Gsd Technologies Co., Ltd. · TWSE:6641
Gsd Technologies — Investor Presentation (September 2022)
59 slides from Gsd Technologies's investor presentation, Sep 5, 2022
Slide 1: Company Presentation
Stock Code: 6641 Company Presentation 2022.09.05 All rivers are clean and no water is polluted. GREEN ·SAFE ·DEVELOPMENT
Slide 2: Contents
Company 01 Profile Operating 02 Performance CONTENTS Industry 03 Overview Operating 04 Strategy www.gsd.net.tw www.gsd.net.cn 2
Slide 3: Company Profile
Company Profile 01 www.gsd.net.tw www.gsd.net.cn 3
Slide 4: Company Information
Company Information Company ◆ GSD Technologies Co., Ltd. Stock Code ◆ 6641 Established ◆ Oct.2013 Chairman ◆Hung-June, Hsieh Paid in ◆NTD 370 Millions capital Major ◆ Environmental equipment manufacturing, business sales and technical services. Brand ◆ GSD 2 Plants ◆ Pinghu in Zhejiang & Yangzhou in
Slide 5: Company Structure
Company Structure GSD Technologies Co., Ltd. 100% 100% GSD Technologies Co., Ltd. Chuan Yuan Hydraulic GSD Enviro Tech Taiwan Branch. Engineering Co., Ltd. (Taiwan) Co., Ltd. 100% 100% 23.52% GSD Enviro Tech GSD ( China ) Yuh Shan Environmental (Yangzhou) Co., Ltd. Co., Ltd. Engineering Co., Ltd. 85
Slide 6: Green Safe Development
Business Philosophy GREEN Friendly commitment to the earth's environment and ecology. SAFE Responsible commitment to stakeholder. DEVELOPMENT Commitment to sustainable development of the company. Mission To optimize the ecological environment and benefit to the world. Environment：All rivers are clea
Slide 7: GSD-ESG Action!
ESG GSD-ESG ACTION ! Launched the sustainable operation strategy Set up ESG team to coordinate and promote ESG activities. The first ESG report will be issued in 2024. www.gsd.net.tw www.gsd.net.cn 7
Slide 8: Taiwan and the world move towards net zero
ESG Taiwan and the world move towards net zero Ref. : Taiwan's Pathway to Net-Zero Emissions in 2050 www.gsd.net.tw www.gsd.net.cn
Slide 9: Net zero and waste derived fuels
ESG Taiwan and the world move towards net zero SRF/RDF and sludge are waste derived fuels Ref. : Taiwan's Pathway to Net-Zero Emissions in 2050 www.gsd.net.tw www.gsd.net.cn
Slide 10: Energy resource integration
ESG 2025 2030 2050 Path for Low carbon Reduce carbon emission, and then Zero carbon manufacturing net zero emission 1.1 -Process improvement & equipment replacement New equipment & Expand Replacement -Waste heat & cold recovery technology energy saving technology leading-in. Energy resource integrat
Slide 11: Conversion pathways to net zero
ESG 2025 2030 2050 Path for manufacturing Low carbon Zero carbon 2.1 Expand the use of natural gas Promote the use of natural -Nature gas+ (CCS) Natural gas in general boilers gas in steam electric boilers -Carbon neutral natural gas conversion Energy 2.2 Expand the use in cement industry 4% Expand
Slide 12: ESG
ESG Ref. : Taiwan's Pathway to Net-Zero Emissions in 2050 www.gsd.net.tw www.gsd.net.cn
Slide 13: GSD ESG Strategies
ESG Strategies Green Product Supply green products to help customers save energy, reduce consumption and carbon emissions, GSD including saving of mechanical energy, process ESG energy (upgrading and reconstruction), management/smart energy saving, and recycling (sludge, water recovery, SRF). Green
Slide 14: ESG Strategies
ESG Strategies ▪ Sustainable B I ▪ Water/Waste ▪ Manageable ▪ AIoT ▪ Affordable ▪ Transition ▪ Responsive A E ▪ Energy ▪ Transparent ▪ Reduce/reuse/recycle I Bio、AI、IoT 、Equipment、Integrated Based on equipment, environmental engineering, biotechnology and AIoT, GSD creates a new operation mode to pr
Slide 15: ESG Strategies: Cooperation and Alliance
ESG Strategies Future Industry-Academy Cooperation Strategic Alliance NCKU & GSD water technology R&D center upstream + cross-industry +downstream partner TongJi & GSD microorganism R&D center Establishing an ecosystem Integrated services / Operation / Investment www.gsd.net.tw www.gsd.net.cn 15
Slide 16: Green Product
