GKB — Investor Presentation 2022

Sep 16, 2022

Grape King Bio (1707 TT) Investor Presentation September 2022

Disclaimer

• The information contained in this confidential document ("Presentation") has been prepared by Grape King Bio (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment.

• While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers gives, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision or supplement thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers takes any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness or injury of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation or the information.

• Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved by the Company to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

• This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

• This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, general economic, market or business conditions and other unforeseen events. Prospective Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

Company Profile

Company Milestones

2019

2014 • Grape King Bio- 1991 2009 • Dr. Andrew Tseng 2015 Tech Research succeeded his Institute was Bio Engineering Center was established. ranked No.6 among Pro-Partner’s 2013 father to become Grape King is selected as 2017 established. 2021 Taiwan direct Pro-Partner’s the CEO and Forbes “Asia's • Grape King Pro-Partner was 1982 1997 selling companies. ranked No.3 Chairman. 200 Best Under A Grape King’s first tourist formed a JV with ranked No. 41 among Taiwan • Grape King is Billion.” for two All Cosmos Bioamong all Global Listed on Taiwan Shanghai Grape direct selling selected as Forbes consecutive years. center Tech (4148 TT) Direct Selling Stock Exchange King was companies. “Asia's 200 Best opened in to expand into companies based established. Under A Billion.” July. Malaysia market. on 2020 revenue.

1969 Grape King was founded 2020 2021 2016 Uni-President 1993 Grape King 2012 Grape King Bioformed a (1216 TT) Pro-Partner was Pro-Partner’s ranked Tech Headquarter strategic alliance became a established. 2008 No.4 among Taiwan 2014 started operation with TST – a and strategic shareholder direct selling in September. leading socialPro-Partner’s ranked companies. Pro-Partner’s ranked 2018 selling company partner No.2 among Taiwan in China. through a No.8 among Taiwan direct selling companies. Taipei Grape King private direct selling companies. placement. Sales headquarter was established.

Company Overview : Three core business units

2021 REVENUE

1. Grape King Taiwan (Parent Co) Taiwan own brand & global OEM & ODM

Locus of all key ingredient design, formulation, and production for the whole Group.

2. Pro-Partner (60%-own) Taiwan direct selling distribution A differentiated distribution channel with products sold through direct-selling by members under the Pro-Partner brand.

3. Grape King Shanghai (100%-own) China OEM & ODM

Our manufacturing in China that focuses on OEM and ODM for domestic and global health food companies.

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9% 9%
NT$
9.8bn
84%
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2021 NET PROFIT

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7%
18%
NT$
1.3bn
75%
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Grape King Taiwan Pro-Partner Grape King Shanghai

Investment Highlights

• Near-Term Catalysts: Three major businesses sales momentum to carry into 2H22 and 2023E.

• Shanghai to recover with YoY decline narrowing post the lifting of Shanghai lockdowns since June.

• Taiwan OEM business likely to benefits from: 1) new equipment commencing operations in July and 2) production lines for new formulations from 4Q22 onward.

• The pandemic in Taiwan helped increase average sales contribution from Pro-Partner members. We expect ProPartner sales to maintain mid-to-high single-digit growth, given easing of the pandemic in Taiwan in 2H22-2023E allowing for more direct-sales award ceremonies and new membership recruitment.

• Mid-Long-Term Catalysts: 1) FDA Phase II Clinical Trial Approval in Humans for a new botanical drug and 2) Secured more outsourcing demand for Taiwan OEM business.

• Solid Earnings Performance from 2008 – 2021:

• Solid earnings CAGR of 19% and an average ROE 25%.

• Stable dividend payout ratio of 60% for the past five years.

Our Core Competence

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We are industry leader

• We are a leading health food manufacturer in Greater China, specializing in probiotics, mushroom and other herbal-based supplements. We command No. 1 position in probiotics and medicinal mushrooms supplements with 31% and 45% market share, respectively in 2020.

• We operate the second largest direct-selling company – Pro-Partner in Taiwan (2021 market share: 8.3%).

• Approximately 50 OEM/raw materials customers in Taiwan.

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Strong R&D capabilities

• We are one of the few health food companies in Taiwan that possess the capability to produce our own raw materials, manufacture products and distribute through own brands and channels.

