GS — Interim / Quarterly Report 2022

Nov 25, 2022

G-SHANK

3Q, 2022 Earnings Conference

www.gs.com.tw Nov. 25, 2022

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G-SHANK

Disclaimer

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This presentation is based on the information obtained from G-Shank Enterprise, included Business Forecasts, Development and Financial status. Please note that while the has used its best efforts to make sure the and company accuracy comprehensiveness of this presentation, all information shall be subject to the public financial information submitted to government authorities by the company. G-Shank is not for the or that occur in responsible respective update changes adjustments might the near future.

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This document contain statements” and non-historical may “forward-looking any information, including the company’s operating strategies, operating plans and future prospects, are forward-looking statements based on our assumptions about future operations and uncertain factors such as government regulations, economic changes, market trend... etc., so actual results may differ.

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This document shall not be considered as an inducement to or sell securities or buy other financial products.

About G-SANK 1

Agenda

Operational 2 Performance Current Status 3 &Prospect

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About G-SHANK

4

G-SHANK

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Who We Are?

(TWSE: 2476)

Chairman: Yu-Huang Lin CEO: Ying-Shou Lin Est. 1973

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Capital: $1.89B (NTD)

(Worldwide) 2,715 Employees 787 (TW)

Group Revenue Percentage

Parts 94%

Die 4%

Merchandise 1% (Transaction within the group)

THE LARGEST COMPANY DEDICATED TO PRECISION STAMPINGS IN ASIA

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Toolings 1%

*2022/1~9 Group Data

G-SHANK

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Where We Are?

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Tianjin
Suzhou
Qingdao
Wuhan
Shanghai
G-Long (Dongguan)
Shenzhen Japan
(Tokyo) G-SHANK AMERICA (TX)
G-Bao (Shenzhen)
Mexico
Xiamen
World
Thailand Headquarters
(Taoyuan, Taiwan)
& Taiwan Bade Branch
Malaysia
Indonesia
Global
1 Headquarters
Service
14 Branch/ Factory
2 Office
17
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G-SHANK

How Did We Start?

Stam in p g

Vertical Integration

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Industrial
&Others
3C
75
15%
%
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1973 Founded

2009 Electroplating Lines Est. 2010 Est. Insert-Molding Dept. 2012 Est. Japan Branch

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Others
10%
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1980 Est. Design Center 1984 Est. 6S Policy

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1984 Est. 6S Policy
1989 Est. Malaysia Branch
1994 Est. G-Shank Mexico & USA
1996 ISO 9001 Certified
1996 Est. Shanghai Branch
3C
1998 Listed in Over-The-Counter
90%
(The First Company in Metal
Stamping Industry in TW)
1998 Est. Thailand & Taiwan Bade Branches
1973 2000
Industrial & Others
10%
Automotive
10%
80%
3C
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2012 Est. Wuhan Branch

2012 Record High Die PO (209 sets/mo) 2012 Stamping, Electroplating, InsertMolding, Automatic Assembly Vertical Integration

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10%
Automotive
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2018 Est. Automotive Market Div. Est. TPS &lean production

1998 Est. Thailand & Taiwan Bade Branches

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54% 3C
2022
1~9
28% 18%
Automotive
Industrial
&Others
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2010
Global Growth
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2000 Est. Shanghai II Branch 2001 Listed in TWSE (2476) 2001 Est. Dongguan, Xiamen, Suzhou, Qingdao Branches 2002 Est. Indonesia Branch 2003 Est. Tianjin Branch 2005 ISO14001& ISO/TS16949 Certified 2006 Est. Shenzhen I Branch 2007 Est. Shenzhen II Branch

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G-SHANK

One Stop Solution

Stamping Insert-molding

Die Design

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x110 sets (Monthly Capacity)

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x37 (35 -110T)

x745 (10 - 400T)