Green Product More than 200 products have Energy saving certification.(Over 40% of revenue) Launch turbo & magnetic levitation blower Customized-design reduces motor power by 4kW and with excellent energy-saving effect. saves energy. www.gsd.net.tw www.gsd.net.cn 1
Slide 17: Green Product: Aeration system reconstruction
Green Product Reconstruction of aeration system Project A Project B Energy consumption 67% Energy consumption 10% Before: 0.22kW/m3；After: 0.08kW/m3 Before :183.3KW； After :165.8KW www.gsd.net.tw www.gsd.net.cn 17
Slide 18: Green Product: AI control energy saving
Green Product Set-Point Control Intelligent Control AI Control Root Blower range Avg.± Std. range Avg.± Std. range Avg.± Std. Power (kW) 1.41 ~ 52.43 13.98 ± 10.82 0.20 ~ 36.16 12.32 ± 8.43 0.61 ~ 15.66 8.71 ± 3.90 Cumulated(kWhr) 517.10 406.56 235.21 Saving (%) 46.14 57.65 75.50 By data simulation
Slide 19: Green Management
Green Management Solar power generation electricity- saving. Use environmentally friendly water- based paint. Focus on carbon reduction from product design. Construction of sponge factory. Support Hubei new infectious disease hospital. Support local river governance. www.gsd.net.tw www.gsd.net.cn 19
Slide 20: Green Management
Green Management Waste reduction + Environmental awareness + Employee family day Monthly Environment Day By parent-child activities, GSD shares resource recycling knowledge and environmental education. www.gsd.net.tw www.gsd.net.cn 20
Slide 21: Green Management
Green Management Cleaning plate activity Festival activity Team building activity Working skill competition Support for rural schools Financial aid for poor students Business culture activity www.gsd.net.tw www.gsd.net.cn 21
Slide 22: Product Scope
Product Scope Comprehensive service provider of environmental governance Complete Single sewage Intelligent Integrated Equipment equipment Equipment equipment series Complete Pumps equipment, Submersible Mixers To Smart equipment Integration of Environmental Aerators AIoT Process Equipment + enginee
Slide 23: Product Scope
Product Scope Comprehensive service provider of environmental governance Technology Equipment AIoT Enviro. Engineering Stand-alone Equipment +IoT + AI + After Service Complete equipment Solution Design Manufacture implementation www.gsd.net.tw www.gsd.net.cn 23
Slide 24: Invest Taiwan
Invest Taiwan 2019 GSD Taiwan Branch established. 2021 GSD Enviro Tech (Taiwan) established.. May,2021 NT$ 300 million dollar CB was issued. June,2021 GSD acquired shares of Yuh-Shan Co. . 2021.Oct Cash capital increase NT 150 millions. 2022. Launch smart water service platform with Water Affairs Or
Slide 25: Participate in government tender
Participate in government tender In 2021, GSD obtained the professional construction industry license for environmental protection engineering. Tenders obtained in 2022: Project：Odor prevention project of sewage treatment plant Amount：NTD 3,746,400 (completed) Tender date：2021-12-20 Project : Replac
Slide 26: Operating Performance
Operating Performance 02 www.gsd.net.tw www.gsd.net.cn 26
Slide 27: Income statement
Income statement www.gsd.net.tw www.gsd.net.cn 27
Slide 28: Income statement
Income statement www.gsd.net.tw www.gsd.net.cn 28
Slide 29: Profitability ratio
Profitability ratio 2022Q1 Q2 decrease in gross profit margin: Due to inflation and the increase in the proportion of revenue in Taiwan. www.gsd.net.tw www.gsd.net.cn 29
Slide 30: Product Sales
Product Sales www.gsd.net.tw www.gsd.net.cn 30
Slide 31: QoQ Performance
QoQ Performance 600,000 80,000 70,000 500,000 60,000 400,000 50,000 300,000 40,000 30,000 200,000 20,000 100,000 10,000 0 0 20Q1 21Q1 20Q2 21Q2 20Q3 21Q3 20Q4 21Q4 21Q1 22Q1 21Q2 22Q2 20Q1 21Q1 20Q2 21Q2 20Q3 21Q3 20Q4 21Q4 21Q1 22Q1 21Q2 22Q2 Quarterly REVENUE Quarterly NET INCOME www.gsd.net.tw ww
Slide 32: Dividend (NTD %)
Dividend (NTD %) EPS exceeded NTD 6 and distribution rate exceeded 60% for last 4 years. www.gsd.net.tw www.gsd.net.cn 32
Slide 33: Industry Overview
