Ch Biotech R&d Co., Ltd. · TWSE:6534
Ch Biotech R&d — Investor Conference 2024/10/22
41 slides from Ch Biotech R&d's conference presentation, Oct 22, 2024
Slide 1: Investor Conference
TWSE 6534 INVESTOR CONFERENCE 2024/10/22
Slide 2: Disclaimer
Disclaimer Our company has assessed its past, present, and future operations based on both subjective and objective factors in the presentation. It’s important to highlight that our predictions and expectations, including forward-looking statements that come with risks, uncertainties, and assumpti
Slide 3: Presentation Outline
目錄 Presentation Outline Company Overview Business Model New Raw Materials and Product Development Financial Information CH BIOTECH R&D CO., LTD.
Slide 4: Company Overview
Pos 2-H | (ees =| i CH Biotech R&D Co., Ltd. | 2 [ey | Gira ee ams 2 7 i —_4§— Company Overview
Slide 5: Company Profile
Innovative Biotech Products Company Profile Research & Development, Manufacturing and Sales Established Nov/29/2013 Board listed Dec/21/2023 Stock Symbol 6534.TW Chairman Cheng-Pang Wu President Cho-Chun Huang Employees 197 (Sep/30/2024) Consolidated Revenue 2023 NT$ 1,514,829 thousand Corporate Hea
Slide 6: Company History
Company History • Formally launched the • Received the 7th Taiwan corporate headquarters and • Translated, printed, and distributed serial books Mittelstand Award from R&D center (Chung Hsing Park, “Recarbonizing Global Soils – A Technical Manual of the Ministry of Economic • Commenced the Central T
Slide 7: Business Model
—— Business Model
Slide 8: From Taiwan to the World: CH Biotech's Integrated Business Strategy
From Taiwan to the World: CH Biotech’s Integrated Business Strategy Asymmetric Vertical Strategic Alliance e.g. Nutrien Ag Solutions The strategic layout of “R&D in Taiwan, Made in U.S., and Global Marketing” Products are sold to more than 2,000 retail sites in the U.S., Australia, Canada, Brazil, C
Slide 9: Boost R&D Investments and Drive Continuous Innovation
Boost R&D Investments and Drive Continuous Innovation Total Employees of the Parent Increase R&D Investments Annually R&D Department Composition Company 305,235 272,414 28% 221,483 162,308 193,336 51% PhD R&D 75% Master's degree or above 2019 2020 2021 2022 2023 (As of 2024/09/30) (NT$ thousand) CH
Slide 10: Cross-Domain Big Data Database
Pioneering the development of Precise and Highly Efficient Low-Carbon Agricultural Biotechnology Products Through Innovative Core Technologies Cross-Domain Systematic Comprehensive Big Data R&D Field Trials Database Platform CH BIOTECH R&D CO., LTD. 9
Slide 11: Leading Self-Reliant Innovation in New Agricultural Biotech and Fertilizer Products
Leading Self-Reliant Innovation in New Agricultural Biotech and Fertilizer Products SUSTAINABILITY PepRichTM series Radiate NEXT is the Winner of the "2023 Taiwan Bio Awards – Innovation of the Year" 19 Product registration certificates from the U.S. EPA 13 Technical-grade PGR registration certifica
Slide 12: New Raw Materials and Product Development
New Raw Materials and Product Development
Slide 13: Meeting Diverse Agricultural Needs Through Climate-Smart Crop Production System
Meeting Diverse Agricultural Needs Through Climate-Smart Crop Production System To respond to complex and highly variable climate challenges, we need: • Maintain high yield and quality • Strengthen climate resilience • Reduce carbon emissions in farming processes According to a NASA study, average
Slide 14: New Market Opportunities from Global Net Zero Policies
New Market Opportunities from Global Net Zero Policies Global action plans for reducing agricultural GHG emissions Nation Agency Content Taiwan Council of Agriculture 50% reduction in chemical pesticide risks by 2027; 50% reduction in domestic chemical fertilizer usage by 2030; net-zero agricultural
Slide 15: Climate Change Reduces Assimilation Efficiency and Crop Yields
Climate Change Reduces Assimilation Efficiency and Crop Yields • Today’s crop yields fall short of their potential. • Extreme climate conditions cause significant agricultural losses due to biotic and abiotic stresses. Abiotic agricultural losses (climatic extremes and soil degradation) Biotic agric