• Servo Feeds

• AOI Machine Inspection

• 3D/CAD Design

• Design Database System

• AOI Machine Inspection

• Vertical, Horizontal Insert-molding Machine

Automated Assembly

Machining

Electroplating

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x543

4 Machines 8 Lines(Hoop)

• Vertical CNC Machine

• Sawing Machine

• Jig Grinder

• E.D.M

• R J 45 Connector

• Profile Grinder

• Drilling E.D.M

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Au (Gold) Sn (Tin)
Ni (Nickel)
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• D-SUB Connector

• Wire E.D.M

• Precision E.D.M

• Automatic Laser Welding Machine

• Grinder • Horizontal Profile • Lathe Grinder

• Automatic Silver Brazing Assembly

• Automotive Safety Device Assembly

• Milling Machine

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G-SHANK

One Stop Solution Legend

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Metal Stamping Gold Plastic Package Test
Assembly
Materials Parts Electroplating Insertion Tool
G-SHANK
Automated
Raw Material Stamping Electroplating Insert-molding Finished
Assembly
Products
Automated
Plastic Electroplating Insert-molding
Stamping Die Assembly
Materials Line Machine
Machine
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9

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G-SHANK

Total Sales by Region (based on customer’s region)

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49% 48%
EURO
43% 43% JP
25%
43%
2019 2020 2021 2022
U.S.
9% 1~9
27% 27%
26%
25% TW
18%
11%
8% 9% 9%
2019 2020 2021 2022
1~9
15% 18%
10%
8%
2019 2020 2021 2022
1~9 OTHS
5%
2019 2020 2021 2022
1~9
7%
6% 6%
5%
2019 2020 2021 2022
2022/1~9 Group Data
1~9
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*2022/1~9 Group Data

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G-SHANK

What Do We Do?

18% Automotive

• Regulators

• Transmission Coolers

• GPS/ USB/ Charger Connectors

• Airbag & Seat Belt Connectors

• Air Conditioning

• Fuses

• Button Adaptors

• TPMS

• Headlight Parts

• Anti-theft Systems

• Automotive Camera Module

28% Industrial &Others

• Sensors

• Relays

• No Fuse Breakers/ Switches

• PLC

• Timers

• Blood Sugar Testers

• Scalpels

• Semiconductor Lead Frames

• Furniture Parts

• Electronic Cigarettes

2020: 17% 2021: 16% 2020: 31% 2021: 32%

13% Communications

2020:10% •Mobile Phones 2021: 11% •ADSL •Internet Related 2020: 17% 20% PC/NB 2021: 17% • I/O • Type C • USB • HDMI • FPC/FFC • Memory Card • Board-to-board 2020: 25% 21% Consumer 2021: 24% Electronics

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• •Appliances

• •Digital Cameras

• •Gaming Parts

• •Switches

• •Video Recorders

• •Jewelry industry

*2022/1~9 Group Data

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Operational Performance

12

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G-SHANK

Group Revenue

Net Profits after Tax

(Attributable to owners of parent)

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Other Regions China Taiwan

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64.2
34.3% 7.13
19.45 6.48
51.27
49.95
50.62
▼ 0.31% ▼ 2.57% 47.80 6.12%
▼ 4.3% 55.7%
11.97 12.81 17.72
12.49
▼0.3%
36.51 38%
7.0% 30.5%
▼2.5%
30.55
28.71
28.92 125.6%
26.62 3.32
26.3% 2.91 2.87
▼1.0% ▼6.0%
0.7% ▼4.8%
14.1%
▼23.6%
▼13.3%
8.75 8.43 8.24
6.28
2.2% 6.38
▼3.7% 29.0%
2.17%
▼24.2%
2018 2019 2020 2021 2022 1~9 2018 2019 2020 2021 2022 1~9
NT$ billion %：YoY
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(2018~2021 audited; 2022/1~9 reviewed)