• Our expertise in raw materials allow us to develop health supplements serving different benefits. Therefore, many of our products are TFDA approved for different health benefits.

• We are also a frequent winner of major international conventions/competitions in respect to new product design/concept.

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Solid growth with sustainable payout ratio

• We have delivered a solid earnings during 2008-2021 (CAGR of 19%/average ROE 25%).

• We have maintained more than 60% dividend payout in the past five years.

• On the back of a growing health and wellness market in Asia, we strive to deliver double digit topline growth through different growth catalysts from our individual business unit.

Our Growth Strategies for Three Key Businesses

Key Objectives

Levers

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Sustainable topline and bottomline growth

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Grape King Taiwan

• Market share gain

• Expanding through new adjacencies

• Accelerate overseas ODM & raw materials businesses

Pro-Partner

• Unlock growth ceiling

• Improving demand forecast, sales visibility, and products time to market

Grape King Shanghai

• Clients diversification

• Prepping for the probiotics boom

• Market share gain through products upgrade and deeper channels penetration

• Business expansion through penetrating new product categories

• Continue to promote Grape King’s raw material and R&D capabilities in probiotics and medicinal mushrooms.

• Accelerate new product launches from only 1-2 new products to 3-5 products per year.

• Focus on growing younger members.

• Duplicate Taiwan success in new geographies

• Cultivate 10 new customers with the potential of each contributing Rmb 10mn sales per annum

• Develop non-direct/WeChat customers

• Capture more business opportunities through local strategic partnerships and alliances

Grape King Biotech Research Institute Product Innovation backed by Science

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Competitive Strengths - Strong Products Capabilities

We acquired more than 186 patents and published over 84 research papers. Also, we acquired more than 10 TFDA Health Food certifications on our products.

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Brain
Lion’s Mane Eye protection With TFDA
Yo-Shi Premium Lutein Health Food
Mushroom Powder
certifications
Feminine beauty
Snow Brightening Essential Drink Respiratory system
Bai Ke Sz
Blood sugar Immune system
Tang Li Jia Ganoderma King 、 LING ZHI
ANTIALLERGY 、 995 Bio-tech
Nourishment 、 Antrodia Bio Aid 、
Liver protecti on Pro-Partner Meal Supplement
ANTRODIA KING
Gastrointestinal health
Stomach LGG PROBIOTICSKING 、 OLIGO PROBIOTICS 、 PROBIOTICS 、
Wei-Jie Super 13 Probiotics & Prebiotics 、
Super 13 Probiotics & Prebiotics (N)
Energy
ComeBest Series 、 Golden
ComeBest 、 PowerBOMB Menopause symptoms
Xīn Yue Kang
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2015~2021 ： 21 countries, 187 awards

2021

Our Sustainability Progress

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PURPOSE-LED BRAND

CLEANER PLANET

FAIRER SOCIETY STRONGER STEWARDSHIP

72% 475kg

of our revenues are aligned with United Nation’s (UN) Sustainable Development Goals (SDGs)

of CO2e of carbon emission reduced in 2021

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100%

Of renewable energy usage by 2035 (15% by 2030)

Adopted SASB indicators for ESG communications with investors. We have also added TCFD

815hrs

service hours were invested in community investment projects in 2021

NT$1.38mn

invested in employee health management and health promotion

33%

Of Board independence is expected in the coming Board election

42%

of female board members expected in the coming Board election, higher than TWSE average of 13.4%

Third-Party ESG Credentialsm

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Top 5% among all TWSE companies in 2020 Corporate Governance Assessment

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ESG Risk Rating of 20.78, ranked no. 5 in Global Personal Product companies

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Top 35% of all global companies, and the top scoring supplier of our ODM client

Financial Performance

Revenue Breakdown ( 1H22 vs. 1H21)

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1H22 REVENUE

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+6.7% YoY
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4% 10%
NT$
4.8 bn
86%
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1H22 NET PROFIT +11.2% YoY
0%
25%
NT$
621mn
75%
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Grape King Taiwan Pro-Partner Grape King Shanghai

1H21 REVENUE

1.Grape King Taiwan NT$ 482mn (+ 7% YoY) Thanks to strong sales of our own brand products as well as higher ODM revenues. However, higher opex was incurred due to beverage products (Kombucha and POWERBomb).

