ACE — Interim / Quarterly Report 2020

Oct 14, 2020

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Key 1H20 Performance Metrics

What Factors Affected Profitability?

• ü 1H20 sales grew 6% YoY to NT$1,068m.

• ü Revenue from acetate tows rose 13% YoY, while acetate flake revenue fell by 11% YoY.

• ü Key Performance Highlights were:

• Gross margin was 34.2% versus 28.7% in 1H19.

• Operating margin was 20.1% vs 15.9% in 1H19.

• Net Income adjusting out the MTM effect of Acetek’s CB was NT$204m, up 35% YoY.[1]

• EPS adjusted for CB MTM effect was NT$4.06.[1]

• ü Demand remains robust for acetate tows while sales of acetate flakes were negatively impacted by COVID-19.

• ü Within acetate flakes, plastic grade sales were roughly 40% to 50% of 2019 levels while fiber grade flake sales grew strongly off a low base.

• ü Overall, the product mix changes benefited profitability, as tows are most profitable, followed by plastic flakes, then fiber flakes.

• ü RM input prices for wood pulp and acetic anhydride were lower than the 1H19 average.

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3Q20 cumulative sales were NT$621m, up 11% YoY. As the peak season for plastic grade acetate flakes is from September to December and demand for tows is robust, we expect our growth momentum to continue. D %34 $#",$ 6,4 ?= G3G; Q, #++,+ : / %3HH,$3K#’,%#%,%34 ’#8#’&%N&H18&"J #93OH%&H6%3#H C= &H’,#$,&H’#8#’&%N; DO%&"&X#%&3H’3H%&HO,+%30, #03P, ?@= ; 1’,%#%,%34$,""&H68&’,$4,, $3K%&H: F>D 0#12 #H+#, ,S8,’%,+ %3%,H+6#+O#""NO84#+$&H>F>D; 34 3"$(5#6 1[!"] 78#.%4#9#%44(:4"#; <$)<.. 6%<9#%.. =6<"#9(> %"#$%$#$() =6(;:"$ ?6%;#95@:= $( A, 7#>>#"$(6(6;#69 9C<==#;(4 (6 %>$#6D%4:%6@E70F0EG ."#/, $#",$6,4 :@= G3G&HDJ#$# >/ 9,%&’%3HH,3+, K3K&0,6#+, K"#/,$4#$ $L&88,+0,%4,,H M#N %31O6O$%J#H+$L&89,H%$3K8"#$%&’6#+, K"#/,$K3,N,4,# K#9,$ 0,6#H %3,’3P,; Q, H34 L#P, 3+, P&$&0&"&%N%L3O6L-,’,90, K3,N,4,# RO$, 8"#$%&’6#+, K"#/,$ #H+ ,S8,’% %L#%>F>D ,P,HO,$ K3%L&$ 345672 83+O’%4&""0, E@RCD= 3K8,R57TU- :? ",P,"$; Q, #++,+ @/ %3HH,$3K#’,%#%,K"#/, ’#8#’&%N&HVOH,WVO"N #93OH%&H6%3# >@= &H’,#$,&HK"#/,’#8#’&%N; 2L&$’#8#’&%N4&""0,6&H%3#98 O8&HBI >DJ 3H’, 63P,H9,H% #883P#"$#, ,’,&P,+; Q, ,S8,’% 3O>F>D83+O’%9&S%30, K#P3#0",J4&%LI #H+BI 83+O’%9&S !"#$%&’()+( &983P&H63P, / K&0,6#+, K"#/,3+, &H1O6O$%J,’3P,N &H8"#$%&’ ,( 6#+, K"#/, $L&89,H%$K3,N,4,# #H+ ’3H%&HO,+30O$%%34 +,9#H+ ; YM 8&’&H6$L3O"+’3H%&HO,%30, -)(!"&./ K#P3#0",#$ 433+ 8O"8’3$%$4,, "3’/,+ &H,#"N&H%L,N,# #H+ #’,%&’#HLN+&+,8&’&H6L#$ $3K%,H,+ K3""34&H6# %,983#*NO8%&’/&H>I >D; ’

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		Jinan Acetate Chemical
		Co., Ltd. (Cayman)
		Listed Entity
		My Parents Living 100%
		Technology Limited
Acetek Chemical Co., 80%		(Hong Kong) Hong Kong Holding Company Jinan Acetate Chemical 100%	Acetek Material Co., Ltd. 80%
Ltd. (Hong Kong)		Co., Ltd. (China)	(China)
Investment Holding		Acetate Tow	Acetate Flake
Company for ELEUNG 25%		Manufacturer	Manufacturer
ELEUNG Limited
(Hong Kong)
Parent Company of	Taly
Plastic Extrusion

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Macrifer Wang
Trading S.A. Family
Affiliate Company
Chairman Wang and
of GlobalFilters SAF
family
and TH
Jinan Acetate
25.4% Chemical (Cayman) 40%
Listed Entity
Yankuang Lunan Jinan Acetate Thy Glory
Chemical Chemical (Cayman) Limited
Parent Company of
Acetic Anhydride
Listed Entity Acetate Granules
Manufacturer
Factory
80%
Acetek Material
12%
8% (China)
Acetate Flake
Manufacturer
----- End of picture text -----

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Jinan Acetate Ken Chen Chemical Owner of Thy Listed Entity Glory Limited 20% 80% JINLIANG Acetek Chemical LA/ES Acetate (Hong Kong) Investment Acetate Plates Acetate Plates Holding Company Manufacturer Manufacturer for ELEUNG 25% ELEUNG Limited 20% (Hong Kong) 55% Parent Company of Acetate Plates Factory 100% TALY Plastic Extrusion Acetate Plates Manufacturer (%

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Developing Eco-Friendly Products

• Biodegradable products

• Recyclable products

Improving Waste Management

• Enhancing our sewage treatment and water recycling processes.

Increasing Reuse of Manufacturing Inputs

• Improving the efficiency of our acetone and acetic acid regeneration processes.

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