Zhen Ding Technology Holding - twse.com.tw

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Zhen Ding Technology Holding

3Q19 Earnings Conference

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Note: annual average of total employees

143 119

2 8 18 28 20 31 94

168 230

347

443

554 645

760

857 824

1,092 1,179

0

200

400

600

800

1000

1200

1400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue 2 8 18 28 20 31 94 143 119 168 230 347 443 554 645 760 857 824 1,092 1,179

Employees / / / / / 3,396 4,605 8,805 13,006 17,009 18,142 22,983 23,034 25,392 27,820 33,212 37,801 39,943 40,622 38,588

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Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Operating

revenue 22,988 34,696 44,280 55,369 64,483 75,954 85,738 82,393 109,238 117,913

Capital (Note)

6,640 6,464 6,699 7,034 7,386 7,386 8,047 8,047 8,047 8,047

ROE (%) 10.82 5.54 15.34 21.27 23.77 23.33 20.82 8.59 14.49 17.30

Note: As of April 23, 2019, the total capital is 9,022 million NTD as a result of the conversion of ECB.

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Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cash position 1,291 1,797 4,084 8,756 10,016 23,482 31,572 30,241 33,296 49,154

Debt 16,380 17,826 21,304 22,659 23,650 29,125 27,261 31,025 32,949 27,078

Accounts

receivable 6,825 8,412 11,138 14,983 23,822 21,463 15,822 19,033 30,619 24,276

Inventory 1,743 2,382 3,242 4,294 4,867 6,036 5,940 7,187 11,259 10,084

Property,

plant and

equipment 25,361 25,445 27,097 26,637 27,843 30,073 32,074 32,262 36,681 41,913

Depreciation &

Amortization 2,297 2,807 3,008 3,375 3,742 4,293 4,850 5,295 5,679 6,820

Total equity 12,782 12,891 17,832 20,394 25,714 32,023 42,253 38,230 55,261 78,109

Debt ratio (%) 67.08 69.70 67.03 66.28 64.06 62.54 53.70 59.72 55.33 44.25

Note 1: Debt = short-term debt + long-term debt + ECB

Note 2: Debt ratio is 38.9% as of September 30, 2019 due to the conversion of ECB.

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Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(E) 2020(F) 2021(F) 2022(F) 2023(F)

Revenue 41,226 52,468 55,409 55,039 56,151 57,437 55,325 54,207 58,843 62,396 60,705 62,444 67,978 71,550 77,009

YoY -14.7% 27.3% 5.6% -0.7% 2.0% 2.3% -3.7% -2.0% 8.6% 6.0% -2.7% 2.9% 8.9% 5.3% 7.6%

Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Revenue 22,288 24,851 28,828 32,287 33,100 36,368 41,570 32,694 30,842 33,311 38,391 40,639 45,143 47,685 48,342

YoY 14.2% 11.5% 16.0% 12.0% 2.5% 9.9% 14.3% -21.4% -5.7% 8.0% 15.3% 5.9% 11.1% 5.6% 1.4%

Computer Feature phone 5G + IoT Smart phone

WW PCB Market Revenue YoY Growth

21 21 22 20 20 22

25 29

32 33 36

42

33 31 33 38 41

45 48 48

41

52 55 55 56 57 55 54

59 62 61 62

68 72

77

-30%

-20%

-10%

0%

10%

20%

30%

0

10

20

30

40

50

60

70

80

90

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019E

2020F

2021F

2022F

2023F

Unit: Billion USD

Unit: Million USD

Source: Prismark (2019/10)

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Location 2017 2018 2019E 2020F 2021F 2022F 2023F 2018-2023

