Tong Ming Enterprise Co., Ltd. · TWSE:5538
Tong Ming Enterprise — Investor Presentation (August 2024)
43 slides from Tong Ming Enterprise's investor presentation, Aug 27, 2024
Slide 1: Tong Ming Enterprise Investor Meeting 2024.08.27
開曼東明控股(股)公司 TONG MING ENTERPRISE CO.,LTD. KY 5538 TONG MING Intelligent Manufacture Investor Meeting 2024.08.27 Creating a new service through technology 1
Slide 2: Disclaimer
Disclaimer • This presentation has been prepared by TONG MING ENTERPRISE CO.,LTD. and the information, opinions and forecasts contained herein are based on sources we believe to be reliable and have been prepared in good faith, provided that no warranty, express or implied, is given by any member of
Slide 3: 公司沿革 (Company history)
公司沿革 Marketing management upgrade Establishment of Listed on the Taiwan Stock Strengthening of Zhejiang Jiaxing Capacity Exchange Corporation manufacturing integration, Expansion Program Zhejiang Tong Ming Co. (TWSE) adding regional warehouses National High-Tech Intelligent Computing, Enterprise E-C
Slide 4: Market and company status
Market and company status The only one in the world with manufacturing to distribution The largest single channel integration plant in the world No. 1 market share in China Top 3 market share of fine wire in China 10,000 distribution channel 4
Slide 5: Major Application Industries - Solar Energy
Major Application Industries - Solar Energy 55 5
Slide 6: Energy Storage Equipment
0 Energy Storage Equipment IRB / SAE
Slide 7: Products introduction
Products introduction We are a service passionately focused on the professional development and success of our customers Strategic external trade Fasteners(screws, nuts) Fine wire products 7
Slide 8: Company's recent awards
Company's recent awards ● National Specialized Small Giant ● 2019 Top Ten Industrial Enterprises ● Top Ten Technological for High Quality Development Innovation Enterprises of ● 2019 Outstanding Enterprises in Fasteners in Zhejiang Province Digital Economy ● Top Enterprise of Single ● The red cross
Slide 9: Greenhouse gas inventory and verification schedule planning and implementation
Greenhouse gas inventory and verification schedule planning and implementation Project Parent company Subsidiaries Determine the establishment of full-time (part-time) units, number 2022.08 2024.08 of people and scope of duties Make inventory plan 2022.12 2024.12 Make verification plan 2023.12 2026
Slide 10: CBAM implementation stage
CBAM implementation stage Transitional period Formal implementation period Oct. 1st, 2023 Jan. 1st, 2024 After July 2024, Carbon tax will be The EU ETS will no Start implementing Start declaration the default levied after January longer provide free CBAM value cannot 2026, and third- carbon emission
Slide 11: So far we have done
So far we have done • Production institutions: The carbon footprint verification of the manufacturing boundaries has been completed, and information on direct and indirect emissions of products can be provided. The latest carbon emission data are as follows: Direct emissions Indirect emissions Total
Slide 12: Industry Market Profile - Worldwide Status
Industry Market Profile - Worldwide Status ⮚ Regional economic protectionism 15% deepens and competition barriers 3% 75% become more complex 10% AMERICA EUROPE China ASIA ⮚ Global investment slow down ⮚ China's demand has gradually 1% recovered ⮚ Impact of trade tariffs and Russia- 1% AFRICA AUSTRAL
Slide 13: Business Performance
BNP OPPNNNDN SS ca W 3usiness Performance
Slide 14: Variation of shipment volume from January to June, 2024
TONG MING KY -Variation of shipment volume from January to June, 2024 Unit: Tons 11,550 11,129 10,738 10,764 10,412 5,966 1月 2月 3月 4月 5月 6月 14
Slide 15: H1 2024 Shipment volume compared with year early
Tong Ming KY -H1 2024 Shipment volume compared with year early Unit: Tons 15
Slide 16: Variation of shipment volume in the past years
Tong Ming KY -Variation of shipment volume of in the past 5 years 16
Slide 17: Domestic Sales Shipment Growth in H1 2015~2024 (Fasteners)
Tong Ming Domestic Sales Shipment Growth in the H1 of 2015~2024 (Fasteners) Unit：Tons 17
Slide 18: Business Performance: Domestic market vs Foreign Sales
Tong Ming KY - Business Performance and Status: Difference between Domestic market and Foreign Sales Fasteners Fasteners Strategic Trading Programs Fine wire (Foreign market) (Domestic Products market) Operation Model Production by order Production by order Distribution service Proactive Partners Te
Slide 19: Productivity Performance
