HYC — Investor Presentation 2021

Dec 17, 2021

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HSIN YUNG CHIEN CO., LTD. Investor Conference 2021.12.17 ： Speaker Stella

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Outline

1- Company Profile 2- Company Performance 3- Product Introduction 4- Q&A

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Com an Profile p y

Hsin Yung Chien was established in 1964 in Nantou, Taiwan. Currently HYC is the biggest manufacturer in producing rubber conveyor belts in Taiwan and keeps on developing new equipment and renewing production procedure. HYC also has passed through ISO9001 and ISO14000 certificate and product lines include light and heavy-duty conveyor belts in wide range of application such as mining, steel, aviation, agriculture, logistics and pier automatic production line by "KING" brand in global market.

“NEWsheet", the high polymer product line is complete and the R & D team is with rich experience to meet customers' demand in full range quickly.

The traditional production mode and method is replaced by the latest process technology and automatic equipment to supply high valueadded services and excellent quality for market differentiation in global market.

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Adds ： NO.294 Nan kung 3RD Nan kung industrial Zone Nantou,Taiwan TEL:+886492263888 FAX:+886492263168

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Com an Histor p y y

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1978 1980 1985 1994 1995
1964
Take over by Certificated
Establishment Factory 5-year
current Certificated by ISO9001
In moved to Investment
chairman,
Taichung Nantou by CNS plan Promotion of
Mr. Lin
Kevlar belt
1996 2000 2002 2003 2004 2005
Company name
Awarded by EPBA,
4 [th] Session 2 [nd] Session Park Beautifying changed to Company stock 14th Session
Outstanding Rising Star Award Championship, Hsin Yung Chien. 1st Session pre-listing National Award
SME Award SME Golden Award Golden Rooting Award
2006 2007 2008 2010 2011 2012
Investing
Company stock Stock market listed
Finished 1 [st] factory Finished 4 [th] factory Industrial Steel Cord
listing in Taiwan
and and got Sustainable and
Automatic Storage Dipping fabric factory ISO 14001 Certificate. and got Excellence Award Rubber Dam
system built OHSAS 18001
Facilities
2020 2019 2018 2015 2013
2009~2012 8 Build new 6 2014~2023 Announced 1 [st] Backbone
Finished 1 [st] Taiwan
floors factory 5 [th] factory lightweight Mittelstand enterprise
at original 4th factory and recycled luggage Award key counseling object
in 2021 .
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Factories

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1 [st] Factory 2 [nd] Factory
5 [th ] Factory
3 [rd] Factory
(4 [th] Factory)
Rebuild
Factory
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Factor Environment y

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Financial Performance

	2016	2017	2018	2019	2020	2021.Q3
Net Sales	1,561,379	1,633,863	1,843,877	1,658,837	1,596,510	1,424,778
Gross Profit	597,962	579,888	640,327	608,209	664,702	606,925
Gross Profit Ratio	38%	35%	35%	36%	42%	43%
Operating Income	455,299	444,512	483,578	455,402	508,135	393,942
Non-operating Income& Expenses	(25,904)	(36,132)	3,352	45,110	110,383	475,518
Income Before Tax	429,395	408,380	486,930	500,512	618,518	869,460
Net Income	350,227	338,923	394,842	399,524	523,696	796,218
EPS	5.19	5.02	5.85	5.63	7.39	10.21(註)

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Remark: The surplus was converted into capital increase in September 2021 and the weighted average number of outstanding shares was 77,992 .

