HE — Interim / Quarterly Report 2019

Nov 25, 2019

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HUA ENG WIRE & CABLE CO., LTD Q3 Investor Conference November 13, 2019

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Disclaimer

� The presentation of information in this briefing is based on the Company's assumption of future operations that are forward-looking and is subject to risks and uncertainties and the results of actual operations may differ materially from those of the above-mentioned forward-looking statements.

• Except as required by law, the Company undertakes no obligation to update any forwardlooking statements, whether as a result of new information, future events or otherwise.

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Agenda

• Operating status in recent years P4

• � Profits in Q3 2019 P5

• � Sales Market P6~P8 � CSR P9~12

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Operating status in recent years

Statements of Comprehensive Income

unit：NT$M 2016 2017 2018 Net operatingrevenues 7,084 8,299 8,560 Operatingincome(loss) (7) 361 157 Netincome(loss) (11) 616 (561) stockholders ofthe parent 98 440 (618) Otherequity (109) 176 57 Net income(loss)attributable to	unit：NT$M 2016 2017 2018 Net operatingrevenues 7,084 8,299 8,560 Operatingincome(loss) (7) 361 157 Netincome(loss) (11) 616 (561) stockholders ofthe parent 98 440 (618) Otherequity (109) 176 57 Net income(loss)attributable to	unit：NT$M 2016 2017 2018 Net operatingrevenues 7,084 8,299 8,560 Operatingincome(loss) (7) 361 157 Netincome(loss) (11) 616 (561) stockholders ofthe parent 98 440 (618) Otherequity (109) 176 57 Net income(loss)attributable to	unit：NT$M 2016 2017 2018 Net operatingrevenues 7,084 8,299 8,560 Operatingincome(loss) (7) 361 157 Netincome(loss) (11) 616 (561) stockholders ofthe parent 98 440 (618) Otherequity (109) 176 57 Net income(loss)attributable to	(100) (50) 0 50 100 150 200 250 300 350 2016 2017 2018 Income(loss) by segment Copper wire Wire & cable Copper brass Other (unit：NT$M) 2016-2018
	2016	2017	2018
Net operatingrevenues	7,084	8,299	8,560
Operatingincome(loss)	(7)	361	157
Netincome(loss) (11) 616 (561)
Net income(loss)attributable to
stockholders ofthe parent	98	440	(618)
Otherequity	(109)	176	57

• Sales volume and profits from manufacturing business units in 2018 ： 1.Copper wire business

2.Wire & cable business

3.Construction orders

• Profits of investments ：

1.Equity method investment includes First Copper etc.

2.Other investments include China Ecotek Corp., Wafer Works Corp., Co-Tech Copper Foil Corp., Asia Pacific Telecom Co., Bionime 4 Corp., Pixon Tech. Corp.,

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Operating Status in Q3 2019

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Copper wire
Statements of Comprehensive Income (unit：NT$M) Income by segment Wire & cableCopper brass
unit：NT$M Other
Q1~Q3
200
Net operating revenues 5,911
150
Operating income(loss) (69) 100
Net income(loss) 193 50
Net income(loss) attributable to 0
stockholders of the parent 262 (50)
Other equity (69) (100) Q1~Q3
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• The impact of US-China tariff wall results global economic depression, commodity demand shrinking

• LME copper price declining

• Profits of power cable decrease due to delivering construction orders delay

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~
2015 Jan. 2019 Oct. LME Monthly Avg. Price and Annual Average
US/噸 Price Curve
10500
9500
8500
7500
107年度
6500
108年度
104年度
5500
106年度
105年度
4500
3500
2500
1 月 2 月 3 月 4 月 5 月 6 月 7 月 8 月 9 月 10 月 11 月 12 月 均價
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Sales Market

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� Copper Rod

• Due to China-US trade tariffs, London copper price LME continued to fall, strengthen inventory control to stabilize profitability

• Improve the quality of oxygen-free copper and special size diameter, supply to Auto Market and Electronic Market. Expand the oversea market share.

• � Power Cable

• High-Voltage and Ultra-High-Voltage cable orders continue to expand.

• Strengthening the advantages of medium voltage cable products to expand offshore wind power and solar market.

• Increase orders of instrumented rubber cable for thermal power plants.

• Compliance with environmental protection ROHS PVC wire and LSNH (low smoke non-halogen) cable in public works.

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� Communication Copper Cable and Fiber Optic Cable

• Stable the source of optical fiber, improve production capacity, and apply to internet 5G transport network

• Improve communication production equipment, supply copper cables and production for telecommunications companies, and promote composite signal control wire for railway construction and petrochemical industry.

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14.9%
Copper rod
5.8% MV Power Cable/HV Power
Cable
33.0%
LV Power Cable
2.8%
Communication Copper Cable
16.5%
Fiber Optic Cable
27.0% Other Projects
Product sales portfolio
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Corporate Social Responsibility Report (CSR)

� Our management team continues to be an honest and transparent attitude to review and expose the effectiveness of our CSR work. The fourth CSR report has been compiled since 2016. Report to the stakeholders about the company's economic environmental and social efforts.

• In the year of 2019 Hua Eng will operate with integrity and employee care, in pursuit of operational objectives stabilize and profits at the same time, doing well on CSR, Promote environmental sustainability goals

• � Please click here for details. ： http://www.hegroup.com.tw/

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HE 2019 CSR Executive Work Task (Energy Saving)

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Replace fuel-fired boiler High efficiency inverter Greening around the plant Zero pollution discharge air compressor Society payback (In Process) Energy saving(Completed) (Completed) 10

HE 2019 CSR Executive Work Task (Employee Care)

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Family day activities Employee Relations (Completed)

First aid training Employee care (Completed) 11

HE 2019 CSR Executive Work Task 、 (Praise for excellent partners Township Payback)

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On behalf of the company Hua Eng, the factory director Mr. Chen donated tables to the Gaonanli Community Activity Center in Renwu District to promote the relationship 12 between the neighbors.

Hua Eng President Wang issued a thankyou trophy to the cooperative manufacturer President Ke, who won the 2019th public project quality award.