APEX — Investor Presentation 2021

Oct 19, 2021

夆典科技開發股份有限公司 APEX SCIENCE & ENGINEERING CORP.

Investor Conference

OCT 20, 2021

Disclaimer

This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements.

The forward-looking statements in this presentation include, but are not limited to, growth rates for various markets estimated by third party sources, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are no guarantee of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forwardlooking statements to reflect subsequent events or circumstances, except as required by law.

This presentation and the information contained herein are the property of Apex Science & Engineering Corp.

Agenda

Part I :Corporate Profile

Part II :Industry Overview

Part III:Financial Summary

Part IV:Operation Status and Prospect

PART I : Corporate Profile

Establishment:Year 1976

Listed at Taiwan Stock Market:Year 1995(Stock Code:3052)

Paid-In Capital :NT\$2,287,135,540.

Business:(1)Construction

• (2)Engineering
• (3)Electronic components marketing, optoelectronic products′ manufacturing & marketing

Corp. Website:http://www.apexgrp.com.tw

◤ Current status and development of industry

In recent years, the inflation and the cost of raw materials have been soared, but the interest has been too low. Also the land costs is more expensive, according to those reason the housing price is increased a lot.

A few years ago, the government started the policy implementation, so that the overall housing market has been repaired, but in this two years the policy tendency seems o be more relaxed, that may cause the public focus more on the real estate.

In the past, the construction companies are focus on Taipei city, but in view of the land cost are more and more difficult to obtain, the companies are now turning to New Taipei City,Taoyuan, Hsinchu, Taichung and Kaohsiung City. In order to increase the source of land, the current solution is traditional land purchase, also the joint construction started get into the self-operate development cases.

◤ Various development trends and competition situations of products

Currently, buyers have for attention on the building planning and living quality, so how to make full use of limited space to plan and meet customer's needs is an important part of the industrial development.

Every construction case for the company are launched after careful planning. The real estate industry has a strong regional character, so its industrial competition situation is different from the general industry has obvious competition situation.

◤ The connection between Upstream, Midstream and Downstream Industry.

The main raw materials in the upstream of the real estate market are land and building materials, The source of land supply is the urban renewal development, but it's except from the private land sale and co-construction. For the building material, all of the material that we necessary in the building are included, such as the sandstone, steel, bath accessories and the building stone. The downstream is in charge of the sales related to the construction project.

◤ Current status and development of industry

One of the basic industries in the engineering industry, which includes Mechatronics, fire system and air conditioning. Nowadays, Taiwan has been developed a lot and the engineering industry is also processing as well. In this industry. Every year, the government and the public organizations will have the large public works and the expansion of the plant, the purpose is to reach the Economic Policies of the Principle of Livelihood and improve the economic, that's why there are so many bids has been released in every year. In addition, the high-tech plants are upgrading the processing with the lower cost and the factory expansion.

◤ Various development trends and competition situations of products

The Mechatronics service has equipped with customization and local, Apex has been operating in this field for a long time,has a good reputation,Coupled with the existing strong mechanical and electrical professional background and then combined with the subsidiary Changji Class A to build the strong strengths, in order to reduce interfaces, reduce costs and improve efficiency for the largescale package project.

◤ The connection between Upstream, Midstream and Downstream Industry.

Engineering services mainly provide customer-specific integrated services through cross-disciplinary integration. For system integration companies, upstream includes materials (manufacturers) and equipment (manufacturers); downstream includes vendors in their respective fields.

◤ Current status and development of industry

LCM is mainly used in the liquid crystal display industry. Liquid crystal display technology can be divided into passive thin film transistor displays (such as TN-LCD, STN-LCD) and active thin film transistor displays (such as TFT-LCD) In the past, due to the low power consumption, low price of TN/STN LCD, the LCD market is dominated by TN/STN, but with the continuous innovation of TFT technology, it has gradually replaced some TN/STN markets. . LCM applications include consumer digital electronics, industrial instrument panels, mobile phones, digital cameras, solar power equipment, portable navigation devices, global positioning systems, automotive displays (car audio and video entertainment, car dashboards, automotive applications). Applications such as navigation, front-seat head-up display, digital TV, etc., and medical measuring instruments are booming, driving sales of related LCM products.

◤ Various development trends and competition situations of products

Taiwan has a complete industrial chain and has established a better advantage in the field of modules. In near future, under the R&D design and technology upgrade, Taiwan will be featured on optoelectronics industry.

◤ The connection between Upstream, Midstream and Downstream Industry.

APEX optoelectronics offer service as, the upstream includes glass substrates, passive components, backlight modules, polarizing films, etc.; downstream includes electronic components agents, electronic professional foundries (EMS), etc., product applications include instrument products, consumer products, information products, film and television products.

Part II:Industry Overview – Industrial Park Development

◤ Current status and development of industry

Under the influence of the CHINA-US trade war, in recent years, Taiwanese businessmen have returned and actively set up factories to invest in development, and there is a strong demand for land in industrial parks and industrial parks. However, the complexity of land acquisition, park formulation procedures, and environmental impact assessment procedures makes the development of the overall industrial park difficult. In addition, various industries in Taiwan are currently under pressure for transformation and upgrading. Therefore, in addition to mobilizing land and meeting land demand, innovative park designs should be proposed to meet the needs of the next generation of industrial development.

Part II:Industry Overview – Industrial Park Development

◤ Various development trends and competition situations of products

In recent years, the demand for industrial land has been strong. However, development services have increasingly emphasized innovation and integration capabilities due to the difficulty of development. How to innovate to increase land value and accelerate cross-border integration to create brand strength will be the key to winning the competition.

