Green River Holding

Oct 7th 2015

TPEX CODE: 8444

Outline

• Company Data

• Product Introduction

2

• Product Introduction

• Industry Overview

• Operating Performance

Company DataCompany DataCompany DataCompany Data

3

1.1 Company Data

• Establishment…………2011.1.14

• Capital………………… USD 20 million (NTD 666 million )

• Chairman……………… Hsieh, Jung-Hui

• President……………… Huang,Teng-Shih

4

• President……………… Huang,Teng-Shih

• Office Registration…… Cayman Islands

• Operating Location…… Thailand

• Main Product………..… Particle Board, Solid wood

1.2 Investment Structure

Green River Holding Co. Ltd

(GRH)

Green River Panels (Thailand) Co., Ltd.

(GP)

Green River Wood & Lumber

Manufacturing (Thailand) Co., Ltd.

99.99% 99.99%

Plain BoardBusiness

Solid woodBusiness

5

(GP) Manufacturing (Thailand) Co., Ltd.

(GRW)

Green River Parawood Co., Ltd.

(GRP)

Thailand Nature Resource Co., Ltd.

(TNR)

48.39%

99.99%

1.3 Company Development

Date Event

Jan 2000 Establishment of GRW (Solid wood)

Jul 2004 Preparation for Plain Board Business; Establishment of GP

Oct 2006 Inauguration of GP plant construction

Sep 2008 Commercial Operation of GP

6

Sep 2008 Commercial Operation of GP

Jan 2011 Establishment of Green River Holding Co., Ltd

Aug 2011 GP received Environmental Protection Award by Thai Ministry of Industry

Dec 2011 GRH owns 99.99% shares of GP through share exchange

Feb 2012 GRH owns 99.99% shares of GRW through share exchange

Oct 2012 Awarded as Outstanding Overseas Taiwanese SMEs

Jul 2015 General Stock Board Listing Approved by Securities Review Committee

1.4 Board of DirectorsName Title Education Background Main Experiences

Green Source Investments Ltd

Representative:Hsieh, Jung-Hui

ChairmanDepartment of Civil Engineering,National Cheng Kung University

Owner of Standard Pallet International

Forward Thinking LimitedRepresentative:

Huang, Teng-ShihDirector

MBA, Ramkhamhaeng UniversityDepartment of Water Resources Engineering,

Feng Chia University

Project Manager, Evergreen Construction Corp. Sales Engineer, Pro Leasing and Rental

Park Island Enterprises Limited Representative:

Du, King-LingDirector

MS in Mechanical Engineering,Mississippi State University

President, Kaohsiung Rapid Transit CorporationExecutive Vice General Manager, China Steel CorporationChairman, China Ecotek Corporation

7

Chin Tai Holding Inc.Representative:

Li, Mu-Wen

Director

MS in Structural Engineering,The University of ArizonaDepartment of Civil Engineering,National Cheng Kung University

Manager,Continental Engineering Corporation

Wu, Ching-SungIndependent

Director

Ph.D. in Management, UCLAMBA, National Taiwan UniversityDepartment of Management Science, National Chiao Tung University

Professor, College of Management, National Taiwan University

Pai, Pei-LinIndependent

Director

Ph.D. in Electrical Engineering, UC BerkeleyElectrical Engineering,National Taiwan University

Senior Vice President, Winbond Electronics Corporation Vice President, FocalTech Systems LimitedVice President & Spokesman,Nanya Technology Corp.

Lin, Wan-LingIndependent

Director

Department of Accounting, Tunghai University

Special Assistant to President & Spokesman,

Anji Technology Co., Ltd

Remark: All of the above are of Taiwanese nationals

1.5 Management Team

Name Position Education Background Main Experiences

Huang, Teng-Shih

ChiefExecutiveOfficer

MBA, Ramkhamhaeng UniversityDepartment of Water Resources Engineering,

Feng Chia University

Project Manager, Evergreen Construction Corp. Sales Engineer, Pro Leasing and Rental

Li, Mu-Wen

ChiefSales Officer

MS in Mechanical Engineering,Mississippi State University

Manager,Continental Engineering Corporation

Wang, ChiefAudit Manager,

8

Wang,Zheng-Feng

ChiefFinancialOfficer

Department of Accounting, Tunghai University

Chialin Precision Industrial Co., LtdChief Financial Officer,Samya Technology Co., Ltd

Wang, Ping-Hsun

AuditManager

Department of Accounting, Aletheia University

Assistant Manager, Deloitte Taiwan

Product IntroductionProduct IntroductionProduct IntroductionProduct Introduction

9

2.1 Main Products

Particleboard a.k.a ChipboardApplicable to system furniture, kitchen, flooring, pallets in creating green building and environmental-friendly construction material

10

Green Sustainability Technological Cost Effective Fashionable

2.1 Main Products

Solid wood

With application to various types of furniture, flooring, construction material and other building accessories.

