China Petrochemical Development Corporation 中國 ... · global viewpoint, towards the development...

Respect．Innovation．Care．Excellence．Green Business China Petrochemical Development Corporation

China Petrochemical Development Corporation 中國石油化學工業開發股份有限公司

Investor Conference

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Disclaimer

• This presentation is for informational purposes only, contains preliminary financial and other information about China Petrochemical Development Corporation and is subject to updating, revision, amendment and completion. This presentation does not and is not intended to constitute or contain any offer of securities for sale or a solicitation of an offer to purchase any securities of China Petrochemical Development Corporation or any other company and neither this presentation nor anything contained herein shall form the basis of any contract or commitment.

• Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements or trend information that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the forward-looking statements in this presentation. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, the words “may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue”, “potential, future, or further”, and similar expressions are intended to identify forward-looking statements. China Petrochemical Development Corporation assumes no obligation to update or revise any such statements or any other information contained herein to reflect events or circumstances that may arise after the date of this presentation.

3

Company

Profile

Operations and

Products

Future Developments and Challenges

Financial Summary

1 2 3 4

2019 中國石油化學工業開發股份有限公司

China Petrochemical Development

Corporation

Company Profile Respect．Innovation．Care．Excellence．Green Business

Effective integration of the Petrochemical Industry Expand new business in Land Development

5

Principles

Market Focused

Excellence

Develop Talents Innovation

• With forward looking thinking, continue to improve, and develop a smart management system.

• Develop new technology, new products, integrate resources, smart production, and develop a global viewpoint, towards the development of the dual focus strategy

• Providing products and services

• Creating customer value

• Develop talents, take responsibility, team work, and work hard towards the vision and achieve our goals.

6

CPL manufacturer in Taiwan

AN manufacturer in Taiwan

CPL manufacturer in the world

AN manufacturer in the world

Top2

Top5

Top10

Only Taiwan

Global

7

Petrochemical

Hsiaokang CPDC HQ

Dashe

AN Production 224k tons/yr

Jiangsu Rudong

Weiming Petrochem

WeiQiang Trading

Shanghai

Jiangsu Kunshan

China HQ

Jiangsu Rudong

Weihua Trading

CPL Production 200k tons/yr

Toufen

CPL Production 200k tons/yr Nylon Chips Production 36k tons / yr

Taipei HQ

CPDC

Changzhou

Weicai New Material

9

1969 1991 1994 2001 2011 2012 2015 2016 2017 2019

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10

｜ Organization｜

10

Shareholders’ Meeting

Board of Directors

Audit Committee

Remuneration Committee

CPDC CSR Committee

Chairman

CEO

President President’s Office

Chairman’s Office

Secretariat

Audit Office

Shareholder Services Office

New Venture Department

Land Development Department

Business Trading Division

Petrochemical Production Department

Finance

Division

Administrative

Resources epartment

Co

rpo

rate

Stra

teg

y P

lan

nin

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Offic

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Re

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ve

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11

CSR Committee Structure

Market/Customer Analysis survey

Business Governance Section

Board of Directors

CSR

Chairman: Secretary Lin

Regular return

Suggested Feedback

Committee Secretariat Secretaries-General: General Manager

Executive Secretary

Industrial and Security Environmental Protection Center/Enterprise Relations

Group

Social Relations Group Environmental Sustainability Group

Sustainable Development Vision and Strategy

Operations / Financial Risk and Performance

Purchasing and Supply Chain Management

Stakeholder Communication Community

Feedback / Public Welfare Activities

Labor Human Rights/ethics

Regulatory Compliance/Information Disclosure

Energy and Climate Change

Product Quality / Innovation

Green Process and Products

Lauanwei/pollution prevention and control

Environment and community participation

12

CSR

Performance

2013

2014

2015

2016

CSR Committee Officially established Held Charitable activities

(already served 70 groups up to 2019Q3/22,402 person)

Award of The eleventh session A+ Evaluation of information disclosure

Award of Top 50 Corporate Sustainability Report in Taiwan Silver Award of Traditional manufacturing of large enterprise

