Success Prime Corporation Stock Code：2496 2020.12.23

CONTENT

01 Overview of Success Prime Corporation and Subsidiaries 02 Operating Performance

03 【Chen-Li Education】Operating Mode and Future Outlook

04 【Chen-Li Elm】Operating Mode and Future Outlook

3

Comp

any P

rofil

e

Company Profile

Founding Time Success Prime Corporation (2496) founded in 1991

Chairman Min-Chun Chen

CEO Shu-Ling Tseng

Employees 235

Capital NT$ 191,854 thousands

Major Service Item

Education Business Unit：85% (2020/1-11M)

Optical Fiber Business Unit：15% (2020/1-11M)

Note：The Board of Directors Approved the disposition of Prime Optical Fiber Corporation in July

Organizational Structure

60% Chen-Li Zhi-Yi Education % of Rev.：0.3%

60% Li-Ren Education % of Rev.： 1%

4

100% Chen-Li Education % of Rev.：76%

100% Here % of Rev.：7%

100% Chen Li Elm % of Rev.：1%

100% Chen-Li (Xiamen)

5

Resource Integration

Complete K-12 vertical integration.

Cooperate with the pioneer of area.

Expand the market share of education industry.

Professional Steady Teaching Team

Business Strategy of Education Group

Busin

ess S

trateg

y of E

duca

tion G

roup

6

Shareholding of Directors-2020

3,433 3,433 3,438 3,460 3,460 3,460

3,860

4,163 4,183

4,239 4,276

3,200

3,400

3,600

3,800

4,000

4,200

4,400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Unit：thousand shares

7

Oper

ation

Perfo

rman

ce

Operating Performance

8

Cond

ense

d Inc

ome S

tatem

ent

Condensed Income Statement

3Q20 3Q19 YOY 2020/1-3Q 2019/1-3Q

Operating Revenue 189,907 227,478 -16.52% 600,711 655,857

Operating Costs 91,509 120,262 -23.91% 317,698 362,273

Gross profit 98,398 107,216 -8.22% 283,013 293,584

Gross Profit Margin 51.81% 47.13% － 47.11% 44.76%

Operating Expenses 71,647 78,277 -8.47% 230,552 230,279

Operating Profit 26,751 28,939 -7.56% 52,461 63,305

Operating Profit Margin

14.09% 12.72% － 8.73% 9.65%

Non-operating Income and Expenses

9,165 441 10.77% 11,721 3,958

Net Income after Tax 31,830 27,076 17.56% 54,374 59,928

EPS(NTD) 1.65 1.40 17.86% 2.84 3.14

Unit: NT$ thousands

9

Profi

tabilit

y

Profitability

44% 43%

47%45% 44% 45%

52%

11%

5%

13%10% 8%

4%

14%

10% 5%12%

8% 7%

4%

17%

0%

10%

20%

30%

40%

50%

60%

2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3

毛利率 營業淨利率 稅後淨利率

10

Educ

ation

Reve

nue

Education Revenue

146,138 166,656 169,242 164,508 154,135 157,812

181,516

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3

Unit: NT$ thousands

11

Divid

end P

olicy

Dividend Policy Unit：NTD；%

2017 2018 2019

EPS 9.37 7.18 4.41

Non-reimbursable rights issue retroactively

adjusted EPS 8.92 7.18 4.01

Stock Dividend 0.5 - 1.0

Cash Dividend 6.5 4.0 1.5

Distribution Yield (NTD) 7.0 4.0 2.5

Dividend Payout Ratio (%)

75% 56% 57%

ROE 21.65% 16.12% 9.75%

ROA 15.30% 9.92% 5.86%

12

Oper

ation

Perfo

rman

ce

Presenter：Chen Li Education Group CEO Xiao-Cheng Qiu

Chen Li Education Co., Ltd.

