2017 法人說明會

宜進實業股份有限公司

Yi Jinn Industrial Co., Ltd.

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Yi Jinn

Hung Chou

Kwang Ming

Conclusion Q&A

Introductions、Manufacturing

Capacity and Output、Income statement

簡報內容方式

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Institutional investors of 2017

宜進實業股份有限公司

Yi Jinn Industrial Co., Ltd.

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Introduction of Yi Jinn

• Establishment：1981

• Concept：Innovation, Integrity, Growth and Collaboration

• Main Operation: Business of man-made and nature fiber, real estate

• Purchase factory in Tainan(2011), which produce POY&DTY。

• Acquisition Kwang Ming by stocks (2013) in 46.56%

• Acquisition Hung Chou by stocks (2015) in 40.57%

• Capital：NTD3 billion

• Revenue in 2016：NTD4.6 billion

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Construction

Shareholders

Supervisor

Board of directors

Interior audit

Chairman

CEO

CEO room Accountant Sales Tainan Out sourcing

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加工絲假撚製造過程

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Yi Jinn-Tainan factory

Facilities Amount

Murat 33H single-ply 2

Murat 33H double-ply 2

Barmag M900 1

Barmag M80 3

TMT ATF-21 4

TEIJIN HTS-1500 8

•Total facilities：20 •Average operating：13 •Monthly average capacity：1,700 ton

Main product：DTY

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Out source processing

Out sourcing：industrial TAPE

Application：facility of aviation and transportation

Area：USA, Japan, France…etc.

Selling volume：154,538 thousand yards in 2015

145,824 thousand yards in 2016

114,896 thousand yards in

2017(Jan~Sep)

Business proportion：38%

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Income statement of Yi Jinn

Unit：thousand NTD 2016 % First half of 2017 %

Sales revenue 4,582,499 2,480,288

Costs 4,292,634 2,224,783

Gross profit 289,865 6 255,505 10

Profit 33,932 58,432

EPS 0.26 0.09

Unit：thousand NTD

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Institutional investors of 2017

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Introduction of Hung Chou

• Establishment：1968

• Set up on Dihua street

• Produce and sale POY

• Acquire by Yi Jinn in 2015

• Relocate in Neihu district in order to have better

development

• Capital：NTD1.3 billion

• Revenue in 2016：NTD2.2 billion

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Construction

Shareholders

Supervisor

Board of directors

Interior audit

Chairman

CEO

CEO room Accountant Sales Guishan factory

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聚酯纖維製造

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2017/11/8 宜進實業股份有限公司

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EG

chips SSP Chips

Staple

POY

PTA

DTY

Polymer

Spinning

Spinning

Solid-state

polymerization

Melt

Direct

Spinning

聚酯纖維製造過程

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Hung Chou- Guishan factory

Facility Amount

Polymerization 1 line

POY production line 20 line

•Polymerization capacity：9,000T/month Recent output：7,200T/month •POY production line capacity：8,000T/month Recent output：6,570T/month

Main product：

Poly chip & Poly fiber

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Income statement of Hung Chou

Unit：thousand NTD 2016 % First half of 2017 %

Sales revenue 2,192,734 1,578,484

Costs 2,188,940 1,517,385

Gross profit 3,794 - 61,099 4

Profit (62,606) 22,152

EPS (0.47) 0.17

Unit：thousand NTD

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Kwang Ming

Institutional investors of 2017

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Introduction of Kwang Ming

• Establishment：1966

• Set up in Beitou and Taoyuan

• Relocate in Taipei City in 1995

• Main business: man-made cotton, nylon, silk…etc.

• Acquire by Yi Jinn in 2013

• Expand Fiber Production Division in 2015,become upstream manufacturer. Start to produce and sale DTY

• Capital：NTD400 million

• Revenue in 2016： NTD960 million

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Construction of Kwang Ming

Shareholders

supervisor

Board of directors

Auditorail room

Chairman

CEO

Administrative department Fabric production division Fiber production division

Remuneration committee charter

CEO room Planning department

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加工絲假撚製造過程

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Kwang Ming-織造事業部(Guanyin factory)

Facility Amount

Air-jet loom 105

Water-jet loom 36

Analyzing facility 10

•Main product：100% poly-woven fabric •Business proportion：30%

•Output of 2016：19,500 thousand yards •Monthly average output： 1,200 thousand yards

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Kwang Ming-纖維事業部(Guishan factory)

Facilities Amount

TMTATF-12 4

TMTATF-21 8

MURATA 33H 5

BARMAG-M80 3

•Total facilities：20 sets •Average operating：15 sets •Monthly average output：1,400 ton

Main product：DTY

Business proportion：66%

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Income statement of Kwang Ming

Unit：thousand NTD 2016 % First half of 2017 %

Sales revenue 962,458 550,429

Costs 886,902 490,248

Gross profit 75,556 8 60,181 11

Profit 23,120 34,561

EPS 0.63 0.85

Unit：thousand NTD

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.High innovation, low cost, strong international marketing .High ambition .Flexible operating and vertical integration .Improvement of techniques, lower operating cost to maintain competitive advantage

.Increasing of domestic and Asian markets .Develop both F fabric (fashion and function), to be more competitive. Combination of upstream and downstream industries, easy to develop innovative products

.Too focus on common products .Mainly focus on production, fewer crucial techniques .Hard to make market segment .Hard to join international organization, trading being obstructed

.Low price: highly competitive with South-east country, China and Korea .High price: high competitive with European country, USA and Japan .Low Tariff protection, easily be dumped

(S) Strength

(W) Weaknesses

(O) Opportunities

(T) Threats

SWOT analysis

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Yi Jinn has been engaged in fiber industry for 36 years, from the peak to the growth, maintain our spirit of integrity and collaboration by keeping research and development. Integrate raw material, DTY and production of cloth by acquiring Kwang Ming and Hung Chou.

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參與美國知名37.5™ 特殊火山紗聚酯纖維生產供應鏈，加強與世界衣著品牌商接軌。

Recover faster, save energy, perform at a higher level and feel more comfortable in a wider range of environments.在不同的環境氣候下讓體力消耗的較少，恢復的更快，表現的更好，讓身體感覺更舒適。

37.5® is a comfort technology that improves human performance.37.5TM技術可以讓身體表現出更佳、更持久的體能

37.5 C Optimum core temperature for performance

讓身體更有效地維持理想的核心溫度37.5 % R.H. Optimum microclimate next to skin for comfort

讓皮膚表面的微氣候保持在最佳相對濕度

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Global Trend Agency Stylus

published a report on

Fashion in Climate Change,

citing 37.5® technology as

the answer in fabrics.

Global Trend Agency Stylus

出版了一份關於服裝時尚與全球

氣候變遷的報告中，指出37.5科

技將會是現今及未來衣著布料的

答案。

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37.5® Supplier

Requirements

1. Quality 品質

2. Integrity 正直

3. Intellectual Property

Protection 知識財產保護

4. Fair Pricing 合理的價格

5. Customer Service 客戶服務

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Concept of leading

Chairman Cheng-Tien Chan

Maintaining the attitude of innovation,

integrity, growth and collaboration from 1981.

Assistance and trust between relations of labor and

capital makes company stronger and stronger.

Our company keep developing high quality and

highly adding value products. We would improve our

production, and integrate upstream and lowstream in

the future, becoming much stronger Yi Jinn.

Position：Chairman of YiJinn, Hung Chou and Kwang Ming

Chairman of Taiwan Textile Federation 14th & 15th

B.O.D. Taiwan Man-made Fiber Industries Association

B.O.D. Chinese National Federation of Industries

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Thank you for listening!

Q & A