Taiwan Paiho Limited

Taiwan Paiho Limited
29 years of Experience in
Making Sporting Goods Accessories
September 2014
1
Content

Company profile

Other applications

Paiho group

Operating Performance

Main products

New product introduction

Paiho patent

Competitive advantages

Applications

Future development plans

Main customers
2
Company general profile

Establishment: 1985

Number of employees: 781 (as of August, 2014)

Paid-in capital: US$99.3mn (NT$2.98bn)

Listed in January 2001

Main products: Elastic, Webbing(Shoelaces),
Touch Fastener, Reflectives (Reflective Bar),
Molded Hook & Loop, Bamboo Charcoal
series products and Knitted Upper etc.
3
History - 1


1979 Established San Ho Shin Limited, manufacturing only hook and loop
1985 As a joint venture with Velcro (NasdaqSC:VELCF), Taiwan PaiHo Ltd.
was established
1990 Joint venture with Velcro ends, shares sold to the Cheng family
1992 Dongguan PaiHo was established
1997 Shares of Dongguan PaiHo sold to Taiwan PaiHo, becomes Taiwan PaiHo’s
100%-owned company
1998 Spring Rich established
1999 Taiwan PaiHo obtains ISO 9002 quality approval;
Vietnam PaiHo Ltd. established the same year
2001 Taiwan PaiHo Ltd. lists on the Taiex; Wuxi PaiHo established
2002 Wuxi PaiHo and Spring Rich start pilot production

2003 Cooperation with Council of Agriculture and ITRI to develop the internationally







popular bamboo charcoal series of products and materials
Invested in ShangHai Powder Coating

2004
Europe PaiHo and North America PaiHo Ltd. established
Invested in Dongguan Powder Coating
First company to get CAS certificate from COA (#160101)
ITRI holds bamboo charcoal exhibition in December

2005 Company holds a bamboo charcoal products, underwear and sleeping dress
exhibition in the Taipei World Trade Center in June
4
History - 2

2006 Establish Paiho’s own consuming chain store “LACOYA” specializing in Bamboo

2007

2008
2009



2010
2011

2012

2013

2014
Charcoal fiber products. (Total 20)
The same year, PaiHo was awarded with " Asia Top 200 Small&Midsize
Companies" by Forbes Asia, which showcased the region's most dynamic publicly
traded firms with the sales under a billion US dollars.
Awarded with “ Taiwan Fine Product” by Taiwan Trade Development Council
Until 2007.12.31, PaiHo has a total of 39 LACOYA direct managed stores and
franchised stores
PaiHo has a total of 42 LACOYA direct managed stores and franchised stores
TigerShark changeable cushion and ventilation saddle with hook and loop won third
place at the “2009 Innovative Bicycle, Component and Accessory Competition.”
PT Paiho Indonesia established
Subsidery-Paiho Shin Holding (F Paiho 8404) become a first oversea company
listing on Taiwan stock market
Certified with IS0/TS 16949 quality management systems
Awarded with " BEST SUPPLIER( Speed/Agility)" by Adidas
Awarded with "Best Small and Medium Enterprise" by the Ministry of Economic Affairs R.O.C
Awarded with " FACT Division 1 Supplier" by Adidas
New developed products, two ways stretch upper and digital woven upper, business crosses
sub material and main material.
Paiho has invited by Adidas become part of the member in A-Team, is one of the 11 members
in the world to be the most prospective development supplier, and Paiho is the only one vice
material supplier.
Paiho is elected by Nike as the “pioneer supplier” in garment - as the strategic partner.
Also, Paiho has invited by NIKE to set up a corresponding office and exhibition center for
5
footwear at WHQ
Paiho group
100%
PaiHo
North
America
Corp.
100%
100%
100%
PaiHo
Europe,
S. A.
PaiHo Group
INC
99%
100%
PaiHo
Holdings
Limited
PT. Paiho
Indonesia
Spring
Rich
Limited
PaiHo Int’L
Ltd
1%
100%
100%
He Mei
Xing Ye
Company
Ltd.
Zhong Yuan
Xing Ye
Company Ltd.
China Star
International
Limited
75%
25%
Dougguan
PaiHo Powder
Coating Co., Ltd
21.43%
Leader
Elastic
Limited
96.43%
Zhuhai
Sundust
Textile
Factory Ltd
100%
Dongguan
PaiHo Textile
Limited
Braits
Company
Limited
Hong Kong
Antex Limited
100%
Wuxi Paihong
Management &
Consultant Co,.Limited.
100%
PaiLon
International
Trading Limited
93.20%
4.20%
Wuxi PaiHo
Textile Co.,
2.59%
LTD
100%
Wuxi Paisen
Chemical
Fibre Co., Ltd
Paiho Shih
Holdings
Corporation
100%
Vietnam
PaiHo
Limited
Hon Shin
Corp
51.6%
100%
100%
100%
100%
100%
100%
Shanghai Paiho
Commercial
Trading Co., LTD.
75%
Dongguan
Paihong
25%
Industry Co.,Ltd
6
Global strategy
Operational & R&D headquarters: Taiwan PaiHo
Production plants: Taiwan, Dongguan, Wuxi, Vietnam,
Indonesia
Sales and customer service centers: Taiwan PaiHo, Dongguan
PaiHo, Wuxi PaiHo, Vietnam PaiHo, Europe PaiHo, North
America PaiHo, PT. PaiHo Indonesia
7
Dongguan Paihong

