CHP — Interim / Quarterly Report 2020

May 15, 2020

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1Q20 Earnings Results

2020.5.15

Disclaimer

This presentation is prepared according to the reviewed financial statements by CPA and the financial numbers hereby are based on IFRS, please refer to the published financial statements for full content.

The presentation may contain forward-looking information and may differ materially from the actual results. Chung Hwa Pulp Corp (CHP) does not warranty as to the accuracy or completeness of such information and nor assume any undertaking further information becomes available or in light of changing circumstances. You shall not place undue reliance on any forwardlooking information.

The presentation and its contents may not be reproduced to a third party without the prior written consent of CHP.

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Com an Profile p y

 Major Products

 Chung Hwa Pulp Corporation

 Stock Code：1905.TW  Capital：NTD$ 11,028 Million  Date of Establishment：1968/7/5  Consolidated business with Paper and Board business unit of YFY in Oct 2012

 Pulp

 Cultural Paper & Paperboard Date of Establishment：1968/7/5  Cultural Paper Consolidated business with Paper and  Woodfree Paper Board business unit of YFY in Oct 2012  Coated Paper  Copy paper  Specialty Paper  Glassine Paper Pulp  Masking Paper  Fertilizer  Chemicals Cultural Paper Masking Paper Glassine Paper

Pulp

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Holdin Structures g

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----- Start of picture text ----- Chung HwaPulp Corp.1905.TW100% 100%CHPHwa FongInternationalInvestmentCorp.(BVI) Corp.60% 20.24% 100%100%Guangdong ZhaoqingSyntaxDingfung Pulp 66.27% DingfungCommunication Genovella& Paper Co., Forestry Co.,(H.K.) Ltd. Renewables Inc.Ltd. Ltd.100% 100%ZhaoqingShenzhenXinchung GreenJinglun PaperTechnology Co.,Co., Ltd.Ltd.----- End of picture text -----

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O eratin Locations p g

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----- Start of picture text ----- ShanghaiTaipeiTaichung HualienTainunTaitungZhaoqing Shenzhen JiutangHongkongTaipei(Sales, Accounting andFinance Office)Manufacturing Sites(Hualien,Jiutang, Taitung and Zhaoqing)Sales Offices(Taichung, Tainun,Shenzhen, Shanghai andHongkong)----- End of picture text -----

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2020 1Q Financial Results

In NT Thousand	2020 Q1		2019 Q1		YoY
	Amount	%	Amount	%	%
Net Sales	4,561,472	100.0	5,382,648	100.0	- 15.3
COGS	4,317,323	94.6	4,942,365	91.8	- 12.6
Changes in Biological Assets	602	-	- 1,361	-
Gross Profit	244,751	5.4	438,922	8.2	- 44.2
Operating Profit	- 136,396	- 3.0	48,136	0.9	-383.4
Other Income/Expense	- 5,916	- 0.1	40,451	0.8	-114.6
-Finance costs	-22,396	-0.5	-16,439	-0.3	-
-Foreign exchange gain(losses) and Gain(loss) on financial instruments at FVTPL	-3,656	-	35,261	0.7	-
-Share of profit of associates	11,146	0.2	10,875	0.2	2.5
-Other incomes	8,990	0.2	10,754	0.2	-16.4
Profit Before Tax	- 142,312	- 3.1	88,587	1.6	-
Profit After Tax	- 145,338	- 3.2	108,746	2.0	-
Profit Attributable to Owners	- 117,587	- 2.6	84,634	1.6	-
After Tax EPS(NTD)	- 0.11		0.08

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Summar y

1Q20

Due to the continued weakness of global pulp prices, and the mills perform annual maintenance, the 1Q20 consolidated revenue was NTD $4.56 billion, which declined 15.3% Y/Y. Gross Profit Margin and Operating Profit Margin were 5.4% and -3.0%.

• Due to the Epidemic situation CNY exchange rate depreciation significantly. The 1Q20 nonoperating lose was NTD 5,920 thousand, and the 1Q20 net loss attributable to owners of the Company was NT$118 million and recorded NT$-0.11 EPS.

• For retaining talent, the Board of Directors approved (5/14) to repurchase shares of the company , and the expected amount of shares are 30,000,000 shares , price range set at between NT$5.8 and NT$10.0 per share.

2Q20 Outlook

About sales, due to the Epidemic situation, the increasing food take-out ratio and the sales of sterilization products have driven a stable demand of company's food packaging paper and label backing paper. However part of the company`s equipments will still perform annual maintenance, and the Epidemic situation in various countries has not yet eased, the economic recovery still remain to be observed . The company remain conservatives to the operation of the second quarter.

• In future, as the Epidemic situation affects longer, CHP will also pay attention to the international situation, prepare sufficient raw materials , improve product competitiveness, and focus on high-value-added specialty papers to fulfill the market demand.

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Thank you