11

Branches40%

Wood-based Panels

Engineered-WoodProduction Plant

2.3 Rubber Wood Utilization

By applying over 90% of a rubber tree, GRH

maximizes rubber wood resource utilization

Logs60%

Sawmill

Slabs30%

Solid wood30%

WoodFuel

12

2.3 Production of Particleboard

Chipping

ChipsBranches & Slabs

13

Pre-Press

ContiPress

Flaking

Forming

ParticleboardBlending

Rubber Tree waste

Eco-friendly Furniture & Wood-Panel Construction

Material

Flakers

2.3 Production of Solid Wood

Sawing

Fresh Rubber Wood Logs

14

Furniture, Flooring and other wooden products

GradingDrying

Solid wood

Impregnation

Rubber Tree waste

Industry OverviewIndustry OverviewIndustry OverviewIndustry Overview

15

3.1 Rubber Latex

• Natural latex is widely used, from daily life to industrial application

• Rubber woods are planted as high value cash crops rather than ordinary forestry. Rubber trees are fell and replanted as latex productivity declines and becomes uneconomical, which usually after 25 years.

16

Planting Harvesting

Immature Phase

Felling

Productive Phase Declining Phase

Year 1~8 Year 7~25 Year 25+

3.1 Rubber Wood Resource

The world’s largest natural rubber producing country -- Thailand

17

UNIT: 10,000 tons

Source: International Rubber Study Group (IRSG)

World’s 90% of rubber wood plantation is occupied by only 6 countries: Thailand, Indonesia, Malaysia, India, Vietnam and China, the plantation in just these 6 countries occupies up to 90% of worlds rubber wood plantation.

Source: Statista

Thailand Indonesia Vietnam India Malaysia China Others

3.1 Rubber Wood Resource

Region Area (km2)

Northern

Southern Thailand –the main rubber wood plantation region of Thailand

North East17.99%

Northern3.65%

Green River

18

Northern 1,055

North East 5,206

Central 3,468

Southern 19,204

TOTAL 28,933

Source: The Thai Rubber Association(2014)

Thailand’s total plantation = 80% of Taiwan’s total area

Central11.98%

Southern66.38%

Southern’s total plantation = 53% of Taiwan’s total area

Rubber Wood Plantation

Particle Board Plant

3.2 Upstream and Downstream

Wood Processing

Wood Engineering

Rubber Wood Trading

Undeveloped

Petrochemical(Resin Plant)

Particle Board Plant

Flooring, furniture (cabinets, shelves, bed frames, desks, tables, partitions etc) doors, amplifying speakers and other building materials

19

Value-Added Wooden Panel Processing Plants

Developed

Future Plan

Undeveloped (Resin Plant)

3.3 Global Furniture Trade on Constant Rise

Global furniture trading doubled in 10 years

US$128 billion in 2014, new high in global furniture trading

Global Furniture Trade

122 124128

141149

140

160

20

Source: Centre for Industrial Studies (CSIL)

7784

93

109117

94

106

117122 124

128

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F

Reven

ue (

US

Billio

n)

3.3 Characteristics in Comparison

PB MDF Plywood Wood

Eco- Friendliness

Waste Application - -

Particle Board vs. MDF；Plywood；Wood

21

Waste Application - -

Investment

TechnologyRequirement

Automaticity

Quality Consistency

Price Lowest Low High Highest

Source:本公司整理

Stable growth in Asia – 10.03% CAGR in 2000~2013

3.3 Particleboard Industry Overview

million m³

5

10

15

20

25

30

35

Source: POYRY(forecast 2012~2020)22

Particleboard Demand in Asia

million m³

Source: FAOSTAT Forestry (2000~2013)