Tong Ming KY – Foreign market：380 Domestic market：10,000+ Productivity Performance 2023 Well- Production 127,209 tons designed Forming productio machine: n flow 559 sets Number of Clients Shipping volume Friendly Advanced Precise control of Number of products production production productio process
Slide 20: Market mold – Help clients minimize purchasing risk
Tong Ming KY- Market mold – Help clients to minimize the purchasing risk Traditional Supply Chain Factory Distributor Wholesalers Retailers End user Tong Ming Service End user provider 20
Slide 21: Deeply Cultivate e-commerce platform
Deeply Cultivate e-commerce platform 21
Slide 22: Advantages of Tong Ming 4.0
Advantages of Tong Ming 4.0 Our customer do not need to hold the inventory • Fast Delivery place the order before 5:30pm today, and it will be delivered in next morning • Small Order one carton，one box ，one bag or one piece • Complete product range 99% utilization rate，quick replenishment，high quali
Slide 23: Increased fastener production capacity
Increased fastener production capacity Original Factory + New Factory 23
Slide 24: Large-size bolt production line
Large-size bolt production line 24
Slide 25: Product Range expansion
Product Range expansion M27-M36 Cold Forming M24 & M30 Full Thread Cold Forming 25
Slide 26: Manufacturing tools sales (video file)
Manufacturing tools sales (video file) 26
Slide 27: D2-80 Duplex stainless steel
D2-80 Duplex stainless steel 32001 is a duplex steel material with higher strength, better corrosion resistance, and superior anti-galling performance compared to 304. Additionally, the material cost is lower than stainless steel 304. This material is a top recommendation by Tong-Ming Company in the
Slide 28: D2-80 Duplex stainless steel
D2-80 Duplex stainless steel 28
Slide 29: Core strategy of the business ecosystem
Core strategy of the business ecosystem 02 01 Establish 03 strategic core values Carbon audit Restructure the Designing a mutually industry supply beneficial and altruistic Comprehensive business model chain corporate carbon emissions Enhancing internal Value integration and assessment: innovation m
Slide 30: Sales revenue distribution of products over the past three years
Tong-Ming KY's sales revenue distribution of products over the past three years (by amount) 30
Slide 31: Status of the New Plant
Status of the New Plant A 5 ae, 4 > = = = - = = -_ = a —— =e —<— ==
Slide 32: Land area & capacity of new and current plants
Land area & capacity of new and current plants Capacity： first year 45,000tons 3~5 years grow to 80,000 tons Land Area：47,927.0𝒎𝟐 Capacity：136,000tons Land Area：152,062.5𝒎𝟐 32
Slide 33: The new plant
The new plant The new factory will produce mainly nuts and screws. In the first year, 35,000 tons of nuts and 10,000 tons of small screws will be produced. 33
Slide 34: Key Financial Information
ey Financial Information 34
Slide 35: Sales volume and value in the last five years
Tong Ming KY- Sales volume and value in the last five years Sales Value (Thousand TWD) Shipment Volume (Ton) 16,000,000 15,428,409 134,908 14,000,000 140,000 13,235,516 12,966,040 129,104 127,209 12,000,000 120,000 103,147 10,000,000 100,000 91,836 8,807,059 9,171,338 8,000,000 80,000 6,000,000 60,0
Slide 36: Gross Margin and Operating Margin for the last 5 years
Tong Ming KY- Gross Margin and Operating Margin for the last 5 years 36
Slide 37: Average Gross Margin for Products in H1 of 2024
Average Gross Margin for Products in H1 of 2024 37
Slide 38: Quarterly gross margin
Tong Ming KY- Quarterly gross margin Factors that Impact Gross Profit 1.Raw Material Fluctuation 2.Product Composition 3.Market Share Expansion Strategy 4.Difference in market share 38
Slide 39: Historical profit or loss
Tong Ming KY-Historical profit or loss Thousand NTD 39
Slide 40: Simplified Profit and Loss Comparison
Tong Ming KY-Simplified Profit and Loss Comparison Thousand NTD 40
Slide 41: Future Development
ure Development portunities arising from new duction capacity. Retaining a leading ition in a highly competitive market m Quantity to Service Quality and tainable Social Responsibility 41
Slide 42: Future Development and Dividends
Future Development and Dividends ⮚ Conservative financial, investment and profit planning in the short term . ⮚ Profitability is expected to be conservative, with dividends maintained at a certain percentage. Program/Year 2022 2023 2024 H1 Rate of return on 13.57 2.01 9.82 equity(%) Cash Dividends(N
Slide 43: Thank you
Thank you 43
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