CAGR

China 29,732 32,702 32,266 34,116 36,355 38,546 40,556 4.4%

Japan 5,256 5,439 5,446 5,549 5,638 5,726 5,828 1.4%

Americas 2,742 2,817 2,814 2,846 2,893 2,927 2,967 1.0%

Europe 1,963 2,016 2,004 2,043 2,076 2,108 2,142 1.2%

Other Asia 19,151 19,423 18,812 19,812 21,016 22,243 23,263 3.7%

Total 58,843 62,396 61,342 64,366 67,978 71,550 74,756 3.7%

Unit: Million USD

0

10

20

30

40

50

60

70

80

90

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020F 2022F

$ 40.6Bn

Growth drivers:

HDI, FPC and ICS

Annual growth in

1995-2000: 11.1%

Americas

Europe

Japan

China

$41.6Bn

Asia (excl. Japan/China)

It took more than 6

years for worldwide

recovery

PCB output has strong

growth in China

Emergent market

drive two-year

recovery

2018-2023E

CAGR：3.7%

31.1%

$19.4Bn

4.5% $2.8Bn

52.4%

$32.7Bn

8.7% $5.4Bn

3.2% $2.0Bn

31.1%

$23.3Bn

54.3%

$40.6Bn

7.8% $5.8Bn

2.9% $2.1Bn 4.0% $3.0Bn

CAGR

3.7%

CAGR

4.4%

CAGR

1.4%

1.2%

1.0%

Unit: Billion USD


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Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

WW PCB Market 48,342 41,226 52,468 55,409 55,039 56,151 57,437 55,760 54,207 58,843 62,396

WW PCB Market

YoY Growth 1.4% -14.7% 27.3% 5.6% -0.7% 2.0% 2.3% -2.9% -2.8% 8.6% 6.0%

ZDT Revenue 534 696 1,101 1,507 1,872 2,172 2,506 2,701 2,554 3,590 3,911

ZDT Revenue

YoY Growth 47.1% 30.3% 58.2% 36.9% 24.3% 16.0% 15.4% 7.8% -5.5% 40.6% 8.9%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ZDT vs. WW PCB Revenue Growth

Source: Prismark; ZDT’s annual report

Unit: Million USD

ZDT’s Revenue YoY Growth WW PCB Market YoY Growth

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Rank Company Name Location 2018 2017 2016 2015 2014 2013 2012 2011