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10% 10%
NT$
4 bn
80%
1H21 NET PROFIT
10%
20%
NT$
558 mn
70%
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2.Pro-Partner NT$ 4.08bn (+ 15% YoY)

The outbreak of the pandemic in Taiwan has helped to drive Pro-Partner’s sales with the increase in demand for immune boosting products.

3.Grape King Shanghai NT$ 212mn (- 54% YoY)

China sales were severely impacted by the lockdowns they have experienced in Shanghai and other cities.

Grape King Taiwan Pro-Partner Grape King Shanghai

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- Five Year Income Statement

(NT$ m)	2017	2018	2019	2020	2021	1H22	YoY(%)	YoY(%)	YoY(%)	YoY(%)	YoY(%)	YoY(%)
							2017	2018	2019	2020	2021	1H22
Revenue	9,388	9,183	9,239	9,168	9,798	4,775	2.2	(2.2)	0.6	(0.8)	6.9	6.7
Gross Profit	7,865	7,329	7,566	7,537	7,855	3,920	(0.7)	(6.8)	3.2	(0.4)	4.2	10.4
Operating Expenses	(5,610)	(4,979)	(5,231)	(5,232)	(5,543)	(2,830)	(1.3)	(11.2)	5.0	0.0	5.9	9.5
Operating Profit	2,254	2,350	2,335	2,305	2,312	1,090	0.9	4.2	(0.6)	(1.3)	0.3	12.9
Non Operating Income/(Loss)	151	77	105	73	103	59	92.6	(49.2)	36.8	(30.2)	41.1	43.2
Pretax Income	2,405	2,427	2,440	2,378	2,415	1,149	4.0	0.9	0.6	(2.5)	1.6	14.1
Tax Expenses	(471)	(537)	(502)	(483)	(467)	(218)	10.6	14.0	(6.5)	(3.7)	(3.3)	17.5
Minority Interest	(583)	(595)	(630)	(623)	(647)	(310)	(1.3)	2.1	5.9	(1.1)	3.9	18.0
Net income to Parent	1,352	1,295	1,309	1,272	1,300	621	4.3	(4.2)	1.1	(2.8)	2.2	11.2
Basic EPS (NT$)	10.03	9.57	9.63	9.34	8.81	4.19	2.1	(4.6)	0.6	(3.0)	(5.7)	10.3
Key Financial Ratios (%)
Gross Margin	83.8	79.8	81.9	82.2	80.2	82.1
Operating Expense Ratio	59.8	54.2	56.6	57.1	56.6	59.3
Operating Margin	24.0	25.6	25.3	25.1	23.6	22.8
Effective Tax Rate	19.6	22.1	20.6	20.3	19.3	19.0
Net Margin	14.4	14.1	14.2	13.9	19.9	19.5

Five-Year Income Statement

(NT$ m)	2017	2018	2019	2020	2021	1H22	YoY(%)	YoY(%)	YoY(%)	YoY(%)	YoY(%)	YoY(%)
							2017	2018	2019	2020	2021	1H22
Total Assets	9,892	10,648	11,359	13,104	14,061	14,545	3.6	7.6	6.7	15.4	7.3	3.4
Cash	1,920	2,050	2,146	2,927	3,635	3,286	1.1	6.8	4.7	36.4	24.2	(9.6)
AR & NR	160	171	202	202	301	314	(21.5)	6.8	18.0	(0.2)	49.0	4.5
Inventories	492	563	546	689	719	687	13.1	14.4	(2.9)	26.2	4.4	(4.5)
Fixed Assets	6,355	5,927	6,454	7,308	7,208	7,181	4.5	(6.7)	8.9	13.2	(1.4)	(0.4)
Total Liabilities	3,564	3,715	3,888	5,126	3,631	4,646	(5.4)	4.2	4.7	31.8	(29.2)	27.9
AP & NP	323	262	223	255	269	303	63.2	(18.9)	(15.1)	14.7	5.5	12.8
Total Borrowing	1,022	1,119	1,177	1,921	94	0	(15.2)	9.5	5.2	63.3	(95.1)	(100.0)
Total Equity	6,328	6,933	7,471	7,978	10,429	9,899	9.4	9.6	7.8	6.8	30.7	(5.1)
Total Financial Ratios (%)
A/R Turnover Days	7.0	6.5	7.3	7.9	13.7	11.9
InventoryTurnover Days	109.5	102.4	119.3	136.4	158.7	150.1
A/P Turnover Days	61.6	56.8	52.2	52.7	56.7	61.0
Cash Conversion	54.9	52.1	74.4	91.6	115.7	101.0
ROE (%)	27.0	23.7	22.0	19.9	13.6	18.3
ROA (%)	13.9	12.6	11.9	10.4	10.3	13.0
Net debt (cash)/Equity %	(14.2)	(13.4)	(13.0)	(12.6)	(32.4)	(33.2)

