4720

Stock Code：4720

Reporter：

Donald Hsiao

General Manager

Table of Contents

四、Global expansion deployment

三、Industrial analysis & product portfolio

二、Business accomplishments

一、Company introduction

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五、Growth Driver

Company Profile

Company Name: TEX YEAR INDUSTRIES INC.

Established on: June 28, 1976

Listed to Taiwan Share Market：June 24, 2015

Founder：Shih-Kuang Lue、Chin-Tsung Hsiao

Chairman of the Board：Chi Chen Lin

General Manager: Hsiang Chih Hsiao

Capital: NTD $810,767,090

Address: No.9, Wuquan 6th Rd.,New Taipei Industrial Park, New

Taipei City 24889,Taiwan (R.O.C.)

Number of Employees: 450 in the entire Group

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Create Happy Life

Gluing corporate integrity

Link dedicated people

Tex Year Vision

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Pictures

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Business Philosophy

100 ﹪

WUXI MORE TEX

WUXI TEX YEAR

TEX YEAR H.K.

德淵香港

100﹪ 100 ﹪

93.55 ﹪

50 ﹪ 100 ﹪

6.45 ﹪

TEX YEAR INDUSTRIES INC.

TEX YEAR INTERNATIONAL

(SAMOA)

TEX YEAR

TECHNOLOGY

(SAMOA)

GUANGZHOU TEX YEAR

YEAR

50%

TEX YEAR

VIETNAM

80%

TEX YEAR

EUROPE

80%

TEX YEAR

INDIA

Corporate Structure

CONTROLLIN

COMPANY

CONTROLLIN

COMPANY

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Table of Contents

四、Global expansion deployment

三、Industrial analysis & product portfolio

二、Business accomplishments

一、Company introduction

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五、Growth Driver

50,886 82,711 100,439

2,126,619

2,310,902 2,452,263

0.68

1.1 1.24

0.1

0.3

0.5

0.7

0.9

1.1

1.3

1.5

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2013

2014

2015

Net Income Sales revenue EPS

Operating performance

9%

growth

6%

growth

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Meas.:NT1,000

Sales revenue: the whole conglomerate

Meas.:NT1,000

2,126,619

2,310,902 2,452,263

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2013 2014 2015

1,662,360 1,839,661 1,931,977

339,315 337,019

357,287 124,944

134,222 162,999

HMA Non HMA glues

Others

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Sales revenue in 2015–by region

Taiwan13%

America 10%

China 43%

Asia without

China

, 19%

Euro7%

Others 8%

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HMA

79%

Non HMA

glues

14%

Others

7%

HMA Non HMA glue others

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Sales revenue in 2015- by product categories

Items 2016Q1 2015Q1 Increase growth rate

Sales revenue 581,186 561,482 19,704 4%

operating income 15,775 20,789 (5,014) -24%

EBIT 21,452 20,987 465 2%

Profit comparison btw 2015 Q1 & 2016 Q1

Meas.:NT1,000

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Table of Contents

四、Global expansion deployment

三、Industrial analysis & product portfolio

二、Business accomplishments

一、Company introduction

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五、Growth Driver

Global HMA market in 2015: USD 40 billions , 5% growth rate

Asia Pacific accounts for more than 30%

Forecast all the way to 2017: Global growth rate: 4.1%

Asia Pacific’s growth rate: 7%

Growth potential counts on China & India

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Wide in types of application and global market territories

Global HMA market in qty in 2015：1,760,000 tons Asia pacific accounts for half

China’s HMA market in qty in 2015：750,000 tons with 13% growth rate

10% annaul growth rate is expected to be seen in China’s HMA market in 2017

Main industrial applications :

1. Paper, Board and Related Products

2. Transportation

3. Footwear and Leather

4. Consumer/DIY (Retail)

5. Building/Construction

6. Woodworking and Joinery

7. Assembly Operations/Other

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Wide in types of application and global market territories

Members of alliances for specialty chemicals 4720

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Conformal Coating Specialty Material Performance Adhesive

Second Generation Adhesive Release Agent Vibration Equipment

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Wide in types of application and global market territories

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Self production :HMA

Type EVA Polyamide APAO Rubber PUR

Properties: Eco friendly, multiple basis, wide applications

Traditional industries/ Applications: carton & box closing, packaging, book binding, wood working, lamination, cigarrets, shoes, handcrafts, Automobile, electronics, diaper, sanitary napkins ,tapes, filters, general assembly, and medical industry.

