Nien Hsing Committed To Excellence Hsing Investor Conference... · COMPANY PROFILE Nien Hsing Textile Co., Ltd. 2 CAPITAL NTD$1980M REVENUE NTD$9000M LISTED 1992 (1451TWSE) EMPLOYEE

Committed To Excellence

Investor Conference 1451 2017.11.09

Nien Hsing

DISCLAIMER STATEMENT

1 Nien Hsing Textile Co., Ltd.

This document is provided by Nien Hsing Textile Co., Ltd. (the“Company"). Except for the numbers and

information included in the Company's financial statements, the information contained in this document has

not been audited or reviewed by any accountant or independent expert. The Company makes no express or

implied representations or warranties as to the fairness, accuracy, completeness, or correctness of such

information or opinions. This document is provided as of the date herein and will not be updated to reflect any

changes hereafter. The Company, its affiliates and their representatives undertake no obligation for any

damage caused by their negligence or any other reasons, nor do they undertake obligation for any loss or

damages arising from the use of this document or the information contained herein or anything related to this

document.

This document may contain forward-looking statements, including but not limited to all statements that

address activities, events or developments that the Company expects or anticipates to take place in the future

based on the projections of the Company toward the future, and various factors and uncertainness beyond the

Company's control. Therefore, the actual results may differ materially from those contained in the forward-

looking statements.

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.

The copyright of this document is owned by the Company and / or our affiliates and may not be directly or

indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in

part for any purpose.

For the convenience of readers, the slides have been translated into English from the original Chinese version.

If there is any conflict between the English version and the original Chinese version or any difference in the

interpretation of the two versions, the Chinese version shall prevail.

COMPANY PROFILE

Nien Hsing Textile Co., Ltd. 2

CAPITAL

NTD$1980M

REVENUE

NTD$9000M

LISTED

1992 (1451TWSE)

EMPLOYEE

16000

PRODUCT

TYPE

3

Denim Fabric

Elastic Functional Eco

Finish

Custom

made

DYE & WOVEN

Ring Spun Yarn Open End

Cotton Blended Spandex Functional

YARN

Denim Jeans

Mens Womens Boys Girls

APPAREL

Nien Hsing Textile Co., Ltd.

4

SPORTS

FASHION

ACTIVEWEAR

COMPRESSION

ATHLETIC

PERFORMANCE

PRODUCT EXPANSION


OPERATING

年興紡織股份有限公司 5

TAIWAN

Headquarter

1 Denim Mill

(1.2M y/m)

1 Knitwear Factory (480K pcs/m)

MEXICO

1 Denim Mill

(1.8M y/m)

COMBODIA

2 Jeans Factories

(840K pcs/m)

LESOTHO

3 Jeans Factories (1.26M pcs/m)

1 Denim Mill (1.4M y/m)

1 Spun Yarn Mill (600 ton/m)

NICARAGUA

3 Jeans Factories (1.44M pcs/m)

2 Non-Denim Factories (840K pcs/m)

1 Dyeing Mill (1.2M y/m)

VIETNAM

1 Jeans Factory

(540K pcs/m)

1 Jeans Factory

(840K pcs/m)

GLOBALIZATION

COMPETITIVE STRENGTH

6

CENTRALIZED

OPERATION

GLOBAL

MANUFACTURING

VERTICAL

INTEGRATION

MULTIPLE

RESOURCES

SPEED TO

MARKET

QUICK RESPONSE &

REACTION

DUTY FREE PREFERENTIAL

ADVANTAGE

SUSTAINABILITY ETHICS &

ACCOUNTABILITY


Operating Outline

Nien Hsing

MAJOR EVENTS

年興紡織股份有限公司 7

On March 16, 2017, Board of Directors made a

resolution to dispose part of subsidiaries in South-

East Asia and Nicaragua, and related assets.

In 2016, revenue from transaction objects is

around 35% of the consolidated revenue and loss

before tax from those objects is around -16% of

the consolidated profit before tax.

CONSOLIDATED BALANCE SHEETS

8

• In NT$ thousands

Total Equity 7,198,317 9,923,144

Total Assets 12,575,192 13,150,436 -575,244 -4%

Current Assets 8,732,206 7,610,202 1,122,004 15%

Non-current

Assets

3,842,986 5,540,234 -1,697,248 -31%

Total Liabilities 5,376,875 3,227,292 2,149,583 67%

Current Liabilities 4,377,419 1,989,770 2,387,649 120%

Non-Current

Liabilities 999,456 1,237,522 -238,066 -19%

-2,724,827 -27%

Book Value Per

Share

36 25 11 44%

QoQ


CONSOLIDATED INCOME STATEMENT

9

Net Revenue -28%

Gross Profit -66%

Net Profit -74%

EPS -69%

Gross Margin -54%

Net Profit Margin

7,087,277

438,489

158,448

0.47

6%

2%

9,848,196

1,297,686

607,465

1.52

13%

6%

-2,760,919

-859,197

-449,017

-1.05

-7%

-4% -67%

YoY

• In NT$ thousands / EPS in NT$


10

Net Revenue -8%

Gross Profit 44%

Net Profit -267%

EPS -425%

Gross Margin 40%

Net Profit Margin

2,172,785

153,218

79,748

0.39

7%

4%

2,361,988

106,581

-47,779

-0.12

5%

-2%

-189,203

46,637

127,527

0.51

2%

6% -300%

QoQ

• In NT$ thousands / EPS in NT$


CONSOLIDATED INCOME STATEMENT

REVENUE BY PRODUCTS

11

2016

Q1-Q4

2017

Q1-Q3


12

2016

Q1-Q4

2017

Q1-Q3

• Only denim fabric and jeans are included in the statistic.


REVENUE BY REGIONS

12

2017

9/30

23.66% DEBT

RATIO

31.80 27.47% 26.72% 26.14% 24.54%

• Ratio on September 30, 2017 is calculated under the

assumption that capital relief and capital refund is completed.

320.17% CURRENT

RATIO

224.58% 356.38% 406.95% 382.47% 284.73

169.75%

QUICK

RATIO 109.01% 190.54% 218.99% 225.08% 189.86

35.49%

CASH TO

CAPTIAL

RATIO

28.51% 35.74% 40.36% 52.68% 110.71


FINANCIAL POLICY

13

Ave.

EPS 1.72

CASH

DIVIDEND 1.34

DIVIDEND

PAYOUT

RATIO

78

2.12

1.50

71%

8%

0.18

0.50

278%

9%

2.07

1.00

48%

3%

2.50

1.25

50%

5%

1.44

1.00

69%

5%

1.74

1.30

75%

5%

1.89

2.00

106%

5%

1.75

1.80

103%

7%

1.69

1.50

89%

7%

1.83

1.50

82%

6% DIVIDEND

YIELD 6

• Dividend payout ratio is based on the profit year

• Dividend yield is based on the distribution year


DIVIDEND POLICY

14

Worker Well-Being


CORPORATE

SOCIAL

RESPONSIBILITY

15

Energy Management

Sludge Compactor

Liquid Indigo


CORPORATE

SOCIAL

RESPONSIBILITY

16

CSR

Sustainability

Department

Performance Management Process


CORPORATE

SOCIAL

RESPONSIBILITY

Q & A

Nien Hsing

Thanks For Your Support!

Nien Hsing

Documents

Nien Hsing Committed To Excellence Hsing Investor Conference... · COMPANY PROFILE Nien Hsing Textile Co., Ltd. 2 CAPITAL NTD$1980M REVENUE NTD$9000M LISTED 1992 (1451TWSE) EMPLOYEE