Transform & Insist Move to our future. Investor Conference

Transcription

1 Investor Conference

2 Outline Company Introduction

3 Main shareholders Company Introduction RECHI was established in Dec 19, 1989 Human Resources: 6171 members (Until Dec 31, 2017) 2017 revenue NT$ 19,827 mn SAMPO Corporation 26.43% China Steel Corporation 4.66% Sharp Corporation 4.62% Others 64.29% Until June 30, 2018

4 Company Introduction Organization structure RECHI PRECISION CO., LTD 100% 100% 45% Rechi Investments Co., Ltd. Rechi Holdings Co., Ltd. Dyna Rechi Co., Ltd. 100% 100% 100% 100% Rechi International Holdings Co., Ltd. Rechi Investments Holdings Co., Ltd % 100% Dyna Rechi Holdings Co., Ltd. 100% 100% Dongguan Rechi Compressor Co., Ltd. GR Holdings (Hong Kong) Limited Rechi Precision(Qingdao)El ectric Machinery Limited TCL Rechi (Huizhou) Refrigeration Equipment Company Limited Rechi Precision(Jiujiang) Electric Machinery Limited 64.5% 100% 50% 50% 67.86% 25% 35.5% Rechi Refrigeration Dongguan Co. Ltd. Qingdao Rechi Electric Machinery Sales Company Rechi Precision (Huizhou)Mecha nism Company Dyna Rechi Jiujiang Co., Ltd.

5 Company Introduction Location of facilities & Production Capacity Cover area : 298,149m 2 Cover area : 151,016m 2 Cover area : 29,652m 2 JR/DRJ QR KR Compressor Current capacity Final capacity 6 million 8 million Compressor Current capacity Final capacity 9 million 12 million HQ and R&D center Sales head office in Non CHINA Pomp 3 million Osaka Houston BLDCM Current capacity Final capacity 3.5 million 21 million North China service center Japan liaison office U.S.A. liaison office Central China service center Motor HR 5 million Compressor Current capacity Final capacity 6 million 10 million TR Sales head office in CHINA South China service center BLDCM Current capacity Final capacity DR 1.5 million 3 million India service office Thailand service office Cover area : 34,194m 2 Cover area : 160,000m2 Cover area : 20,000m2 Pune Bangkok 5

6 Milestone of RECHI Company Introduction Accumulative Sales Quantity reached 100 million sets. Established Jiujiang factory in CHINA Set up Japan liaison office DYNA RECHI (Pingtung factory, Jiujiang factory was setup) Set up Thailand service office Formed a joint venture with CSC Established Huizhou Established Qingdao factory in CHINA Group and established CSMQ factory in CHINA Established Humen factory in CHINA Set up U.S.A. liaison office Established Guanyin factory in TAIWAN IPO in TAIWAN (4532) CSC Group joined as one of our major shareholders SHARP Set up India service office joined as one of our major shareholders 6

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8 Company Introduction Revenue growth of RECHI Unit : k 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Accumulative Sales Quantity reached 100 million sets. Annual Sales Quantity exceeded 10 million sets. Annual Sales Quantity exceeded 17 million sets. 17,657 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Unit : NT$ mn 25,000 20,000 15,000 10,000 5,000 0 Production Sales Reveunue Until Dec 31, 2017 Cumulative Production: 154,786,056 sets Cumulative Sales: 153,349,811 sets

9 Revenue growth Company Introduction Unit : NT$ mn Revenue Growth YoY 20,000 16,794 15,285 15,000 12,587 18,127 16,473 15,630 17,674 19,827 % 100% 80% 60% 10,000 5,000 8,136 9,493 6,922 40% 20% 0% -20% 0 Margins 07" 08" 09" 10" 11" 12" 13" 14" 15" 16" 17" Gross margin Operating margin 20.8% 17.0% 16.5% 17.4% 17.1% 14.2% 13.0% 11.2% 15.1% 10.3% 9.1% 7.7% 8.8% 6.2% 8.0% 5.4% 6.2% 7.3% 7.2% -40% -0.9% -0.9% -2.9% 07" 08" 09" 10" 11" 12" 13" 14" 15" 16" 17"

10 ROE & ROA Company Introduction 20% 14.6% 14.6% 15% 10.0% 10% 8.1% 7.5% 7.2% 5.5% 5% 0.6% 5.6% 0% -1.7% -5% -3.6% -5.5% -10% Operating CF & Capex Unit : NT$ mn 14.4% 12.6% 12.6% 11.0% 9.1% 6.1% 6.3% 6.8% 4.7% 4.9% ROE ROA 07" 08" 09" 10" 11" 12" 13" 14" 15" 16" 17" 2,063 2,054 1,690 1,659 1,550 1,334 1,238 1,246 1, " 08" 09" 10" 11" 12" 13" 14" 15" 16" 17" -57 Operating CF CAPEX

11 Dividend policy Company Introduction EPS (NT$) Cash DPS (NT$) Payout ratio (%) Cash yield (%)* * Based on share price on following year closing before ex-dividend day

12 Income statement Company Introduction Unit in Thousand NT$ 2018H1 % 2017H1 % YoY % Sales volume 10,419,167 9,014,807 1,404, Sales revenues 12,582, ,035, ,546, Cost of finished goods (Material and labor) -10,621, ,447, ,173, Gross margin 1,960, ,588, , Operating expenses -882, , , Income(Loss) from operations 1,078, , , Total non-operating income and expenses -8, , , Income before tax 1,069, , , Income tax -347, , , Income after tax 722, , , *Consolidated financial statements have been reviewed by the CPA firm of Deloitte & Touche

