Lai Yih Footwear Co., Ltd. · TWSE:6890
Lai Yih Footwear — Investor Presentation (May 2024)
37 slides from Lai Yih Footwear's investor presentation, May 9, 2024
Slide 1: LAI YIH GROUP
TWSE Stock code 6890 LAI YIH GROUP Since 1987 www.laiyih.com
Slide 2: Disclaimer
Disclaimer This presentation is a summary and evaluation of the past, present and future operations of the Company based on the subjective and objective factors at the time of the presentation; It contains forward-looking statements that will be affected by risks, uncertainties, and inferences that
Slide 3: Content
Content 1. Overview and History of the Company 2. Product Introduction and Manufacturing Process 3. Market Overview and Competencies 4. Business Operation Performance and Dividend Policy 5. R&D Capabilities and Achievements 6. Business Philosophy and Sustainability with ESG 3
Slide 4: 1. Overview and History of the Company
1. Overview and History of the Company ➢ Introduction of LAIYIH Group ➢ C o m p a ny H i s t o r y ➢ G r o u p I nv e s t m e n t S t r u c t u r e ➢ I n t r o d u c t i o n o f L A I Y I H ’s I m p o r t a n t S u b s i d i a r i e s ➢ Members of the Board ➢ M a n a g e m e n t Te a m 4
Slide 5: Introduction of LAIYIH Group
Introduction of LAIYIH Group LAIYIH Group Founded in 1987, cooperates with many internationally renowned brands. Specializing in producing various high- end casual shoes (vulcanized shoes), sports shoes (cold- cement shoes), special function shoes. We continuously innovate technology and improve our
Slide 6: Company History
Company History 1987 1990 2003 2006 2011 2011 2014 2018 2021 2021 2022 LAI YIH Lac Ty Tyxuan Bao Yi Lac Ty II Yih Shou Tsang Yih Ty Bach YIH YIH FULL YIH XIN Group (Joint venture QUAN with Pou Chen) JS TXG HCMC VL HG DT YGN VL China Indonesia Vietnam Vietnam Vietnam Vietnam Myanmar Vietnam Indonesia
Slide 7: Group Investment Structure
Group Investment Structure LAIYIH Industrial Co., Ltd.(Cayman) Share capital NT$2.2 billion Order taking company Holding Companies FLOURISH THRIVE FLOURISH DEVELOPMENTS LIMITED TAIWAN (SAMOA) BRANCH Production Base Vietnam China Myanmar Indonesia Tac ty Tac ty II Tyxuan Bao Yi Tsang Yih Yih Quan Yih
Slide 8: Introduction of Important Subsidiaries
Introduction of Important Subsidiaries Lac Ty Co., Ltd. Lac Ty II Co., Ltd. (adidas Development Center ) (adidas Main Production Factory) Founded in May, 1990 Founded in March, 2011 Located in Ho Chi Minh City, Vietnam Located in Hau Giang Province, Vietnam Laiyih Group’s 1st shoe factory
Slide 9: Introduction of Important Subsidiaries
Introduction of Important Subsidiaries Tyxuan Co., Ltd. Yih Shou Co., Ltd. (Converse DC, Converse & adidas production factory) (HOKA DC & Production Factory) Founded in Dec, 2003 Founded in June, 2011 The 1st shoe factory in Vinh Long and the largest Located in Dong Thap Province, Vietnam, i
Slide 10: Introduction of Important Subsidiaries
Introduction of Important Subsidiaries Tsang Yih Co., Ltd. Ty Bach Co., Ltd. (Myanmar adidas production factory) (UNIQLO DC、UNIQLO、HOKA production factory) Founded in July, 2014 Founded in July, 2018 Located in Yangon, Myanmar Established in 2018 in Binh Minh Industrial Park, Vinh Long Provi
Slide 11: Members of the Board
Members of the Board Title Name Gender Education Experience Chung Yuan Christian Department and Systems 1988-now LAIYIH Group Chairman CHUNG, TE-LI Male Engineering 2012-now LAIYIH Group Chairman Director LIN HSUEH-FEN Female Feng Yuan Commercial High School 1994-2020 LAIYIH Group 2007-2020 LAIYIH G
