Green River Holding Oct 7 th 2015 TPEX CODE: 8444 Outline Company - - PowerPoint PPT Presentation

Green River Holding

Oct 7th 2015

TPEX CODE: 8444

Outline

• Company Data
• Product Introduction

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• Product Introduction
• Industry Overview
• Operating Performance

Company Data Company Data Company Data Company Data

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1.1 Company Data

• Establishment…………2011.1.14
• Capital………………… USD 20 million (NTD 666 million )
• Chairman……………… Hsieh, Jung-Hui
• President……………… Huang,Teng-Shih

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• 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 Board Business Solid wood Business 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 Directors

Name Title Education Background Main Experiences

Green Source Investments Ltd

Representative: Hsieh, Jung-Hui Chairman

Department of Civil Engineering, National Cheng Kung University Owner of Standard Pallet International

Forward Thinking Limited Representative:

Huang, Teng-Shih

Director

MBA, Ramkhamhaeng University

Department 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-Ling

Director

MS in Mechanical Engineering, Mississippi State University

President, Kaohsiung Rapid Transit Corporation Executive Vice General Manager, China Steel Corporation Chairman, China Ecotek Corporation

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Chin Tai Holding Inc. Representative: Li, Mu-Wen

Director MS in Structural Engineering, The University of Arizona Department of Civil Engineering, National Cheng Kung University

Manager, Continental Engineering Corporation Wu, Ching-Sung

Independent Director

Ph.D. in Management, UCLA MBA, National Taiwan University Department of Management Science, National Chiao Tung University

Professor, College of Management, National Taiwan University Pai, Pei-Lin

Independent Director

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

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

Lin, Wan-Ling

Independent 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 Chief Executive Officer MBA, Ramkhamhaeng University

Department of Water Resources Engineering,

Feng Chia University Project Manager, Evergreen Construction Corp. Sales Engineer, Pro Leasing and Rental Li, Mu- Wen Chief Sales Officer MS in Mechanical Engineering, Mississippi State University Manager, Continental Engineering Corporation Wang, Chief Audit Manager,

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Wang, Zheng- Feng Chief Financial Officer Department of Accounting, Tunghai University Chialin Precision Industrial Co., Ltd Chief Financial Officer, Samya Technology Co., Ltd Wang, Ping- Hsun Audit Manager Department of Accounting, Aletheia University Assistant Manager, Deloitte Taiwan

Product Introduction Product Introduction Product Introduction Product Introduction

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2.1 Main Products

Particleboard a.k.a Chipboard

Applicable 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

• ther building accessories.

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Branches 40% Wood- based Panels

Engineered-Wood Production Plant

2.3 Rubber Wood Utilization

 By applying over 90% of a rubber tree, GRH maximizes rubber wood resource utilization

Logs 60% Sawmill Slabs 30% Solid wood 30% Wood Fuel

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2.3 Production of Particleboard

Chipping

Chips Branches & Slabs

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Pre-Press

Conti Press Flaking Forming

Particleboard

Blending

Rubber Tree waste Eco-friendly Furniture & Wood-Panel Construction Material Flakers

2.3 Production of Solid Wood

Sawing

Fresh Rubber Wood Logs

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Furniture, Flooring and

• ther wooden products

Grading Drying

Solid wood

Impregnation

Rubber Tree waste

Industry Overview Industry Overview Industry Overview Industry Overview

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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

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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 East 17.99% Northern 3.65%

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

Central 11.98% Southern 66.38%

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

122 124 128 141 149 140 160

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Source: Centre for Industrial Studies (CSIL)

77 84 93 109 117 94 106 117 122 124 128 20 40 60 80 100 120 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F Revenue (US Billion)

3.3 Characteristics in Comparison

PB MDF Plywood Wood Eco- Friendliness     Waste Application

• Particle Board vs. MDF；Plywood；Wood

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Waste Application  

• Investment

    Technology Requirement     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)

5 00 01 02 03 04 05 06 07 08 09 10 11 12 13 2000 2012 2020f 10 20 30 40

CAGR 2000~2011 8.7% CAGR 2011~2020 8.6%

3.3 Life Surrounded by Wooden Panels

Kitchen Flooring

23 Particle Board

Bathroom Walk-in Closet Bedroom Living Room Playroom Office

3.3 Invincible Sales Channel

Retail Stores 24 Local Chained Stores Independent Stores Designer Studios

3.3 Asian Market’s Potential

Engineered Wood Panel Distribution (2013)

PLY 39% MDF 42% PB 19% PLY 11% MDF 18% PB 71% PLY 30% MDF 10% PB 60%

Europe Asia North America

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Source: FAOSTAT Forestry

Operating Performance Operating Performance Operating Performance Operating Performance

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4.1 Sales Market (2014)

Thailand 0.4% Thailand 10.5% Taiwan 0.1% Particle Board Solid Wood 27 Malaysia 57.5% Korea 4.7% China 3.9% Indonesia 33.4% China 89.4%

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 Profit

NTD 1,000 NTD 1,000

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2012 2013 2014 2015H1 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 Dividends

NTD

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

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EN and CARB standards Qualified EN and CARB standards Qualified Utilization of rubber tree up to

• ver 95%

Utilization of rubber tree up to

• ver 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 Qualified Qualified 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 built

Supply Network

4.3 Company Strength

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• Consistency in quality, winning trust from customers

Quality

• Latest technology meets management yields high production

performance

Productivity

• Heart of ASEAN, complete infrastructure

Location

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

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

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• 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 2015 2015 2008 MFC

GP2 MFC 2 & 3 Resin

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Labor-Intensive Capital-Intensive Value added

2001 2008 GRW MFC IPO GP

Strengthen Finance

Vision

• Local green resource
• European advanced technology

and method

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and method

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

Quality wood products from sustainable plantation forests

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