ZIG SHENG — Annual Report 2018

Nov 22, 2018

Since 1969

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Ticker: 1455 TT

NOV 22, 2018

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COMPANY PROFILE

• 1969 Company established & DTY 1[st] plant start up

• 1992 DTY 2[nd] plant start up

• 1993 Listed on the Taiwan stock exchange

• 1997 ISO-9001 certified

• 1998 DTY 3[rd] plant start up

• 1999 Nylon spinning 1[st] plant start up

• 2000 Nylon polymerization 1[st] plant start up

• 2004 “Innovative R&D center” founded.

• 2005 Nylon polymerization 2[nd] plant start up

• 2006 Compounding plant start up

• 2007 OHSAS-18000 certified

• 2010 IATF 16949 certified

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10 PRODUCTION PLANTS
FIBER BUSINESS DIVISION
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3 DTY Plants
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DTY Plant Ⅰ DTY Plant Ⅱ DTY Plant Ⅲ
1969 1992 1998
2 Spinning Plants 1 ATY Plant
PA6 Spinning Nylon Spinning ATY Plant 2012
Plant Ⅰ , 1999 Plant Ⅱ , 2012
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• 2012 ATY plant, nylon spinning 2[nd] plant start up

• 2013 Nylon polymerization 3[rd ] plant start up

• 2014 ISO 14001 certified

• 2015 GRS certified

• 2016 Published 1[st] CSR report

• 2018 Established 878KW solar power plant

CHEMICAL MATERIALS DIVISION

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3 PA6 Polymerization Plants,
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1 Engineering Plastic Plant
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PA6 Polymerization PA6 Polymerization PA6 Polymerization
Plant Ⅰ ,2000 Plant Ⅱ , 2005 Plant Ⅲ ,2013
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4 MAIN PRODUCTS

Fiber Division Chemical Materials Division 3 Nylon6 / Polyester Filament Vertical Integration 1 Nylon6 Chip 4 Nylon/Polyester DTY/ATY 2 Engineering Plastic PTA, MEG CPL Polyester Chip 1 Nylon Chip June 2019, 3 3 Nylon 2 Engineering Polyester POY Filament Plastic Plant Start Up 4 Polyester 4 Nylon DTY/ATY DTY/ATY

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TAIWAN MARKET SHARE

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Fiber Division Chemical Materials Division
1.8%
7%
11%
19%
25%
81% 93% 75% 89%
Nylon Nylon
DTY/ATY EPLA
Filament Chip
Capacity (kt/yr) 50 53 200 12
Market share (%) 19 % 7 % 25 % 11 %
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Source: Taiwan Man-Made Fiber Industries Association, Taiwan Synthetic Resins Manufacturers Association

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SALES BREAKDOWN BY PRODUCTS 2018 Q1-Q3 Turnover : USD 402,200,000 (NTD 12 bn) FX：29.8 Fiber Division Chemical Materials Division

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DTY/ATY

Engineering Plastic 4.3 ％ Domestic 53.8％ Export - China 18.4%

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Domestic 81.6％ Export - China 8.9% 24.6 ％ - Others 9.5% 55.6 ％ 15.5 ％

• Others 27.8%

Nylon Chip Domestic 30.3％ Export - China 31.8% - Others 37.9%

Nylon Filament

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• Domestic 84.1％ Export - China 4.2% - Others 11.7%

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INCOME STATEMENTS

	INCOME STATEMENTS
Unit：NTD million I T E M 2018 2017 2017 Tot (1-9) Tot (1-12) Tot (1-9) Amount % Amount % Amount % Operating Revenue 12,016 100 14,975 100 10,970 100 Gross Profit 575 4.8 836 5.5 495 4.5 Operating Expenses (399) (3.3) (515) (3.4) (367) (3.3) Operating Profit 176 1.5 321 2.1 128 1.2 Non-operating Income & Expenses 207 1.7 88 0.6 68 0.6 Profit Before Income Tax 383 3.2 409 2.7 196 1.8 Tax (Exp) Gain (45) (0.4) (48) (0.3) (16) (0.2) Profit after Income Tax 338 2.8 361 2.4 180 1.6 EPS ( NTD ) $ 0.55 $ 0.59 $ 0.29
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FINANCIAL INDEX

Unit: NTD 100 million

	FINANCIAL INDEX
ITEM 2018 Q1-Q3 2017 2016 2015 2014 Receivables 24.61 24.92 23.38 15.41 17.12 Inventory 30.08 25.05 17.36 19.63 26.59 Fixed assets 49.48 55.26 59.39 64.09 67.08 Total assets 124.48 121.19 114.77 114.70 124.67 Long short-term loans 27.10 21.29 19.40 22.61 25.62 Capital 61.18 61.18 61.18 61.18 61.18 Operating revenue 120.16 149.75 130.45 149.91 181.70 Profit after Income Tax 3.38 3.61 2.08 1.32 0.57 Profit margin after tax 2.8% 2.4% 1.6% 0.9% 0.3% ROA 2.9% 3.1% 1.9% 1.4% 0.8% ROE 4.4% 4.7% 2.8% 1.8% 0.8% EPS(NTD) 0.55 0.59 0.34 0.22 0.09 Liabilities ratio 36.9% 35.9% 34.0% 34.8% 40.1% Current ratio 150.5% 144.3% 133.4% 180.1% 143.2% Book value per share(NTD) 12.8 12.7 12.4 12.2 12.2 Unit: NTD 100 million
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PRODUCT THAT CONTAINS ZIG SHENG MATERIALS

• FIBER DIVISION

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• CHEMICAL MATERIALS DIVISION

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FUTURE PROSPECT

A. Respond to environmental-friendly product trend, we will expand nylon recycle (GRS) products, strengthening the vertical integration advantage, and to reach higher added value of products to increase overall profitability.

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FUTURE PROSPECT

• B. Installation of polyester filament production lines with the following benefits:

• To secure supply of raw material for polyester draw textured yarn.

• Vertical integration with the draw texture yarn, we will develop our own technology for more differentiated products, such as fine denier, functional and environmental - friendly products, increasing the opportunity to connect with brand customers.

• Help to control inventory.

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FUTURE PROSPECT

C. Stronger promoting differentiated products, including ZIScollageN, Recycled product, Nicecool nylon, solution dyed yarn etc.

• D. Strict inventory control to reduce market fluctuation risk.

E. Strengthen oversea sales and decrease dependence on the China market.

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THANKS

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