Dividend Payout and Capex

(NT$ m)	2015	2016	2017	2018	2019	2020	2021
Net Profit	1,052	1,297	1,352	1,295	1,309	1,272	1,300
Cash Dividend	730	862	903	883	884	948	904
DPS (NT$)	5.6	6.4	6.7	6.5	6.5	6.4	6.1
Payout Ratio	69.4%	65.2%	66.6%	67.9%	67.4%	68.5%	69.2%
Cash Yield	2.6%	3.2%	2.9%	3.0%	3.3%	3.8%	3.9%
Capex	2,635	736	772	1,116	630	1,214	1,481

Notes:

1. The big spike in capex in 2015-2017 is largely due to the investment of 1) Pro-Partner’s new headquarter building, 2) the new factory and tourist factory in Pingzhen (Grape King Headquarter), 3) the new factory in Longtan (Grape King Bio-Tech Research Institute), and 4) additional production lines for Grape King Shanghai.

2. The capex for 2021 is mainly used for building of the new Pingzhen plant for new production facilities.

3. 2021 cash yield is calculated based on Grape King’s 2021/6/11 closing share price NT$155.

Our Capacity and Expansion Plan

Grape King Specialist Fermentation & Manufacturing Site*

Grape King Shanghai Headquarters

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Grape King Bio-Tech Headquarter

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Grape King Bio-Tech Research Institute

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Production Line	Monthly Capacity 2020 2021	Monthly Capacity 2020 2021		Production Line	Monthly Capacity 2020 2021	Monthly Capacity 2020 2021		Production Line	Monthly 2020	Monthly 2020	Capacity 2021	Start		Production Line	Capacity 2020 2021	Capacity 2020 2021
Capsules Fine Granule Liquids-BigCC Liquids-Small CC	7 M capsules 2 M pack 4.2 M bottles 1 M bottles	7 M capsules 2 M pack 4.2 M bottles 1 M bottles		Liquids(Glass) Liquids (Retort Pouch) Powder	18 M bottles 3 M packs 15 M pack	18 M bottles 3 M packs 15 M pack		Capsules Fine Granule	13M capsules 15M pack		13M capsules 15M pack	- -		Lactobacilli	40 tons	40 tons
PKL	1.4 M bottles	1.4 M bottles		Capsules	7 M capsules	7 M capsules		Powder	1.8M packs		1.8M packs	-		Mushroom	60 tons	60 tons
PIC/S	0.8 M packs	0.8 M packs		Troches	63 M capsules	63 M capsules		Jelly foil	-		7.2M packs**	3Q20

Production	Capacity	Capacity
Line	2020	2021
Lactobacilli	25 tons	25 tons
Mushroom	161.5 tons	161.5 tons
PKL Liquids	80 tons	80 tons

**Monthly capacity =30,000 packs/hr x 12 hrs/day x 20 working days/month

*Our Specialist Fermentation & Manufacturing Site (Zhongli plant) will relocated to Pinzhen Industrial Zone due to city development plan, expansion for PKL and different forms production line. The new plant construction is schedule to begin in the second half of 2020 with production expected to start in 2023. The relocation won’t impact our operating and we expect that once the new facility is fully completed and 100%

Industry Trends

Taiwan Health Food Industry

Taiwanese Takes Nutraceuticals Post-Pandemic are 4 Times Greater than Americans

• The annual consumptions of health food in Taipei Metropolis is TWD 21,000 (USD 700)/people in average, which is 3.7X comparing to the spending of TWD 4,400 (USD 147) in the US.

