CHEM — Management Reports 2023

Nov 24, 2023

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CHEM Company Brief by Ellen Kuo Vice Chairperson

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Recognized in Achievement of Carbon Emission Reduction & Revenue Generation.

CO2 Emission Reduction Effectiveness + Robust Growth in Stock Performance

Proven Competitiveness in the Same Industry (+188% among others)

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Focus

1. ISO37001 integrated with anti-bribery for corporate governance.

2. Welding in Automation , including CO2 Welding in South Plant and Arc Brazing in Linkuo Plant for Competitiveness in Cost Efficiency in Materials & Labor

3. Automation in Manufacturing Application and Quality for meeting the demands for Cost Efficiency and Streamlining in future growing business.

4. Cooperative Education in Practice in 2023: 1Q24 to be on board with 40 new members to join as infusing new energy from talents.

5. TCFD Carbon Emission Check : Scope 1 & 2 to be covered by IT Team for automatic calculation, targeting efficient carbon emission reduction.

6. Plants & Inventory to Build for increased work efficiency in Chiyi Plants, 1700 Taiwanese ping, expected to increase 15% to 20% in production efficiency. 7. R&D Focus for hydrogen business with BOL (Build, Operate, Localize) Strategy

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Business

CHEM

2022

NT$2.96b

NT$11.56b NT$4.03b

Revenue

●Green Energy

■ Solar Energy

■ Hydrogen Energy Storage, Micro Grid ■ Power Supply & Equipment

68 ％ ■ Power Supply & Equipment ●Service ■ Parking Management ■ 19 ％ ● ■ Urban Renovation Projects ■ System Integration 13 ％ ■ Precision Machining

■ Maintenance Management

● Engineering & Others

■ Urban Renovation Projects

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Occupational Aerospace Safety & Health

Quality System

Governance

AS-9100 Rev D NADCAP GE S1000 Audit

ISO14001 ISO 45001 TOSHMS

TAF ISO27001 CNS ISO37001 ISO9001

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: to be introduced in 2023Q4

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Da Lin345KV GIS Lon Qi 345KV GIL

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Chong Liao 345KV GCS Nanke 345KV GIL

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Tai-Power Power Grid Resilience Program

*台電10年電網強韌案

621.2Billion to inject by Tai-power for the year 2022 to 2031

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Power Grid +
Renewable Energy
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Power Grid +
Expansion &
Renewal
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Power Storage
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Renewable Energy
Generation
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Power Distribution
& Arrangement
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Facilities &
Engineering
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Bud et b TaiPower in Plannin g y g 2022 2023 2024 2025 2026 2027 26.51 164% 240% 300% 297% 292% billion

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• TaiPower – New Plants & Engineering

、 、 Project Dong161 Project Da1161 Project Da2345 Estimated NTD16 Billion*

• Phase 3-1 Off-Grid Wind Power Substation & Engineering Estimated NTD 8.5 billion

• Power Storage Engineering Projects –

• Estimated NTD 8billion

• –

• Taipower – Power Distribution & Substation Engineering Projects Estimated NTD 2 billion

• Phase 3-2 Off-Grid Wind Power, Grids on Land & Substation

• Solar Power Projects and EPC

• Renewable Energy in Substation and Grids Engineering

• Private Power Storage at Sites, Substations, Grids and Engineering

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12

facilities included

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Needs in Energy Slow Down & Needs in Electricity Go

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Emission & Offset For Targeting Zero Carbon Emission

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Tree Valley Tech Park, Tainan

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Business Scope

• Chamber – Welding & Machining for Gen. 10.5

• • Display & Equipment – Parts Machining

• • Large Parts & Measurement in Precision

• Ultra-Sonic Testing & Measurement

• Welding & Erosion in Testing

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Before After
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• Gen. 10.5 & Gen. 8.5 OLED Display

• Commonly seen in Tablets and/or PC application

• Human Resources Recruiting in Progress for Business Growth

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◼ Methanol-Based H2 Generation for Engine Carbon Removal

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ME2H
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ME2 Stack & Power Module

• H2 Fuel Cell

• H2 Stake and Power Module

• H2-based Light Vehicles

◼ H2 Refueling Station Solution / Plug-in and Produce

• Micro-Grid

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Light Vehicles
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Refueling Station &
Engineering Solution
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Micro-Grid Solution
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The Turning Point is NOW
Tech & Application for 2026-2030
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Industry

• Complete up, mid, and down-stream in supply

• Certification to the Products & Components

• Targeting Proven Achievement with International Partners

Government: Taiwan for 10Trillian & the Potentials

• Speed up for h2 policies & development, h2 for international market and demands

• Subsidies, incentives, tax benefits, utilities in needs, POC plans to implementation

Academics & Research

• Continued efforts in research for critical tech and patents,

• Focused on turn-key and/or deployment

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#Completed Supply Chain in Taiwan #Over 100M units for Global Market

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Over 100M units for Global Market
公車
Bus
乘用車
Passenger Vehicle
特殊用途
special purpose
摩托車
Motorbike
貨車
Cargo
輕型機車 微型貨運
Moped Micro Delivery
充氫服務 Refuel
Service
Dimension (OAL size)
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Power
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Go-to Choices for Leisure & Outdoor fun Excellent for Delivery Logistics

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◼ CHEM as the World First for H 2 in 2-4 Wheelers

◼ Hydrogen in Compression with h2 Exchange Station for Last Mile Delivery Purpose

◼ Perfect fit for Carbon Reduction & Emission Checks in Sustainability Purpose

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- H2 Generation in Container 100kg/day

One reformer generates 5kW, and using 12 units for one 100kgContainer means one container is ready for 60kW Power Output.

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Power Panel
H2 generating Module4
350L Buffer
Tank
20-Meter
dehydrator
Control System 200LFuel Tank
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Control Panel
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- Mobility in Fuel Refueling

Methanol Reforming for h2 Generation in Containers

• No Danger with Excessive Amount in H2 Storage

• Methanol for Instant Conversion

• Safe in Highly-Populated City Area

• Safe in Storage & Deliver

• Cost-Friendly in Transferring

• 20M-Container type - 100kg/Day,

• Expected to↑200 kg/Day in Production

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Lon -Term Outlook for H Business g 2

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CPC Corporation for Hydrogen Refueling Station,
Multiple Choices Available.
- -
Hydrogen Refueling Vehicles and Battery Based ones
are the focus.
H
2
-
Hydrogen Based Vehicles are on the spot for
deployment in 2030, especially in city bus & vehicles
use by public sectors.
FC and Storage Demonstration are drawing attention
at International Exhibitions & Trade Fairs.
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Hwa-Ya Plant for H Tech 2

ISO 9001+TUV Production & FC Pilot Run Based BOL Build, Operate & Localize Licensing +Turn Key Localizing for Manufacturing

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Strate ies & Business Ma in g pp g

• Hylect Holding / Black Pearl Investments

• the Project Zenith

• KWN Investment Company – to license or JV

• To build FC Production Line

• –

• Tricycle Project

• • Operation & Demonstration Ongoing in Maharashtra

• –

• Merge & Projects in Startups ITRI supported

• • Alliance - local bus company for low-carbon emission -

• in transportation eco system • Lin-Yuen H2 Hub in Kaohsiung

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