HONMYUE — Call Transcript 2023

Dec 13, 2023

． Honmyue Enterprise Co.,LTD (1474) 2023 Investor Conference

. Weaving a better world with you. Together

2023/12/13 Taiwan Stock Exchange

Disclaimer

• The information published in this conference is for our company use

• only，including Operating Achievements 、Financial Status & Business development.

• Our Company never announce Financial Forecast ，and the opinions of

• Company’s financial、Business 、Q&A and Business development might be slightly different in the future. The causes of the differences could be varied from market、fluctuation of price、competitions、 Global economics、Fluctuation of International Exchange、bargain of suppliers, to Risk factors that could not be controlled .

• This conference represents our company’s view of the future. We will

• not be responsible for updating any changes or adjustments.

Agenda

• Company History

• Financial Statement

• New development & Marketing

• Q&A

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Company Introduction
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Company information

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Milestone Capital EPS
Found in
：
2020 15.21
1970
NTD
：
2021 15.93
Listed in
1.298
1999 2022 : 16.28
billion
:
2023 to Sep.
IPO in 2000
15.27
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Certification
1998.02：ISO9002
2008.05：ISO14001
2010.11：BLUE SIGN
2015.08：ISO9001
2020.09：GRS
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Textile Supply Chain

Honmyue

Paper Manufacturing Petrochemical Industry Oil & EG、PTA、 AM、CPL Synthetic Fiber Manufacturi ng Natural Fiber Manufacturing Synthetic Fiber (Upper stream)	Textured Yarn Industry Yarn Spinning Mills Textiles Mills Industry Knitted Weaving Industry Fabric Mills Industry	Medical Fabric department (Found in 2012) Home Textile Apparel Textile Leather & Appare PU&PVC Synthetic Leather	Medical Fabric department (Found in 2012)

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Production Site

Taiwan：

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• Chenghua (HQ)

  • Shengang/Hemei/Chuansing (Weaving)

• Honmyue Taipei Office

• Nuwa Enterprise Co., LTD.

• Yu Zhan Startup Co.,LTD(Dying)

• China：

• Honmyue Textile(Zhejiang)Co.,LTD.

• Jiujiang DeYu Co., Ltd. (Planning)

• Vietnam：

• Grand and Great Textile.(Joint Venture)

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Product Application

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Industrial Fabrics
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Apparel Fabrics Furnishing Fabrics
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Medical
Textiles
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Industrial Fabric

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Apparel Fabric

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Furnishing Fabric

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Hurricane curtain

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Medical Textile

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consolidated income statement

unit：Thousand NT dollars

Item	2023 Jan.~Sep.	2022 Jan.~Sep.	Difference	Difference
			Amount	%
Net Revenue	1,922,280	2,500,584	(578,304)	(23%)
Operating Cost	1,772,607	2,169,541	(396,934)	(18%)
Grossprofit	149,673	331,043	(181,370)	(55%)
Gross margin	8%	13%	(5%)
Income From Operations(Loss)	(69,547)	65,062	(134,609)	(207%)
Net Income(Loss)	(78,041)	87,389	(165,430)	(189%)
EPS(In NT$ dollars)	(0.61)	0.64	(1.24)

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Revenue

Consolidated Revenue

unit ： Thousand NT dollars

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000	0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000	2022 Jan.~Nov. 2,963,752 2023 Jan.~Nov. 2,422,644	2022 Jan.~Nov. 2,963,752 2023 Jan.~Nov. 2,422,644	2022 Jan.~Nov. 2,963,752 2023 Jan.~Nov. 2,422,644	2022 Jan.~Nov. 2,963,752 2023 Jan.~Nov. 2,422,644	2022 Jan.~Nov. 2,963,752 2023 Jan.~Nov. 2,422,644
					2,963,752
			2023 Jan.~Nov.
			2,422,644
Year	2023 Jan.~Nov.			2022 Jan.~Nov.	Difference
					Amount	In %
Revenue	2,422,644			2,963,752	(541,108)	(18.26%)

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Product Portfolio(Taiwan)