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Sales Trend

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2,500,000
2,226,529
2,155,189
2,000,000 1,818,853 1,832,109 1,843,877
1,658,837
1,633,863
1,561,379 1,596,510
1,424,778
1,500,000
1,000,000
500,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021.Q3
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Income Before Tax

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900,000
800,000 475,518
Non-Operating
Income and Gains
700,000
601,330
600,000 110,383 Operating profits
516,492 509,805 517,174 486,930 [500,512 ]
500,000
429,395
408,380
508,135
400,000
300,000
393,942
200,000
100,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021.Q3
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Dividend

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8 EPS
Dollar
元 7.46 7.34 7.39
7.11
分派-現金 Cash
7
6.2 分派-股票 Stock
5.85
6 5.63
5.19
5 5 5 5 5 5.02 5 5
5 5
5
4
3
2
1
1
1
0.5
0
0 0 0 0 0
0
2012 2013 2014 2015 2016 2017 2018 2019 2020
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Rubber Products

Product	Application
Flat Conveyor Belt Steel Cord Conveyor Belt	Quarry, Cement plant, Power plant, Steel Plant.
Patterned Belt Logistics Belt Chevron Belt	Logistics, Electronics, Textile, Animals, Agriculture, Inclined transportation.
Heat resistant, Oil resistant, Flame resistant, Impact resistant, Rip-stop Conveyor Belt	Fertilizer, High-temperature environment, Coal Mining, Sharp materials.
Rubber Dam、Wave Sheet	Water resource, Recycle, Environmental beautification, Park.，Wave Power

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A lication - Coal Minin pp g

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A lication - uarr pp Q y

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Application - Industries

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Application – Agriculture / Logistics

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Application – Animals / Dam

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Dam
Animal Husbandry
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Manege
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Rubber Dam

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Rubber Dam

Rubber Dam 3D Picture

Steel Gate 3D Picture

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Rubber Dam

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Rubber Dam Facilities: Max. producible width can reach 12-meters wide with unlimited length, producing products like Rubber Dam ， or Rubber Flooring. Wave Sheet for Power

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Rubber Product Application (Wave Power)

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Rubber Product Application (Wave Power)

 System Performance Design

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Rubber Product Application (Wave Power)

• System Features:

• Convert into electricity by nature‘s waves.

 Does not affect maritime activities on the sea.

• Stable Power.

• Easy operate and maintain by the equipment of modularization.

• .

• Lifetime of Design : 20 years

• Environmental Friendly and no pollution for operation and recycle after use.

• Approaching base load power (24 hrs/day x 7 days/week).

• Power : 4MW~8MW / set

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Rubber Product Application (Wave Power)

 System Style

• Fix

• Fix on the seabed near the shore.

• Set the internal pressure according to the depths of different seabed.

 Snorkel

• Set in the farther sea area from the shore to obtain greater wave

power.

• Sense the height of the waves

• by buoys and adjust the depth

of snorkeling.

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KEY CONSUMABLES FOR FUTURE

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NEWsheet

Main Products :

1. Eco-friendly hot-press cushion pad (Awarded Gold Medal by 63[rd] International Invention Exhibition in Nuremberg, Germany in 2011.

2. NEWsheet Serial Products

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Hot-press cushion pad

With 50-year experience of production and rubber development technology, we have developed this stable, manageable, and recyclable cushion pad.

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20
trees
1-ton Kraft paper To make 1-ton
can be replaced by 2 pcs of
Kraft paper
cushion pad
3000L
100
buckets
Patented by
M551128
M551122
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Hot-press cushion pad

The procedure of PCB pressing, which uses a lot of Kraft paper, will impact on :

 Factory Cleanliness  Bad Odor

 Waste of storage space for stock  Waste of materials transportation  Management

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Hot-press cushion pad

Advantages

• Sealing on both sides makes products firm, breathable, and moisture proof.

• Controlling times of pressing by QR code.

• 40% lighter than other manufactures’ products.

• Long-lasting lifetime (CCL-500 times, PCB-300 times)  Flexible but strong.

