Hunya — Annual Report 2021

Dec 22, 2021

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HUNYA FOODS CO.,LTD.

2021.12.22

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Safe Harbor Notice

• The statements of our financial figures are presented in accordance with IFRS. All the financial figures have been reviewed by CPAs.

• Except as required by law, we obtain the ownership of the statements. Any unauthorized use is not permitted.

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01 Company Overview 02 Performance and Vision 03 Financial Report 04 Business Outlook for 2022

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01 Company Overview

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Company Brief Introduction

• Founded Date : 1976/06/14

• Listed in TSE : Year 2001

• ：

• Product Industry Food manufacturing

• Paid-up Capital : NT$1.08 Billion

• Employee Amount : Around 654 staffs

• Year 2020 Consolidate Sales : NT$1.64 Billion

• Major Products & Service: Chocolate, Biscuits, Bride Assortment cookies, Moon Cakes and Chocolate Museum (Republic of Chocolate)

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SDG Strategic Blue Print

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Cores & Missions
• For Consumer
Sharing Sweetness and Happiness • For Future Consumers
Trust Enjoy the moment
Inherit Fresh and Positive Energy
（＝From Management Performance）
(Product)
Create a Trusting Image through (Environment)
transparent and trustable management, well
controlled internal management, 100%
Safety Food principle, and a happy working
environment.
• •
For Supplier For Society
Passion
Collaborate and
（＝From Execution and Policy） Inject Positivity
Prosperity
and Love
Linking Hunya company’s passion to social, Relationships
environmental and economical sides as (Supplier Management) (Society)
well as taking actions to create dynamic
values to the people.
Trust
Innovation
（＝From Innovative Performance） Passion
Subverting traditional commercial •
For Employee
promotion techs by thinking of innovative Innovation
Create Energetic and
ways to breakthrough all the challenges
Friendly Working
and extend the company’s market.
Environment
(Employee Caring)
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Create a Trusting Image through transparent and trustable management, well controlled internal management, 100% Safety Food principle, and a happy working environment.

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ESG specific practices and results

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01 02 03
Additives reduction Waste reduction Carbon reduction
Launch clean label Decrease mix plastics Decrease 2% yearly
waste
In 3 product lines Decrease 5.4% in 2020
In 11 products -5.4% in 2020 v.s 2019 v.s 2019
04 05 06
Pollution prevent Renewable energy
Circular economy
investment effect
Increase green power
Waste heat energy Comply with BS 8001
capacity
collection plan Accounted 26.2% power
Account 1.6% of total Awarded BS 8001 supply
investment certificate In solar energy
07 08 09
Friendly workplace Charity Friendly workplace
Local procurement
Enhance job safety Cherish Food project
Environment education collaboration proportion
Reach 87% in 2020
Occupational injury Enterprise charity
(via TWD)
prevention
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CSR awards and certificates

WontheCorporate Social Responsibility
Award for 2 consecutive years

2021、2020 TCSA Taiwan sustainable
corporate award –Catering and food
industry-silver award

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• 3 Clean Labeled production lines

• TQF, ISO14001, ISO22000(HACCP), ISO22000(HACCP), ISO45001, BS8001 certificates

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ISO 17025 Laboratory quality management system ~~obtained international certification~~

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In December 2021, Hunya Quality Assurance Laboratory obtained ISO 17025 certification, representing that the operation and procedures of the laboratory comply with international standards.

It is also a guarantee for consumer food safety.

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fitwel International Certification of Healthy and Friendly Workplace

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Fitwel is the world's leading healthy building certification, dedicated to improving the health and sustainability of people, employees, buildings and communities. The total points are awarded with 1~3 star green building certification. This certification standard is operated by the Center for Active Design established by the former New York Mayor Michael Rubens Bloomberg. And to cooperate with the international authoritative third-party impartial unit UL to develop the international market, not only has international credibility, but also has been included in the U.S. government procurement guidelines.