Industry Overview 03 www.gsd.net.tw www.gsd.net.cn 33
Slide 34: Taiwan
Taiwan Taiwan‘s environmental protection industry output value (2011-2020) Unit: NTD Billion Environmental Environmental Environmental equipment resources service industry industry industry Source：Environmental Protection Industry (Biomass Energy and Environmental Protection Industry Information Net
Slide 35: Taiwan
Taiwan In April 2017, Taiwan proposed"Forward looking infrastructure design plan", about "water environment construction". It is estaimated NT $250.8 billion will be invested in 8 years, to create a high-quality water environment without water shortage & flooding, also drinking well, and water frien
Slide 36: China
China Key words for the 14th Five-Year Plan Energy saving & Water is Carbon Neutral Emission reduction becoming resource www.gsd.net.tw www.gsd.net.cn 36
Slide 37: China carbon peak and neutrality
China carbon peak and neutrality 2030 carbon peak 2060 carbon neutrality Key point: Technology (low carbon, carbon replacement, carbon reduction and carbon fixation) Low carbon technology: Reducing CO2 emissions in the same process or under the same product or functional conditions. Reduce 250 milli
Slide 38: China carbon peak and neutrality
China carbon peak and neutrality 10 actions in China of carbon peak ●Green energy ●Carbon-reduced By 2025, energy consumption ●Industry filed will lower 13.5% , and carbon ●Countryside construction dioxide emissions will lower ●Green transportation 18% . ●Circular Economy ●Technological innovation B
Slide 39: China
China 1.9% Revenue of environmental protection to GDP in 2020 Operating income Ratio of operating income of to GDP (%) (100 million) Contribution rate (%) Environmental protection industry drives GDP growth Source: report on the development of China's environmental protection industry (2021) www.gsd
Slide 40: China
China Market scale of China's water pollution control industry (100 million yuan, 2016-2025 forecast) Compound growth rate China's water pollution control industry market 17.7% 18.0% 18% Compound growth from 2020 to 2025 Source: www.leadleo.com www.gsd.net.tw www.gsd.net.cn 40
Slide 41: China
China Unit: 100 million yuan (RMB) Source: 2020-2025 sludge drying market analysis and investment prospect forecast report www.gsd.net.tw www.gsd.net.cn 41
Slide 42: Vietnam
Vietnam Vietnam environmental market Unit: Score The environmental protection technology industry is not yet mature and relies on international company to China introduce goods and technical services. Mexico The government's lack of management and law Brazil enforcement capacity . Korea Vietnam Powe
Slide 43: Operating Strategy
Operating Strategy 04 www.gsd.net.tw www.gsd.net.cn 43
Slide 44: Core Advantage
Core Advantage GSD business advantage to Maximize customers 'value Product + Sales Team Brand Service Channels Power Full range of 37 sales Well-known Manageme product points, brand nt talents + scope & providing positioning Environmen maintenance, prompt for high- tal Eng. Environmen services ( end
Slide 45: Business Model
Business Model Consultant / Design Company ( Policies, Regulations ) Equipment Supplier ( Function, Cost, Maintenance ) Operating Company User Comprehensive ( Cost, Benefit, Guarantee ) Services Constructor / Contractor ( Supervision, benefit ) ( Technology, Competitiveness, Service capability ) Sys
Slide 46: Comprehensive Solution for Smart Water Services
Comprehensive Solution for Smart Water Services Smart Water Services Data Users Requirements Collection Services: Online-to-Offline Lower Data AI • Reconstruction WWTP Stay in collected Services compliance operating Intelligent water treatment system with AI Owners expense (On- & premises) • Predict
Slide 47: AIoT
AIoT Equipment Management System To Smart Equipment • Sensor • Gateway AIoT Process Control Intelligent Process Monitoring & Control Modules www.gsd.net.tw www.gsd.net.cn 47
Slide 48: AIoT