2023.01~2023.09 unit：Thousand NT dollars

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Medical 3% OEM 4%
OEM 4% Yarn 0%
(Gross profit 21%) (Gross profit 1%)
Yarn 0% (Gross profit 1%) (Gross profit 6%)
Furnishing 7% (Gross profit 6%)
(Gross profit 32%) Item Revenue
Finishing cloth 29%
Apparel 15% Industry 1,018,572 Item Revenue
(Gross profit 21%)
(Gross profit 9%) Apparel 223,425 Greige 67%
Industry 71% Greige 966,536
Furnishing 95,558 (Gross profit 6%)
(Gross profit 9%) Finishing
413,807
Medical 42,788 cloth
OEM 56,599 OEM 56,599
Yarn 4,940 Yarn 4,940
工業 成衣 傢飾 醫療 代工 紗 Total 1,441,882 胚布 成品布 代工 紗 Total 1,441,882
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Asia(other)
Other 8%
0%
Sales area USA 7% Export
Item Revenue
Canada 4%
Export 35% China 291,511
ARF 22%
ARF 107,940
China 59%
Import 65% Item Revenue Canada 21,853
USA 36,433
Import 942,812
Asia(other)
Export 499,070
other 41,333
中國(含香港) 東協六國 加拿大
內銷 外銷 Total 1,441,882 美國 亞洲(其他) 其他 17 Total 499,070 1
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Product portfolio and gorss profit

(Consolidated Financial )

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OEM 4%
Medical 3%
(Gross profit-8%) Yarn 0%
(Gross profit 21%)
(Gross profit 7%)
Furnishing 5%
(Gross profit 32%) Item Revenue
Industry 1,455,426
Apparel 12%
(Gross profit 9%) Industry 76% Apparel 227,673
(Gross profit 7%) Furnishing 95,573
Medical 50,822
OEM 86,769
Yarn 6,017
工業 成衣 傢飾 醫療 代工 紗 Total 1,922,280
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Sales area
Other 48%
Taiwan 52%
台灣 其他
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Item Revenue
Taiwan 1,003,284
other 918,996
Total 1,922,280
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2023.01~2023.09

unit：Thousand NT dollars

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OEM 5% Yarn 0%
(Gross profit -8%) (Gross profit 7%)
Finishing cloth29%
(Gross profit 20%) Greige 66%
(Gross profit 4%)
胚布 成品布 代工 紗
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Asia(other) 1%
USA 4%
Other 5%
Canada 2%
ARF 16%
China 72%
中國(含香港) 東協六國 加拿大
美國 亞洲(其他) 其他
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Item	Revenue
Greige	1,263,968
Finishing cloth	565,526
OEM	86,769
Yarn	6,017
Total	1,922,280

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Export
Item Revenue
China 658,812
ARF 148,148
Canada 21,853
USA 37,415
Asia(other) 11,432
other 41,336
18 Total 918,996 1
8
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unit：Thousand NT dollars

Monthly consolidated net revenue

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280,000
270,000
260,000
250,000
240,000
230,000
220,000
210,000
200,000
190,000
180,000
170,000
160,000
150,000
140,000
112/1 112/2 112/3 112/4 112/5 112/6 112/7 112/8 112/9 112/10 112/11
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New Development & Marketing promotion

Senior Manager Mr.Yeh

New development

Product research and development focuses on environmental protection and sustainability

RECYCLED RECYCLABLE (mono-material) #recycle materials #Easy to recycle (mono material)

RESOURCE REDUCTION

#reduce resource consumption

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RECYCLED Material from Different Sources

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Honmyue's Products with Recycled Content

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Post-consumer

Land & Ocean Waste

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From land & ocean PET bottles.

FROM TRASH TO YARN, FROM YARN TO FABRIC

Bottle to Textile

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GIVING POLYESTER NEW LIFE FROM DAILY TRASH. NüCycle™ Polyester is made from

post-consumer waste.

The waste material comes from used plastic bottles, keeping plastics from going to landfill and ocean.

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The Progress of Polyester Recycling Sources

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Pre- & Post-consumer

Land Waste

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From textile production waste.

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Textile to Textile
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Utilizing textile production waste, designed to align with the principles of the circular economy.

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Crafted from pre-consumer waste materials.

