CCW — Interim / Quarterly Report 2021

Aug 30, 2021

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2021

CORPORATE INTRODUCTION

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Disclaimer

The information for this presentation contains forward-looking statements. The actual results could be different.

Its correctness, completeness, and reliability are not guaranteed.

Also, it does not represent complete opinions of our company for the property state or subsequent developments in the future.

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Briefing outline

1. Operational performance report of Q1~Q2 in 2021.

2. Overview of a shift in investment

3. Summary of Operational Outlook

4. Q&A

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I. Operational performance report (Sales Report for Q1 ~ Q2)

A. the sales for the main products ：

Unit ： MT

Production	Q1 to Q2 (2021)	Q1 to Q2 (2021)	Q1 to Q2 (2020)	Q1 to Q2 (2020)		2021 minus 2020	2021 minus 2020	2021 minus 2020
&sales
volume		sales		sales			sales
	Production		Production		Production	%		%
		volume		volume			volume
products
SHS	1,711	1,633	1,716	1,089	(5)	(0.29)	544	49.95
ZnO	1,772	1,562	1,670	1,033	102	6.11	529	51.21
SFS	1,438	1,239	1,244	1,045	194	15.59	194	18.56
SMB	2,588	2,363	2,193	2,161	395	18.01	202	9.35

• Note: Compared to the impact of the 2020 epidemic, there is a big breakthrough in 2021. The sales volume in domestic market and foreign market is increased.

Our factory located in Pingnan is also actively cooperating with the enlarging production.

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B. STATEMENTS OF COMPREHENSIVE INCOME

Unit ： Thousand NT dollars

ITEM	Q1 to Q2 (2021)	Q1 to Q2 (2020)	YoY	YoY
			price	%
Operating Revenue	289,682	235,922	53,760	22.79
Operating Cost	245,424	200,194	45,230	22.59
Gross Profit	44,258	35,728	< Note 1 >8,530	23.87
Operating Expensive	30,239	23,852	< Note 2 >6,387	26.78
Operating Income	14,019	11,876	2,143	18.04
Non-Operating Income and Expenses	64,574	13,310	< Note 3 >51,264	385.15
Income before Tax	78,593	25,186	53,407	212.05
Tax Expensive	2,130	2,511	(381)	(15.17)
Net Income	76,463	22,675	53,788	237.21
Earning per Share	0.51	0.15	0.36	240.00

• Note 1: The increase in sales volume led to an increase in gross profit income.

• Note 2: The increase in sales volume reflects an increase in the total freight charges.

• In addition, according to the company policy for gross profit, our employee bonus

and the board remuneration are growing as well.

• Note3: Taiwan Poritic Corp., one of our investment companies, become OTC listed corporation.

Based on the contract, we released some parts of stocks, as a result, the non-operating income grew apparently.

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C. Profitability analysis

ITEM	ITEM	Q1~Q2 in 2021	Q1~Q2 in 2020
Asset remuneration rate (%)		3.00	0.92
Return on equity (%)		3.18	0.99
Percentage of paid-in capital (%)	Business interest	0.93	0.79
	Net profit before tax	5.21	1.67
Net interest rate (%)		26.40	9.61

 Note: All profitability index in Q1-Q2 of 2021 have shown a positive rise.

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II. Overview of a shift in investment

Cathay Chemical works, inc owns a total of 29.55 percent of shares from Taiwan Poritic Corp. And Taiwan Poritic Corp. maintains very excellent operating performance and grows steadily.

Net Operating Profit after Tax (NOPAT) in Q1 to Q2 2021 is NTD 16,501,000. Compared with the same period of 2020, this item increases NTD 11,280,000.

The growth rate is 216.05 %. Earning per share is NTD 2.71.

June 17, 2021, it becomes OTC listed corporation officially. The closing per share on July 31, 2021, is NTD 102.

.

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III . Summary of Future Outlook

A. Global price of Zinc

GLOBAL ZINC PRICE TENDENCY CHART (2019 AUG TO 2021 JUL)

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2019/AUG~2020/JUL 2020/AUG~2021/JUL
3500
3000
2500
2000
1500
1000
500
0
AUG SEPT OCT NOV DEC JAN FEB MAR API MAY JUN JUL
2019/AUG~2020/JUL 2275.142319.642445.592432.952274.032357.272120.481905.611894.081963.392020.612162.24
2020/AUG~2021/JUL 2406.832450.502441.552669.692782.362707.702743.202791.652827.352970.292950.072942.98
UNIT: USD/ MT
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Since April 2020, the global price of Zinc goes up from USD 1894.8 to 2942.98 in July 2021.

The dramatic rise affects our prime cost directly and causes that our operating margin could not grow ideally.

Against this issue, we will keep tracking and find a better and more appropriate solution.

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B. Operational Outlook

Looking into Q3 to Q4 in 2021, the economy in the global seems still have so many uncertain due to severely epidemic- Covid 19. What we could do is to keep circumspect and our diligent spirit.

In addition to growth and profitability, we will continue to concern about environmental protection, energy-saving, and carbon reduction. We expect to create a new win-win situation for shareholders, enterprises, and society. And we will keep moving towards a green enterprise.

III. Description of the current situation of the old Kaohsiung factory

The old site factory, which is with 16,643.95 square meters & approximately 5,034.79 pings, is located in the Kaohsiung Multifunctional Economic and Trade Park. With the promotion from Kaohsiung City Government for the construction of the Asian New Bay Area and the relocation of the 205th Arsenal, it will become a core area for Industrial transformation in Kaohsiung. With the prospect of making a better profit for the shareholders, our company has joined the Kaohsiung City Economic and Trade Development Association to create the most favorable development conditions. (*Note: There are more than 20 public or private sector landlords in the region participating. Taipower, Formosa Plastics (FPG), and Sinopec are also in this association.)

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Q & A
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