Slide 12: Management Team
Management Team Title Name Years Education Experience 1987-now LAIYIH Group Lac Ty Executive President President LIN, CHANG-YUNG 36 Feng Yuan Junior High School 2021-now LAIYIH Group President 2023/10 Oversea Second Business Department COO 2001-2015 Pou Chen Group-Yue Yuen Group Executive Director G
Slide 13: 2. Product Introduction and Manufacturing Process
2. Product Introduction and Manufacturing Process ➢ Main Products ➢ M a i n B ra n d C u s t o m e r s ➢ M a n u fa c t u r i n g P r o c e s s o f M a i n P r o d u c t s ➢ S a l e s S ta t u s o f M a j o r B ra n d C u s t o m e r s ➢ Product Proportion and Sales 13
Slide 14: Main Products
Basketball Main Products Vulcanized Tennis Product Diversity Jogging Waterproof Fashion 14
Slide 15: Main Customers
Main Customers Over the past 36 years, LaiYih has collaborated with many well-known international brands LaiYih has exported more than 300 million pairs of finished shoes all over the world for in the past five years! 15
Slide 16: Manufacturing Process of Main Products
Manufacturing Process of Main Products Casual Shoe (Vulcanized)：Vulcanization Cutting Stitching Sneakers (Cold Cement)：Cold Cement Preparation printing/high Assembly Upper Cutting frequency/ Sewing embroidery Casual Shoe - Vulcanized RB Rubber Vulcanized Finished Packing Outsole Shoe Rubber Outsole
Slide 17: Business Performance of the Major Brand Customers
Business Performance of the Major Brand Customers Business Proportion In 2023 57.74% 23.77% 13.42% Business Proportion 58.89% 20.78% 18.77% In 2024Q1 17
Slide 18: Product Proportion and Sales Status
Product Proportion and Sales Status Unit: Thousands of NTD; % 25,000,000 90.00% 營業額 Revenue 營業比重 Business Proportion 20,486,269 80.10% 80.00% 20,169,467 20,000,000 73.13% 70.00% 64.36% 60.00% 57.18% 15,000,000 50.00% 11,413,672 11,152,634 42.61% 40.00% 10,000,000 8,506,249 35.59% 7,520,916 30.00% 26
Slide 19: 3. Market Overview and Competencies
3. Market Overview and Competencies ➢ Industry Overview ➢ H o r i zo n t a l c o m p e t i t i o n ➢ Competitive Niche ➢ Modern Automation of mass Production Processes 19
Slide 20: Footwear Industry Overview
Footwear Industry Overview 2012至2025年全球運動鞋的市場規模 Source : Statista 2023/8 The estimated market growth from USD$398.45 billion in 2023 to USD$472.56 billion in 2028. 20
Slide 21: Footwear Industry Overview
Footwear Industry Overview Unit: million USD 10-year Revenue Trends for Converse Unit: million USD 2,500 ↑44% 6-year Revenue Trend for HOKA、TEVA 2,427 2,346 ↑824% 2,205 1,600 2,000 2,042 1,413 1,982 1,955 1,886 1,906 1,846 1,400 1,500 1,684 1,200 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1,0
Slide 22: LaiYih's Competencies
LaiYih’s Competencies Capabilities for producing GORE-TEX waterproof footwear products Establish the exclusive development center to serve each brand customers With large-scale production capacity, LaiYih becomes a solid partner of the world’s top footwear brands Multi-national Operation to support
Slide 23: Modern Automation of Production Processes
Modern Automation of Production Processes Rubber Outsole Injection • Invest: USD$5 Million • Save 5.5 operators/machine • More friendly to the environment and reduce Automatic Computer carbon dioxide Outsole Roughing Stitching Machine Machine • Invest: USD$10 Million • Save 38%~40% of manual • Inves
Slide 24: 4. Operating Performance and Dividend Policy