1 ZDT Taiwan 3,911 3,590 2,554 2,701 2,506 2,172 1,872 1,507

2 Nippon Mektron Japan 2,856 3,323 3,212 3,591 3,154 2,556 2,632 2,240

3 TTM USA 2,847 2,658 2,533 2,525 2,376 2,380 2,430 1,428

4 UMTC Taiwan 2,620 2,240 2,036 2,113 2,144 2,133 2,377 2,370

5 Tripod Taiwan 1,727 1,510 1,351 1,368 1,400 1,372 1,325 1,395

6 Compeq Taiwan 1,681 1,778 1,415 1,395 1,116 1,041 905 811

7 SEMCO Korea 1,346 1,284 1,140 1,344 1,551 1,700 1,867 1,445

8 M-Flex China 1,308 967 495 637 632 710 870 830

9 AT&S Austria 1,202 1,093 876 844 829 780 698 690

10 PSAPCB Taiwan 1,186 1,094 983 825 958 972 1,100 1,290

11 Fujikura Japan 1,155 1,099 824 819 563 380 217 740

12 Shennan Circuit China 1,145 842 693 566 528 425 369 327

13 Ibiden Japan 1,083 973 951 1,297 1,455 1,567 2,094 2,126

14 Meiko Japan 1,074 947 869 788 828 690 695 740

15 WUS Group Taiwan 999 847 723 737 750 664 645 630

16 Nan Ya PCB Taiwan 955 876 905 944 1,154 1,088 975 1,290

17 Sumitomo Japan 945 1,134 1,099 1,616 1,279 1,315 1,184 880

18 Simmtech Korea 917 832 772 663 632 485 559 554

19 Daeduck Korea 900 882 828 923 1,215 1,190 1,080 970

20 FLEXium Taiwan 884 853 595 570 430 458 376 257

21 CMK Japan 818 758 676 609 687 627 845 845

22 Kinsus Taiwan 787 735 720 726 824 778 746 782

23 LG Innotek Korea 778 740 689 782 802 712 666 625

24 TPT Taiwan 765 741 681 713 790 702 748 544

25 Kinwong China 762 621 495 566 358 286 221 204

26 BH Co Ltd Korea 693 603 322 321 280 345 204 138

27 Gold Circuit Taiwan 683 630 605 611 664 598 510 575

28 Chin Poon Taiwan 672 774 743 712 701 651 593 540

29 Unitech Taiwan 647 598 393 434 458 446 402 502

30 Shinko Japan 620 562 578 601 578 846 867 904

Top 30-total 37,963 35,584 30,756 32,341 31,642 30,069 30,072 28,178

ZDT Ranking 1 1 2 2 2 3 5 4

ZDT Market Share 6.3% 6.1% 4.7% 4.8% 4.4% 3.9% 3.4% 2.7%

Worldwide PCB Market 62,396 58,843 54,207 55,760 57,437 56,151 55,039 55,409

Top 30-Market Share 60.8% 60.5% 56.7% 58.0% 55.1% 53.6% 54.6% 50.9%


Unit: Million USD

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Fuyong, Shenzhen

Shenzhen Park I

Huaian Park

Qinhuandao Park

Huaian Zong Bao

Park

Yingko Park

Shenzhen Park II

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項目總用地面積：101,172平方米/152畝

項目總建築面積：240,446平方米

Shenzhen Park I, Guangdong

Land area: 101,172 square feet /152 acres

Building space: 240,446 square feet

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松福大道

洋涌河

人行天橋

鵬鼎深圳第一園區

鵬鼎深圳第二園區

朗東路



Groundbreaking: Sep. 13, 2018

Shenzhen Park II, Guangdong

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深圳东路

珠海东路

北

Land area: 336,423 square feet /505acres


Groundbreaking: Jan. 8, 2015

Pilot production: Jan. 30, 2016

Huaian Park, Jiangsu

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Width of bridge: 22m

Width of river: 36m

Height of bridge: 5~6m

Depth of river：2~3m

Huaian Park, Jiangsu

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項目總用地面積：214,893平方米/322畝

項目總建築面積：221,470平方米

Huaian Zong Bao Park, Jiangsu



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Qinhuandao Park, Hebei

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Yingko Park, Liaoning

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Ranked 39 of “Taiwan’s Top 2000 Manufacturing Companies”

in 2018. (reported by CommonWealth magazine)

Ranked 2nd of Huaian Private Enterprise in 2018

Ranked 22 of Top 100 Shenzhen Industrial in 2018

Ranked 221 of “Greater-China Top 1000 Companies by

Market Cap” in 2018. (reported by Business Today magazine)

Ranked 1st of Top 100 Hebei Export Enterprises in 2018

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Monitor Router Gaming & Accessory

Portable Gaming

Storage

Switch

Wearable Device

Notebook

Automobile

Desktop

VR & MR

Tablet

Smart Phone

Server

SLP

RPCB

FPC

HDI One

ZDT

ICS

CoF

Rigid

Flex

Module

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Samsung Note10 5G

S10 5G

OPPO Reno 5G

One plus 7pro 5G

Xiaomi

MIX 3 5G

Samsung Fold 5G

Qualcomm Snapdragon

855 +X50

Qualcomm Snapdragon

855 +X50

Qualcomm Snapdragon

855 +X50

Qualcomm Snapdragon

855 +X50

Qualcomm Snapdragon

855 +X50

Samsung S10 5G

HUAWEI

Mate 20X 5G Mate X

HiSilicon

Kirin980

+Balong 5000

Samsung

Exynos 9820

+M5100

HUAWEI

Mate 30

HiSilicon

5G SoC

Kirin 990

9

123

246

331

418

0%

5%

10%

15%

20%

25%

30%

0

50

100

150

200

250

300

350

400

450

2019 2020 2021 2022 2023

Unit: Million

Source: IDC (2019/10)