Award of The twelfth session A++ Evaluation of information disclosure

Award of Top 20% of the 1st annual Corporate Governance Evaluation of

listed company

Award of Top 20% of the 2nd annual Corporate Governance Evaluation

of listed company Won the Clean Production Certification (Hsiaokang Plant)

2017 Awarded of top 20% of the 3rd annual Corporate Governance Evaluation Won Taiwan TOP50 Corporate Sustainability Report Traditional

Manufacturing Gold Award

Won BSI Sustainability Implementation Award

2018

Won the Clean Production Certification (Dashe & Toufen Plant)

Awarded of top 20% of the 4rd annual Corporate Governance Evaluation Selected as a constituent in the Corporate Governance 100 Index

Toufen Nylon Plant won the ”Green Architecture Silver” Certification

Dasheh Plant Control Building won the ”Green Architecture Diamond

Award” Certification

2019 Awarded of top 20% of the 5rd annual Corporate Governance Evaluation Dasheh Plant Office Building won the ”Green Architecture Diamond

Award” Certification

Won Taiwan TOP50 Corporate Sustainability Report Traditional

Manufacturing Platinum Award



Corporation

Operations and Products Respect．Innovation．Care．Excellence．Green Business


14

Product Development

CPL

Downstream

AN

Downstream

PMMA

15

Film Engineering plastics Textile Fiber

Nylon Products

Caprolactam(CPL)

Fiber Nylon chips

Stockings, material for clothing

Umbrella, parachute, air bag

Curtains, carpets, Tire cord

Conveyor belt, rope

Fishnet, fishline

Nylon Chips

Stockings, material for

clothing

Umbrella, parachute,

air bag

Curtains, carpets

Auto parts, gear

Packaging film

High pressure resistant

tube

Food

packaging,

medical

packaging,

electronic

products

Downstream Applications

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Acrylic Fiber ABS/AS Plastic NBR Rubber Acrylamide

AN Products

Material for clothing

Blanket, carpet

Wool, sweater, stuff toy

PC casing

Automobile (dash board, wheel cap, reflector box)

Home appliance casing

High intensity tool (hair dryer, mixer, mower)

Electric wire insulating material

Oil-resistant rubber components

for automobile and machinery (e.g. oil seal, coil)

Vesicant insulator

Water treatment agent

Soil absorption agent,

conditioning agent,

Flocculant Plastic additives,

leather metal coating

Acrylonitrile(AN)


17

Bactericidal Preservatives & Other

Bactericidal Preservatives,

New Medicine Intermediate,

Dye Carrier

High-end Optical Materials

High Refraction Material, New High Poly Monomer

Specialty Products

O - phenylphenol (OPP)

Electronic Materials

Flame Retardant Material


18

Engineering Plastic Products

Engineering Plastic

Mechanical Components

Electronic Components

Auto & Locomotive industries

Sporting goods

OA furniture


19

CPL Nylon

Fine chemicals

Clean

Production

&

Environment

Sustainable

AN Engineering

Plastic

19

Product commitment

20

｜ 2018 Products Mix｜

Caprolactam(CPL). Nylon Chips (Nylon 6) Acrylonitrile (AN) and Byproducts

Other

9%

31% 60%

21

Unit：10k Tons

AN CPL

Nylon6

5 Year Production

2017-2018 YOY

AN

CPL -1.58%

0.48%

20.4 19.4 19.8 20.7 20.8

10.8

25.1 25.7 30.7

38.0 37.4

17.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2014 2015 2016 2017 2018 2019 H1