◤ The connection between Upstream, Midstream and Downstream Industry.

Industrial park development services are mainly integrated services that provide clients with various park development tasks through cross-field integration. As far as developers are concerned, the upstream is government agencies; the downstream includes cooperative manufacturers in various exclusive fields.

Part II:Industry Overview – Industrial Park Development

Part III: Financial Summary

◤ Recent 3 Years Important Financial Information(Consolidated)

Amount Unit:NT\$1,000

Item / Year	2018	2019	2020	2021Q1~Q2
Operating Revenue	1,070,737	5,623,832	5,217,591	2,093,514
Gross Profit (Loss)	(65,425)	390,550	485,403	149,241
Operating Income (Loss)	(204,369)	239,566	286,326	78,096
Net Income (Loss)	(135,144)	177,286	322,455	73,059
EPS (NTD)	(0.68)	0.87	1.59	0.36
Total Assets	10,690,140	8,144,203	7,556,282	9,306,254
Total Liabilities	7,860,579	5,161,290	4,415,190	6,096,575
Total Equity	2,829,561	2,982,913	3,141,092	3,209,679
Paid-In Capital	2,330,045	2,287,135	2,287,135	2,287,135

Part III: Financial Summary

◤ Dividend Information

Year	EPS (NTD)	Cash Dividend (Yuan/Share)	Stock Dividend (Yuan/Share)
2020	1.59	0.80	ー
2019	0.87	0.50	ー
2018	-0.68	ー	ー
2017	1.00	0.70	ー
2016	0.22	0.30	ー

Part III:Operation Status and Prospect - Construction

◤ Regional Distribution of Main Products

Apex Constructing service focuses on domestic market.

◤ Demand & Supply in Future Market and Growth

Acquiring land for constructions is more difficult nowadays. Previously, the construction industry usually procures lands or cooperates with landlords to kick start new projects. In the future, it is inevitable to acquire lands through other means such as, Surface Rights, Land Trust, Union Cooperation, and City Regeneration, etc.

City Regeneration and self-operate development are seen to have the most potential. Although Wen-Lin-Yuan matter leads the development to a low point, city regeneration is still the mainstream in Taipei area. Additionally, as buyers tend to pay more attention on living environment nowadays, location, leisure activities, and interior space design are their major concern when choosing real estate. As a result, potential of development, transportation, and value addition are primary concern when Apex Corp making decision to procure real estates. With clear market positioning and good construction quality, it is expected that sales revenue will highly growth.

Part III:Operation Status and Prospect - Construction

◤ Finished Project

Project Name	Location	Product	Unsold Value (NT\$mn)
Universal Hall	Taipei City Zhongzheng Dist.	Residential	200

Note:The construction project" Universal Hall " has been sold out in August 2021.

Part III:Operation Status and Prospect - Engineering

◤ Regional Distribution of Main Products

Apex Engineering service focuses on domestic market .

◤ Demand & Supply in Future Market and Growth

• 1)In order to boost domestic economic activities, government policies include both constructing infrastructures and boosting private companies' investment. Hence, there is potential for marketing demand of domestic engineering industry.
• 2)Reasonable procurement policy for public infrastructures makes middle-scale of engineering companies with capability of integration dominate competitors . In terms of long-term development trend, domestic competitors' growth in capital, engineers, and business scopes provide Apex Corp. a better opportunity to expand potential market.

Part III:Operation Status and Prospect - Engineering

Recognizable Income From Unfinished Construction Contracts 2021/06/30

Amount Unit:NT\$1,000

Part III:Operation Status and Prospect – Opto Electronics

◤ Regional Distribution of Main Products

50-50% of domestic market & international market .

◤ Demand & Supply in Future Market and Growth

• 1)In terms of LED industry, as global warming becomes worse, incandescent light bulb has been banned by governments almost all over the world since 2012. People believe LED will be the mainstream in lighting market. Too many competitors in Taiwan makes domestic market a Perfect Competition market. Considering relatively high unit price and lowered demand, focusing on international market is our major target in the future.
• 2)In terms of LCM industry, with the increased demand of small to middle size display panels, it is expected to have a stable growth in the marketing of commercial electronics such as, mobile phones and cameras.

Part III:Operation Status and Prospect – Opto Electronics

Amount of orders received but not shipped 2021/06/30

Amount Unit:NT\$1,000

Part III:Operation Status and Prospect – Industrial Park Development

◤ Regional Distribution of Main Products

Apex Industrial Park Development service focuses on domestic market .

◤ Demand & Supply in Future Market and Growth

In recent years, Taiwanese businessmen have returned and actively set up factories to invest in development, and the government continues to promote industrial transformation and upgrading. The continuous development of new parks by counties and cities, as well as the expansion and renewal of existing parks, still provide the company with considerable business development opportunities. In the future, the company will more actively seek relevant professional manufacturers and engineering consulting companies to form a high-quality team to jointly participate in the development tenders of industrial zones and industrial parks.

Part III:Operation Status and Prospect – Industrial Park Development

Recognition Of Agent Income 2021/06/30

Amount Unit:NT\$1,000

Project Name	Project Progress	Total amount of agency income (Estimate)	Amount Recognized	Recognizable Amount (Estimate)
Chiayi County Machouhou Industrial Park Phase II	15.99%	984,000	157,377	826,623
Engineering Design and Construction Supervision for the Development, Sales, and Management of Qiqu Technology Industrial Park	Not Yet Started	386,667	-	386,667