Zig Sheng Ind. Co., Ltd · TWSE:1455
Zig Sheng Ind — Zig Sheng Industrial — Investor Presentation (December 2024)
24 slides from Zig Sheng Ind's investor presentation, Dec 12, 2024
Slide 1: 2024 Investor Conference
Since 1969 2024 Investor Conference Ticker: 1455 TT DEC 12, 2024 INNOVATION / SPECIAL / FUNCTION / INTEGRATION / ENVIRONMENT
Slide 2: Company Profile
COMPANY PROFILE www.zigsheng.com 11 PRODUCTION PLANTS 1969 Company established & DTY 1st plant start up FIBER BUSINESS DIVISION 1993 Listed on the Taiwan stock exchange 3 DTY Plants 1997 DTY 3rd plant start up 2000 Nylon spinning 1st plant start up 2001 Nylon polymerization 1st plant start
Slide 3: Main Products
MAIN PRODUCTS Internal Sale use product product 尼龍66原絲 4 尼龍66加工絲 Nylon Products Nylon 66 Filament Nylon 66 DTY / ATY 尼龍66粒 8 工程塑料 2 1 Nylon 6 Chip HDMA, AA Nylon 66 Chip Engineering Plastics Engineering 2 Plastics 工業纖維 Industrial Filament 3 Nylon Filament 3 4 尼龍6原絲 尼龍6加工絲 Nylon 6 Filament Nylon 6 DT
Slide 4: Product Annual Production Capacity
PRODUCT ANNUAL PRODUCTION CAPACITY Nylon 6 Chip 150,000 Mt Nylon 66 Chip 21,600 Mt DTY 36,000 Mt Nylon Filament 30,000 Mt Engineering Plastic 10,200 Mt Total About 250,000 Mt 4
Slide 5: Product Sales Breakdown
PRODUCT SALES BREAKDOWN Unit： NTD million 2024 2024 2023 2023 Sales Breakdown H1 H1 Tot Q1-Q3 Amount % Amount % Amount % Amount % Nylon Chip 3,873 52.9 2,687 54.4 3,757 48.5 2,605 47.7 DTY 2,217 30.3 1,440 29.1 2,386 30.8 1,686 30.9 Filament 678 9.3 461 9.3 1,057 13.7 792 14.0 Engineering Plastic 47
Slide 6: Sales Breakdown by Products 2024 Q1-Q3
SALES BREAKDOWN BY PRODUCTS 2024 Q1-Q3 Turnover : USD 223,429,000 (NTD 7.3 bn) Domestic：51% / Export：49% Fiber Division Chemical Material Division DTY 4.1% Engineering Plastic 36.6% Domestic 95.9％ 63.4% Domestic 36.6％ 95.9% Export 4.1% Export 63.4% - Southeast Asia 1.2% - Southeast Asia 29.1% - Nort
Slide 7: Net Zero Transformation Strategy
Net Zero Transformation Strategy Environment Process Circular Protection improvement Economy • Greenhouse gas • Replace high- • Green products emissions efficiency equipment promotion management • Green certifications • Carbon emission benefits of green • Sustainable products products Energy • Impel
Slide 8: Greenhouse gas emissions management
Net zero transformation strategy -Environment Protection Greenhouse gas emissions management Introducing ISO 14064-1, conducting a greenhouse gas emissions inventory, 2012 and obtaining annual certification. Implementing the ISO 14001 Environmental Management Systems, conducting 2013 regular audits
Slide 9: Carbon emission benefits of green products
Net zero transformation strategy -Environment Protection Carbon emission benefits of green products Recycled Polyester Product Recycled Nylon Chips Chips Material Bottle flake Recycled nylon Recycled fishing net Ratio of carbon reduction -70% -97% -95% ■ carbon emission ■ carbon reduction Annual pro
Slide 10: Process improvement: power savings
Net zero transformation strategy Process improvement 2014 Save30.21 million kwh 2024 Reduce carbon footprint 15,684 Mt CO e 2 485 103 3,000 128 2,500 184 158 98 2,000 1864 1,500 1,000 Current year 500 power savings Total power 0 savings 2014~2018 2019 2020 2021 2022 2023 2024 Goal Unit: 10,000 kWh 2
Slide 11: Energy conversion
Net zero transformation strategy Energy conversion Introduced into ”ISO 50001 Energy management system” in 2018. Digitized monitoring effectively enhances energy efficiency. Regenerate solar power has reached 3368 kw. During the first three quarters of 2024, electricity generation reached 3.15 milli
Slide 12: Green products promotion