AIoT Equipment Health Management Platform Equipment Extension Intelligent Inspection Management Platform E Inspection Water Quality Treatment Management Platform Operational Optimization Resource & Energy Management Platform Training & Energy & Cost Certificatio Saving n www.gsd.net.tw www.gsd.net.c
Slide 49: Case: Agricultural Biotechnology Park in South of Taiwan
Case Agricultural Biotechnology Park in South of Taiwan To response to 2050 net zero: Capacity：4,000 CMD apply smart management module. Process：A2O Before AI control After AI control The operating co. lacks experience in operating A2O : Use the smart water service platform from Sep. 2020： • The trea
Slide 50: Case: Water treatment park in central Taiwan
Case Water treatment park in central Taiwan Capacity：31,000 CMD To response to 2050 net zero: apply smart management module. Process：AO( MLE ) Cooperate with customer to introduce smart water solutions and share benefits. Planned Ao (MLE) program-controlled smart link scheme: 1. Intelligent operatio
Slide 51: Case: Semiconductor factory, Panel factory
Case Semiconductor factory, Panel factory To response to 2050 net zero: Implement precise dosing module: apply smart management module. ◆ pH adjustment intelligent control module ◆ denitrification carbon source supply intelligent control module ◆ intermittent aeration intelligent control module ◆ in
Slide 52: Case: Blower room of Tainan technology industrial zone
Case Blower room of Tainan technology industrial zone It has successfully assisted Taiwan equipment factory to complete the intelligent system of blowers, filter presser and thermal supports. www.gsd.net.tw www.gsd.net.cn 52
Slide 53: Case: Intelligent Compact Unit Reactor for WWTP
Case Intelligent Compact Unit Reactor for WWTP Advantages: it has low construction cost and small area, widely used in residential communities and rural areas. Current situation: the equipment is located in remote areas, which requires a lot of inspection and maintenance cost. Solution: remotely man
Slide 54: Investment strategy
Investment strategy Invest Southeast Based on China Invest Taiwan Asia Focus on.. Focus on.. Focus on.. Production Capacity, Strengthening Market Expanding Product Development Competitiveness ◆ Short-term: Building Channel ◆ Pinghu II plant construction ◆ AIoT ◆ Long-term: Capacity Development ◆ Yan
Slide 55: Yuh Shan
Yuh Shan Share held 23.53% ◆ Established in 1993, the capital is NT $255 million. ◆ In 2021, the turnover is about NT $910 million, EPS is NT$ 1.63. ◆ More than 110 projects in the remediation of soil and groundwater pollution. ◆ Soil remediation by water washing and thermal desorption for CPC Shell
Slide 56: Yuh Shan
Yuh Shan In Sep. 2021, the project of "Kaohsiung Refinery Area III ( NT$ 980 million)" was obtained, and expected to complete the soil remediation before Oct. 2022. The contract of “CPC Kaohsiung project”amounted NT$340 million , owner changed to Kaohsiung City . This case is part of "S corridor pro
Slide 57: CNCN (Beijing) Enviro Tech Co. Ltd.
CNCN (Beijing) Enviro Tech Co. Ltd. ◆The capital is 10 million RMB and the shareholding is 60% ◆The initial operation is sludge drying business and energy management, expected to start operation in this Q3. ◆Clear sludge treatment route after the 14th five year plan Policy in China: the harmless and
Slide 58: GSD Enviro Tech Vietnam Co., Ltd.
GSD Enviro Tech Vietnam Co., Ltd. Advantage in Vietnam ◆The economic growth rate is > 6% in Vietnam. ◆Vietnam participate 17 FTAs. ◆Near China ◆With demographic dividend (with a working population of more than 70 million) ◆ Per capita income has more than tripled in the past 10 years. GSD in Vietnam
Slide 59: Thank you!
Disclaimer • This presentation is a summary and assessment of the past, present and future operations of our company at the time of the presentation. It contains forward looking statements that will be affected by risks, uncertainties and inferences, some of which will partially beyond our control.
GSD Technologies — Investor Presentation (September 2022) on 6ix