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—Profile of HOTAI MOTOR CO., LTD.— —Profile of HOTAI MOTOR CO., LTD.— 1 Excelling Today’s Dream Hotai Motor is the distributor of the well-known auto brands such as TOYOTA, LEXUS, HINO, and Toyota industrial equipment. Hotai Motor is always on the go to pursue the ideal. By putting the new vision, “think outside the box and challenge your dreams”, as its goal, Hotai Motor is realizing its dreams today and excelling to overcome all obstacles with courage, create irreplaceable value, and challenge the extreme, in order to surpass over the dreams! Hotai Motor Basic Data Establishing date: September 1947 Headquarters location: 8th to 14th Floors, 121 Songjiang Road, Taipei City. Founder: Mr. Huang Lieh-Ho Honorable Group Chairman: Mr. Su Yann-Huei Chairman: Mr. Huang Nan-Kuang Vice Chairman: Mr. Kono Hiroshi President: Mr. Justin Su Capital amount: NT$5.462 billion Sales turnover: NT$103.9 billion (2014) Employees: 534 people (Mar. 2015) Product brands: TOYOTA, LEXUS, HINO Trucks, TOYOTA Industrial Equipment NT$ 16.84 17 NT$100mn 16 NT$100mn Market Share EPS after Tax Profit after Tax 15 Operating Revenues 14.01 1,200 40% 90 38% 13.76 14 1,100 34% 80 13 33.6% 32.9% 35% 12.06 1,000 32% 12 32% 31% 29% 29% 70 900 30% 11 27% 10 800 60 8.89 8.36 9 700 50 8 600 20% 6.44 6.23 6.23 7 40 6 500 6 4.6 400 30 5 4 300 10% 20 3 200 2 10 100 1 763 873 659 710 530 724 743 860 897 944 1,039 34 45 35 34 25 32 48 66 75 77 92 0 0% 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total 484K 515K 366K 327K 229K 294K 328K 378K 366K 378K 424K Market vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles 1 Excelling today’s dream - Core Management Team Founder Huang Lieh-Ho I For a Beautiful Life and a Peaceful Society Huang was born in Lugang Township, Zhanghua, on 10 January 1912. His father died when he was small, and he was raised by his widowed mother. Along the way, he studied and worked. At 27, he and other five partners with similar ideals and beliefs went to Kobe in Japan to start up their business, Hotai Trading Ltd., to trade cotton and sundry items. A few years later, eyeing at the development potential of the transportation industry in Taiwan, Huang went to Japan again to discuss business with local industries. In 1949, Hotai signed the Taiwan sole agent agreement with Yokohama Tire and TOYOTA Motors (the first overseas distributor of TOYOTA Motors). Further in 1952, Hotai became the first overseas distributor of Hino Motors, Ltd. Although Hotai became Taiwan’s sole agent for TOYOTA Motors and HINO Motors, there were ups and downs during the operation. Although there were frequent setbacks, Huang never surrendered. From the first-time application for establishing an auto-making factory in 1963 to the establishment of Kuozui Motors, it took Huang twenty-three years to make his dream come true! Finally in September 1988, Zace, the first commercial vehicle built by Kuozui Motors, was launched; and a new TOYOTA business began. From then on, the leadership of Hotai Motor in Taiwan’s auto-making industry also took form. By aiming to strengthen Taiwan’s economy with industry, Huang established Hotai Chemical Engineering (forerunner of Weichuan Corporation) in 1953 to produce MSG and soy sauce to enrich the everyday lives of people. In believing that the dairy industry could improve the living standard and nutrition standard of citizens and thereby promote rural economic development and compensate food inadequacy, Huang established the dairy product department in the beginning of the 1960s out of his insistence on establishing a “public company”. This started the diversification of Wei-Chuan into an integrated food manufacturing company. Huang was also called the “Father of the dairy industry” in Taiwan. With the food business diversification planning of Huang, Wei-Chuan became the largest food processing and manufacturing company in Taiwan in the 1960s and 1970s. With his business insight and intelligence, Huang returned to Taiwan to re-start his business after the end of WWII. Eyeing the petroleum need in Taiwan in the postwar reconstruction period, Huang quickly obtained the distribution contract from Exxon Mobil Corporation to ship petroleum from Shanghai and sell it in Taiwan. Also, eyeing the cane sugar need of the China market, Huang shipped sugar from Taiwan to China and sold it in China. After shipping sugar to China, Huang shipped petroleum from Shanghai to Taiwan with the same vessel to double the profit from both sides. Later on, this practice built a good financial foundation for his business. After gaining success in business, Huang spared no pain to participate in charity. In 1974, he established the Chun Ching Social Welfare Foundation. In 1979, he established the Wei-Chuan Cultural-Educational Foundation. In 1985, he established the Chun Ching Pediatric Nutrition Research Foundation. In addition to making substantial contributions to society in terms of transportation safety, social welfare, home economics and pediatric nutrition, Huang further established the Huang Lieh-Ho Social Welfare Foundation after retirement to focus on social charity and promote his belief in “a beautiful life and a happy family” for “a peaceful society”. In addition to donating money for establishing the foundation, Huang discussed various plans and worked with relevant employees at planned intervals. His spirit of total devotion for Taiwan and feedback for society were well praised. 