CHP — Interim / Quarterly Report 2021

May 14, 2021

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1Q21 Earnings Results

2021.5.14

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

• Cellulosic Materials Division  Cultural Paper  Packaging Paper  Industrial Paper  Pulp  Cellulosic Materials Products

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Pulp

 Specialty Materials Division  Special Coating Products  Forestry & Agriculture Cultural Paper  Bio-base fertilizer  Afforestation Masking Paper

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Glassine Paper

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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 ----- ShanghaiGuanyin TaipeiTaichung HualienTainunTaitungZhaoqing Shenzhen JiutangHongkongTaipei(Sales, Accounting andFinance Office)Manufacturing Sites(Hualien,Jiutang, Taitung, Guanyin and----- End of picture text -----

Taipei(Sales, Accounting and Finance Office) Manufacturing Sites(Hualien, Jiutang, Taitung, Guanyin and Zhaoqing) Sales Offices(Taichung, Tainun, Shenzhen, Shanghai and Hongkong)

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1Q 21 Financial Results

In NT Thousand	2021 1Q		2020 1Q		YoY
	Amount	%	Amount	%	%
Net Sales	5,477,278	100.0	4,561,472	100.0	20.1
COGS	4,845,056	88.5	4,316,721	94.6	12.2
Gross Profit	632,222	11.5	244,751	5.4	158.3
Operating Profit	111,632	2.0	- 136,396	- 3.0	-
Other Income/Expense	5,283	0.1	-5,916	-0.1	-
-Finance costs	- 19,240	- 0.3	-22,396	- 0.5	-14.1
-Foreign exchange gain(losses) and Gain (loss)on financial instruments at FVTPL	-20,657	- 0.4	-3,656	-	-
-Share of profit of associates	23,525	0.4	11,146	0.2	111.1
-Other incomes	21,655	0.4	8,990	0.2	140.9
Profit Before Tax	116,915	2.1	- 142,312	- 3.1	-
Profit After Tax	101,433	1.9	- 145,338	- 3.2	-
Profit Attributable to Owners	94,830	1.7	- 117,587	- 2.6	-
After Tax EPS(NTD)	0.09		- 0.11

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Summar y

1Q21

As the prices of pulp and paper products rise to reflect the cost. The 1Q21 consolidated revenue was NTD 5.48 billion and increase 20% Y/Y. The Gross Profit was NTD 0.63 billion, Gross Profit Margin was 11.5%, more than double the growth of the same period last year. The Operating Profit was NTD 112 million.

Due to the depreciation of CNY EX rate, Other Incomes was NTD 5.28 million, Profit after Tax was NTD 101 million The Net Income Attributable to Owner was NTD 95 million and recorded NTD 0.09 EPS of the quarter.

2Q21 Outlook

Although there is still a lot of uncertainty due to COVID-19 and some equipments will be performed routine annual maintenance in 2Q, the production and sales of the company are running normally. Pulp prices remain in the high level and paper prices will be adjusted according to factors such as the increases in raw materials, freight and market conditions.

CHP takes full circular economy as the core of development, and continue to expand the existing product application market and strengthen customer services. With the development of the global plastic restriction policies, CHP will focus more on global marketing and expansion of non-plastic products materials for food safety packaging to enhance our profitability.

The world are targeted in carbon reduction now, CHP is the only company with over 50 years experience of afforestation in Taiwan. From afforestation to paper producing, it was a Carbon sequestration industry chain. CHP owns total 30,000 hectares forest area in China and Taiwan, equivalent to the size of a Taipei city. CHP will continue to monitor and collect relevant carbon rights.

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Thank you