Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
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Conference Program Program Time Program Speakers 1 14:00~14:30 Guest Registration Honorary Chairman: 2 14:30~14:40 Greetings From the Company Mr. Lin Hsueh-pu Description of the company's operating Honorary Chairman: 3 14:40~15:00 status Mr. Lin Hsueh-pu Report on Utilizing the Company’s R&D Deputy General Manager: 4 15:00~15:10 Advantages and Competitiveness- Mr. Peng Tiancheng Boosting Promotion Plans Report on Major Progress in the CEO of Nanrong Development 5 15:10~15:30 Nangang Plant Land Development Construction Co. (Ltd.): Project and the situation of sales Mr. Hong Guoxiong 6 15:30~16:00 Q&A 1
Outline Current Status of Company Operations • Company Profile • Current Status of Operations Honesty, pragmatic, Plans for Maximizing Current creativity Advantages and Boosting Competitiveness Major Progress in the Nangang Land Development Project and the situation of sales 2
Company Profile The company was established on February 25, 1959, and became a publicly listed firm in November 1963. Capital Amount NT$8.339 billion Turnover NT$104.42 billion (2018 figures) Company Address 6F., No.136, Sec. 3, Renai Rd., Daan Dist., Taipei City 106, Taiwan Hsin-Fung Factory: No.399, Xining Rd., Xinfeng Township, Hsinchu County 304, Taiwan Zhangjiagang Factory:Shanghai Road, Zhangjiagang Bonded Area, Factory Addresses Jiangsu Province Nangang Factory-No.51, Sec. 2, Nangang Rd., Nangang Dist., Taipei City 115, Taiwan (currently under development) Floor area of the Xinfeng factory- 52,392 ping (173417.52 square Scale of Factories meters); floor area of the Zhangjiagang factory- 80,707 ping(267140.17 square meters) Number of 1,392 in Taiwan; 1,214 at the Zhangjiagang factory Employees Capacity(maximum 19,000 tires/day at the Xinfeng factory; 19,000 tires/day at the /day) Zhangjiagang factory (1) All-steel light truck tires (2) High-performance radial car tires, snow tires, RV tires and others Main Products (Over 1,000 specifications available) (3) Heavy motorcycle tires 3 Business Ratios Exports account for 91% of total. (Taiwan: 4% / mainland China: 5%)
Hsin-Fung Factory Established in 1973, the factory building is spacious with a refinedenvironment. A total of NT$12.6 billion has been invested. The land area is more than 52,000 ping(173417.52 square meters). Currently, approximately 25,000 ping(82750 square meters)of building area has been constructed. The factory is located on Xinxing Road in Xinfeng Township, Hsinchu County, adjacent to a national highway interchange. An automated warehousing system officially launched in 2017, setting a new course for automation. 4 Products include car tires, light truck tires, snow tires, heavy motorcycle tires, etc. Daily maximum production capacity is 19,000 tires.
Zhang-Jia-Gang Factory • Establishment approved on September 9, 1997. • The registered capital amount is US$143.58 million. A total of US$296.53 million has been invested. Production began in September 2003. • The land area is 80,707 ping(267140.17 square meters) and the factory building area is 42,312 ping (140052.72 square meters). • The factory’s main products are radial car tires (specifications of 12"-24"). Daily 5 5 production capacity is 19,000 tires.
Making the Most of Advantages and Promoting Competitiveness Speakers: R&D Deputy General Manager: Mr. Peng Tiancheng 6
Foreword Under the influence of trade competition and cooperation between the United States and China, the situation of excess tire supply in China tends to be serious. Coupled with the uncertain global economic outlook, major car markets are showing weak sales growth. Despite the current chaotic global situation, Nankang Rubber Tire will better extend the advantages of new product development and continue to create blue ocean strategy. Meanwhile, seeking breakthroughs from niche markets, quickly respond to market demand, and providing the highest quality products to customers , the company aims to achieve its goal of sustainable development, while earning maximum profits. 7
Extending the advantages of new products Own band • Motorsport Series • NS-2R and AR-1 semi-slick series are continue selling well in Europe, and also transcend to United States, Australia, japan etc. • The SL-1 series is poised for supplying the higher level car racing events. • Electric Vehicle Tires • The new generation EV tires - NEV1, with requirements performance including "low noise/low rolling resistance/extended wear mileage/instant power increases” , has entered the final testing phase and ready to be released. • Hobby Tires • The HT/AT/MT series are the main series of SUV/CUV tires, targeted on the growing demands of the hobby Tires around the major world’s market. • Winter Tires for Europe • Europe is the primary sales market for Nankang tires, winter tires have always been the main products. • The next generation winter tires, including SV-4, ICE-2, and SW-9 are now entering the test phase. • Winter Tires for Japan • In response to the Japanese market’s favorite for Nankang winter tires, we are launching a fourth generation Winter tire development program that continues to reinforce the sense of identity in Japanese customers 8
Extending the advantages of new products OEM band • High-load SUV/CUV Summer tires • Expected to be released in Q2, 2019, with a total of 29 specifications, aimed at the REP market in North America. • Highway Terrain(H/T) Summer Tires • Expected to be released in 2020, a total of 34 specifications, with the first creation of the industry “stereoscopic white font design”, target on the North and South American, Australian and New Zealand consumers who love holiday leisure activities. • All-Terrain(A/T) Summer Tires • Expected to be released in 2020, a total of 20 specifications, with the first creation of the industry “stereoscopic white font design”, target on the North and South America, Australian and New Zealand Players-Level consumers. • Level C/A Summer Tires of the “EU Tyre Label” • In order to match up the European standard grade, the company will develop new rubber material formulations with suppliers, and strengthen the wear-resistance to create a flagship product. 9
Four Strategies to Improve the Competitiveness Boosting brand identity with motorsport Increasing Brand Power Continue to optimize the performance rating label Increasing product value with technical reports Introduction of smart production system Increasing Productivity ition! AS/RS → building/curing process → all process Trans Sales analysis Big data New product development analysis Business strategies analysis Vertical implementation and horizontal development Removing mediocrity, marching toward the Reform the remarkable way corporate culture Plan to cultivate the responsible and pragmatic talent 10
Nankang Rubber Tire Transitions For the Next 60 Years In 2019, Nankang entered the 60th year since its founding. Despite a slight twists and turns, but so far going, Nankang is continuously pursuing the goal of sustainable development now, and this year, we celebrate this valuable time with the great successful operating results. But faced with a rapidly changing market environment, Nankang Rubber tire must transition and make qualitative changes. Led by the central ideas of "professionalism, refinement, and depth" as well as the management concept proposed by its chairman of "doing it right the first time," Nankang Rubber Tire's competitiveness is continuously promoting the cultivation of core technological strengths, while deepening innovation. By rapidly responding to the market and quickly satisfying demand, Nankang will "always run faster than its opponents" and establish an "irreplaceable" position in the market as it moves 11 into the next 60 years of progress.
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