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Self production :HMA

Type EVA Polyamide APAO Rubber PUR

Hot Melt Adhesives Properties: Eco friendly, multiple basis, wide applications

Emerging industries/ Applications:

1. Home appliances , car interior, white goods, RFID, special tapes, high end filters

2. Baby and adult diapers, sanitary napkins

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Self-production -specialty chemicals

the representative of industry

Industries/Applications:

HIFI speaker、elevator、stonemasonry, wood working,

lamination, handcraft, electronic、golf club、general

assembly

Type SGA reaction styled glue Cyanoacrylate glue

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Self production- specialty chemicals

Strength ：High bonding & efficiency, works with ultra light or heat curing reaction application： optical glasses, electronic panel assembly, quick assembly for Electronic industry 、motor, electronic materials molding, pvc tile surface anti-scratching (hardcoat), outdoor good high/low temperature tolerance product

Type UV glue UV resin Epoxy glue

Epoxy resin

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Comparison 4720

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Hotmelt Adhesive Solvent Base Adhesive

Feature Benefit Feature Impact

100% Solid content Eco-friendly Non 100%

Solid content

Contains volatile

substance, flammable , not

Eco-friendly

No volatile solvent,

extremely low VOC

Non-hazardous to

human and

environments

Volatile solvent,

not conformed to

VOC rule

Hazardous to human and

environments, toxic

concern

Fast Curing, high

efficiency

Optimize production

process, save space,

enhance productivity, save

overall cost

Slow Curing,

Low efficiency

Longer production process，require oven baking,

requires more space

100% environmental

components, non

hazardous

Confirmed with all

environmental rules

Hazardous raw

material Toxic

Come in various

formats, low

transportation cost

Easy to transport and

use, energy saving

Requires container,

High transportation

cost

Waste packaging and cost

higher on transportation,

not eco-friendly

Table of Contents

四、Global expansion deployment

三、Industrial analysis & product portfolio

二、Business accomplishments

一、Company introduction

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五、Growth Driver

Global Allocation & Marketing

Increase Capacity

Increase Capacity

Increase Capacity

Develop ASEAN market

Tex Year India Tex Year Vietnam

GTY(Guangzhou)

WMT(Wuxi)

WTY(Wuxi)

Tex Year Hong Kong

Tex Year HQ

25

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TY HQ Office R&D factory Home-Based

1.黑龍江、吉林、遼寧

2.北京、天津、河北

3.山西、濟南、鄭州

4.崑山、無錫、上海

5.合肥、武漢、南昌

6.浙江、長沙、福州

7.台北、台中、台南

8.深圳、廣州、中山、香港

9.陝西、重慶、四川

10.雲南、貴州

大中華據點分布圖

Presence in China 4720

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Global Allocation & Marketing

Increase Capacity

Increase Capacity

Increase Capacity

Develop ASEAN market

Tex Year India Tex Year Vietnam

GTY(Guangzhou)

WMT(Wuxi)

WTY(Wuxi)

Tex Year Hong Kong

Tex Year HQ

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Global Allocation & Marketing

Increase Capacity

Increase Capacity

Increase Capacity

Develop ASEAN market

Tex Year India Tex Year Vietnam

GTY(Guangzhou)

WMT(Wuxi)

WTY(Wuxi)

Tex Year Hong Kong

Tex Year HQ

Tex Year Europe

Pilot Run

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4720 Rooted in Poland

250 million population in radius 1,000 km area

550 million population in radius 2,000 km area

Developing from east to west Europe

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Global Allocation & Marketing

Increase Capacity

Increase Capacity

Increase Capacity

Develop ASEAN market

Tex Year India Tex Year Vietnam

GTY(Guangzhou)

WMT(Wuxi)

WTY(Wuxi)

Tex Year Hong Kong

Tex Year HQ

Tex Year Europe

Adhesive Technology Inc. (USA)

Consumer Market

Pilot Run

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Table of Contents

四、Global expansion deployment

三、Industrial analysis & product portfolio

二、Business accomplishments

一、Company introduction

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五、Growth Driver

Growth Driver

1. Trend of Greener & More Eco-Friendly

2. Stricter Regulations in Mainland China

3. Emerging Markets: ASEAN, India, E.E.

4. Synergy from Group Internationalization

5. Industry 4.0

6. New Product Development

7. Developing Global KAs

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Thank you for attention.

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