-Company Report- -...

Taiwan Hon Chuan Enterprise Co., Ltd.

-Company Report-

July , 2015 Stock Code：9939

Taiwan Hon Chuan Enterprise Co., Ltd. 1

• Company Profile


About Hon Chuan

Establishment Date: July, 1969

Public Offering: Mar. 2, 2001 on the Taiwan Stock Mainboard

Capital : NTD 3,098,478,790

Market Capitalization(2015/07/16): NTD 17.3 bn

Headquarter ：Taichung, Taiwan

International Quality Certificate：

ISO 9001 ISO 22001 HACCP GMP OHSAS 18001 TOSHMS

Taiwan

China

SE. Asia

1,192

2,504

877

122,900

533,665

38,696

Employee number Plant area(m2)

130,265 228,532

28,560

Plant floor area (m2)

4,573 695,261 387,357

Approved Certificate by COCA-COLA, PEPSICO, Uni-President FSSC 22000


THC

Samoa Hon Chuan

100%

100%

Hon Chuan China

Samoa Hong Hsing

Kai Gang

Taiyuan HC

Jinan HC

Changsha HC

Suzhou Hongxin

ChinShin HC

76.84%

Suzhou HC

Zhangzhou HC

100% 100%

Hon Chuan Asia

Indonesia HC

Thailand HC

Hon Chuan FD Packaging

Co. Ltd.

100%

100%

65%

100%

Vietnam HC

Malaysia HC

100% 100% 70%

Myanmar HC

Parent Company Pubic-listed in Taiwan’s main board.

100% 100% 100% 100% 100% 100%

Holding Structure

Kunming, Xian

Changchun, Zhenzhou,

Gonyi

Cambodia HC

60%


Production facilities (1/2)

TW Headquarter

PRC Regional

Headquarter SE. Asia Regional

Headquarter

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Taichu

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＊ In-House plant: Taiwan 5, China 8, SE Asia 6. (Total 19 In-House plants) THC total plants: Taiwan 9, China 16, SE Asia 14, Total 39 plants as of 2015.

Taichu

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ailand

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ietnam

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HC

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Malaysia H

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Ind

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Production facilities (2/2)

TW Headquarter

SE. Asia Regional Headquarter

＊X

ian

Gu

angd

on

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＊P

epsi K

un

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Zhan

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iantao

Suzh

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Ho

ngxin

Taiyuan

HC

Jinan

HC

Ch

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PRC Regional

Headquarter

＊ In-House plant: Taiwan 5, China 8, SE Asia 6. (Total 19 In-House plants) THC total plants: Taiwan 9, China 16, SE Asia 14, Total 39 plants as of 2015.


Sales (%) 62%

Beverage Packaging

Closure

Caps

Aluminum cap

Metal lug cap

PET Bottle, Preform

Bottle

LDPE shrinkable film for multipacks

Label

PET/OPS/PVC shrinkable label, OPP colorful label

Product


PET HF beverage filling / OEM

OEM

PET aseptic beverage

filling / OEM

Cigarette

類

Cigarette and Beer packaging material trade

Sales 31%

Sales 7%

Beverage OEM

Others

TR aseptic beverage filling /OEM


• Financial Information


Total

TAIWAN

CHINA

Currency： NTD Billion

Group Sales Revenue

SE. ASIA

17.2 16.6

15.5

13.7 12.5

10 9.3

6.9

5.4 4.2

3.6 3

2.3 1.5


TAIWAN

CHINA

The Rate of Group Sales Revenue

SE. ASIA


(NTD Million) 2014 1Q 2015 1Q YOY %

Revenue 4,331 4,154 -4.1%

COGS 3,656 3,399

Gross Profit 676 754 +11.5%

Op. Profit 298 330 +10.7%

Pretax Income 270 319 +18.1%

Tax 47 60

Net Income 223 259 +16.1%

Net Income attributable to parent company

224 253 +12.9%

After tax EPS 0.86 0.97

Income Statements (consolidated)

Notes: Non-Op. Income= gains( Interest income , Foreign exchange gains , Miscellaneous income..) –losses (Interest expense, Preferred stock liabilities dividends, Revaluation loss on financial assets..)


(NT Millions) 2014 2015

YoY% Jan.-June Jan.-June

Taiwan 3,749 3,460 -8%

China 3,821 3,712 +0.4%

SE. Asia 1,724 1,978 +14%

Total 9,294 9,150 -0.3%

2014 Group sales revenue


2015 Jan.-June 2014 FY

Sales Construction- Taiwan Region


Key Customers in Taiwan


Sales Construction- China Region



Key Customers in China


Sales Construction- SE. Asia Region



Key Customers in SE. Asia


• Corporate Strategy


1. Establishing headquarters to integrate corporate resources .

Development and innovation of value-added products. Transparent and accountable financial and accounting systems.

