swancor hol. co., ltd 2016q3 results 2016/11/2 · accepted, 56 meter blade resin could resume...

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SWANCOR HOL. CO., LTDSWANCOR HOL. CO., LTD2016Q3 Results2016Q3 Results

2016/11/22016/11/2

Disclaimer

This document may be deemed to contain forward-looking statements. These forward-looking statements include, among other things, statements regarding future events and the future financial performance of Swancor that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results.

Any projections in the document are based on limited internal and external

Copyright © Swancor All Rights Reserved1

Any projections in the document are based on limited internal and external information currently available to Swancor, which is subject to change. Actual events or results could differ materially and no reader of this document should assume later that the information provided today is still valid. Such information speaks only as of the date of this document.

Readers shall rely on self-judgment to makes any investment decision. Readers shall not interpret the information in this document to be investment recommendations.

Income Statement(Swancor Inc.& Swancor Hol.)


* ROE is annualized.

2016Q3 Sales Revenue by Product

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NT$

Mu

llion

2016Q3 Sales Revenue by Region

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NT$

Mu

llion

Balance Sheet and Financial Indexes


Account Receivable

Due to wind curtailment, Chinese wind power industry has less

NT$

Mu

llion


Due to wind curtailment, Chinese wind power industry has less cash this year and delayed payments.

The bad debt reserve from 2016/1/1 to 9/30 was NT$ 189 million. The accumulated reserve was NT$253 million.

Account receivable from a Chinese wind blade maker has high risk. The overdue was NT$134 million. Swancor had written off full amount and started legal process.

Cash Flow(Swancor Inc.& Swancor Hol.)


Fine Chemical - Anti-Corrosion Resin

Sales quantity of China market kept steady growth. Swancor keeps leading in market share.

Swancor (Jiangsu) new factory will be in mass production by


Swancor (Jiangsu) new factory will be in mass production by 2017Q2.

Fine Chemical - Wind Blade Resin According to Goldwind, regarding 20161H wind turbine on-hand orders, 1.5MW、2MW

、2.5MW accounted for 36%、35%、27% respectively.

The blade length of 1.5MW, 2MW, 2.5MW wind turbines are less-than 56 meter, 56 meter, over 56 meter respectively.

To make different length blades, different quantities of resin are needed. Put this into consideration, we estimate among Goldwind blade resin demand, less-than 56 meter, 56 meter, over 56 meter blade resins are 23%、44%、33% respectively.

Goldwind rated Swancor resin as B causes impact on Swancor sales of 56 meter and over 56 meter blades resins.


56 meter blades resins.

Swancor resin was rated B by Goldwind but several wind blade makers used Swancor resins to make all kinds of blades.

Recently, Goldwind did not allow blade makers use Swancor resin to make 56 meter and over 56 meter blades. This impacted 60% of Goldwind related business.

To overcome, Swancor had proposed a material innovation program to Goldwind. If accepted, 56 meter blade resin could resume shipment by 2017Q1.

In addition, Swancor plans to upgrade from B to A in 2017H2. If upgraded, Swancor could sell over 56 meter blade resin again.

Goldwind related business accounted over 50% of Swancor wind blade resin in 2015. The percentage was down to around 20% in 2016Q3.

Carbon Fiber Composite

Swancor (Jiangsu) carbon fiber composite factory has been ready for mass production in 2016/4/26. Formosa Plastic (TSE: 1301) is strategic partner with 18% ownership.

Target markets are parts for automobile and spur of wind turbine


Target markets are parts for automobile and spur of wind turbine blade.

Major products are thermal plastic plate and pre-peg.

Both product lines are in stage of product development and customer evaluation. Swancor estimates to have first significant business by 2017Q3.

Offshore Wind Power

Formosa I

The capacity of Formosa I phase 1 is 8MW. Two wind turbines had been installed. We plan to complete substation and other works by end of this year, and connect offshore wind power to Taiwan Power grid for commercial operation by 2017Q1.


Taiwan Power grid for commercial operation by 2017Q1.

Regarding strategic investors, international institutional investors are in negotiation.

Formosa I phase 2 will build additional 120MW by 2019.

Swancor Renewable

Formosa I is under construction. Investors are in negotiation.

Formosa II, located outside Formosa I, is preparing environmental assessment related works.


Formosa III is located at southern Taiwan. An international institutional investor agrees a preliminary developing service contract for Formosa III.

swancor hol. co., ltd 2016q3 results 2016/11/2 · accepted, 56 meter blade resin could resume...

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