• Statistics showed that 74% of Taipei Metropolis people takes Nutraceuticals, comparing to 80% of people in the US.

	Taipei Metropolis
1	Vitamin B Group	42%
2	Probiotic	41%
3	Lutein	32%
4	Vitamin C	24%
5	Fish Oil	19%
6	Multivitamins	18%
7	Vitamin D	13%
8	Chicken Essence	7%
9	Lactic Acid Bacteria	7%
10	Collagen	5%
11	Turmeric	5%

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	USA
1	Vitamin D	73%
2	Magnesium	52%
3	Omega-3	51%
4	Q10	45%
5	Multivitamins	43%
6	Vitamin C	42%
7	Probiotic	39%
8	Zinc	37%
9	Turmeric	36%
10	Vitamin B12	33%
11	Vitamin B Group	33%

Source: Learneating, Taiwan

China Health Food Industry

China’s Health Food Industry Grew 6.4% CAGR Between 2016-2026

China Direct Selling Continues to Play an Important Role

Overall, there is no brand that can monopolize the market in China's health supplement market. In 2021, the top 15 brands only occupied 32.8% of the market share, and no brand can own more than 10% of the market.

Direct selling remains as an important distribution channel in China despite that the e-commerce become popular over the recent years.

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Source: Euromonitor

Source: Euromonitor

Despite the latest Administrative Measure of Health Food Registration and Filing having streamlined the certification process for vitamins and minerals, other products still need to go through the “Blue Hat” certification process by the CFDA.

China Health Food Industry

China’s Aging Society Reached 7.18 Trillions Population

2021 China Health Supplement Consumer Age Distributions

According to iiMedia Research, the market size of China's health supplements for seniors accounting for more than 50% of the overall market size. In recent years, the market of health supplements for seniors has maintained a rapid growth rate, with a CAGR of 13% from 2014 to 2020.

China elderly group remain the largest consumption group for health supplement. However, we are seeing consumer age are lowering as more health supplement products are being introduced.

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Source: iiMedia Research

Source: iResearch

China Health Food Industry

China Herbal/Traditional Products Market Continue to Grow

Most Favored Health Supplement Among Elderly Chinese

The increasing demand of the China herbal and traditional products may be beneficial to Grape King’s product sales.

According to iResearch's survey, the core functional requirement of the elderly people is to help regulate the “three highs,” despite that Probiotics products are more popular among younger generation, we are seeing elderly demand also picking up.

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Source: Euromonitor

Source: iResearch

China Health Food Industry

Global Probiotics Market is Still Growing

According to Research and Market, global probiotics market is expecting to reach US$62 bn with Asia Pacific region being the largest of all. The market is still increasing and is estimated to grow 7.6% CAGR between 2016-2022.

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Others
22%
Asia
Pacific
Western 44%
Europe
16% North
America
18%
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Grape King is the 7[th] Largest Distributor globally

We are ranked as the 7[th] largest probiotics supplement company globally, this also makes us the largest player in Greater China. Grape King is known for its capability in developing different strains of probiotics that target different health benefits.

Rank Company Brand 1 Align 2 Enterogermina 3 Shin Biofermin S 7 Probiotics & Prebiotics

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Probiotics & Prebiotics 、 Super 13 Probiotics & Prebiotics

Source: Research & Market

*Notes: Global probiotics market includes probiotics supplement, probiotic yoghurt, and sour milk products.

Source: Euromonitor

China Probiotic Market

Probiotics Demand Remains Popular within Young and Middle-Aged Women

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1. Grape King Taiwan

Taiwan - Grape King Brand Sales Channels

Business Line Own Brand Products Raw materials & global ODM Health / Functional Mushroom mycelium/ ODM Products Bio Products Beverages Probiotics/Enzymes Products Physical Virtual Customers Channels/ Customers 、 、 、 Traditional Pharmacy TV Shopping Channel Direct selling companies Modern Retail、Cosmed、 Online Shopping(e.g. momo)、 Multi-level marketing companies、 Watsons、Post Office. etc Grape King e-Shop Health Food companies、 Pharmaceutical companies

2. Pro-Partner

Pro-Partner Overview

4 key numbers of Pro-Partner

• Largest local direct selling company in Taiwan based on revenue.

