U-TECH — Interim / Quarterly Report 2019

Dec 4, 2019

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Stock code ： 3050

鈺德科技股份有限公司 U-Tech Media Corporation Y19 Earning Conference Dec.05.2019

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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 shall not rely solely on this presentation for making investment 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 Location

• Certificated Status

• Company Advantage

• Financial Structure

• Investment

• Developing strategy and Future Business plan

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Operating Location

 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

• Oversea: South Korea

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Operating Location

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U-Tech Hua-Ya
Headquarters
U-Tech
Korea
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Certification Status

• Certified by McDonald's Social Responsibility Certification in the highest grade "Green Level“

• ISO9001, ISO14001, OHSAS 18001 Certification

• Qualified by SONY Green Partner in environmental quality assurance

• BDA (Blu-ray Disc Alliance) BD25/BD50 certification

• The 1[st] disc manufacturer Certificated by International Toy Industry Association (ICTI)

• The 1[st] CDSA (IRMA) Anti-Piracy Compliance Program certified plant in Asia

• Qualification of class “B” DVD test lab by DVD Forum

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Company Advantage

• One of largest pre-recorded media factory in Asia

• Contractual pre-recorded disc manufacturer in the Asia Pacific with the Hollywood Studios

• Offload Partner with major Replicators in the world  The only one pre-recorded disc media factory providing one-stop integrated services in South East Asia

• Provide full range of Disc Copy Protection service

• The only Blue-Ray Disc manufacture in Asia except Japan

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－ Financial structure Income Statement

In NT$,000s

Item Year Year 2016 Year 2017 Year 2018 Q3 Year 2019 Sales revenue 948,476 815,563 790,567 750,107 Cost of goods sold 603,948 572,954 566,891 456,095 Gross profit 344,528 242,609 223,676 294,012 Operating expense 220,182 226,452 182,770 156,173 Operating profit（loss） 124,346 16,157 40,906 137,839 Non-operating income/exp. （27,095） 125,249 28,571 5,487 Pre-tax income（loss） 97,251 141,406 69,477 143,326 Income tax 9,876 12,602 6,584 10,181 Net income（loss） 87,375 128,804 62,893 133,145 Basic EPS 0.57 0.86 0.41 0.87

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－ Financial structure Financial analysis

			Year 2016	Year 2017	Year 2018
	Financial structure	Debts / Assets(%)	23.62	23.46	44.23
		Long-term capital / fixed assets(%)	250.67	283.19	173.14
	Solvency	Liquidity ratio(%)	187.23	308.60	206.49
		Quick ratio(%)	178.06	296.45	196.72
		Interest Protection Multiples	11.76	18.39	6.76
	Operational capacity	AR overturn (times)	5.41	5.07	5.34
		Average collection period (days)	67.46	71.99	68.35
		Inventoty overturn (times)	13.69	12.33	11.22
		Average sales period (days)	26.66	29.60	32.53
		Fixed asset overturn (times)	0.97	0.87	0.53
		Asset overturn (times)	0.32	0.27	0.22
	Profitability	ROA(%)	3.15	4.55	2.02
		ROE(%)	3.88	5.66	2.72
		Pre- tax income / actual capital ratio(%)	6.40	9.69	4.76
		Net income ratio(%)	9.21	15.79	7.96
		EPS	0.57	0.86	0.41
	Cash flow	Cash flow ratio (%)	26.07	21.33	22.35
		Cash flow allowable ratio (%)	333.04	224.46	136.35
		Cash flow re-invest ratio(%)	0.31	0.91	0.75

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Investment

Optical disc manufacturing

Cultural industry

Renewable energy Wine industry

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Investment

 Cultural industry

• Cooperation with Taipei city Government “ROT” the historic buildings in Yang-Ming Mountain. Developing the America Club & Grass Mountain Old Town Cultural Park , supporting and .

• developing the cultural and creative business

• Renewable energy

• Supporting the government's energy policy and strengthen the operational structure through the integration of the Groups’ resources.

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Cultural industry

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C9
C11
C10
OLD TOWN
C12
C6
C4
America club
(Brick Yard 33 1/3)
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Cultural industry

Provide a recreational area for people in the North District.

Rebuilding the collapse building to revitalize the old house and give new life. Landscape gardening to rebuild the surrounding environment Inheriting the soul of music - vinyl story library.

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America club(Brick Yard 33 1/3)

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OLD TOWN

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Renewable energy Supporting the government's low carbon policy. Set up the solar power plant Unique appoach, all the solar panel build on government building and school. Up to date, total 309 solar plants with a total generation capacity in 63.26 MW and 44.24 MW have been completed and working in good conditions.

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Rich experience in solar plant

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Developing strategy and Future Business plan

 Impacted by the broadband Internet, content could be viewed in different ways. The digital content business is growing up day by day. Currently, our physical media strategy is focus on “survival”, keeping on the 1[st] place position in the industry. And try to find the synergy relative business in digital post production, CG and VFX.

• Focus on the regional development of the America Club (Brick Yard 33 1/3) and “Old Town”, Build a operations team for future development.

 Continue to cooperation with government to build the solar plant in public and government own building. Try to development large solar plant in the land or lake. To build the team to maintenance and operation in the island wide. We expect the scale of the capacity & operations will growth.

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The End