Net zero transformation strategy - Circular economy Green products promotion Sustainable Dope dyed Bio-based • Reduce waste • Energy saving • Reduce carbon emissions • Reuse • Waste • No crop sourcing • Reduce carbon reduction emissions • Save water Operating Advanced goals 2024 Zig Sheng Industrial
Slide 13: Green Certifications
Net zero transformation strategy - Circular economy Green Certifications Carbon footprint Global recycled standard OEKO-TEX of products ISO 14067:2018 2024 Zig Sheng Industrial Co., Ltd. Investor Conference 13
Slide 14: Sustainable products
Net zero transformation strategy - Circular economy Sustainable products Chips→POY/FDY→DTY/ATY Consistent production Pre-consumer 2019 2022 Recycled textile polyester Recycled nylon yarn yarn Nylon Polyester Recycled fishing net Recycled bottle flake nylon yarn polyester yarn 2019 2021 Post-consumer
Slide 15: Operation goals of green products
Net zero transformation strategy - Circular economy Operation goals of green products 2025 10% 2024 Q1-Q3 NTD 739 million 2050 10.1% Revenue & Proportion of green products 2024 Zig Sheng Industrial Co., Ltd. Investor Conference 15
Slide 16: Income Statements
INCOME STATEMENTS Unit : NTD million 2024 2024 2023 2023 Item Q1-Q3 H1 Tot Q1-Q3 Amount % Amount % Amount % Amount % Operating Revenue 7,318 100 4,942 100 7.741 100 5,463 100 Gross Profit 177 2.4 156 3.2 (149) (1.9) (203) (3.7) Operating Expenses 319 4.4 221 4.5 366 4.7 290 5.3 Operating Profit (142
Slide 17: Financial Index
FINANCIAL INDEX Unit : NTD million Item 2024 H1 2023 2022 2021 2020 Receivables 18.67 13.56 8.25 16.08 12.43 Inventory 21.78 17.91 18.81 22.47 10.82 Fixed assets 46.85 47.58 45.48 47.15 47.36 Total assets 114.89 103.09 91.83 107.80 89.27 Long short-term loans 36.48 26.90 15.30 17.60 11.60 Capital 53
Slide 18: Future Prospect: Nylon Chip
FUTURE PROSPECT Chemical Material Division Nylon Chip 1) The price of CPL, the main raw material for PA6, has stabilized in early December after declining and is expected to remain stable next year, which will benefit production and sales arrangements as well as operational profitability. 2) Sources
Slide 19: Future Prospect: Nylon Chip
FUTURE PROSPECT Chemical Material Division Nylon Chip 5) It is expected that the ISCC environmental product certification will be completed by the 2025 Q1, which will benefit the future sales of PA6 nylon chips. 6) The newly launched PA66 nylon chip production line is currently undergoing customer v
Slide 20: Future Prospect: Engineering Plastic
FUTURE PROSPECT Chemical Material Division Engineering Plastic 1) It’s expected that orders from major customers are remain stable next year, ensuring sustained profitability for operations. 2) Leverage the advantages of our own raw materials (including PA6 and PA66) to stabilize quality, meet marke
Slide 21: Future Prospect: Filament DTY
FUTURE PROSPECT Fiber Division Filament DTY 1) Overall, the DTY market and order situation for next year are expected to maintain profitability. 2) Strengthen R&D capabilities, and develop new materials, specialization, diversification and customization of product strategies, while responding quickl
Slide 22: Future Prospect: Filament DTY
FUTURE PROSPECT Fiber Division Filament DTY 5) Adjust production and sales operations mechanisms and control inventory strictly in order to reduce losses from inventory depreciation. 6) Leverage the advantage in producing our own PA66 raw materials, actively develop and market PA66 DTY products, the
Slide 23: Product that contains Zig Sheng materials
PRODUCT THAT CONTAINS ZIG SHENG MATERIALS • FIBER DIVISION • CHEMICAL MATERIALS DIVISION 2024 Zig Sheng Industrial Co., Ltd. Investor Conference 23
Slide 24: Thanks
THANKS INNOVATION / SPECIAL / FUNCTION / INTEGRATION / ENVIRONMENT
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