5G Smartphone Shipments 5G Smartphone Penetration

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20171204

Light weight

Thinner

High frequency High accuracy

Fine pitch

Slim

3D architecture

Stretchable

Transparent

Smart equipment

Short Process

Small

dimension

Small

spring back

Low loss

Multi-function

Multi-layer

Fast R&D

Fast NPI

Low

pollution

Light density

Thin

thickness

Short lead time

Narrow

tolerance

Smart material

option

Light

Thin

Short

Small

High

Low

Multiple

Fast

High speed

High dissipation

Precise

Aesthetic

Fine

Smart

23

are invention patents

0

200

400

600

800

1000

2013 2014 2015 2016 2017 2018 2019

CN 111 142 163 218 274 310 356

TW 116 171 228 276 320 355 388

US 52 59 81 94 108 122 142

0

500

1000

1500

2000

2500

2013 2014 2015 2016 2017 2018 2019

CN 466 565 642 717 806 888 985

TW 500 540 583 613 654 684 712

US 168 181 205 216 249 279 312

1134 1286

1546 1430

1709 1851 2009

279

372

472

588

702 787

886

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台灣中原大學

台灣中央大學

大陸廣東工業大學

大陸中山大學大陸清華大學 (深圳研究生院)

大陸北京大學 (深圳研究生院)

大陸燕山大學

台灣逢甲大學台北科技大學

台灣科技大學台灣清華大學台灣成功大學台灣交通大學

大陸深圳大學

台灣元智大學台灣中興大學

大陸東南大學大陸哈爾濱工業大學

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22 Awards Received

in Shenzhen, China

29 Awards

Received in

Huaian, China

5 Awards Received

from US Customers

14 Awards

Received in

Qinhuandao, China

• Green Factory

• Guangdong Green

Label Enterprise

• Guangdong Zero

Waste Certification

• Zero Waste Certification

• Green Factory

• Green Factory

• Jiangsu Green Label

Enterprise

• Huaian Water Saving

Certification

• A supplier goes above

and beyond for the

environment (APPLE)

• Best Energy Saving

• Best CSR 70 Awards

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2018.03.07發行

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Collecting Integration Compatibility

Process Streamline IT System Setup Problem Solving

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Smart

ZDT 4.0

Big Data Center

Smart

logistics

Smart

warehouse

Smart

production

Smart

machinery

Smart

security

Smart

engineering

Smart

Environments

Smart

HR

Smart

supply chain

Intelligent

ERP

Smart

quality Smart

business

30

Community Strategic

Partners Employees Customers Shareholders

Mission

Technology development, benefit of mankind; environment

protection, make the planet a better place

Leading the PCB industry for related developments

Integrity, Responsibility, Innovation, Excellence, and

Helpfulness

Pentagon

Value

Vision

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Core Technology New product, New Technology, New Equipment, New

Material, and New Process

Manufacturing

Technology

PCB Platform

Global Leading Customers

EMS providers to

ODM/OEM

EMS built by Global

Leading Brand

Strategic Equipment

Vendors

Specialized R&D

Institutions

Strategic Material

Suppliers

Innovation

Partnership

34

China domestic

demand

China capital

market Overseas

locations ONE

ZDT

Never Do Things which Hold You from Sleeping Team work and Resource sharing

Master the trend and learning organization There are Gains to Pay

ZDT is Found

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1. To partner with academia and cultivate highly skilled

international talents.

2. To set up well digitized and information-processed

infrastructure for Big Data & Industry 4.0 development.

3. To navigate and pioneer the PCB industry.

Zhen Ding Technology Holding - twse.com.tw

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