13

Composite Income Sheets (reviewed) NTD$ Thousand Items 2022/1~9 2021/1~9 Growth% Sales revenue 5,062,054 4,770,310 6.1% Operating costs (3,582,908) (3,352,318) 6.9% Gross Profit 1,479,146 1,417,992 4.3% Gross Profit% 29.2% 29.7% -0.5ppts Operating Expense (682,851) (647,770) 5.4% Net operating income 796,748 771,186 3.3% Gains from Operations % 15.7% 16.2% -0.5ppts Non-operating income and expenses 283,614 55,862 407.7% Revaluation Gains (Losses) on Financial Assets (56,485) (16,566) -241.0% Foreign exchange gain (loss) 213,132 (16,853) 1364.7% Income before Tax 1,080,362 827,048 30.6% Tax expense (income) (273,500) (223,128) 22.6% Income tax % 25.3% 27.0% -1.7ppts Profit (loss) 806,862 603,920 33.6% Profit (loss), attributable to owners of parent 712,635 516,478 38.0% Consolidated Net Income Attributable to Parent Company % 14.1% 10.8% +3.3ppts

Basic earnings per share 3.77 2.79 35.1%

(reviewed) NTD$ Thousand

Balance Sheets

Items	2022/9/30 2021/9/30
	Amount % Amount %
Cash & Marketable Securities	4,610,555 48.2% 4,220,733 48.0%
Notes Receivable and Net Accounts receivable	1,728,478 18.1% 1,562,930 17.8%
Current Inventories	1,176,714 12.3% 1,032,719 11.7%
Long-term Investments	407,599 4.3% 364,356 4.1%
Property, Plant and Equipment	1,227,867 12.8% 1,196,360 13.6%
Right-of-use Asset	258,590 2.7% 134,761 1.5%
Total Assets	9,562,757 100.0% 8,795,247 100.0%
Total Liabilities	3,249,748 34.0% 3,251,481 37.0%
Total Equity Attributable to Owners of Parent	5,663,156 59.2% 4,963,212 56.4%
Non-controlling Interests	649,853 6.8% 580,554 6.6%
Total Equity	6,313,009 66.0% 5,543,766 63.0%
Book Value Per Share	29.8 26.4

Cash Flow		(reviewed) NTD$ Thousand
Items	2022/1~9	2021/1~9
Cash and cash equivalents at beginning of period	3,232,253	3,134,587
Net cash flows from operating activities	968,090	132,493
Capital expenditures	(120,386)	(137,529)
Net cash flows from (used in) investing activities	22,132	44,644
Net cash flows from (used in) financing activities	(620,984)	(248,914)
Effect of exchange rate changes on cash and cash equivalents	239,268	(68,244)
Cash and cash equivalents at end of period	3,720,373	2,857,037

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Current Status &Prospect

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G-SHANK

The Challenges and Opportunities of the Future

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Labor Shortage

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China–United States Trade War &Russo-Ukrainian War

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Transfer Supply Chain

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Environment Social Governance

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G-SHANK

Process Optimization: Automated Production On-line Operation

Before Improvement: Manual Operation

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After Improvement: Automated Production

Reduce operating personnel 6 people → 2people

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Shape
Shear
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Incision Rivet Finished
Bend Tapping Bend
Shear Processing Product
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G-SHANK Entered the Jewelry Industry

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G-SHANK entered the jewelry industry in 2021. The jewelry chain adopts a self-developed production method, which has innovative production advantages of low cost and high production capacity compared with general casting production.

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The jewelry setting of the chain is made of silver, and the production size can reach 1.56mm X 1.56mm, and the distance between each setting is controlled at 0.2mm, and the tolerance can be controlled within 0.02mm. The production is delicate and precise, ensuring multiple jewelry chain can be welded side by side, showing the designer's patterns and ingenuity.

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Thank You

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For any financial information of G-SHANK, welcome to G-SHANK investors overview, http://www.gshank.info/home/investors/ or MOPS (code: 2476) https://mops.twse.com.tw/mops/web/index

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