0

5

00 01 02 03 04 05 06 07 08 09 10 11 12 13

2000 2012 2020f

0

10

20

30

40

CAGR 2000~20118.7%

CAGR 2011~20208.6%

3.3 Life Surrounded by Wooden Panels

Kitchen Flooring

23

Particle Board

Bathroom

Walk-in ClosetBedroom

Living Room

Playroom

Office

3.3 Invincible Sales Channel

Retail Stores

24

Local Chained Stores

Independent StoresDesigner Studios

3.3 Asian Market’s Potential

Engineered Wood Panel Distribution (2013)

PLY39%

MDF42%

PB19%

PLY11%

MDF18%

PB71%

PLY30%

MDF10%

PB60%

Europe Asia North America

25Source: FAOSTAT Forestry

Operating PerformanceOperating PerformanceOperating PerformanceOperating Performance

26

4.1 Sales Market (2014)

Thailand0.4%

Thailand10.5%

Taiwan0.1%

Particle Board Solid Wood

27

Malaysia57.5%

Korea4.7%

China3.9%

Indonesia33.4%

China89.4%

Source: 本公司

2,015

2,325 2,338

1,079

500

1,000

1,500

2,000

2,500

營業收入

37,938

157,118

261,604

185,099

50,000

100,000

150,000

200,000

250,000

300,000

本期淨利

4.1 Operating Performance

仟元 仟元Revenue Net ProfitNTD 1,000NTD 1,000

28

2012 2013 2014 2015H1

0

16

21

26

30

1

12

17

11

2012 2013 2014 2015H1

-

5

10

15

20

25

30

35

毛利率 ROE

2012 2013 2014 2015H1

-

0.65

2.60

3.93

2.78

0.45 0.32

2.00

-

2012 2013 2014 2015H1

-

1.00

2.00

3.00

4.00

每股盈餘 現金股利% 元

Gross Margin

EPS Cash DividendsNTD

4.1 Financial Report

Statements of Comprehensive Income Expressed in thousands of NTD

29

Statements of Balance Sheet Expressed in thousands of NTD

Financial Ratios

4.1 Financial Ratios

30

EN and CARB standards Qualified

EN and CARB standards Qualified

Utilization of rubber tree up to over 95%

Utilization of rubber tree up to over 95%

4.2 Business Concept

Green

Maximizing utilization of rubber wood by-product

Making good use of natural resource

Eco-Friendly Wooden Panel R&D Oriented

Single species in material to ensure quality consistency.

Zero material from protect forestry

Single species in material to ensure quality consistency.

Zero material from protect forestry

QualifiedQualified

31

Green

River

Eco-Friendly Wooden Panel R&D Oriented

Balancing environmental protection and cost saving

Decreasing forestry -demolishment

Creating harmonious resource utilization

• Rich in rubber wood, raw material supply chain assurance Abundance

Material

•Connections well established, network thoroughly builtSupply

Network

4.3 Company Strength

32

• Consistency in quality, winning trust from customersQuality

•Latest technology meets management yields high production performanceProductivity

• Heart of ASEAN, complete infrastructureLocation

Pang-Nga Parawood

S. Kitchai

Sahachai Particleboard

2014 throughput of over 300,000 m3

Expecting to double after expansion, reaching 600,000 m3 。

Local Particleboard Plants

4.3 Company Strength

0 200000 400000 600000 800000 1000000 1200000

Vanachai

Metro

Panel Plus

Green River Panels

Rayong Particleboard

Green Panel

SPB

Siam Riso Wood

Capacity - m3/year

2nd Line

33 Source: Panel Products Industry Club, Thailand 2014)

4.4 Prospect

• Particle board line II, increasing output

• Continuous R&D in search for environmental

protection and quality assurance

• Downstream development, creating higher value

Short-

Run

34

• Expanding sales market: Northeast Asia and Middle East

• Vertical integration, full utilization of rubber wood resource

• Continuous development towards value-added product

• Expansion through merging, enhancing

competitiveness

Long-

Run

4.4 Constant Development

2016~2107

20152015

2008 MFC

GP2MFC 2 & 3

Resin

35

Labor-Intensive

Capital-Intensive

Value added

2001

2008

GRW

MFCIPO

GP

Strengthen Finance

Vision

• Local green resource• European advanced technology

and method

36

and method• Taiwanese outstanding management• Investor’s high reward• Leader of Asia’s particle board

Quality wood products from sustainable plantation forests37