CHUNG-HSIN. Electric & Machinery Mfg. Corp. CHEM GROUP

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1 CHUNG-HSIN Electric & Machinery Mfg. Corp. CHEM GROUP

2 CHUNG-HSIN Electric & Machinery Mfg. Corp. CHEM has been making insight into global environmental changes and mastering the market trends for 60 years. We continue to enhance our competitiveness through strenuous effort with innovative thinking and continuous improvement. For now we have branched out 6 major business groups for international business with a mission to be a global leader in industries. 2

3 Power Business Group Gas Insulated Switchgear (GIS) is the most critical power protection system, and it is also the core business in CHEM. CHEM has been continuously developing and introducing the most advanced technology to heavy power industry for over 30 years and these efforts have built up the concrete value chain between China and Taiwan. With the development for 800kV GCB and 550kVGIS, CHEM not only stands in the leading position in Taiwan's market, but also represents as the exclusive supplier for 345kV GIS. When it comes to 161kV GIS, we earn the greatest market share with the rate of using company-owned products of over 90%, and it s 100% for electric meters and we proudly stand as the largest domestic supplier. 3

4 Power Business Group For wind power generation projects, CHEM has been in charge of power generation projects in Taiwan (the main island) and Penghu (an off-shore island) since 2001 with a total of 58 stations. All stations withhold the overall capacity of kw for generation. On the other side, the hydroelectric power generating system for reconstruction projects in Ku-Kuan and Chin-Shan with a total of 595,800kW have well-connected to the whole operating system. 4

5 Renewable Energy Business Group CHEM as Taiwan's largest power equipment supplier, believes that addressing climate change is a priority. We here at CHEM have devoted our full efforts to developing carbon-reducing and energysaving equipment at the start of new expansion and investment in renewable energy since We are aiming at providing the most instant and effective solution for emission reduction at the greatest level. ME2H hydrogen dispenser from CHEM steps in as the solution. It significantly enhances the boiler combustion efficiency, saves fuel up to 18% and meets the emission standard of environmental regulations. The performance of ME2H in auto engine carbon removal is close to perfect. Take a 10-year-old mid-sized compact car as an example, 96.9% of the carbon monoxide is reduced after treatment with ME2H. 5

6 Renewable Energy Business Group Fuel cell is a green technology using hydrogen to generate electricity efficiently. With the most advanced technology in reforming technology at CHEM, ME2Power converts methanol into hydrogen in the most efficient way, while being used to generate power at the same time. For places that require steady and highly reliable power solution, ME2Power system is by far the best choice to meet the needs with credible records of commercial deployment. When compared with the conventional solutions, such as diesel genset and lead acid battery bank, CHEM s fuel cell system operates quietly, brings virtually zero pollution and slashes carbon emissions in half. Moreover, it further proves to have a competitive edge in operating costs overall. 6

7 Renewable Energy Business Group In addition, CHEM also develops micro-grid products with integration of fuel cell deployment. We aim to provide the most complete solution for market needs. Development of renewable energy along with the micro-grid has brought major attention and discussion at the major policy-making and strategic planning in developed countries. 7

8 Renewable Energy Business Group CHEM s micro-grid system includes, 1. Household micro-grid system, which operates independently and provides a stable green power source for rural areas and off-shore islands where power grid coverage is difficult or unstable. 2. Integration of Smart Multifunctional Inverter, Power Management Systems (PMS), Intelligent Micro-grid Control System (iflex-ems) and distributed community micro grid system with Energy Storage System. All of the above are forming an adjustable virtual power plant. It saves energy and minimizes carbon emissions by peak shaving, also alleviates urban power congestion and even eases the burden from contract rate and contract capacity. 8

9 Renewable Energy Business Group Obviously, mitigation strategies of climate warming by carbon reduction and pollutant prevention have become a central issue that draws increasing attention and heated discussion. Immediate actions on emissions reduction is not simply a slogan but a universal value. From the perspective of sustainable development and green economy, CHEM is ready to dedicate its greatest efforts in both R&D capabilities and competitive advantages in product patents to ease the impact of global warming. 9

10 CNC Business Group Being focused on providing the best solution with large-scaled machining centers has always been the priority for our CNC group since its establishment in With continuing efforts and improvement in performance, we have stood out among other business competitors in the same industry. Currently, CHEM holds the complete series for machining centers in machining application with the brand name CHEM SEIKI. The highspeed Gantry Type 5-Axis Machining Center and Moving Column Machining Center among many others, have successfully entered the high-value global market in the aviation industry, the semi-conductor industry and the energy industry. We have also further developed the mid-sized high speed Gantry type 5-Axis Machining Center with leading European companies and aim to advance the manufacturing capability with full package to meet the needs for high-level machining center from global market. 10