FENC rTEX yarn, a distinctive blend of textile scraps and polyester, provides a unique textural foundation.

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Applied to bag materials and equipment products

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Used in home decoration roller blind products

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Post-industrial Air Waste

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From steel factories waste gas.

Capture it! If you can’t Escape!

Waste to Worth

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Crafted from post-industrial materials.

Cutting greenhouse gas emissions by 16%

Using LanZaTech ’s circular manufacturing process to recycle steel factory exhaust emissions into low-carbon polyester fiber material.

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Pre-consumer

Land Waste

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From textile production waste.

FROM WASTE TO YARN, FROM YARN TO FABRIC

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GIVING NYLON NEW LIFE FROM PRODUCTION SCRAP.

Textile to Textile

NüCycle™ Nylon is made from

. pre-consumer waste

The waste material comes from industrial processes – scraps of material in factory (yarn factories or our weaving mills) that would have otherwise been landfilled.

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Ocean Waste

Post-consumer

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From ocean fishing nets.

Production Process

Not only does it help eliminate marine debris, but it also reduces the use of petroleum-based raw materials.

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Fishing Net to Textile

From post-consumer waste .

Responsible production process Fabric made with Subeco nylon recycle yarn is made by FCFC to collaborate with King Chou Marine Technology Co., Taiwan’s biggest commercial fishing net producer with full traceability along the supply chain.

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Land Waste

Pre- & Post-consumer

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From waster interlayer film in laminated glass.

New Sustainable Outdoor Mesh Fabric

Raw Material

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Recycled PVB Sources

• From post-consumer recycled windshields of discarded vehicles

• From pre-consumer recycled scrap from safety glass factories

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Outdoor Furniture 41
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RECYCLABLE

(mono-material)

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Reclaimed fibers from post-industrial and postconsumer sources, paired with the same-material coating over lamination, create a single-material fabric for complete recycling, supporting circular economy . principles while still achieving the same functionality Recycled Polyester PET coating The upper fabric from pre- & post-consumer waste.

Recycled Nylon Nylon membrane The upper fabric from pre-consumer waste.

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Design No: P1679-1 Content: 59% MORPHLON 41% RE-PET Description: T150D*T20’S Finishing: C0 WR+PET Coating(1500mm)

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Design No: P1756

Content: 55% RE-PET 45% MORPHLON Description: T300D*T30’S Finishing: C0 WR+PET Coating(1500mm)

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Design No: P1757

Content: 62% RE-PET 38% MORPHLON Description: T300D*T20’S Finishing: C0 WR+PET Coating(1500mm)

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Design No: P1658-2

Content: 100% Solution Dyed Polyester Description: T600D*T600D Finishing: C0 WR+PET Coating(1500mm)

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RESOURCE REDUCTION

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NüSolution™

Our solution for a sustainable Earth: Save water, save energy, and reduce pollution.

NüPalette HT™ Made from 100% high-tenacity solution-dyed yarn, with a basic CMYK color palette to create exceptionally vivid fabrics

We aim to create more sustainable, eco-friendly products without compromising performance and aesthetics.

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NO WATER IN DYEING, EVEN LESS CHEMICAL IN SPINNING

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NüSolution™ have colors added at the very start – pigment is mixed with nylon or polyester pellets prior to spinning into yarn, that

eliminates the need for baths of dye

– slashing water consumption, one of the fabric industry’s most wasteful resources.

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Nusolution Mix tone

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NüPalette HT

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Innovation: The true colors from CMYK The green path of performance fabric

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Features

NüPalette HT is the kit we launched to expedite the development process of solution dye fabric.

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• Quick Color Matching

• Ready Stock Sampling

• Competitive MOQ

Target application

• Outdoor Equipment

• Mountaineering Backpack

• Climbing Backpack

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Content: 100% NüPalette HT Recycled Polyester Description: T300D*T300D Finishing: C0+WR+PU

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Content: 100% NüPalette HT Recycled Polyester Description: T300D*T300D Finishing: C0+WR+PU

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View & Compare Material Scores using

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Life Cycle Impact Assessment result:

Polyester 600D

versus.

