Slide 1: Investor Conference
Investor Conference 蛻變•堅持 觸動未來
Slide 2: Agenda
Agenda • Welcome C. M. Yang , Vice Chairman • 2022 H1 financial results Justin Ko , CFO • 2022 H1 market review and 2022 Q4 outlook M. F. Feng , General Manager • Development strategy M. F. Feng , General Manager • Q&A 蛻變•堅持 觸動未來 2
Slide 3: Safe Harbor Notice
Safe Harbor Notice • RECHI’s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. • Except as required by law, we undertake no obligation t
Slide 4: 2022 H1 financial results
2022 H1 financial results 蛻變•堅持 觸動未來 4
Slide 5: 2022 RECHI focus
2022 RECHI focus ✓ Sale --- • Pursuit of price-quantity balance, cash flow and reasonable profits after adjusting strategy. • The compressors (Aluminum wire) for split-type A/C sold to the China market and focused specific customers. • The miniaturized inverter compressors were poor sold to the Chin
Slide 6: Income statement
Income statement Unit in Thousand NT$ 2022 H1 % 2021 H1 YOY % Sales volume of 9,084,826 11,100,862 -2,016,036 -18.16 compressor Sales revenues 11,054,141 100.00 12,112,043 -1,057,902 -8.73 Cost of goods sold -9,758,391 -88.28 -10,743,410 985,019 9.17 Gross margin 1,295,750 11.72 1,368,633 -72,883 -5
Slide 7: Balance sheet
Balance sheet Unit in Thousand NT$ 2022 H1 % 2021 H1 % YOY % Cash and current financial 3,961,173 15 2,839,832 9 1,121,341 39 assets Accounts receivable, net 7,485,005 28 9,634,758 32 -2,149,753 -22 Inventories 2,342,865 9 2,930,671 10 -587,806 -20 Property,plant and 6,748,635 25 7,135,551 24 -386,9
Slide 8: Cash flow statement
Cash flow statement Unit in Thousand NT$ 2022 H1 2021 H1 Cash and Cash Equivalents at Beginning of Period 3,045,098 3,576,943 Net cash provided by operating activities 476,502 862,613 Cash flow from investment activities 92,897 188,343 (Decrease) increase in short-term loans,net 536,483 -991,236 (De
Slide 9: 2022H1 RECHI Sales : Application ratio
2022H1 RECHI Sales : Application ratio Sales volume (%) YOY (%) 775.5% RV A/C New application Industrial application PTAC Unitary Window A/C RV A/C Heat Dehumidifier pump Industrial dryer Dehumidifier Unitary application PTAC New Portable A/C application Split-type A/C Heat pump dryer Split-type A/C
Slide 10: 2022H1 RECHI Sales : Geographic ratio (End market)
2022H1 RECHI Sales : Geographic ratio (End market) Sales volume (%) YOY (%) Latin America SE Asia N Africa / Middle East / N Africa / Middle East / South Asia West Asia West Asia North Europe America East Asia South Asia East Asia SE Asia Europe North America China China Latin America 蛻變•堅持 觸動未來 10
Slide 11: The chart of consolidated gross margin trend
The chart of consolidated gross margin trend consolidated bross margin • After adjusting strategy in 2022 H1, the gross profit margin will gradually recover. 蛻變•堅持 觸動未來 11
Slide 12: 2022 H1 market review and 2022 Q4 outlook
2022 H1 market review and 2022 Q4 outlook 蛻變•堅持 觸動未來 12
Slide 13: The market trend of rotary compressor in CHINA
The market trend of rotary compressor in CHINA Sale volume YOY % CAGR 7.85% 單位:千台 Unit：k / sets • The sales volume increased by 12.8% YOY to around 238 million units in 2021, mainly due to the rebound and recovery in the post-pandemic era. • WFH, remote working and the government’s relief policy dro
Slide 14: The top 5 of rotary compressor makers in CHINA
The top 5 of rotary compressor makers in CHINA Unit：k / sets GMCC LANDA HIGHLY RECHI PANASONIC • Oversupply in the rotary compressor industry. • The annual sales volume of GMCC exceeds 100 million units in 2021, incited low-price competition fiercely. 蛻變•堅持 觸動未來 14
Slide 15: The global RAC market in the 2022 H1 is estimated to have decreased
• The global RAC market in the 2022 H1 is estimated to have decreased by 4.7% compared with the same period in 2021. • Due to the lockdown in Shanghai, China and Russia-Ukraine War, air conditioner manufacturers will face challenges such as how to procure raw materials and parts, carry out productio
Slide 16: Development strategy
Development strategy 蛻變•堅持 觸動未來 16
Slide 17: Outlook of 2022 Q4 End market sales (YOY)
Outlook of 2022 Q4 End market sales (YOY) N America Market Europe Market China Market East Asia Market N Africa / Middle East / West Asia Market South Asia Market SE Asia Market Latin America Market • Due to faltering demand in the Europe and America market and a high base in the same period, sales
Slide 18: Operational challenges
Operational challenges ⚫ The real estate market in USA and China will slump, and energy prices in EU will soare, affecting faltering demand for end user. ⚫ Fed will continue to hike interest rates affecting business high costs. ⚫ Non-US currencies continue to depreciated, emerging economies are unde
Slide 19: Operational opportunity
Operational opportunity • The inventory of China’s A/C industry continued to decline, it will help the A/C industry to gradually increase production and regain Momentum. • RECHI earned satisfaction and trust from many Europe well-known international home appliance brands, and ready expand the compre
Slide 20: RECHI Development Strategy
RECHI Development Strategy Pursue Create Opportunities Market for new energy- Demand saving markets THE STRATEGY OF VALUE REVOLUTION New energy- Technology saving Innovation products 蛻變•堅持 觸動未來 20
Slide 21: RECHI
iG Hk BXtE AR SSA RECHI
Slide 22: Create unlimited possibilities for the Energy Saving Industry
Create unlimited possibilities for the Energy Saving Industry. Become the top provider of proactive Energy Saving Product. 蛻變•堅持 觸動未來 22