CSSSC — Investor Presentation 2021

Nov 22, 2021

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Chien Shing Stainless Steel Co., Ltd.

2021 Investor Conference

November 23, 2021

Stock Code : 2025.TW

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Disclaimer

 This briefing is based on the information obtained by the company from various sources. Some information may be affected by uncertain factors in the future, making it completely different from the company's original description of the future prospects.

• Changes or adjustments in the future will be released

on Market Observation Post System (MOPS).

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Outline

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Company Profile Operation Overview

Financial Performance Market Overview Q & A

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Company Profile

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• Founded : MAY, 1972

• Capital : NT $ 2,812 million

• Chairman : Mr. Ye Shuo Tong

• : 61

• Employee (Octorber,2021)

• IPO Time ： February,1996

• Main business ： Manufacture, trade, import and .

• export cold rolled stainless steel

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Com an Histor p y y

Time Company History

1972 Founded in May 8[th] .

1989 SEO and IPO.

1990 SEO based on factory construction. Paid-in capital reached NTD 1.1 billion. 1996 The company's stock was listed and passed ISO9002 certification. 2000 Paid-in capital amounted to NTD 3.228 billion.

2009

Typhoon Morakot caused part of the equipment damaged, and repairs were completed within one year.

2012

Developed the first electric locomotive, obtained the official light-duty machine pedal type safety inspection certificate approved by the Ministry of Transport, legally listed on the road.

2017

Conducted a simple merger with three 100% subsidiaries on November 27[th] in accordance with the resolution of the board of directors and the corporate mergers and acquisitions law, approved by the Ministry of Economic Affairs to merge and change registration on January 4[th] , 2017. Paid-in capital reached NTD 2.812 billion.

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Production Technology & Process

Raw Material: Stainless steel 300 series hot rolled coil. Width: 1300mm Thickness: 2.0 to 6.0mm

Maximum Capacity: 12,000 (MT/month)

Cold Rolled Products: Cold rolled 2B steel plate. Width: 1300mm Thickness: 0.3 to 3.5 mm

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Operation Overview

Unit: NTD $1,000	2019	2020	2021 Q1-Q3
Operating Revenue	1,155,098	803,775	1,545,907
Net Profit Before Tax	(177,829)	(209,678)	177,661

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2,000
1546
1,155
1,000 804
178
0
-178 -210
2019 2020 2021 until Q3
-1,000
Operating Revenue Net Profit Before Tax
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Unit: NTD $1 million

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Month	January	February	March	April	May	June	July	August	September	October
Y to Y (%)	93.55	96.43	36.21	104.88	1966.67	-13.00	218.57	386.44	303.41	1340.0

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2020 2021
355
Unit: NTD $1 million
287 288
223
180
158
93 110 116
100 87 88 85
84 70 74
56 41 62 59
20
3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Unit: NTD $1 million

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Operation Overview- Operation of 4 years

Operating Revenue

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2838
3000
2000 1546
1155
804
1000
0
2018 2019 2020 2021
Q1-Q3
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Gross Profit (Loss)
400
189
200
0
-38
-200
-160
-189
-400
2018 2019 2020 2021
Q1-Q3
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Operating Profit (Loss)

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162
200
0
-85
-200
-197
-222
-400
2018 2019 2020 2021
Q1-Q3
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Net Profit (Loss)

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400
178
200
0
-200
-178
-210
-400
-600
-514
2018 2019 2020 2021
Q1-Q3
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Financial Performance –Balance Sheet

Unit: NTD $1,000	2021/09/30 Amount	%	2020/09/30 Amount	%	2020/09/30 Amount	%
Current Assets	1,007,585	55	726,216	43	906,558	46
Non-Current Assets	831,563	45	956,518	57	1,068,272	54
Total Assets	1,839,148	100	1,682,731	100	1,974,830	100
Current Liabilities	1,226,512	66	237,442	14	193,656	9
Non-Current Liabilities	13,526	1	992,790	59	1,098,951	56
Total Liabilities	599,110	33	452,499	27	682,223	35
Total Assets &Liabilities	1,839,148	100	1,682,731	100	1,974,830	100

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Financial Performance – Income Statement

Unit: NTD $1,000	2021 Till Q3	2021 Till Q3	%	2020 Till Q3	2020 Till Q3	%	%	2020 %
Operating Revenue		1,545,907	100		625,357	100		803,775 100
Gross Profit (Loss)		189,171	12	(165,996)		(27)		(188,829) (23)
Operating Profit (Loss)		161,634	11	(191,113)		(31)		(221,988) (27)
Net Profit (Loss)		177,661	11	(187,300)		(30)		(209,678) (26)
EPS (in dollars)		0.63			(0.67)			(0.75)
150000
-100000 -50000 0 50000 100000 2020 Q4		2021 Q1	2021 Q2		2021 Q3			Operating Profit Net Profit Before Tax Unit: NTD $1 million

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Description of Waste Disposal Legal Case

1. Receive a letter of approval in principle from the competent authority on the company’s waste disposal . completion report on 2021 July 6[th]

2. The competent authority sent person to the company to handle soil and groundwater inspections and other related matters on 2021 July 7[th] . The inspection and review was carried out by the Environmental Protection Administration, Executive Yuan on October 1[st] , 2021, and the inspection and review was still in progress on the day of the Investor Conference.

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Description of Waste Disposal Legal Case

1. Received a criminal judgment from Tainan District Court on July 9[th] , 2021. The company was fined NTD$1.2 million for violating the Waste Disposal Law. The chairman of the company was sentenced to five years and four month’ imprisonment. The appeal is currently pending in the High Court.

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1.
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Market Overview

1. With the increase in the rate of vaccine delivery in various countries, the continuous recovery of infrastructure and private consumption activities will drive the global economy and the continuous recovery of steel demand. 2. The price of steel raw materials is affected by policies of various countries. For example, China adopts export tax rebates, production reduction and carbon reduction policies, and prices fluctuate greatly.

2. The US House of Representatives passed the $1.2 trillion infrastructure project on November 5[th] , which is expected to be more supportive to international steel prices.

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Market Overview

1. Affected by the continuous increase in steel prices and freight rates, the lack of space in international shipping, and the soaring freight rates caused by lack of containers, export customers are affected by this factor, and shipments are not smooth, which in turn squeezes the stability of domestic sales prices. Downstream customers are weak in willingness to purchase prices on demand. The performance results for the fourth quarter are still subject to market momentum and price acceptance in the last two months.

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Chien Shing Stainless Steel Co., Ltd.

Q & A

Thanks for listening

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