13 CEO：Xiao-Cheng Qiu

Experience：

2002─2005 Director of Tainan Branch

2005─2006 Director of Zhongli Branch

2007─2010 Director of Taipei Headquarters

2010─NOW CEO of Chen Li Education Group

14

Busin

ess L

ocati

ons

Business Locations

North Students：8,163 % of Rev.： 75%

Centre Students：2,261 % of Rev.： 16%

Southern Students：1,415 % of Rev.： 9%

Administration office

Taipei Headquarters

XindianBranch

Shilin Branch

Neihu Branch

Banqiao

Branch Xinzhuang

Branch

Hsinchu Branch

Taichung

Branch

Fengyuan

Branch

Chiayi Branch

Tainan Branch

11 Locations in Taiwan K12 Exam – oriented

15

Business Locations

Elementary School

Taipei, Banqiao,

Taichung, Tainan

Middle School

Taipei, Shilin, Neihu, Banqiao,

Xindian, Xinzhuang, Hsinchu,

Taichung, Tainan

High School

Taipei, Shilin, Neihu, Banqiao,

Xindian, Hsinchu, Xinzhuang,

Fengyuan, Taichung,

Chiayi, Tainan

4Branchs 9Branchs 11Branchs

Complete K12 system

16

Oper

ating

Mod

e

Operating Mode

Operating System

17

Planning,

Course,

Teacher

Developing,

Charges

Admission

Marketing

Sign

up,

Choose

Course

Start

the

Class

Coaching and

relationship

maintenance,

Brand build

Chen-Li Brand & Business Development Strategy

HR & Organizational Effectiveness Management

Teachers Development

Development Integration Planning

Course Development and Market Development

Profit

Operating Center

Operating Activity

18 18

2020 High School Promotional Mode Third Grade

Math, English, Mandarin, Science, Physical,

Chemistry , Society

Professional Certification, Interview

Second Grade

Math, English, Mandarin,

Physical, Chemistry

Professional Certification

First Grade

Math, English,

Mandarin, Science

Diversification

Full Subjects

% of Rev.：32.09%

% of Rev.：28.32%

% of Rev. : 23.85%

Plural Subjects

Single Subject

All-round Development Increase Revenue！

19 19

國八

應試、 認證、 素養

小學&國七應試、 認證、 素養、 競賽

國九應試

2020 Elementary & Middle School Promotional Mode

% of Rev.：5.99%

% of Rev.： 3.91%

% of Rev.： 4.52%

Comprehensive and diversified development Market scale is wide

The higher grade students are, the more requirements of Exam - oriented need.

Third Grade Exam - oriented

Second Grade Exam - oriented 、Professional Certification

Elementary & First Grade Exam – oriented, Professional

Certification, competition

01

Strengths We Get!

Exam – oriented → Focus on students’ feedback

a、Care about the learning result

b、Outstanding exam grades

c、Great brand image

20

21

22

23

24

25

26

01

Addition to the Grades List， What Strengths We Have?

27

Complete, Full Subjects, K12

a、High school -- The first and second year of university-

- Middle school -- Elementary school

b、Math -- English -- Full subjects -- Special lesson

c、Exam – oriented -- Professional ability-

-Professional certification -- Learning resumes

02 28

Direct manage 11 branch in Taiwan

a、Teaching team, Textbook :

Coaching/Planning/3 Books and 5 Types

b、Administration office management：

System unification/Service/Learning curve

c、Employee of marketing and class service :

Young team/Shareholder/ Full-time

Addition to the Grades List， What Strengths We Have?

01

Minimize class size (Version/Process/Level) Experience of 30 years (Strong team of professional teachers)

29

Under Outline 108 Course, The advantages We own

02 Lesson design/ Teaching material & test paper /Equipment/ Professional certification /1.0→3.0 Classroom

30

Under Outline 108 Course, The Advantages We Own

Classroom 1.0

(Big)

Classroom 2.0

(Middle)

Classroom 3.0

(multipurpose)

03

Integrated online and offline services Professional teaching team Special class with three teachers system 31

Under Outline 108 Course, The Advantages We Own

01 Build up a department for online shop User guideline/Teaching material/ Integration of online and offline service

32

Forecast 3-5 Years Goal of Chen Li Education Group

02 Special class with three teachers system

Integration and allocation of teaching resource

33

Forecast 3-5 Years Goal of Chen Li Education Group

34

35

03 The growth curve of elementary and middle school should increase

a. Diversified course planning and design

b. Professional teaching team, Improved the teaching material

c. Comprehensive resource and system

36

Forecast 3-5 Years Goal of Chen Li Education Group

Chen Li Elm

37

38

Teaching Material

39

Business Model

• Cooperate with the pioneers , to achieve Profits maximization.

Ａ：Introduction of formal courses in private schools（Math , Science）

• Cooperate with the pioneer of area , to increase brand awareness, retention rate and

price.

Ｂ：Cooperated with famous School（Teachers＋Teaching material）

•Based on benchmark school ,our teaching will be satisfied with parents.

•Authorization method : cooperate first , and then pay. More friendly to cooperators.

Ｃ：Provided supplementary education Know how to cooperator（Teachers training + Course）

40

2020 Cooperative partner

WAGOR INTERNATIONAL

SCHOOL

Hua Wen Micro School

Pu Tai Elementary

School

Einstein Academy

Elite private schools !!

41

2020合作對象

Renren Giraffe

42

Chen Li Elm Revenue

177 330 426

1,882 976 790

1,024

1,196

353 315 107

154

2019 Q4 2020 Q1 2020 Q2 2020 Q3

Private Schools Authorization Schools Other

Unit: NT$ thousands

43

Future Market Taipei

Hsinchu

Taichung

Changhua

Nantou

Chiayi

Tainan

Kaohsiung

2021 Cooperate with Private School＆

Authorization School

All over Taiwan

44

2021 Main Strategy

In-depth development of indicative private

schools all over Taiwan

Expand Authorized school actively

Increase benchmark school’s student

retention rate

45

Three year Authorized School Promoting Plan

Chen-Li is everywhere 100 Authorized Schools

47 THANK YOU

FOR LISTENING