2 Excelling today’s dream - Core Management Team Group Chairman Su Yann-Huei I Better than the Best. To a person who has fallen in love with cars since he was small, it is the biggest happiness in life for him to work with cars. It is even happier for him to work with a group of people having the same enthusiasm to make continuous breakthrough and overcome the ups and downs of the business with never-ending passion, in order to lay the foundation for Hotai Motor to be the leader of Taiwan’s automobile industry. Employees of Hotai Motor are always self-demanding for two goals allowing them to get ready for any challenges at any time. First is enthusiasm and integrity. Enthusiasm refers to the passion for work, that is, the spirit of faith to work, love for work, and loyalty to work. Integrity is the basic principle for one to behave oneself in relation to others. As upholding integrity not only the general rule for people to conduct themselves in society, participate in politics and do business, it is also the unchanged motto of Hotai Motor over the past sixty years or so. Next is to “prepare for the worst in the best moment.” This way, we can face the unpredictable future. More than thirty years ago, as importing cars from Japan was banned by the government, Hotai Motor could only provide after-sales service, and it was a big impact to operations. However, Hotai Motor kept running the business as usual without changing its treatment for employees to overcome this period of hard time. This is because we are ready for anything at any time. Even if there are fruitful achievements in front of us, we never give up on any possibility to make improvement. No matter what we are doing, we must ask ourselves three questions, “Have we worked with our full capacity? Are we satisfied with this? Is there any better solution?” We always believe “Better than the Best”, in which, with harder work, we can conqer every peak in front of us. At present, the global auto market is facing a significant reform. From the development of automotive electronics and environmental cars, and even to the changes in the sales system, this sustainability between the economics and the earth has become a global trend. With this opportunity, the management and everyone at Hotai must stay alert to capture the latest movements and get ready for the changes, in order to grasp the opportunities in the changing market and to continue to lead Hotai Motor to a new peak in business. 3 Excelling today’s dream - Core Management Team Chairman Huang Nan-Kuang I Employee Satisfaction, Customer Satisfaction As the leading brand of Taiwan’s automobile market, we understand that there are many competitors waiting for opportunities to surpass us. Facing the challenge, our employees should stay alert, insist on providing the best products and services to the customers. Moreover, we execute various customer satisfaction campaigns to fulfill the mission of Hotai Motor. Because of our dedication and hard work, LEXUS and TOYOTA are favored by numerous consumers in both luxury vehicles and domestically made vehicles markets. And the outstanding sales achievements of difficulty and adversity is praiseworthy. As a benchmark company in Taiwan’s car market, we always follow our “heart” and think in the position of customers and employees, in order to obtain the highest satisfaction upon mutual trust and reciprocity. In the future, whether it is the cultivation of the niche affiliate business, assurance of profit rate, increase of market share, continuous launch of various innovative services and continuous cultivation of the Chinese market, we should pursue our missions more aggressively. Also, we devote our greatest effort to earn employee satisfaction and bring accomplishments beyond imagination to customers and shareholders, and dealers that have been working with us over time. President Justin Su I Think Outside the Box and Challenge Your Dreams We believe that the road ahead is always filled with tests and challenges.
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