)	19.37	26.72	23.62
		Long-term capital / fixed assets(%)	212.38	267.85	250.67
	Solvency	Liquidity ratio(%)	169.27	299.12	187.23
		Quick ratio(%)	156.18	286.53	178.06
		Interest Protection Multiples	-7.00	21.20	11.76
	Operational capacity	AR overturn (times)	5.04	5.67	5.41
		Average collection period (days)	72.42	64.37	67.46
		Inventoty overturn (times)	12.27	13.44	13.69
		Average sales period (days)	29.74	27.15	26.66
		Fixed asset overturn (times)	0.75	0.93	0.97
		Asset overturn (times)	0.30	0.33	0.32
	Profitability	ROA(%)	-2.18	5.17	3.15
		ROE(%)	-2.85	6.41	3.88
		Pre- tax income / actual capital ratio(%)	-2.46	11.68	6.40
		Net income ratio(%)	-7.71	14.90	9.21
		EPS	-0.36	0.84	0.57
	Cash flow	Cash flow ratio (%)	42.94	40.94	26.07
		Cash flow allowable ratio (%)	208.91	342.94	333.04
		Cash flow re-invest ratio(%)	3.33	3.10	0.31

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Investment

� Cultural industry

� We launching a brand-new biz model which operate and develop Cultural and Creative business by Brick Yard 33 which cooperated with Old Houses Project of Department of Cultural affairs Taipei City Government . By this platform we obverted thinking and absorbed nutrition of running cultural and creative business for further development of extend scale.

• Solar industry

• Through group resources integration steps to innovative technology of the solar energy market which encouraged by government.

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Cultural industry

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C9
C11
C10
C12
C6
C4
American military
club(Brick Yard 33)
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American military
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American military club(Brick Yard 33)

Music culture promotion

• 107/04/22 Golden Faith concert from 1950s-1960s

• 107/05/13 Music Never

End-Classical chinese music concert. � 107/07/29 Fundraising charity concer

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Lecture / Exhibition

• 107/01/20 Lecture on "From Camellia women to Camellia Art".

• � 107/03/25 Lecture on “How to select houseplants“.

• 107/12/01 Lecture series on the

chrysanthemum exhibition � Achievement exhibition of Department of Architecture and Urban Design, PCCU � Ceramic Exhibition.

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Charity activities

Old house activation

• Sponsor Local activity

• Sponsor Taipei City Yangming Home for the disabled

• Sponsor Childrens home

• New clothes and second-hand

clothing raise for preschool.

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Brick Yard 33 a trip

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Old town of Grass Mt

• Historical and memorial area which residence of American army dorms since 1950-1978, we renamed as old town of Grass Mt. Continuing and developing our cultural and creative business. This block with 6 units of house which restored it or g nai i l p ci ture and recreated new spot-light park for leisure and touring purpose.

• Unit C4 : Musician of Yu-Yu Ma ,he was lived C4 before 7 years old

• Unit C12 : A drama of well-known TV was shoot at C12 in 1970s

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C9
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C12
C6
C4
American military
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After renovation
Before renovation
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、 Ｃ 9 C11 Under construction

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Solar industry

The government is implementing the nuclear-free homeland policy and has announced three major policies: "achieve a nuclear-free homeland, ensure stable power supply and improve air pollution". Base on the polic es, i the government will g ve a ui f ll implementation of the commitments of measures to stabilize power supply. Hence we invested solar power system as core axis to focus.

Major solar installations around government or city hall buildings total 277 cases until July 2018. U-Tech hold Formosa Sun Energy Corp. stockshare 73.64% currently.

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Nantou county farmers association
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Elementary School
in Pingtung hsien
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Development strategy and business plan

• Replication optical disc industry is blocked due to multi alternative media. Keeping survive is our task.

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� Diversification toward to leisure and cultural creative fields to meet of consumers. lifestyle Links to old house project benefits from . synergy

� The trend is towards to clean energy ,we focused on government and city hall PV system installation market meets the energy policy of government and achieve economic scale growth.

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The End

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