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
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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.
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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.
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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
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Offic
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Re
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Ad
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CSR Committee Structure
Market/Customer Analysis survey
Business Governance Section
Board of Directors
CSR Committee
Chairman
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
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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
2019 中國石油化學工業開發 股份有限公司
China Petrochemical Development
Corporation
Operations and Products Respect.Innovation.Care.Excellence.Green Business
Effective integration of the Petrochemical Industry Expand new business in Land Development
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)
Downstream Applications
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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
Downstream Applications
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Engineering Plastic Products
Engineering Plastic
Mechanical Components
Electronic Components
Auto & Locomotive industries
Sporting goods
OA furniture
Downstream Applications
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CPL Nylon
Fine chemicals
Clean
Production
&
Environment
Sustainable
AN Engineering
Plastic
19
Product commitment
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| 2018 Products Mix|
Caprolactam(CPL). Nylon Chips (Nylon 6) Acrylonitrile (AN) and Byproducts
Other
9%
31% 60%
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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
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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
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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
2019 中國石油化學工業開發 股份有限公司
China Petrochemical Development
Corporation
Future Development Respect.Innovation.Care.Excellence.Green Business
Effective integration of the Petrochemical Industry Expand new business in Land Development
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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
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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
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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
2019 中國石油化學工業開發 股份有限公司
China Petrochemical Development
Corporation
Financials Summary Respect.Innovation.Care.Excellence.Green Business
Effective integration of the Petrochemical Industry Expand new business in Land Development
29
Last 6Q Performance
9.12
13.04
0.55
-1.43
4.04
0.25
12.17
16.50
3.11 3.09
6.42
1.78
94.48
109.68
85.92 81.38
82.97 80.48
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
2019Q1 2019Q2 2019Q3 2018Q2 2018Q3 2018Q4
Unit:NT$ Billion
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Last 6Q CPL/AN Price Trend Chart
Source :PCI
1,998
2,157
2,053
1,444
1,833
1,761
2,123
2,140
2,055
1,652
1,667
1,466
1,300
1,500
1,700
1,900
2,100
2,300
2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3
AN CPL USD/MT
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
Q2
2019
Q1 2019
Q2
2019
Q3
3.78
3.80
-1.75
4.87
7.74
11.05
2018
Q3
2018
Q4
14.68
9.66
12.88
16.39
11.88
15.04
8.54
3.62
0.64
0.32
2.21
6.35
32
Last 6Q EPS
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
EPS(元)
0.12
2019
Q2
2019
Q3
2018
Q2 2018
Q3
0.45
0.23
0.11
2018
Q4
0.61
2019
Q1
0.06
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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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Past three years financial ratio
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:Excludes investment property