stock code: 4739 coremax group coremax corporation
TRANSCRIPT
Coremax Group
Coremax Corporation
2018 Q1 Investor Conference
Stock Code: 4739
Presented by：Dennis WengDate：2018.5.23
Safe Harbor Notice
The presentation and discussion contain certain forward-looking statements with respect to the results of operation, financial condition and current expectation. The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to the impact of competitive products and pricing, ability to ramp new products into volume, industry wide shifts in supply and demand for products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks.
This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer.
May 2018 1/14
Agenda
Company Profile
Group Structure
2018 Q1 Financial Results（Certified by Accountant）
Consolidated Statements of Comprehensive Income
Sales Breakdown by Products
Consolidated Gross Margin
Consolidated Operating Expenses
Consolidated Operating Income
Consolidated Net Income
Consolidated EPS
Important EventMay 2018 2/14
South
America
North
America
Africa
Europe AsiaHsinchu, Taiwan (HQ) – 1992
Plant Size : 14,190m2
Ningbo, China – 2004
Plant Size : 10,036m2
Australia
Zhuhai, China – 2001
Plant Size : 13,334m2
Zhangzhou, China - 2011
Plant Size : 21,361m2
Rayong, Thailand – 2009
Plant Size : 5,288m2
Taichung, Taiwan – 1984
Plant Size : 7,938m2
Jiangxi, China– 2000
Plant Size : 17,034m2
Toufen, Taiwan – 1961
Plant Size : 71,263m2
Jiangxi, China– 2000
Plant Size : 17,034m2
Company Profile
Founded in 1992
Capital:NTD8.66 Billion
Number of Employees
390 Persons
Head Office
11 Wenhua Rd.,
Hsinchu Industrial Park
Main Products
Catalyst
Power Battery Materials
Chemical Fertilizer
Specialty Chemicals
May 2018 3/14
Group Structure
May 2018
CoremaxCorporation
June 1992
Coremax (BVI)
November 2001
Coremax ZhuhaiChemicals Co., Ltd.
December 2001
Coremax Ningbo Chemicals Co., Ltd.
September 2004
Coremax (Thailand) Co., Ltd.
March 2009
Coremax(Zhangzhou)
Chemicals Co., Ltd.
October 2011
Heng I Chemical Co., Ltd.
May 1961
Uranus Chemicals Co., Ltd.
July 1975
Jiangxi Tianjian
Materials Co., Ltd. January 2001
100% 80.18% 83.6%
100% 100% 100% 70.06%100%
11.15% 6.85%
4/14
Consolidated Statements of Comprehensive Income
May 2018
Unit：NTD Thousand
5/14
Item 2018Q1 2017Q4 2017Q1 QoQ YoY
Sales Revenue 1,610,775 1,324,111 1,265,051 22% 27%
Gross Margin 14% 16% 14% -0.02 -0.01
Operating Expenses 53,453 52,783 57,792 1% -8%
Operating Margin 11% 12% 10% -0.02 0.003
Non-operating incomes and expenses 17,675 (13,663) (8,674) 229% 304%
Net Income 153,838 123,647 102,037 24% 51%
Net Margin 10% 9% 7% 0.002 0.01
EPS 1.7 1.48 1.28 15% 33%
2017Q3 Sales Breakdown by Products
May 2018
Unit：NTD Thousand
6/14
Catalyst22%
Power Battery44%
Chemical Fertilizer
15%
Specialty Chemicals
10%
Others9%
Catalyst
Power Battery
Chemical Fertilizer
SpecialtyChemicals
CatalystPower
Battery
Chemical
Fertilizer
Specialty
Chemical
s
OthersTotal
Sales
Revenue354,325 713,860 236,071 161,682 144,837 1,610,775
Quarterly Sales Breakdown by Products
May 2018 7/14
13%
21% 22%
0%
5%
10%
15%
20%
25%
2017Q1 2017Q4 2018Q1
CatalystYoY : 112.63% QoQ : 27.16%
32%
42%44%
0%
10%
20%
30%
40%
50%
2017Q1 2017Q4 2018Q1
Power BatteryYoY : 74.64% QoQ : 27.73%
17%
11%
15%
0%
5%
10%
15%
20%
2017Q1 2017Q4 2018Q1
Chemical FertilizerYoY : 9.30% QoQ : 69.59%
14% 13%
10%
0%
5%
10%
15%
20%
2017Q1 2017Q4 2018Q1
Specialty ChemicalsYoY : -6.62% QoQ : -4.37%
Consolidated Gross Margin
May 2018 8/14
14%
16%
14%
8%
10%
12%
14%
16%
18%
2017Q1 2017Q4 2018Q1
35 3426
31
5
1918 22
0
10
20
30
40
50
60
70
2017Q1 2017Q4 2018Q1
Selling Expenses
R&D Expenses
Administrative Expenses
May 2018
Consolidated Operating Expenses
Operating Expenses
YoY : -8% ； QoQ : 1%
Unit：NTD Million
9/14
130
163 170
0
20
40
60
80
100
120
140
160
180
2017Q1 2017Q4 2018Q1
Operating Income
May 2018
Consolidated Operating Income
11%
12%
10%
0%
2%
4%
6%
8%
10%
12%
14%
Operating Margin
YoY : 31% ； QoQ : 4%
Unit：NTD Million
10/14
102124
154
0
20
40
60
80
100
120
140
160
180
2017Q1 2017Q4 2018Q1
Net Income
May 2018
Consolidated Net Income
10%
9%
7%
0%
2%
4%
6%
8%
10%
12%
Net Margin
YoY : 51% ； QoQ : 24%
Unit：NTD Million
11/14
2017Q1 2017Q4 2018Q4
EPS 1.28 1.48 1.70
1.28
1.48
1.70
0
1
2
May 2018
Consolidated EPSUnit：NTD
12/14
Important Event
May 20187 13/14
At 10/31, # 47392, convertible bondⅡ, roughly NT $21
million has not been converted, the expected conversion shares of about 395,000 shares.
After the $21 million converted, the capital will be NT $870 million.
The company's current production rate for the power battery material is about 70%.
The investment percentage to UCC will be decreases from 83.6% to 62.7% after UCC capital increase.
CoreMax Your Best Choice! Best Partner!
Thank you for your attention!
November 2017 14/14