4. Operating Performance and Dividend Policy ➢ O p e r a t i n g Pe r f o r m a n c e ➢ Dividend policy 24
Slide 25: Business Operation Performance (1)
Business Operation Performance (1) Operating Revenue Earning Before Tax (In Thousands of NTD) (In Thousands of NTD) 3,596,605 31,338,313 28,015,569 19,960,720 1,874,168 5,519,810 7,770,937 643,717 151,860 1,019,503 2021 2022 2023 2023Q1 2024Q1 2021 2022 2023 2023Q1 2024Q1 Return On Assets (ROA) Retu
Slide 26: Business Operation Performance (2)
Business Operation Performance (2) Net Income EPS(NTD) 3,000,000 13.27 Unit: In Thousands of (NTD) 15 11.39 2,000,000 2,178,614 2,715,539 10 6.26 1,000,000 3.36 5 1.00 1,309,686 0.17 236,694 60,834 801,850 0 0 2020 2021 2022 2023 2023Q1 2024Q1 Unit： In Thousands of NTD Year Item 2021 2022 2023 2023Q
Slide 27: Dividend Policy
Dividend Policy In accordance with the Articles of Association of the company, if there is a surplus in the annual final accounts, the company shall: (i) pay all taxes according to law; (ii) make up for the losses of previous years; (iii) set aside 10% as the statutory surplus reserve, excluding the
Slide 28: 5 R&D Capabilities and Achievements
5 R&D Capabilities and Achievements ➢ Re s e a rc h & D e v e l o p m e n t C a p a b i l i t i e s ➢ D i g i ta l M a n a g e m e n t C a p a b i l i t i e s ➢ R&D Achievements 28
Slide 29: R&D Capabilities
R&D Capabilities Technical Crafts Digital Printing Laser Heat Pressed Flocking Embroidery with self-developed Jigs Chemical Industry & Formula EVA Sole Injection Co-molding Process of EVA & Rubber Sole Rubber Sole Injection 29
Slide 30: Digital Management Capabilities
Digital Management Capabilities Automation Data Integration (ERP – Data Center) Gathered Data can be reviewed on smartphones and computers 30
Slide 31: R&D Achievements
R&D Achievements Modular Roughing Machine System Use Large Heel EVA Platform Design for Running Shoes Collaborate with GoreTex to develop Vulcanized Waterproof shoes EVA and Rubber Vacuum Co-Molding Sole Technology UV Photosensitive Printing Automatic Cutting Machine with Line Marking Function Autom
Slide 32: 6. Business Philosophy and ESG
6. Business Philosophy and ESG ➢ B u s i n e s s P h i l o s o p hy & C o r e Va l u e s ➢ E S G M a n a g e m e n t & S u s ta i n a b l e B u s i n e s s 32
Slide 33: Business Philosophy & Core Values
Business Philosophy & Core Values Human Oriented Green Sustainable Safe Factory Production Business Pursuing Excellence 33
Slide 34: Sustainability with ESG
Sustainability with ESG Environment Social Governance Evaluated by Third-party audit agency (FEM) and LaiYih complies with local regulations and customer’s compliance requirements. which is the basis for sustainable development ISO 5001 certification, LaiYih collaborates with third parties to conduc
Slide 35: Sustainability with ESG
Sustainability with ESG Environment Social Governance Guidance by a third-party consulting company (ESIS) to establish safety culture and technology and obtain customer’s certification ✓ Comply with local ✓ Community care ✓ Employee Engagement Survey ✓ Community activity ✓ Promote women’s career gov
Slide 36: Sustainability with ESG
Sustainability with ESG Environment Social Governance Our senior management team participates in IOSH training and pay attention to providing a healthy and safe working environment. • Establish a labor union • Develop an annual • Establish Diverse employee • We have outstanding Accomplishments over
Slide 37: IN US, YOU TRUST
IN US, YOU TRUST 37