Date of establishment: October, 2005

Pilot production started: June 1993

Invested amount:RMB 315,114,575
Net Assets:RMB 392,283,837
(as of June 2014)

Main products: Touch fastener, webbing, shoelace,
Computer’s bag, cover and accessories

Sales Region: Southern China 、North East Asia 、
North America、Europe
8
Dongguan Paihong
9
Dongguan Paihong Dormitory
(Employee welfare facilities: Clinic center, Library,
Movie theater, Indoor sport equipment)
10
Wuxi PaiHo

Date of establishment: December 2000

Pilot production started: September 2002

Invested amount: RMB 384,592,275
Net Assets : RMB 847,435,083
(as of June 2014)

Main products: Touch fastener, elastic, webbing

Sales Region : Domestic China、Europe、
North America
11
WuXi PaiHo
12
Vietnam PaiHo

Date of establishment: October 1999

Pilot production started: September 2000

Starts to receive orders: July 2002

Invested amount: US$ 16,262,839
Net Assets : US$ 50,341,000 (as of June 2014)

Main products: Touch fastener, webbing, shoelace, elastic,
reflective materials

Sales Region : Vietnam 、Association of South East Asia Nations
(ASEAN) 、other Asian countries、South America、
Europe、Taiwan
13
Vietnam PaiHo
14
New Plant – PT Paiho Indonesia
15
Main products
2014
2012
Paiho devleops various
types of products to meet
all customers’ needs , and
will keeps developing more
products in the future.
2011
2010
2013
Fish bone
lace
Armour
Sparta Series knitted
Drawcord
2D logo
Micro
Speciality
Tip Advanced
hole tip
printed
Easy Tape
variable
embossed
Tiger Series 6&7
Prague
width
Tips
Crystal
Shark
shoelace shoelace
tip
Stone
(Meditarranean)
Spiralseries
Wash
Warp-Weft Light
LACOYA Easy tape Lazurite
Jacpuard (LED) Shoelace
Eco-friendly
Bamboo
tip
Webbing
Blend Thin braid
dyeing
Shoelace
Charcoal
Colour
shoelace
Bamboo Product BambooChangeable
P6S3
shoelaces
Dragonfly Gradual
Charcoal sole
Consumptioncharcoal
Series Dyeing Elastic P288 Elastic
series Reflective Product
products
(Apparel Used)Knitted
TPU logo
Laser Shoelace Gore
holey
Security
Blace Swan
(Apparel
Spandex
Film
&
and
Logo
SeriesBamboo
tape
Diaper
Used)
Braid
Elastics
WebbingDrawcord
Narrow
charcoal Injection
usage
fabric
(by
hook
Injected Consumer and wide
4 ways
products
Reflective
Spandex
Anti-Slip
and loop Hook Distribution Ribbon
Stretch continuous
Medication
Reflective
Knitted
Cobra
material
high
products And Loop Channel
Knitted
usage Shoe insole
Bar
Elastic
Shoelace
(computer Products“LACOYA”
Upper Temperatur
New Nontoxic
Sport
Shoelace
cable
tie,
dyeing
Temperature
2D, 3D
Webbing
Car
TPU Injection
outdoor sportE-LOCK
Sensitive Textile
machine)
decoration
Elastics
Trsnsfer Cuff-link
Digital
appliancesAnti-loss
Easy
tape
Molded hook
Woven
Touch
-Printed (Apparel)
shoelace
products
Upper
astener
Knit Tape
buckle
Apparel
zipper puller
(Patent)
16
1996
1995
1993
1990
1979
2005
2004
2003
1998
2009
2008
2007
2006
Paiho patent
Paiho possessed 254 different countries patents
(as at 2014.08.31)

Patent for Invention: Received 46 patents;
81 patents in pending

Patent Utility Model: Received 86 patents;
21 patents in pending

Patent for Design: Received 20 patents