22

CPL Nylon6

99% 99% 99% 99% 96% 97%

1% 1% 1% 1% 4% 3%

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018 2019H1

Exports

Domestic

23.4 29.4 36.5 35.6 16.6 24.6

Unit：10k Tons

Total sales

5 Year Sales Volumes

23

AN

63% 65% 71% 72% 53% 48%

37% 35% 29% 28% 47% 52%

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018 2019H1

Exports

Domestic

20.5 19.7 19.8 21 21.6 11.3

Unit：10k Tons

Total sales

5 Year Sales Volumes



Corporation

Future Development Respect．Innovation．Care．Excellence．Green Business


25

Petrochemical Core Business

CPDC develops Petrochemical Industry and

Land development as the main strategy

with the goals of sustainable development,

creating value for stockholder and

accomplished CSR

Dual Focus Development Strategy

Land Development

26

18

Sustainable development

Effectively integrated

Petrochemical Industry Developing land

development business

Improving management system and recreating

business culture

Construct a command management system

for transnational operations and corporate

competitiveness

Establishing integrated production base

Integration of the upstream and downstream

Launch Smart Manufacturing project

Develop downstream high value products and

materials

Expand applications of nylon products,

create high profit margin applications,

develop fine chemicals

Planning multiple innovative residence design

and advocating green building

Developing green building complying the

regulation

Deploying real estate having investment potential

oversea

Accelerating entering global market and land

development, Features to create new towns

Activating land asset and creating permanent

value

Promotion of Asia's New Bay Area and

Strategic cooperation development

27

27

Challenges in recent years

and strategies

Challenges

Strategies

Tariff trade barriers

Excess capacity

in China area

Environmental

awareness

rising

US-China Trade

War

Vertical

integration

Development of

new materials

Accelerate

Invest in local

Advantageous

Chances in

China, USA and

South-East Asia

Expand

Advanced

technology



Corporation

Financials Summary Respect．Innovation．Care．Excellence．Green Business


29

Last 6Q Performance

8.04 9.12

13.04

0.55

-1.43

4.04

11.03 12.17

16.50

3.11 3.09

6.42

94.95

94.48

109.68

85.92

81.38 82.97

0.00

20.00

40.00

60.00

80.00

100.00

120.00

(5.00)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Operating Income Net Income Gross Revenue

2018Q4 2019Q1 2019Q2 2018Q1 2018Q2 2018Q3

Unit：NT$ Billion

30

1,860

1,998

2,157

2,053

1,444

1,833

2,074 2,120

2,140 2,082

1,673

1,700

1,300

1,500

1,700

1,900

2,100

2,300

2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2

AN CPL

Last 6Q CPL/AN Price Trend Chart USD/MT

Source :PCI

31

Last 6Q Operating Margin

-4

-2

0

2

4

6

8

10

12

14

16

18

毛利率(%)

營業淨利率(%)

稅後淨利率(%)

2018

Q1

2018

Q4 2019

Q1

2019

Q2

3.78

3.80

-1.75

4.87

7.74

11.05

2018

Q2

13.25

11.62

8.47

2018

Q3

14.68

9.66

12.88

16.39

11.88

15.04

8.54

3.62

0.64

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Last 6Q EPS

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

EPS(元)

0.12

2019

Q1

2019

Q2

2018

Q1 2018

Q2

0.41 0.45

0.23

0.11

2018

Q3

0.61

2018

Q4

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Unit：NT$ Billion 2016 2017 2018 2019H1

Operating revenue 253.77 333.36 385.03 164.35

Gross Profit (0.90) 53.72 51.76 12.25

Profit from operations

(13.95) 35.84 30.75 2.62

Non-operating income and expense

(4.09) 27.14 16.02 7.40

Income Before income tax

(18.04) 62.98 46.77 10.02

Net Income (18.78) 60.87 42.81 9.51

EPS (0.81) 2.53 1.58 0.34

Last three years income statement

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Last three years Balance Sheet

Unit：NT$ Billion

2016 2017 2018 2019H1

Current Assets

160.83 188.39 216.23 212.10

Non-current assets

603.73 627.90 680.82 708.15

Total Assets 764.55 816.29 897.05 920.25

Current Liab 104.63 42.42 74.88 76.51

Non-current Liab

149.30 148.39 150.26 174.76

Total Liabilities

253.93 190.81 225.14 251.28

Total Equity 510.63 625.48 671.91 668.97

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Last three years finacial rateio

2016 2017 2018 2019H1

Debt Ratio 33% 23% 25% 27%

Current Ratio

154% 444% 289% 277%

Net profit Margin

-7% 18% 11% 6%

ROA(%)Note -4% 15% 9% 2%

ROE(%)Note -3% 11% 7% 2%

Note:Except investment property

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中國石油化學工業開發股份有限公司 China Petrochemical Development Corporation

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