2. Global markets expansion:

Actively participate in the international packaging exhibition activities.

Expand into the global markets with beverage firms owning well-recognized brands.

Yearly Development in Taiwan


1.Tingyi (康師傅Master Kong)

Signed a long-term contract with

Eastroc(東鵬).

Set up packaging production lines to

provide plastic cap, preform .

Production started in August 2014.

2. Chuzhou Eastroc plant (In-house)

Supply 7 billion plastic caps respectively per year.

First step: 3.5 billion pieces, started in 2H13

Second step: 3.5 billion pieces, started in 2H14

Increased label order.

Yearly Development in China


3. Hubei Xiantao Jiaduobao plant (In-house) (加多寶)

4. Wanglaoji (王老吉):

Signed a long-term contract with

Jiaduobao.

Establishing one Aseptic filling

production line.

Production started in May 2015.

Established first Aseptic filling plant

to provide beverage OEM service

for Taiwan’s companies in

Changzhou , production started in

2014.



5. Céstbon (怡寶)

Signed a mid-term contract to provide beverage filling OEM service for Céstbon in Taiyuan, Jinan plant. Production started in March 2015.

Set up packaging production lines to provide plastic cap and label for Kirin, plastic cap, label and preform for Céstbon.

China Resources : started in Hong Kong in 1938, 400 thousand employees now. Main business: consumer goods (including Snow breweries 、

food, beverage), power, property, cement, gas, pharmaceuticals, finance.

In 2014, the group had revenue of NT 1,978.8 billion , and was ranked 143rd on the 2014 Fortune 500 list 。



6. Danone (達能)

Danone : started in 1966, over 100 thousand employees now.

Signed a mid-term contract to provide beverage filling OEM service for Danone in Guangdong plant. Production started in March 2015.

No. 1 of fresh dairy products(Revenue: NT 389.5 billion in 2014)

No. 2 of waters (Revenue: NT 146.5 billion in 2014)

(Main water brands including Evian, Volvic, Aqua, Mizone)



7. Evergrande (恆大)

Providing beverage filling OEM service for

Evergrande. Production started in June 2015.

Evergrande : started in 1966, over 100 thousand employees now.

Main business: residential building, cultural tourism, FMCG(fast-moving

consumer goods), hotel property, commercial property, sports industry,

Culture industry.

In 2014, the group had revenue of NT 568.1 billion, a net profit of NT 91.8

billion, total assets of NT 2,419.8 billion.



1. HC Cambodia Honly Plant:

Set up a Join Venture company with local

Taiwanese client to provide beverage products. Production started in Q1 2015.

New brand: POBO Yogurt(plain, grape,

strawberry)

THC owns 60% of shares.

Yearly Development in SE Asia


2. HC Myanmar Plant

Build production lines to provide beverage

packaging for Coca Cola, Pepsi, Pokka…etc.

in Myanmar.

Production will start in August 2015.

THC owns 70% of shares.



3. HC Indonesia Aseptic filling Plant

The first Aseptic filling production line in South-east Asia.

Establishing beverage filling OEM service for local beverage company.

Production will start in September 2015 。



4. HC Foodstar Plant (In-House)

Built preform production lines to provide packaging service for Foodstar in

Thailand.

Production will start in 3Q 2015.



5. Planning to set up offices in America, Japan and Philippines, to develop new customers.

6. Extending the reach to Pakistan, Laos, India, Bangladesh and other countries.

7. Developing in Africa, planning to build a plant in Mozambique.

Global Markets Expansion


1. First step to entering Africa market. 2. Expanding new market. 3. Discussing to set up join venture company with client.

Mozambique : Population： 23,929,708

Per capita GDP：USD 650

(Taiwan: USD 20,364) Official languages： Portuguese Time differences : 6 hours later than

Taiwan Capital: Maputo

Africa: Population： 1.07 billion

Per capita GDP：USD 2,600

Growth rate of GDP：5.1%

Development in Africa


• New Products and New

Technology


PVC Free LUG Cap

Digital Printing Plastic Cap

Bag in Box Thermochromics Label

Hologram Aluminum Closure QR Code Products

New Products and New Technology


Future Roadmap

Short Terms (1~3 Years)

Keeping No.1 in Taiwan

Forming the In-House strategic alliance with

the leading players in the beverage industry.

Providing OEM bottle-filling services.

Transferring the successful experiences from

Taiwan to China and S.E. Asia.

Based in

Taiwan

Exploration

in Asia

Expansion in

China

Establishing headquarters to integrate corporate

resources. Development and innovation of

value-added products.

Allocation of production bases to worldwide

market. Taking competitive advantages to

spearhead into the emerging markets.

Establishing a outstanding enterprise which

can benefit mankind.

Worldview

Middle Terms (3~5 Years)

No.1 in China

Long Terms (5~10 Years)

No.1 in Asia

Future Target


Thanks for listening!

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