Applications
Airplane
Medication
usage
Sport
Diaper
Auto
Apparel
Bags
Accessories
Shoes
Bike
Decoration
Bra Laces
Salon
Toys
DIY
Information
technology
18
Main customers
Shoes
Apparel
Brands
Skecher
Customers
隆典清祿廣碩
寶成慧春
豐泰
安踏隆典榮誠
慧春得協
興春
李寧鞋美 361度
誠春誠達
慶春
鞋美順天台灣松鄴
寶成
達聲力綺
日寶
得協 RIP聯盈
翔鑫堡
N GRIP中菲
NB
志雄
清祿/順大
豐泰 PT.DONG.JO萬邦榮迪興
ECCO
飛雁飛雁
聚陽李寧
商群
儒鴻豐合
年興吉昇
SUNDUST
沙美娜
RIP N
GRIP
一統服飾
儒鴻
如興寧波申洲
崑洲
遠紡立代鈕釦
NINGBO
廣越
三順
TAI WAH
聚陽
麗嬰房
BOWKER
旭原
愛的世界
EAGLE
安踏
YOUNGONE
台南企業
361度
UNIVERSE
19
Other applications
Medical
products
Baby
products
Sports
products
Aviation
Various daily products
 Create appliances
 Replacement of earlier
designs
Technology
products
Decoration
Transportation
Toys
DIY
20
Operating Performance
Net Sales
Gross Profit
operating income
Consolidated Net Profit- attributable
to the parent company owner
Amount
Unit: NT Thousand
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2010
2011
2012
2013
1th H of 2014
Net Sales
8,373,806
8,154,366
6,980,922
8,106,861
4,400,343
Gross Profit
2,211,532
2,109,806
1,999,711
2,495,489
1,496,499
operating income
988,982
872,551
761,035
1,117,043
771,574
Consolidated Net Profit- attributable
to the parent company owner
1,178,317
584,443
454,117
705,491
472,276
Operating Performance
EPS
Gross
profit rate
38.0%
35.4%
36.0%
Quarterly
1.0
33.4%
0.8
0.86
30.8% 0.75
0.6
32.5%
28.8% 28.7% 29.2% 28.1%
29.9% 0.65
0.54
0.4
0.50
0.37
34.0%
32.0%
0.73
30.0%
28.0%
29.2%
0.43
26.0%
0.33
0.32
24.0%
0.2
22.0%
0.0
EPS
Gross profit rate
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
0.37
0.33
0.32
0.50
0.43
0.75
0.54
0.65
0.73
0.86
28.8%
28.7%
29.2%
28.1%
30.8%
33.4%
29.9%
29.2%
32.5%
35.4%
20.0%
22
Operating Performance
Quarterly
Expense
Ratio
Operating
Income Ratio
30%
30%
25%
25%
20%
18.3% 17.6%
18.8%
18.6%
16.6%
15%
19.3%
16.5% 17.7%
15.8%
16.9%
12.2% 16.9% 12.2%
10.5%
10%
16.1%
15%
15.6%
13.4%
10.4%
11.4%
11.1%
10%
5%
0%
20%
5%
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
Expense Ratio
18.3%
17.6%
18.8%
16.6%
18.6%
16.5%
17.7%
15.8%
16.9%
16.1%
Operating Income Ratio
10.5%
11.1%
10.4%
11.4%
12.2%
16.9%
12.2%
13.4%
15.6%
19.3%
0%
23
Sales breakdown-regions
2012
Vietnam
19%
Taiwan
24%
America and
Europe
6%
2013
Paiho Shih
40%
Other
continents
11%
Vietnam
22%
Taiwan
24%
America and
Europe
5%
1th H of 2014
Paiho Shih
39%
Other
continents
10%
Vietnam
24%
America and
Europe
4%
Taiwan
25%
Paiho Shih
38%
Other
continents
9%
24
Sales breakdown-products
2012
3C Accessories
Molded Hook
11%
6%
Others
processed taken
9%
Powder Coating
7%
Elastics
7%
1th H of 2014
2013
Touch fasteners
27%
3C Accessories Touch fasteners
Molded Hook 11%
26%
Others
6%
processed taken
9%
3C AccessoriesTouch fasteners
Molded Hook
9%
Others processed 7%
25%
3C finished
goods
Molded Hook
reprocessing Touch fasteners
6%
26%
11%
Others
processed taken
9%
Powder Coating
6%
Webbings/Shoe
laces
33%
Net sales : NT$ 6,981 mn
Powder Coating
6%
Elastics
8%
Webbings/Shoe
laces
34%
Net sales : NT$ 8,107 mn
Elastics
8%
taken
9%
Webbings/Shoe
laces
34%
Powder Coating
6%
Elastics
7%
Webbings/Shoe
laces 37%
Net sales : NT$ 4,400 mn
25
New Product Introduction

