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Transform & Insist Move to our future
Investor Conference
Transform & Insist Move to our future
Safe Harbor Notice
• RECHI’s statements of its current expectations are forward looking statements subject to
significant risks and uncertainties and actual results may differ materially from those
contained in the forward-looking statements.
• Except as required by law, we undertake no obligation to update any forward-looking
statement, whether as a result of new information, future events, or otherwise.
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Transform & Insist Move to our future
Company Introduction
Financial Highlights
Market Opportunity
Development Strategy
Outline
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Transform & Insist Move to our future
SAMPO Corporation 26.73%
China Steel Corporation 4.55%
Sharp Corporation 4.50%
Others 64.23%
Main shareholders
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
Until Dec 31, 2018
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Organization structure
Rechi Holdings Co., Ltd.
Qingdao Rechi
Electric
Machinery
Sales Company
Dongguan Rechi
Compressor Co.,
Ltd.
Rechi Investments
Holdings Co., Ltd.
Rechi
Precision(Jiujiang)
Electric Machinery
Limited
Rechi
Refrigeration
Dongguan Co.
Ltd.
Rechi Precision
(Huizhou)Mecha
nism
Company
Rechi
Precision(Qingdao)El
ectric Machinery
Limited
Rechi International
Holdings Co., Ltd.
Dyna Rechi Jiujiang
Co., Ltd.
GR Holdings
(Hong Kong)
Limited
RECHI PRECISION CO. , LTD
Rechi Investments Co., Ltd.
TCL Rechi (Huizhou)
Refrigeration
Equipment
Company Limited
25%67.86%
77.78%
50%
100%
100%
100%
100%
50%
100%
100%
100%
100%
100% 35.5%
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
100%
42.2%
64.5%
Ablek Technology
Co., Ltd
100%
(Samoa) Ablek
Technology Ltd.
100%
100%
Ablek Technology
Ltd.
Dyna Rechi Holdings
Co., Ltd.
Dyna Rechi Co., Ltd.
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India service office
Thailand service office
Pune
Bangkok
Houston
U.S.A. liaison office
Osaka
Japan liaison office
Cover area : 34,194m2
HR TR
Cover area : 160,000m2 Cover area : 20,000m2
DR
Cover area : 151,016m2 Cover area : 29,652m2
KRJR/DRJ
Cover area : 298,149m2
HQ and R&D center
QR
North China service center
Location of facilities & Production Capacity
Central China service center
South China service center
Sales head office in CHINA
Sales head office in Non CHINA
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
CompressorCurrent capacity 9 million
under construction 3 million
Compressor Current capacity 6 million
BLDC motor Current capacity 3.9 million
Motor Current capacity 5 million
Compressor Current capacity 6 million
BLDC motor Current capacity 1.5 million
Compressor under construction 2 million
Motor Current capacity 5 million
DRD
Transform & Insist Move to our future
Milestone of RECHI Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
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1989Oct. 19th
2000
Company funded
Taiwan (Guanyin factory )
Established
China (Humen factory)
Established
1993
2001
2005
China (Qingdao factory)
Established
20102011
SHARPJoined as one of our major shareholders
CSC Group
Joined as one of our major shareholders
2003
IPO in TAIWAN
(No. 4532)
2014
U.S.A. service officeset up
China (Jiujiang factory
Established
India liaison office set up
20172015
Thailand liaison office
set up
Japan service office
set up
2013
2018
Accumulative sales of compressors reached
100 million units in 2014
2012
( The 100 millionth unit was produced on April 13th)
( The 100 millionth unit was sold on May 8th)
China (Huizhou factory)
Established
Dyna Rechi (Pingtung & Jiujiang
factories opened) Established
Formed a joint venture with Zhejiang BaidaPrecision Manufacturing Corp. and established JBPM
Formed a joint venture
with CSC Group and
established CSMQ
Dyna Rechi
acquired
Ablek
technology
Co., Ltd
2019
Transform & Insist Move to our future
Financial Highlights
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Transform & Insist Move to our future
0
5,000
10,000
15,000
20,000
25,000
30,000
-
5,000
10,000
15,000
20,000
25,000
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18
Production Sales Reveunue
Unit: k Unit: NT$ mn
Revenue growth of RECHI
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
Accumulative Sales Quantity
reached to 100 million units.