• 1 •

• One of the fastest growing direct selling companies in Taiwan (15% sales CAGR from 2008 to 2020)

3

• Second largest overall direct selling company in Taiwan. (2021 market share: 8%)

43

• 43 Health and Beauty products for the whole family

41

• No. 41 in the worldwide direct selling company rankings for 2021

(Source: 2021 DSN Global 100- based on 2020 revenues)

Growing sales and members#

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220,000
(+2% YoY)
210,900
157,262
95,802
46,689
8,000 m
7,429 m
6,708 m
3,690 m
1,960 m
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Sales (NT$)

Bai Yi Jie (toothpaste)

• Grape King’s Lactobacillus pentosus GK4

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→ Inhibit 13 kinds of oral bacteria & Prevent cavities

• Xylitol

→ Anti-plaque

• Sodium fluoride

→ Prevent enamel erosion

• Mint

→ Sooth teeth

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Hi Spray (oral spray)

• Grape King’s • Sorbitol Lactobacillus → Anti-plaque pentosus GK4 • Thyme

→ Inhibit 13 kinds of → Freshen breath oral bacteria & Prevent cavities • Mint

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→ Sooth teeth

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30

How is Pro-Partner different from other direct selling companies?

Products purchase		Products’ uniqueness		Support		Training		Compensation
No minimum purchase requirement. No inventory pressure. (Members buy products directly from the company)		Higher entry barrier for Products (bio- researched and engineered). Symbol of national certifications. Products are mostly manufactured in- house rather than outsourced.		Managed by Grape King, a well-respected health food company in Taiwan, so we can offer dedicated customer service and support.		All the trainings and venues are held by the company, so we can have consistent training quality. All the trainings are free to members.		Transparent compensation structure. All purchases can be accumulated. All compensation are paid to sales contribution and directly to the members by the company.

3. Grape King Shanghai

Grape King Shanghai Overview

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• Established in 1994, Grape King Shanghai was initially targeted as the production base for Grape King’s own brand products in China.

• A change in strategy steered by the new management to an OEM/ODM model has reversed several years of losses and turned the operation profitable.

• We see tremendous growth potential for Grape King Shanghai as it continues to acquire more ODM clients locally in China.

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Grape King Shanghai operating profit (Rmb m)
80
60
40
20
0
-20
-40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Product series

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General foods PKL Health Beauty Energy supplements drinks supplements drinks drink

• *In 2019, the overall demand was impacted by China government’s tightening on direct-selling and healthcare industry & in 2020 the China consumption recovery has been softer-than-expected under the pandemic.

Our Goals and Strategies

We have identified our R&D focus fitting in the megatrends

Probiotics

Medicinal Mushrooms

Lower risks factor (Antrodia)

Memory Improvement (Lionsmane)

Personal Hygiene Respiratory Health/Anti-Bacterial

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Eye Health (Cordyceps Sobolifera) Sleeping Quality (Armillaria mellea)

Weight Management

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Mood Improvement
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85% of Pro-Partner orders were placed online in 2021 vs. 9% in 2018

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50% of Grape King’s marketing spend are in Digital in 2021

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Leading to strong growth from our virtual channels

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Grape King Taiwan’s revenue from virtual channels grew by 21% in 1-3Q21 and accounted ~50%* of total revenue.

*Not including ODM revenue

Growing on Giant’s Shoulder

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Channels & Distribution Collaboration

• Physical Channels：Taiwan~6,000 stores/ China~ 400 stores / Southeast Asia ~ 3,000 stores

• (including convenience stores, pharmacies, department stores) • Virtual Channels

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Production Resource
Collaboration
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R&D Collaboration

• New adjacencies (such as F&B) expansion

• • R&D collaboration, joint product development • Products agency

• Taiwan/overseas mutual OEM production

• Food safety enhancement

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Thank You

For more information, please visit our company website at www.grapeking.com.tw

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