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-38 -27 -45 -51 -32
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600D
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Marketing promotion

Marketing Promotion

• List of exhibition activities in 2023

	Exhibition Name	Date	Place
Join	Performance Days-Spring	3/15 – 3/16	Munich Germany
visit	Techtextil North American	5/10 - 5/12	Atlanta, USA
Join	Spoga+gafa	6/18 - 6/20	Cologne, Germany
	Intertextile	8/28 - 8/30	Shanghai,China

Marketing Promotion

• List of exhibition activities in 2023

	Exhibition Name	Date	Place
參	Performance Days-Fall	10/4–10/5	Munich Germany
	TITAS	10/17 – 10/19	Taipei Taiwan
觀	A+A Düsseldorf	10/24 – 10/27	Dusseldorf, Germany
參	Advanced Textiles Expo	11/1 – 11/3	Orlando, USA

Marketing Promotion

List of exhibition activities in 2023

	Exhibition Name	Date	Place
商 洽 會 / 拓 銷 團	「Trade Association-Small Motorized Sales Expansion Group」	2/M – 4/M	New York District
	「Trade Association-Small Motorized Sales Expansion Group」	4/M – 7/M	Munich District
	TITAS Spring Sourcing Fair	5/15 – 5/16	Taipei Garden Hotel
	North American Safety Protection Sales Group	9/18 – 9/22	East and West Coast of the United States
	TITAS Taipei Textile Exhibition	10/17 – 10/19	Nangang Exhibition Hall

Marketing Promotion

• – Physical Exhibition ：6/18 20 Cologne , Germany Outdoor Recreation and Gardening Exhibition (Spoga+gafa) Spoga+gafa was first held in 1973 and has been a leader in global gardening and outdoor leisure B2B exhibitions for half a century. In 2023, there were more than 1,800 exhibitors from 58 countries, attracting more than 30,000 professional buyers from 122 countries around the world. Visit and purchase; we launch an innovative and sustainable mesh brand-ENVIVE that does not contain PVC and complies with EU REACH environmental protection standards for outdoor leisure furniture, and jointly participate in this international green feast

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Marketing Promotion

• Physical Exhibition ：10/4 – 5 fu nctional Textiles Autumn Exhibition in Munich, Germany (Performance Days-Fall) Performance Days is an international benchmark professional exhibition for functional textiles. It is held twice a year during the purchasing period of international brand buyers. This exhibition does not have national exhibition areas, and each exhibitor is in the form of a standard booth. There is also an image area and seminar activities. In addition, the conference strictly selects outstanding suppliers with strong development capabilities in the textile industry chain. It is also a stage for Taiwanese manufacturers of sustainable and environmentally friendly functional textiles to shine. A total of 436 manufacturers participated in the two-day exhibition, attracting more than 2,600 people. Professional buyers visit.

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Marketing Promotion

• –

• Physical Exhibition ：10/17 19 TITAS TAIPEI TEXTILE (TITAS)

Taiwan's textile industry accounts for 70% of global production of functional textiles. It not only plays a key role in the global supply chain, but is also an important partner of international sports brands. TITAS is Taiwan's only professional textile exhibition, displaying diverse innovation and Sustainable textiles. This year's exhibition focused on the three core themes of "sustainable environmental protection, functional application, and smart manufacturing." According to statistics from the Textile Industry Association, more than 35,000 buyers came to visit and purchase during the three-day exhibition, and future business opportunities are estimated to be approximately US$47 million.

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Marketing Promotion

• –

• Physical Exhibition ：11/1 3 Advance texiltes Exhibition in Orlando, USD

(Advanced Textile Expo) This exhibition, formerly known as IFAI Expo, has a long history of more than 100 years. It is deeply involved in the field of industrial textiles in the United States and is highly professional. It is one of the largest industrial textile exhibitions in North America. Advanced Textile Expo and the Sun Shading Expo held at the same time and at the same place gather a variety of industrial, functional and sunshade-related advanced textiles. It not only provides a stage for exhibitions, but also allows people to learn about the latest trends and technologies. It is worthy of further expansion by Taiwanese industries. Discover unlimited business opportunities.

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HONMYUE(1474)

Weaving a better world with you. Together

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