鑫禾科技股份有限公司

Sinher Technology Inc.(Company Code:4999)

Status Report and Future Prospect

2017/11/29

1. Company overview

2. Product and market overview

3. Business philosophy and performance

4. Competitiveness, strategy and future

prospects

Index

1

1.Company overview

2

• Established: Jan/2002

• Capital: NTD 740 millions

• Location: Taiwan, Kunshan, Chongqing/China

• Business: Hinge development, manufacture and

marketing on key component

• Cooperate employee: total of 1,700 with 260 in

head quarter (up to Sept/2017)

4

Company overview

3

5

Wholesaler

Design Process Assembly

OEM/ODM

End customer

Parts

Manufacture

Press Latch mold

Bracket, cam,

spring washer,

friction plate

Mandrel

shaft

Zn alloy

Al alloy

MIM

Cam,

Mechanical

components

Material

Steel plate Steel wire Zn,Al alloy

suppliers

MIM

Manufacture process

4

2009 Sinher introduce multi-axis CNC lathe machine

2011 Kunshan Wanhe introduce Zn alloy die cast production and Sinher

Chungqing established

2008 Kunshan Wanhe established and introduce stamping production line

2012 Sinher introduce CNC integrated processing machine production line

Company history2002 Company established

5

2016 Acquire Keelung plant and introduce MIM production line

2014 Acquire Xizhi plant to expand and intergrade multi-axis CNC lathe

machine production base

7

Production baseSNR(Taipei)

• Plant: 9,600 M2

• Production: Stamping、

MIM、Multi-axis CNC

lathe machine、CNC

processing machine、

assembly

SNR(Chongqing)

Plant: 16,000 m2

Production:

assembly

Wanhe(Kunshan)

Plant: 21,000 m2

Production:

stamping、die cast、

assembly

6

7

2.Products and market Overview

￭ Auto lock

￭ Normal

￭ Wrap type

￭ Piston hinge

￭ Center hinge

￭ 360 Dual hinge

￭ Ferris wheel

￭ Modular Hinge

Notebook HingeFor

PAD Hinge All In One Hinge 3C Hinge

￭ Detachable

￭ Linkage

￭ Slider

￭ Fix type

￭ Multi axis type

￭ Frame type

￭ POS

￭ Projector

￭ Car use

Product

8

Notebook Hinge

Auto lock Hinge

9

Wrap Hinge

Notebook Hinge

10

Central Hinge

Notebook Hinge

11

360 dual hinge

12

13

Notebook Hinge

360 dual hinge

1314

Notebook Hinge

Ferris wheel hinge

Convertible and Detachable Hinge

14

Modular hinge

Notebook Hinge

1516

PAD hinge

Detachable hinge

16

17

Linkage hinge

17

18

PAD hinge

A.I.O Hinge

Multi-axis slider

18

19

3C HINGE

POS Hinge

19

20

Projector Hinge

Other hinge

2021

MIM application

Detachable

Hidden

Wrap type

SliderPiston Pad kickstand

Dual hinge

21

22

Piston hinge

2223

MIM application

24

Pad kickstand hinge

23

MIM application

25

Hidden hinge

24

MIM application

26

Slider hinge

25

MIM application

27

Dual hinge

26

MIM application

Detachable type

27

28

MIM application

29

Wrap hinge

28

MIM application

NB market share

29

資料來源:DIGITIME(可拆卸式機種為Tablet，不歸入NB統計)，最近確認時間：2017/11/01

NB market share

30

資料來源:DIGITIME

31

3. Business philosophy and

performance

Innovation

Quality

Service

33

Business

philosophy

32

34

PerformanceRevenue and net profit

33

2,110,809

2,408,259

2,158,720

2,456,940

1,809,647

394,413 501,780

436,946 451,299

250,617

2013 2014 2015 2016 2017Q3

Unit: NT$ thousand

Operating revenue Profit

PerformanceGross profit , operating profit

and net profit marginEarnings per share

35

34

38%37%

34%

36% 36%

23%24%

21%

24%23%

19%

21%20%

18%

14%

10%

15%

20%

25%

30%

35%

40%

2013 2014 2015 2016 2017Q3

Gross profit%

Net operating income %

Profit%

2013 2014 2015 2016 2017Q3

5.52

6.74

5.89 6.14

3.41

35

4. Competitiveness, strategy

and future prospects

Competitiveness

1.Professional R&D team with innovative and practical experience

2.Multipul key technology IP

3. Complete vertical integration with effective cost benefit

4.Towards modular NB development

36

Up to 31st/Oct/2017, total IP as following

R&D performance- IP

37

Country

TypeUtility Invention Design Total

Taiwan 128 7 1 136

USA 10 10

China 69 23 1 93

Total 197 40 2 239

Future prospect

38

1. Develop hinge parts with MIM process; End goal is to

approach MIM product with complex structure and

challenging to form on non hinge product

2. Based on hinge and develop modular IT product

3. Enhance production and R&D coordination, utilise material

usage in order to elevate product quality and value

4. Continuous development on hinge product with other

industrial market

5. Engage with automatic production