13 Balance sheet Company Introduction Unit in Thousand NT$ 2018H1 % 2017H1 % YoY % Cash and equivalents 2,844, ,668, ,175, Accounts receivable,net 11,156, ,961, ,195, Inventories 2,114, ,024, ,124 4 Property,plant and equipment,net 6,513, ,706, , Other assets 4,781, ,249, , Total assets 27,410, ,610, ,799, Total current liabilities 14,137, ,034, ,102, Long-term liabilities 3,117, ,256, , Other liabilities 671, , ,932 9 Total liabilities 17,926, ,905, ,020, Total stockholders' equity 9,483, ,704, ,693 9 *Consolidated financial statements have been reviewed by the CPA firm of Deloitte & Touche

14 Company Introduction Cash flow statement Unit in Thousand NT$ 2018H1 2017H1 Cash, beginning of year 1,875,853 2,608,828 Net cash provided by operating activities -57, ,432 Cash flow from investment activities -1,036, ,100 (Decrease) increase in short-term loans, net 1,225,420-1,645,737 (Decrease) increase in long-term loans, net 900,000 1,190,000 others -63,838 21,475 Cash, end of year 2,844,329 1,668,898 *Consolidated financial statements have been reviewed by the CPA firm of Deloitte & Touche

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16 Company Introduction The market trend of Global A/C Unit:10k 300, % 40% 250,000 30% 200, , , , % 9.2% 133, , % 114, , , , , % 6.2% 6.2% 20% 10% 0% Sales Growth YoY 線性 (Sales) 50, % (F) 2019(F) 2020(F) -10% -20% Global A/C Reference : IOL, HENGTA, GI 16

17 Company Introduction The market trend of rotary compressor in CHINA Unit:10k 300, % 250, % 220, , , % 25.0% 200, , , % 129, , % 133, , % 192, % 15.0% 10.0% 5.0% 0.0% sales Growth YoY 線性 (sales) 50, % (F) 2019(F) 2020(F) CHINA rotary compressor -5.0% -10.0% -15.0% Reference : IOL

18 Company Introduction The market trend of BLDC Motor in CHINA Unit:10k 300, % 250, , % 22.4% 29.2% 30.0% 25.0% 20.0% 150, , % 83, % 95, % 108, % 122, % 10.0% 5.0% Sales Growth YoY 線性 (Sales) 50,000-51,690 56,570 52, % 64, % -5.0% -10.0% (F) 2019(F) 2020(F) CHINA BLDC Motor Reference : IOL

19 Company Introduction The top 6 of rotary compressor makers in CHINA Unit:10k 70,000 60,000 61,010 50,000 40,000 30,000 20,000 10,000 49,620 44,080 42,410 35,020 36,130 33,310 30,550 27,210 18,106 18,315 16,499 15,114 15,084 12,368 13,513 12,380 10,340 11,010 8,870 8,601 5,740 6,280 5,540 6,026 46,817 24,273 17,657 10,820 7,770 GMCC LANDA HIGHLY RECHI PANASONIC LG Reference : IOL

20 Company Introduction RECHI Sales : Geographic distribution RECHI Sales : Application distribution Taiwan, 1.6% Korea, 0.8% India, 1.8% Middle East, 2.4% Japan, 4.0% S American, 5.3% 合計 Split-Type A/C Heat Pump Dryer Split-Type DC inverter A/C 13.5% 13.3% 36.9% Portable A/C 11.0% Europe, 24.7% N American, 24.0% SE Asia, 15.1% China, 20.4% Korea Taiwan India Middle East Japan S American SE Asia China N American Europe Window A/C Dehumidifier P tac A/C Unitary A/C Roof-Top A/C Cooling equipment (Industrial Heat Pump Water Heater 9.8% 7.0% 3.8% 2.8% 1.1% 0.7% 0.1% 0.0% 20.0% 40.0% Owns complete global marketing channels and serviced 28 countries,148 Clients Reference : 2017

21 Development strategy

22 Company Introduction Pursue Create Market Demand Technology Innovation THE STRATEGY OF VALUE REVOLUTION Opportunities for new energysaving markets New energysaving products 22

23 Company Introduction Compressor (Unit: 10k) 30,000 Production capacity TR QR JR Development strategy High energy-efficiency : RECHI compressors can meet the various international energy efficiency standards.. 25,000 20,000 6,000 6,000 6,000 4,000 2,000 15, ,000 12,000 10,000 9,000 9,000 9,000 9,000 9,000 5,000 6,000 6,000 6,000 6,000 6,000 6,000 6, (F) 2020(F) Compressor Larger size : Cabinet A/C Unitary A/C VRF systems and commercial-use medium/large-sized split type A/C. Smaller size : Portable type Cooling in small space Heating and Dehumidifier application. Less noise: To pursue extremely low noise levels, RECHI have attained various patents and implemented the innovative techniques. Application :Heat pump dish washer and Electric car application and so on.

24 Company Introduction BLDC Motor Production capacity Development strategy (Unit: 10k) 10,000 8,000 DRJ DR 1,500 Production Maximization : Focus on A/C Air Purifier Gas Water Heater BLDC motor and develops speedily. 6,000 4,000 2,000-1,500 1,500 7,500 1,500 5,500 3,500 1, (F) 2020(F) BLDC Motor Subversive innovation product : Industrial BLDC motor smart DC fan and so on. innovation of technology: Active component of drive-motor AIOT and so on.

25 Subversive innovation Now Core business 2019 RHCHI 30th Company Introduction Future Value Innovation Compressor BLDC Motor The business model of Subversive innovation products and Core Technology The module products of inverter aircon COMP/Inverter module BLDCM/Fan module MINI SMART AIRCON SMART DC FAN Others (Subversive innovation products) Outdoor Unit Module Subversive innovation technology + AIOT 25

26 Create unlimited possibilities for the Energy Saving Industry. Become the top provider of proactive Energy Saving Product.