Paragon Technologies Co., Ltd. · TWSE:3518
Paragon Technologies — Q3 2023 Earnings Presentation
28 slides from Paragon Technologies's earnings presentation, Nov 30, 2023
Slide 1: Paragon (3518TW)
Paragon (3518TW) 2023 / 11 / 30
Slide 2: Limiting responsibility
Limiting responsibility The predictive information mentioned in this briefing report and related information, such as outlook of operating, financial performance and business forecasts, is the gathered information form company internal data and the existing status of external economic development.
Slide 3: Contents
公司簡介 Company Overview 財務資訊 Financial Information CONTENTS SiC產品營運報告 Market & Applications For SiC 資訊交流 Q&A 3
Slide 4: Company Overview
a a ~—— Company —— Overview
Slide 5: Paragon (3518TW)
Paragon(3518TW) Paragon was established in 1995 as the world’s first company to apply vacuum sputtering thin film technology Eatablishment：1995.10.20 to EMI/ESD solutions for 3C Capital：NTD 840 Million products. It is also the first Employees：600 vacuum sputtering technology Chairman：Mr. Eag
Slide 6: About Paragon
About Paragon EMI sputtering &PVD Silicon carbide products Taiwan HQ & RD Center - Established: 1995 year appearance coating -Nankan Factory (2023.1) - Capital: 840 million (NTD) -Suzhou Factory (3C) 6" Silicon Carbide (SIC) -Nanjing Factory / Neijiang Factory (EMI) Wafer The leading company of EMI
Slide 7: Development history
Development history As the world’s first company to apply vacuum sputtering thin film technology to EMI/ESD solutions for 3C products. The leading company of EMI suppliers in Notebook Market, 50% of market share. In 2022, it will acquire Jingcheng Materials, which owns SIC (silicon carbide) wafer pr
Slide 8: Financial Information
Financial —_________» ee Information
Slide 9: Q3 23' Consolidated Balance
Q3 23’Consolidated Balance 2023.9.30 % 2022.12.31 % 2022.09.30 % cash& cash equivalents 508 30 886 50 726 37 Financial assets- current&noncurrent 445 27 213 12 482 25 Notes and accounts receivable 294 17 268 15 283 15 Inventories 7 0 5 0 4 0 non-liquid asset in suspense 26 2 19 1 120 6 Fixed Assets
Slide 10: Q3 23' Financial Structure
Q3 23’Financial Structure ITEM 2023.Q3 2022 2021 2020 2019 Debt Ratio 20.27 16.30 24.54 37.12 32.60 Current Ratio 434.75 606.50 377.86 185.25 187.80 Cash flow Ratio (14.56) 63.32 31.54 (1.05) (21.64) 10
Slide 11: 2023Q3 Consolidated income statement
2023Q3 Consolidated income statement ITEM 2023Q3 2023Q2 QoQ% 2022Q3 YoY% operating revenue 101 102 （1） 83 22 Gross Profit 25 29 (13） 12 116 operating expenses 42 33 27 38 12 Operating Profit (17) (5) 268 (26) (34) non-operating revenue 4 2 88 7 (38) and expenses Pre-Tax Income (13) (2) 633 (19) (32)
Slide 12: Revenue, Gross margin & Net profit margin
Revenue 、 Gross margin &Net profit margin 12
Slide 13: Q3 23' Consolidated Cash Flow
Q3 23’ Consolidated Cash Flow 2023 ended 2022 ended September 30 September 30 Cash provided by (used in) operating activities (43) 131 Cash provided by (used in) investing activities (282) (68) Cash provided by (used in) financing activities (57) (76) Effects of exchange rate change on cash 5 16 Net
Slide 14: SIC Operational report
fo foiy Abt Ley re a LLL Li oO a LK fo Koen oa a OE eT ee — SIC Operational a —— report
Slide 15: About JING CHENG
About JING CHENG JING CHENG was established in November 2021. It is composed of a group of teams with experience in compound crystal production. They have many years of experience in the production and development of silicon carbide (SiC). They independently develop and design thermal fields and cry
Slide 16: Main products
Main products SiC 4”6” 8” N-type ingot / substrate SiC 4”6” Semi-Insulating ingot / substrate 16
Slide 17: Technical Research and Development
Technical Research Production line Develop 8-inch crystal and Development construction completed Research on 6-inch Successful research 2024 N-type crystal on 6-inch crystal 2023 Jointly developed with Japan N-type 2022 2023 Invest in SiC 2019 2021 research subsidiary of 2019 Mass production 2021 Pa
Slide 18: Core Technology
Core Technology Thermal Field Seed crystal paste crystal growth crystal processing Crystal analysis Simulation and Design Mortar cutting chamfer Grind polishing Clean Detection 18
Slide 19: SiC Applications
SiC Applications SiC is mainly used in new energy vehicles, wind power generation, solar power generation, 5G communications, rail transit and charging piles, etc. Ref: Yole’s report - Power SiC/GaN CS Market Monitor – Q1 2023 19
Slide 20: SiC Market analysis
SiC Market analysis N type 4H-SiC Can be used inEV、HSR、Solar Energy&Wind power，The largest one is used in electric vehicle components, accounting for 61%. One piece of 6-inch chip can only be used by 2 to 6 electric vehicles. 20
Slide 21: SiC Market analysis by Yole
SiC Market analysis by Yole According to Yole's forecast report, there will be a demand for 2.8 million conductive sheets in 2028. With the current total annual SiC wafer production capacity of 25~35W pcs, its production capacity is far from being in short supply. Ref: Yole’s report - Power SiC/GaN
Slide 22: SiC Market analysis by TrendForce
SiC Market analysis by TrendForce In TrendForce's forecast report, there will be a demand for 1.69 million conductive sheets in 2025, and its CAGR will grow to 48% in early 2025. 2021~2025 In addition to the original electric vehicle applications, new application markets will also continue to intr
Slide 23: Industry status
Industry status Process yield Equipment investment cost The low process yield is mainly due to The investment time is early, and the the difficulty in growing crystals and equipment models are mostly compatible improving processing yield. with 4~6 inches. In the future, 8 inches will become the main
Slide 24: Competitive advantage
JING CHENG SiC Process experience Competitive Advantage Complete industry experience in SIC growth, wafer processing, epitaxy and compound semiconductor production, sales and R&D. Development of key materials The development of special coatings can extend the service life of raw materials, significa
Slide 25: Future development plan
Future development plan Operating objectives 2027 Shorten construction time and meet market demand Accelerate the mass production of 8-inch products Annual production and provide them to the market capacity: 100,000 pieces Focus on electric vehicles/new energy/industrial 2026 Passed internatio
Slide 26: Summary
SUMMARY The new factory will introduce the most advanced 6- to 8-inch process equipment to speed up the mass production of 8-inch products, provide more cost-competitive SiC substrates, and accelerate industry development. Accelerate the production capacity construction process, and the producti
Slide 27: 資訊交流
資訊交流 27
Slide 28: True Partner for a Brighter
TRUE PARTNER FOR A BRIGHTER spokesman：Mingi Liu(CFO) TEL：(03)396-3518 E-mail：mingi@pttech.com.tw