Fish bone lace

One Piece Seamless Upper
/Digital Woven Upper

4-way Stretchable Elastic

Dragon Fly Webbings
26
27
Exclusive stitching –
Suede lining
DGT gradual patterns
Ventilation
28 28
One Piece Seamless Upper
/ Digital Woven Upper
One Piece Seamless Upper
/ Digital Woven Upper
4-way Stretchable Elastic –
knitted uppers
One piece Upper,
reduce stitch process
and cost
Able to combine with
3D injection mould，
High capacity & short
lead time
Reduce assembly
time and loss
High
efficiency
Lower cost
New trend of Shoe
Fashion
31
Paiho's Dragon Fly Webbings is honor to obtain Gold
Medal Award in 2014 European Outdoor Exhibition
And specified by Italian SALEWA to apply on it walking shoes
Patent No: 1386965
33 33
Competitive advantages

Strong in R&D, global market leader.
 "Spec In" by the international well known brands with
better and patented solution.
 Quality products, as evidenced in customers including
famous international brands like Nike and Adidas.
 PaiHo Group has offices around the world providing
time-to-market services to customers.
 Wide product offering provides one-stop shopping
Service.
 Transitioning from OEM to ODM to avoid competitive
pricing.
34
Future development plans

To partner with famous brands and continue to
develop new materials and designs.

Create solutions with high value added and innovative.

Group division work strategy to provide close service
to customer (China, Vietnam and Indonesia etc).

Focusing on sustainable development solution,
keep developing of eco-friendly process and facility .
35
Thanks for your attention
36

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