CHP — Interim / Quarterly Report 2021

Mar 4, 2021

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4Q20 Earnings Results

2021.3.4

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  Cultural Paper  Woodfree Paper  Coated Paper  Copy paper  Specialty Paper for food

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Pulp

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Cultural Paper

Masking Paper

Glassine Paper

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Holdin Structures g

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Chung Hwa
Pulp Corp.
1905.TW
100% 100%
CHP
Hwa Fong
International
Investment
Corp.
(BVI) Corp.
60% 20.24% 100%
100%
Guangdong Zhaoqing
Syntax
Dingfung Pulp 66.27% Dingfung
Communication Genovella
& Paper Co., Forestry Co.,
(H.K.) Ltd. Renewables Inc.
Ltd. Ltd.
100% 100%
Zhaoqing
Shenzhen
Xinchung Green
Jinglun Paper
Technology Co.,
Co., Ltd.
Ltd.
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O eratin Locations p g

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

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2020 Financial Results

In NT Thousand	2020 4Q	2020 4Q	2020		2019		YoY
	Amount	%	Amount	%	Amount	%	%
Net Sales	5,061,220	100.0	18,616,694	100.0	20,689,397	100.0	- 10.0
COGS	4,610,575	91.1	17,374,918	93.3	19,476,375	94.1	- 10.8
Gross Profit	450,645	8.9	1,241,776	6.7	1,213,022	5.9	2.4
Operating Profit	- 14,552	- 0.3	- 390,177	- 2.1	- 383,777	- 1.9	-
Other Income/Expense	168	-	86,693	0.5	21,365	0.1	305.8
-Finance costs	- 19,935	- 0.4	-84,212	- 0.5	-63,925	- 0.3	-
-Foreign exchange gain(losses) and Gain (loss) on financial instruments at FVTPL	19,691	0.4	8,885	-	-68,520	- 0.3	-
-Share of profit of associates	- 39,901	- 0.8	4,489	-	-3,987	-	-
-Dividend income	20,197	0.4	95,220	0.5	76,543	0.4	24.4
-Other incomes	20,116	0.4	62,311	0.3	81,254	0.4	-23.3
Profit Before Tax	- 14,384	- 0.3	- 303,484	- 1.6	-362,412	- 1.8	-
Profit After Tax	- 15,315	- 0.3	- 312,392	- 1.7	- 302,084	- 1.5	-
Profit Attributable to Owners	13,162	0.3	- 201,797	- 1.1	- 245,098	- 0.2	-
After Tax EPS(NTD)	0.02		- 0.18		- 0.22

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Summar y

4Q20

Due to the low inventory level of global pulp and the rising transporting charges, CHP adjusted the pulp and paper prices to reflect increasing costs. The 4Q20 consolidated revenue was NTD 5.06 billion, and the Gross Profit was NTD 0.45 billion, Gross Profit Margin was 8.9%. The net income attributable to owner was NTD 13 million and recorded NTD 0.02 EPS of the quarter.

2020

• The 2020 consolidated revenue was NTD 18.62 billion, which declined 10% Y/Y due to the low pulp prices and appreciation of exchange rate.The 2020 Gross Profit Margin and Operating Profit Margin were 6.7% and -2.1% respectively. The 2020 net loss attributable to owner was NTD202 million and recorded EPS with NTD -0.18.

2021 Outlook

• In 2020, CHP actively developed recyclable non-plastic coated and plastic film free food paper, which can be fully recycled, achieving three goals of reducing plastic, carbon and waste food containers. In 2021, CHP will continue to focus on the full circular economy and develop related non-plastic products in accordance with the development of the global plastic restriction policy.

• Facing of many uncertainties in the international economy and the pandemic in 2021, CHP will not only continue to expand the existing product application market and strengthen customer services, but also focus more on the global marketing and expansion of non-plastic products and food safety packaging materials, research and development high value-added new products to enhance market competitiveness.

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Thank you