Y.C.C. — Annual Report 2014

Mar 27, 2015

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Global Major Automotive Parts Supplier
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Index: 1 Cor orate Introduction p 2 Industr Overview y 3 Corporate Performance 4 Research & Development Competitive Advantages 5 6 [Operation & Developing Strategy] 7 Goals & Vision

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1 Corporate Introduction

1.Company Information 2. Company History 3. Business Philosophy 4. Main Products and Raw materials

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1. Corporate Introduction

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Company Information

Company Address ： No.8 Xingye Rd., Lukang Town, Changhua County, Taiwan, R.O.C.

Founded Date ： March.7, 1986 Main Products ： Auto Parts Manufacturing and Sales Paid in Capital ： $ 759,259 thousands NTD Number of Employees ： 301 (updated to Feb.28, 2015) President ： Lin Shi-Yun Chief Executive Officer ： Lin Yi-Hong

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1. Corporate Introduction

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Company History

• 1986 Founded in Taipei Shu-lin/Paid in Capital ： 1,000 thousands NTD

• 1989 Computerized operations launched

• 1990 – Certificated by ISO9001/QS9000

• Production line certificated by American Association of CPA

• 2001 Product certificated by USA CAPA Association

• 2003 Certificated by USA MQVP

• 2004 - Moved to Lukang

• Set up warehousing & logistics systems and enabled

• ERP system launched

• 2005 Set up automatic electroplating production line

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1. Corporate Introduction

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Company History

• 2006 Set up Second Injection Factory, Office building and dormitory

• 2007 Added 30 container terminals enabled

• 2010 Set up Mold factory/ laboratory certificated by ISO17025

• 2012 Public offering of stock and listed

• 2013 Third injection facility enabled

• 2015 Acquired 75.765 % of China First Holdings Limited share (in progress)

• 2015 Cash capital increased issuance of new shares 10 million shares,

NT$ 10 per share denomination, totaling NT $ 100 million

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1. Corporate Introduction

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Operation Philosophy

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SINCERITY
INNOVATI ON PRAGMATIC
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1. Corporate Introduction

Main roducts and Raw materials p

Main Product	Main purpose or function	Material
Bumper	The overall exterior styling of the vehicle, Ensure the safety of vehicles	ABS and PP Plastic material
Grille	Enhance the beauty of vehicle body, directs air into the engine room for cooling.
Air Deflector	The overall exterior styling of the vehicle, maintain smooth ride.
Head Lamp Mounting bracket	Installation of headlights, strengthen the structure.

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2 Industr Overview y

1.Industry Introduction and Supply Chain 2. YCC's industry position

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2. Industry Overview Vehicle & Auto Parts (OE) Industry Chain

• (in progress) Plastic and Glass Industry • Steel Industry

• • Petrifaction Industry

• • Electrical Machinery Industry

• Tier 1 • Electronics Industry Auto Parts

• Tier 2

• Electrical Machinery Industry

  • Vehicle Manufacturers

Manufacturer

• Vehicle Maintenance Venders (incl.

• traders )

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2. Industry Overview

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Sources: http://www.sumitomocorp.co.jp/english/ir-report/2014/strategy/feature.html

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2. Industry Overview

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Sources :[http://www.altenergystocks.com/archives/clean_transportation/plugin_vehicles] /

2. Industry Overview

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Sources: https://www.thedollarbusiness.com/wheeling-and-dealing-in-auto-components-on-the-global-highway/

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2. Industry Overview

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Auto Parts (AM) Industry Chain

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First Level Plastic Material
(ABS, PP, etc.)
Second Level
Auto Parts
(Bumper, Grille, Air Deflector, and
Head Lamp
Mounting Bracket)
Last Level
Exporters
Distributors
Retailers
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2. Industry Overview

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Auto Parts (AM) Industry Chain
Y.C.C. – Key Supplier for AM Parts
Market Share Growth
Revenue Growth
Products rich
Global Sales Channel
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2. Industry Overview

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Auto Parts (AM) Industry Chain Y.C.C. – Key Supplier from to OE Quality upgrade to OE OE Suppliers

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3 Corporate Performance

1. Revenue status over the years

2. Profit and loss situation over the years 3. EPS status over the years

3. Dividend payout status over the years

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3.Corporate Performance

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Revenue status over the years
(Unit : NTD thousand dollar)
1,439,884
1,400,000 1,222,786
1,157,780
1,120,959
1,060,219
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2010 2011 2012 2013 2014
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3.Corporate Performance

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Sales status and Profit analysis

1,000 NTD

ITEM YEAR	2010	2011	2012	2013	2014
Revenue	1,060,219	1,120,959	1,157,780	1,222,786	1,439,884
Margin	299,575	333,008	382,849	411,827	517,547
Gross Margin Rate	28.26%	30%	33%	34%	36%
Net Profit	92,462	171,102	168,470	220,130	301,050
EPS	1.64	2.84	2.63	3.33	4.57

Remark: EPS was lower in 2010, it is caused by impairment loss and recognized exchange rate losses, which was follow the provisions of Bulletin No. 35.

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3.Corporate Performance

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EPS (after tax)

Thousand NTD

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4. 57
4.5
300,000 301,050
4
250,000 3.33 3.5
2.84 220,130 3
2.63
200,000
2.5
171,102
168,470
150,000 2
1.64
1.5
100,000 92,46 2
1
50,000
0.5
- 0
2010 2011 2012 2013 2014
Net Profit EPS
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Remark: EPS was lower in 2010, it is caused by impairment loss and recognized exchange rate losses, which was follow the provisions of Bulletin No. 35.