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2021 Food Flavor Award

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Tree to Bar Flavoured Xiaoman – Oolong tea with plums chocolate Plum Oolong Flavored Chocolate

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• 70% chocolate uses Pingtung Cocoa

• Choose Chiayi salted concentrated non-toxic green plum

• Double independent flavor chocolate design

GLOBAL CHOCOLATE AWARDS

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White Bean to Bar Flavoured Bailu – Chamame with Bisque French Soup with Beans and White Chocolate

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• Freeze dried tea beans

• The outer layer is coated with flavor white chocolate

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Forward Together ‹#›

2021 Food Flavor Award

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SUPERIOR TASTE CERTIFICATION

GLOBAL AWARD

• ITQI Global Sweet snack、snack bar、crackers、chocolate、 confectionery etc.  Global 253 stars  TAIWAN 86 stars  HUNYA 7 stars (Taiwan accounts for 8%/ Global account for 3%)

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Forward Together ‹#›

02 Performance and Vision

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Looking back on 2021 and looking forward to 2022, work together to win the Year of the Tiger

Lookingbackat2021,the77businessachieveda
recordhighinperformancegrowth,Rivonwashitby
Covid-19,andfortunately,theMid-AutumnFestivalwas
growing.Theexportisayearofeliminationofwaste,
mainlyduetochangesinChina’sfoodlaw,Duetothe
riseofthenationaltideandtheincreaseinthecost
ofimportedgoodsbyshippingfee,wehavedecidedto
changethedirectionofresourceinput.Looking
forwardtothenewyear,wewillcontinuetomarknew
milestonesforourproducts.

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77 Business-Turnover hits double-digit rowth g

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Theoverallsalesin2021,aidedbyFestiveGiftBox、newproductsandOEMs,
willincreasesalesby15.5%overthesameperiodandsetanewrecordof77
turnoverinrecentyears.

Thepartofchannelwasaffectedbychangesinconsumptionpatterns,with
supermarketchainsandECsincreasing.Onthecontrary,thesaleschannelswere
affected.Conveniencechannelssawthelargestincreaseduetotheimpactofthe
epidemicandtheweakestincrease.

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77 Business-New product categories and diversified customer base operations boost market share

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 ThechocolatePingtungseriesCocoa cross-brandis petty  New brand Crisp Plus+ enters the  In response to different consumer groups and
popular, supporting the salty snack market. consumer trends, develop new products to drive the
sustainable development of growth of major brands
small farmers in Pingtung.
Pingtung Cocoa Festival
in 2021
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Rivon business performance in 2021

Overall performance increased by 3.03%over the same period.

The epidemic is severe, and festive souvenirs emerge suddenly.

• “A beautiful golden year, a happy month." The performance of the Spring Festival & Mid-Autumn Festival has grown by 50%, and ESG of the pineapple fiber gift box has been received favourable comments.

• "Handmade Rolling Heart" French Cream Cigar Roll, accurate marketing, stimulating conversion rate.

• "Beauty is worth the wait" French handmade dakwaz, classic method, promotion in different field.

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Digital transformation strategy im lementation results in 2022 p

• Hunya customer database Return of old OMO Guide YOUR customers customers to the

• DATABASE store Remark eting Feature

• comparison New customer interaction

• Collect customer interaction data

• Value generate  Recover customers who bought wedding cakes once and find customers with similar characteristics through digital technology.

• Through the community: get new  Revenue creation: For example, the MidAutumn Festival is scheduled for 89 million

• product information in the first time (2020). Under the impact of the epidemic,

• Through the digital platform: get the return of customers creates 124 million the direct service (2021) in the whole store, a growth of 39%.

• Customers direct feedback product consumption data.

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Five goals

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01

02

ATaiwanesecasualsnackexperiencethatwill
satisfyconsumerswithdeliciousnessandpeaceof
mind(77)

Special local ingredients, French craftsmanship,
taste of life, comfortable space, and professional
services make Rivona fashionable bakery gift shop
(Rivon)

Becomethemostsuitablechannelforthe
circulationofspecialproductsatdomesticand
foreign.
Createasustainablecycle,ahigh-
efficiencygreenfactorywithleading
technology(Factory&Repulicofchocolate)
Usedigitaltechnologytoshorten
timeanddistance,andquicklymeet
consumerneeds(digital
transformation)

03

04

05

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03 Financial Report

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Operating Revenue & Gross Profit Margin

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In Million NTD
Consolidated Sales Gross Margin
5,000
30.0%
4,500
28.6%
4,000
27.0% 28.0%
3,500 26.7%
26.8%
3,000
26.0%
2,500
1,973
2,000 1,879 1,865
1,637 24.0%
1,500
1,000
22.0%
500
- 20.0%
2017 2018 2019 2020
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Dividend Policy