Slide 16: Field Fertilizer Reduction Hampered by Direct Yield Impact
Field Fertilizer Reduction Hampered by Direct Yield Impact Point B: The most economic fertilizer input; beyond point B, the fertilizer efficiency will drop Fertilizer input for significantly maximum yield Excessive fertilization leads to lower Return on Investment Point A-B: The yield output is dire
Slide 17: Climate-Smart Solution of CH Biotech: Biostimulants
Climate-Smart Solution of CH Biotech: Biostimulants A “plant biostimulant” means a product stimulating plant nutrition processes independently of the product’s nutrient content with the sole aim of improving one or more of the following characteristics of the plant or the plant rhizosphere (Regulati
Slide 18: CH Biotech's New Goals for Raw Material Development
CH Biotech’s New Goals for Raw Material Development Develop low-carbon raw materials • Designed for climate-smart crop production Promote circular economy and agricultural (Wide variety of functions designed to be conscious of highly complex sustainability climate challenges) Developed eco-friendly
Slide 19: Developing Innovative Raw Materials from Agricultural Surplus with Minimal Carbon Footprint
Developing Innovative Raw Materials from Agricultural Surplus with Minimal Carbon Footprint 01 02 03 CH Biotech create Precision innovative raw Recycling Green Oriented Precision Oriented materials Materials Production Peptides (POPs) Selection Some agricultural surplus materials are rich in protein
Slide 20: "POPs" Precision Oriented Peptides
“POPs” Precision Oriented Peptides ↑Stress Tolerance Biotic stress ↑Recovery capability ↑ Expression of transport Uptake ↑ Transportation protein limitation enzyme Assimilation ↑ Stress limited tolerance ↑ Assimilation activity Abiotic Stress ↑ Root ↑Energy ↑ RecoveryVE V4 Root V6 development VT R6
Slide 21: This is where innovation meets opportunity...
In response to the global climate change and the challenge of reducing agricultural carbon emissions Reducing fertilizer application has reached a consensus How to reduce fertilizer application, without compromising the yield and quality? This is where innovation meets opportunity... CH BIOTECH R&D
Slide 22: Rice Field Production Evidence: Reducing Fertilizer Use Lowers Yield
Rice Field Production Evidence: Reducing Fertilizer Use Without Intervention Lowers Yield Comparing yields from different Relationship between yield and fertilizer amount fertilization schemes Recommended Reduce GSP 9% ─20% Yield Yield GSP -20% Fertilizer amount (Fertilizer 100%) (Fertilizer 80%) *G
Slide 23: Stabilizing and Increasing Rice Yields with POPs under Reduced Fertilizer Use
Stabilizing and Increasing Rice Yields with “POPs” under Reduced Fertilizer Use Fertilizer reduction trial in rice fields Relationship between yield and fertilizer amount -20%+POPs 100% 99% GSP 91% -20% Yield Yield GSP -20% -20%+POPs (Fertilizer 100%) (Fertilizer 80%) (Fertilizer 80%+POPs) *GSP, gro
Slide 24: POPs Application Enhances Rice Yields Under GSP
POPs Application Enhances Rice Yields Under GSP Rice field trial under GSP Relationship between yield and fertilizer amount Increased 11% yield GSP+POPs GSP Yield Yield GSP GSP + POPs (Fertilizer 100%) (Fertilizer 100% + POPs) *GSP, grower standard practice Fertilizer amount Under GSP, the use of PO
Slide 25: Applying POPs Helps to Balance Rice Yield and Quality
Applying POPs Helps to Balance Rice Yield and Quality Improved rice ear quality and seed rate Improved brown rice quality Percentage of damaged grains Chalky grains 40% Panicle weight +5.7% Cracked grains 28% Immature grains 10% Grain fertility +3.6% Grains per panicle +3.5% GSP Reduced fertil
Slide 26: Increasing Leafy Vegetable Productivity with POPs
Increasing Leafy Vegetable Productivity with “POPs” (CHBio data) Control POPs DAT-7 DAT-14 Harvest DAT: Days after treatment POPs significantly promote the above-ground growth of lettuce, proving that peptides can increase lettuce yield. CH BIOTECH R&D CO., LTD. 25
Slide 27: POPs Enhance Grape Berry Coloration, Accelerate Harvest, and Boost Price Competitiveness