◆ 2018 Production:19,026,685 units
◆ 2018 Revenue:NT$ 22,479 mn
Until Dec 31, 2018◆ Cumulative Sales:172,376,496 units
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Revenue
Transform & Insist Move to our future
Revenue growth
Margins
%Unit : NT$ mn
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
6,922
12,587
16,794 15,285
16,473 18,127 15,630
17,674 19,827
22,479
-40%
-20%
0%
20%
40%
60%
80%
100%
0
5,000
10,000
15,000
20,000
25,000
09" 10" 11" 12" 13" 14" 15" 16" 17" 18"
Revenue Growth YoY
5.4%
13.0%14.2%
17.0% 16.5% 17.4% 17.1%20.8%
15.1%15.8%
-2.9%
6.2%8.0%
10.3% 9.1% 8.8%
7.3%
11.2%
7.2%7.3%
09" 10" 11" 12" 13" 14" 15" 16" 17" 18"
Gross margin Operating margin
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ROE & ROA
Operating CF & CapexUnit : NT$ mn
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
-5.5%
10.0%
14.6% 14.6%12.6% 12.6%
9.1%
14.4%11.0% 12.0%
-1.7%
5.6%
7.5% 7.2% 6.1% 6.3%4.7%
6.8%4.9% 5.1%
-10%
-5%
0%
5%
10%
15%
20%
09" 10" 11" 12" 13" 14" 15" 16" 17" 18"
ROE ROA
1,690
434
1,659
1,246
2,063
-57
2,054
1,238
487
2,352
215 277
1,334 1,550
730
1,079 1,266
847
1,385
2,073
09" 10" 11" 12" 13" 14" 15" 16" 17" 18"
Operating CF CAPEX
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Dividend policyMarket OpportunityFinancial HighlightsCompany Introduction Development Strategy
* Based on share price on following year closing before ex-dividend day
2014 2015 2016 2017 2018
EPS (NT$) 2.3 1.86 2.8 2.1 2.2
Cash DPS (NT$) 2 1.6 2.28 1.75 1.2
Payout ratio (%) 87.0 86.0 81.4 83.3 54.5
Cash yield (%)* 8.6 6.2 7.0 5.8 4.8
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Income statementMarket OpportunityFinancial HighlightsCompany Introduction Development Strategy
Unit in Thousand NT$ 2019H1 % 2018H1 % YoY %
Sales volume of
compressor10,020,286 10,419,167 -398,881 -3.8
Sales revenues 11,510,776 100 12,582,359 100 -1,071,583 -8.5
Cost of goods sold -9,798,498 -85.1 -10,621,574 -84.4 823,076 -7.7
Gross margin 1,712,278 14.9 1,960,785 15.6 -248,507 -12.7
Operating expenses -1,110,560 -9.6 -882,382 -7.0 -228,178 25.9
Income(Loss) from
operations601,718 5.2 1,078,403 8.6 -476,685 -44.2
Total non-Operating
income and expenses-4,232 -0.0 -8,464 -0.1 4,232 -50.0
Income before tax 597,486 5.2 1,069,939 8.5 -472,453 -44.2
Income tax -159,508 -1.4 -347,602 -2.8 188,094 -54.1
Income after tax 437,978 3.8 722,337 5.7 -284,359 -39.4
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*Consolidated financial statements have been reviewed by the CPA firm of Deloitte & Touche
Transform & Insist Move to our future
Balance sheetMarket OpportunityFinancial HighlightsCompany Introduction Development Strategy
Unit in Thousand NT$ 2019H1 % 2018H1 % YoY %
Cash and current financial
assets4,790,402 16 4,881,826 18 -91,424 -2
Accounts receivable,net 10,655,097 37 11,156,998 41 -501,901 -4
Inventories 2,496,621 9 2,114,640 8 381,981 18
Other current assets 1,242,868 4 1,165,882 4 76,986 7
Total current assets 19,184,988 66 19,319,346 70 -134,358 -1
Property,plant and
equipment,net7,222,135 25 6,513,166 24 708,969 11
Other non-current assets 2,639,682 9 1,577,851 6 1,061,831 67
Total assets 29,046,805 100 27,410,363 100 1,636,442 6
Short-term loans 5,247,777 18 5,404,347 20 -156,570 -3
Accounts payable,net 7,224,942 25 6,000,531 22 1,224,411 20
Other current liabilities 2,580,526 9 2,732,165 10 -151,639 -6
Total current liabilities 15,053,245 52 14,137,043 52 916,202 6
Long-term loans 3,629,910 12 3,117,820 11 512,090 16
Other non-current liabilities 711,138 2 671,844 2 39,294 6
Total liabilities 19,394,293 67 17,926,707 65 1,467,586 8
Total stockholders' equity 9,652,512 33 9,483,656 35 168,856 2
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*Consolidated financial statements have been reviewed by the CPA firm of Deloitte & Touche
Transform & Insist Move to our future
Cash flow statement
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
*Consolidated financial statements have been reviewed by the CPA firm of Deloitte & Touche
Unit in Thousand NT$ 2019H1 2018H1
Cash, beginning of year 1,691,863 1,875,853
Net cash provided by operating activities 400,221 -57,090
Cash flow from investment activities -1,487,372 -1,036,016
(Decrease) increase in short-term loans, net 226,247 1,225,420
(Decrease) increase in long-term loans, net 500,000 900,000
others 21,323 -63,838
Cash, end of year 1,352,282 2,844,329
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Market Opportunity
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The market trend of Global A/C Unit:10k
Reference : IOL, HENGTA, GI , JRAIA
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
122,310 133,550 133,210
114,420