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3.Corporate Performance 股利政策

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Dividend payout status over the years NTD/Stock

Year	EPS	Cash Dividend	Stock Dividend	Additional Paid In Capital Dividend	Total Dividend
2009 (assigned by 2010)	2.35	1.5	X	X	1.5
2010 (assigned by 2011)	1.64	0.95	1.55	X	1.5
2011 (assigned by 2012)	2.84	1.5	X	X	1.5
2012 (assigned by 2013)	2.63	1.5	X	X	1.5
2013 (assigned by 2014)	3.33	1.5	X	X	1.5

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4 Reach & Develo ment p

1.R & D Result 2.Future Developing Plan 3.Focus on Robotic & Turn-Key Automation

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4.Reach & Development

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R & D Result - I Automatic Packing Machine with Patent registration

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Plastic bag making machine Bubble Bag Making Machine
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Own packaging material factory automation

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4.Reach & Development

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R & D Result - II Process automation improvements

Automatic Assembling Line

Automation Plating Line

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4.Reach & Development Future Developing Plan Continued to improve the mechanism of mold and retooling system, shorten the molding and changeover times– Cost Down Continuous process improvement, set up intelligence factory by automation and robotic equipment.

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4.Reach & Development Future Developing Plan Provide the Turn-Key total solution from mold making, automation molding, painting, grinding, logistic and shipping to service our customers with high quality and just in time.

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5 Competitive Advantages

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5. Competitive Advantages

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YCC -- Key Successful Factor

YCC powerful mold development ability, a small variety of flexible production management capabilities, is KSF in the development of an international supplier of collision.

YCC had been an international Car collision parts supplier, it was caused by teamwork established the operation strategy and running by the leadership of chairman and general manager, to pool resources and create favorable conditions for access to international markets, the flexibility to choose the most suitable model of international development. YCC will merge or invest the partner of automotive related –parts to increase profit and revenue, cumulative resource capacity, etc for customers to enhance the competitive position of the industry, and gradually achieve the greatest advantage. YCC will improve production efficiency continuously through internal and external resources combined to achieve rationality, improve operational efficiency and enhance market competitiveness.

YCC will grasp the future development of a strong growth potential in emerging markets, and actively cut into large international OEM parts depot supply chain.

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5. Competitive Advantages

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Molding Tech.
Customers Developing Painting Tech.
& Management
Plating Tech.
Order & Shipping
Management
Mold Making Tech.
CRM
Automation Tech.
Core Competitiveness
Production
Managing
Just In Time
Managing
Supply Chain
Managing
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Production Management
Production Tech.
Market & Sales
Market & Sales Production Tech.
Managing
Production
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5. Competitive Advantages QCDS

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Global Sales Team & Channel partners

Accumulated over thousand sets of molds and dozens of mold cooperation third plant.

High self-made from raw materials to finished the whole process Warehousing, logistics and transportation

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5. Competitive Advantages QCDS

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International Sales channel partners and Global marketing team

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5. Competitive Advantages

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Acquired NSF laboratory certification. Build own mold factory and apply CNC machine tool to shorten the time of mold making and cost down.

Own complete production line and equipment to meet customer needs suitably.

Continuously to develop equipment and automation production line, to prevent competitor entering market through these higher barrier Our technologies of Mold making has reached the level of OE with enough capacity.

YCC had over 30 years professional experiences in product developing and mass production with accumulated thousands sets of molds.

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6 Operation & Developing Strategy

1.Winning strategy 2.Expand production capacity & Merging 3.Synergy— Sales & Marketing Platform 4.To enter the OE supply chain through merging

5.Deepen and expand automotive parts supply through merging

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1. Operation & Developing Expand production capacity & Merging Expanding Revenue Growth Investment Merging

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Vehicle Maker

6. Operation & Developing

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OE Supplier Synergy— Sales & Marketing Platform AM Supplier

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6. Operation & Developing

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External Investment Strategy and On going plan

75.765% stock share

YCC China First Holdings Limited

100% stock share Subsidiary Changshu Guanlin

Changshu Guanlin Automotive Trim Co., Ltd. is a company based in Changshu and specializing in the production of auto parts enterprises. Guanlin Motors was founded in 2005 June, product platform is vehicle interiors parts, main process and technologies are molding, oil and water spraying, laser carving, printing, fluoride treatment, leather coating auto parts technology. Set 2 sets of advanced processing equipment - dry ice processing and washing treatment in 2011, Guanlin has committed to providing the best service to customers always.

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1. Operation & Developing External Investment Strategy and On going plan Guanlin’s main clients and some of product line

Transmission Air Bag Cover Air Outlet Parts OE Supply to

6. Operation & Developing

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To enter the OE supply chain through mergers or Investment The cooperation plan between Guanlin and Foxconn Group – Innolux

Changshu Guanlin

Mechanism for Automotive LCD system

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InnoLux has been first player in Auto LCD (2013)

Resources: http://www.chinatimes.com/newspapers/20131219000126-260204

7. Goals & Vision

Our Goals and Vision

•Become one of the major suppliers in global automotive parts (AM & OE) market. •Being the best choice of every customer.

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