POPs Enhance Grape Berry Coloration, Accelerate Harvest, and Boost Price Competitiveness Weeks after bud forcing 16 17 22 Rate of coloration 100 80 60 % Control 40 20 0 15 16 17 18 19 20 21 22 Weeks after bud forcing POPs POPs Harvest early, about 1-2 weeks. Reduce the risks of loss caused by cl
Slide 28: POPs Enhance Anthocyanin Content in Grape Skin
POPs Enhance Anthocyanin Content in Grape Skin and Increase Nutritional Content Control Anthocyanin content 12 +28% mg/ g DW 8 POPs 4 0 15 16 17 18 19 20 21 22 2 cm 0 1 2 3 4 5 6 7 8 9 10 11 12 Weeks after bud forcing POPs Stimulated anthocyanin accumulation in grapes and improved grape Variety :
Slide 29: POPs Enhance Grape Skin Thickness and Prolong Shelf Life
POPs Enhance Grape Skin Thickness and Prolong Shelf Life Control POPs The thickness of fresh grape skin cuticle +18% Rate of berry decay (4 weeks after shelf storage) Control POPs 30 Bad grape rate (%) 20 -52% 10 20 μm 20 μm 0 POPs The thickness of the grape skin cuticle increases and the cell str
Slide 30: POPs Improve Uniformity in Coffee Fruit Ripening
POPs Improve Uniformity in Coffee Fruit Ripening and Boost Bean Market Value Fruit Ripeness Control POPs 120% 100% S7 Mature S6 Turn red 35% 32% 80% Ripening flow S5 Turn yellow 7% 60% 14% S4 Light green 40% S3 50% Green fruit 33% S2 Small fruit 20% S1 18% Pin head 10% 0% control 對照組 POPs Enhanced f
Slide 31: POPs Enhance Apple Development, Fruit Enlargement, Color Change, and Early Harvest
POPs Enhance Apple Development, Fruit Enlargement, Color Change, and Early Harvest Days after Colorimeter value of peel Treatment anthesis a b CK 6.08 26.20 174 POPs 14.60*** 20.06*** Control POPs POPs Promoted apple enlargement, increase yield and profits. Enhanced coloration, improved quality,
Slide 32: CH Biotech Launches New FuTai Series Products Featuring POPs
CH Biotech Launches New FuTai Series Products Featuring POPs 富肽-1號 富肽-2號 富肽-3號 富肽-4號 富肽-5號 富肽-6號 富肽-7號 富肽-8號 (Rice) (Tea trees) (Coffee) (Vegetables) (Fruit trees) (Organic) (Organic) (Organic) 臺灣肥料登記證字 臺灣肥料登記證字 臺灣肥料登記證字 號：製質1124006 號：製質1124007 號：製質1124008 臺灣肥料登記證字 臺灣肥料登記證字 臺灣肥料登記證字 臺灣肥料登記證字 臺灣肥料登記證
Slide 33: POPs-Derived, PepRich Series Products Secures Registration Across U.S. States
POPs-Derived, PepRich Series Products Secures Registration Across U.S. States Products derived from POPs raw materials, under the PepRich series name, are being registered across various states in the U.S. Fertilizer registration certificates have been obtained in 47 states across the country. CH BI
Slide 34: Upcoming Release: New POPs Achievements and Implementation Plans
Upcoming Release: New POPs Achievements and Implementation Plans POPs technology was invited to share at the Science & Technical Track Session of the Biostimulants World Congress CH BIOTECH R&D CO., LTD. 33
Slide 35: Financial Information
> «~Financial wit Information
Slide 36: Consolidated Revenue
CH BIOTECH R&D CO., LTD. and Subsidiaries Consolidated Revenue Unit: NT$ thousand 1,600,000 1,514,829 1,434,115 1,225,535 1,200,000 1,018,505 800,000 702,189 400,000 0 2020 2021 2022 2023 2024H1 CH BIOTECH R&D CO., LTD. 35
Slide 37: Main Product Information
Main Product Information 2023 2024H1 Others Others 0.30% 0.09% Fertilizer Fertilizer 17.28% 17.13% Net operating Net operating revenues revenues 1,514,829 1,225,535 Plant Growth Regulator Plant Growth Regulator 82.43% 82.78% Unit: NT$ thousand CH BIOTECH R&D CO., LTD. 36
Slide 38: The Global Market Share in 2023
The Global Market Share in 2023 Asia North 0.14% America 93.88% Taiwan 0.56% South America 3.58% Australia 1.84% CH BIOTECH R&D CO., LTD. 37
Slide 39: Profit After Tax & EPS
Profit After Tax & EPS Unit: NT$ thousand EPS Unit: NT$ 700,000 6.00 600,000 5.00 500,000 4.00 400,000 3.00 300,000 2.00 200,000 100,000 1.00 0 0.00 2020 2021 2022 2023 2024H1 Profit After Tax 100,162 291,499 465,423 463,291 548,859 EPS 1.19 3.45 4.79 4.76 5.34 CH BIOTECH R&D CO., LTD. 38
Slide 40: Financial Analysis
Financial Analysis Current ratio Quick ratio Debt-asset ratio Long-term fund to property, plant and equipment ratio 180 150 129.36 131.49 125.72 115.50 119.63 120 90 60 48.60 43.10 34.66 30.94 27.79 30 0 2020 2021 2022 2023 2024H1 CH BIOTECH R&D CO., LTD. 39
Slide 41: Thank you
Thank you