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Dividend In NTD
1 500%
450%
400%
0.75
350%
333%
300%
Stock Dividend
Cash Dividend
0.5 250%
EPS
200% 200%
Payout ratio
150%
0.25
0.40 100%
0.15 0.30
0.12
50%
0.20
0 0.00 0% 0%
2018 2019 2020
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Consolidated Income Sheet – QoQ Chart

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Consolidated Sales Gross Margin Operating Margin
In Million NTD
2,000 38%
32% 32%
30% 29% 30%
1,800
24% 28%
1,600
18%
15%
18%
1,400
10%
1,200 7%
4% 8%
2% 3%
1,000
-5% -2%
800
-22%
600
-12%
400
586 541 -22%
200 437 463 487 -28% 404
250 282
- -32%
2019.4Q 2020.1Q 2020.2Q 2020.3Q 2020.4Q 2021.1Q 2021.2Q 2021.3Q
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Consolidated Income -YoY

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Consolidated Income Statement -QoQ

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Consolidated Balance Sheets and Financial Ratios

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Statements of Cash Flows

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Investment- Financial assets at fair value though profit or lossnon-current

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 The issuance conditions of private placement increase cannot be freely transferred within 3 years.

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Investment- Financial assets at fair value though profit or lossnon-current

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• Acepodia Biotechnologies, Limited (Cayman)

• Investment amount : USD 999,998

• 403,225 Preferred stock，Shareholding ratio 0.33%

 In addition to Center Laboratories group holding about 10%, the major shareholders also include E.SUN , CTCI, China Investment and Cathay Financial Holdings, etc., and the company plans to launch a LISTING plan in the United States.

• Acepodia Biotechnologies was co-founded by Patrick Y. Yang and the current general manager Mr. Xiao Shijia. It uses ACC (Antibody-Cell Conjugation) developed by Mr. Xiao Shijia to develop a new generation of cancer cell immunotherapy, activate the human immune mechanism, and guide the elimination of cancer Innovative cell therapy program. One of the few domestic allogeneic cell therapy product development companies.

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04 Business Outlook for 2022

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Business Outlook for 2022

- -  Acquisition of subsidiaries with obtained controlled Crooissants de France (Taiwan) LTD.

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Synergy business plan

• Opportunity to develop daily products to break through the obvious low and peak seasons of Seasonal products, the gap between the peaks of production capacity/manpower utilization, and the inability to level the disadvantages.

• Cooperate with Rivon's fresh product development strategy to increase the production capacity utilization of Croissants de France.

• The logistics platform function can be combined by the company to elaborate a synergistic effect.

• The customer base partially overlaps with the company, and the financial leverage can be play synergy.

• The current progress is complete and the contract can be delivered after the approval of Investment Board, Ministry of Economic Affairs.

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Acquisition of new corporate headquarters

• Kindom Construction Corp.- Municipal Government Commercial Office

• 、 、 、

• Address : No. 86-2 3 5 6, Sec. 1, Beixin Rd., Xindian Dist., New Taipei City

• The number of right-square meters is 478.64 , and the number of practical square meters is 284.

• Basic fine : SRC Steel bone structure，31F/B5

• Existing offices are more futuristic.

• Newly purchased corporate headquarters can arrange .

• appropriate digital OA investments

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Asset activation plan

• The old Bade factory is located in the Bade rezoned area and 800 meters from the Green Line MRT station. The school district and

• away living functions are completed . It has great development value. The proposal was approved by the board of directors on 2021/12/17, with an amount of 463 Million，Expected profit of 396 Million , It can contribute EPS 3.65 to 2022.

• The original office is located in the Xindian interchange and 850 meters away from the Qizhang MRT station, and only 650 meters away from the Xindian Yulon City opened in 2022Q4, since the building has been built for 32 years, and the development value can be expected.

• Kaohsiung Renwu Warehouse, located in chengming Lake specific district, is the central point of the Renwu Bagualiao area, adjacent to national highway 1 Dingzhong Road interchange and national highway 10 Renwu / Zuoying interchange, high-speed rail / Taiwan Railway Zuoying station and MRT Zuoying station about 10 minutes by car, and it will form a Renwu living circle.

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THANK YOU

Happy Adaptable ｘ Proactive ｘ People Oriental ｘ Yes, I say OK Happy 在地永續幸福延續.

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