155,650 164,060 163,402 168,304 173,353
2.1%
9.2%
-0.3%
-14.1%
36.0%
5.4%
-20%
-10%
0%
10%
20%
30%
40%
0
50,000
100,000
150,000
200,000
250,000
300,000
2013 2014 2015 2016 2017 2018 2019(F) 2020(F) 2021(F)
Global A/C
Sales
Growth YOY
線性(Sales)
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Transform & Insist Move to our future
Reference : IOL
Unit:10k
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
The market trend of rotary compressor in CHINA
129,990
152,520
133,621
151,825
192,724 206,036 202,100
213,290 224,480
10.5%
17.3%
-12.4%
13.6%
26.9%
6.9%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
0
50,000
100,000
150,000
200,000
250,000
300,000
2013 2014 2015 2016 2017 2018 2019(F) 2020(F) 2021(F)
CHINA rotary Compressor
Sales
Growth YOY
線性(Sales)
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Transform & Insist Move to our future
51,690 56,570 52,610 64,370
84,850 96,458
108,740
122,333
137,625
24.1%
9.4%
-7.0%
22.4%
31.8%
13.7%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
0
50,000
100,000
150,000
200,000
250,000
300,000
2013 2014 2015 2016 2017 2018 2019(F) 2020(F) 2021(F)
CHINA BLDC Motors
Sales
Growth YOY
線性(Sales)
The market trend of BLDC Motor in CHINA
Reference : IOL
Unit:10k
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
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Transform & Insist Move to our future
The top 6 of rotary compressor makers in CHINA Unit:10k
Reference : IOL
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
35,020
44,080 42,410
49,620
61,010
68,250
27,210
36,130
30,550 33,310
46,817 49,392
16,499 18,106 15,114 18,315
24,273 24,890
12,368 13,513 12,380 15,084
17,657 19,026
10,340 11,010
8,870 8,601 10,820 11,390
5,740 6,280
5,540 6,026 7,770 8,580
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2013 2014 2015 2016 2017 2018
GMCC
LANDA
HIGHLY
RECHI
PANASONIC
LG
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Korea, 0.5% Taiwan, 1.1% Middle East, 2.3%
India, 4.0%
Japan, 4.1%
S American, 7.3%
SE Asia, 10.1%
China, 17.4%
N American, 26.0%
Europe, 27.2%Korea
Taiwan
Middle East
India
Japan
S American
SE Asia
China
N American
Europe
RECHI Sales : Geographic distribution
★ RECHI sold over 150 customers in 28 countries worldwide. Reference : 2018
RECHI Sales : Application distribution
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
62.2%
37.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
RAC+PAC others
RAC+PAC
others
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Transform & Insist Move to our future
Development strategy
22
Transform & Insist Move to our future
Development Strategy
Opportunities
for new energy-
saving markets
Pursue Create
New energy-
saving
products
Technology
Innovation
Market Demand
THE STRATEGY
OF VALUE
REVOLUTION
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
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Transform & Insist Move to our future
Now Future2019RHCHI 30th
• Compressor
• BLDC Motor
Value Innovation
Subversive innovation
The business model of Subversive innovation products and Core Technology
Core business
• MINI SMART AIRCON
• SMART DC FAN
• Others (innovation products)
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
New growth
business
• (ABLEK TECHNOLOGY CO.,LTD.)
This product can be customized design and assembled, and applied to
personal mini air conditioner, wardrobe dehumidifier and pets e-Nest.
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Transform & Insist Move to our future25
Cooling e-Nest
Choose the best to love your pets
Energy saving CombinationConstant Temperature
Sterilization
25
Transform & Insist Move to our future
Foldable Cordless Bluetooth speaker Long Endurance
26
Transform & Insist Move to our future
ProductCompetitiveness
• Increasing Output efficiency of units / work hours
• Improving design cost competitiveness
• Reducing procurement costs
• Integrating RECHI group production line and reducing the transportation
cost of components
• Stabilizing global strategy customer sale ratio
• Increasing the proportion of sales of DC inverter compressors
• Increasing new customer、new market、new application
Upgrading RECHI’s Competitiveness
CostCompetitiveness
SalesCompetitiveness
• CompressorHigh energy-efficiency、Larger size、Smaller size、Less noise、Application
• MotorProduction Maximization、Subversive innovation product、Expanding motor product items
27
Market OpportunityFinancial HighlightsCompany Introduction Development Strategy
Transform & Insist Move to our future
Create unlimited possibilities for the Energy Saving Industry.
Become the top provider of proactive Energy Saving Product.
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