11 CNC Business Group CHEM and Nomura Japan, which is the most reputable manufacturer in boring and milling machinery with hundreds of years of history, invested and set up the joint venture company, Nomura Chung- Hsin Machinery Corporation to the demands of large-scaled horizontal boring and milling machining center. Our core technology for the horizontal boring and milling machining center with the spindle diameter of 135 mm has officially been placed in mass production line. We are now initializing the development for even more large-scaled floor-typed boring and milling machining centers to further complete the integrity of the product line. Emerging markets such as China, Taiwan and ASEAN members are our current goals in the global metal processing industry. 11

12 CNC Business Group On the other side, CHEM has successfully moved forward to highprecision machining center manufacturing, especially for needs from the aviation and semi-conductor industries. As CHEM cooperates with U.S. Technical, which specializes in aviation products, services, engineering & certification in the U.S., we have expanded the machining expertise in engine combustor casing, structure parts, brad and aviation components. CHEM enhances the whole capacity proactively for Tier 3 components and spreads out the business for Tier 2 components. We also integrate the capacity from the manufacturing base in Haimen, China for vacuum chamber of semi-conductor processing purposes to advance further in computerized machining industry. 12

13 System Integration Group CHEM leads the field in mechanical and electrical integration domestically with self-owned power generator plant and airconditioning equipments plant. With outstanding performance of turnkey operation and maintenance, we have been contracted to Taiwan's military force for powertrain structure in "leopard armored vehicle" since The first order included the total of 326 vehicles, embedded with the 9 sub-systems and components. The 9 subsystems integrates Powertrain system, Drive-line system, Fuel system, Hydraulic power opening system, Suspension system, Brake system, Central tire inflation system, Steering system and Hydraulic power lift system and different components. The most important component in the armored vehicle is the powertrain system, which is exclusively produced by CHEM. With the control for precise assembling, adjustment and testing procedures, 229 units have been completed with the availability rate of 99%. 13

14 DoDoHome Business Group CHEM has also invested in parking engineering and management services under the brand name DoDoHome. DoDoHome is currently the largest parking management service provider in Taiwan with a high customer retention rate. We take the lead in the market share and work with other businesses as cross-promoters. This includes banks and credit card companies to offer various parking services for catering to wide-ranging needs. Our smart parking management system includes not only License Plate Recognition but also Parking Guidance System to facilitate the increased flexibility. We are now developing the mobile apps that incorporate Mobile Payment System via the 3rd party payment in order to move ahead and create high added-value to the Post- Internet Finance Era in the integrated business of O2O (Online to Offline) and smart parking solution. 14

15 China Business Group In order to expand business in the Chinese and global markets, CHEM has established Chung-Hsin Power Systems Inc. in China and also set up Chung-Hsin L-S Precision Machinery Co., Ltd. under the joint venture with Nantong L-S Metal Forming Co., Ltd. This stands as the GIS/GCB components production center, and provides a variety of GIS, circuit breakers, and automated power distribution controlling products. CHEM provides a complete OEM/ODM solution for GIS/GCB in global markets, also stands as a world-class electrical components and equipment supplier in heavy-power industries. 15

16 China Business Group In 2011, CHEM expanded the investment plan with ecological orientation and agricultural technology in the northwestern section of Chongming island, Shanghai. The farm, Jiangsu-Fumei Farm, covers the area of 1700 acres and contributes to quality agricultural projects. The core business focuses on aromatic plant farming and essential oil extraction. We seek to bring our philosophy in "ecofriendly, producing-for-quality, and life-made-easy" to the product chain. We also look forward to extending further in aromatherapy education, healthy-lifestyle village and essential oil trading business. With our prospects for agricultural tourism, we are also developing the fragrance-themed greenhouses, renting/leasingbased farms, camping events and other leisure projects for farm development. 16

17 Future Prospects CHEM has well-established the business platform for heavy power equipment GIS/GCB power engineering, high-value machining center, precise machining, renewable energy equipment in energy saving of emission reduction technology, smart parking management, and many others. CHEM aims at diversified development and create endless possibilities for ground-breaking business and future corporate structures scale with our great team effort and innovative thinking to meet standards surpassing in excellence. 17

18 Power You Up 18