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• Automatic

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Thermoplastic Carbon Composite Material Product

With the rise of environmental protection issues, both the EU and advanced countries have planned with waste reduction and value creation goals for circular economy. Therefore, the characteristics of waste reduction and recyclability have become important considerations when developing new materials and new products. Thermoplastic carbon fiber composite products have excellent characteristics such as light weight, toughness, good processing and environmental protection and recyclability, which can meet the requirements of circular economy. 。

The global composite material market demand ratio and amount (AVK statistics to 11/2018), the share of resin-based composite materials is about 16.48 billion US dollars.

Global composite materials market demand ratio and amount

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， According to AVK analysis of German the global thermoplastic carbon fiber composite material market has reached 4.75 billion US dollars in 2018 (28.8%).

the global thermoplastic composites market share forecast will reach 41.9 billion US dollars in 2022 by Markets and Markets analysis.

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Environmental issues

Composite Carbon Fiber Waste

With the rapid development of the wind power industry and the continuous increase in the size of wind turbine blades, it is estimated that by 2034, the global waste of thermoset carbon fiber composite materials will reach more than 225,000 tons.

At present, there are over 2 million tons of composite waste between Taiwan and China. It is estimated that more than 100,000 tons of new waste will be added every year.

Data From ： Science Development 2019 NOV. NO.563

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New Material for Next Generation

The features of thermoplastic composites are light, thin, tough, good processing, durability and environmental protection from materials to livelihood supplies and based on environmentally friendly re-use and recycling to crate the continuous chain circulation system which is the future goal of Newsheet.

• －

• ◎ 5+N Driven by industry demand Automation, Energy Saving and Recycling Economy

• －

• ◎ Lightweight and High Strength Replace metal or plastic

• －

• ◎ Appearance. Color and Unique Pattern Focus on appearance

• －

• ◎ Large Number for Require With plastic injection process (cost)

• －

• ◎ Plastic processing bottleneck Big Size. High rigidity. Process Yield and Capacity

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Thermoplastic Carbon Composite Material Product

Features of Material:

1. Recycling long carbon fiber material 2. Heat resistant up to 320 Celsius 3. Repeat manufacturing available 4. High strength to replace metal 5. Lightweight in different shapes 6. Available for industry usage.

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Newsheet-Lightweight Environmental Friendly Composite Formwork

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Environmental Friendly Composite Formwork –

Easy Installation

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Connecting Support

Corner Support

Side Support

M12 hexagon socket screw and Anka screw for easy installation.

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Environmental Friendly Composite Formwork – Easy Installation

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It’s easy for woman to install by M12 hexagon socket screw and Anka screw with electric screwdriver. Reduce formwork process technology.

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Other accessories are same as wooden formwork. Work with current wooden formwork.

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Newsheet-Lightweight Environmental Friendly Composite Formwork

Light Easy move 600mm X 1,820mm 14KG/PC Easy Easy installation as building blocks. Exclusive Bracket for moving and collection. Saving High flatness by fair-faced concrete can save the cost of second processing. Wall face by pattern of formwork for tiles can save second processing. Over 30 times of use. Durability Durable, Corrosion-resistant, Aging-resistant, non-absorbent, Moisture absorption. Heat preservation. Environmental Friendly 100% Recycle

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Formwork Comparison Chart

			Composite Formwork	Wooden Formwork	Steel Formwork
		Weight	Light	Middle	Heavy
		Time ofUse	Over 30 times	5~6times	Around 40times
		Price	Middle	Cheap	Expensive
		Flame retardant	**B1 level **	Non-flame	Yes
		Releasing	Easy	Moderate	Difficult
		Processing	Good	Good	Bad
		Corrosion resistance	Good	Bad	Bad
		Recycle	Yes	No	Yes
		Water absorption	**Non-absorption **	EasyDeformed	EasyRust
		Hardness Surface	**High **	Normal	Higher
		Deformed	Small	Small	Small
		Maintain	Water clean	ByDiesel	ByAnti-rust oil
		Range of Work	**For all range **	For all range	Public construction

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Environmental Friendly Composite Formwork Storage

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*After use, the formwork can be collected in the exclusive bracket.

30 pcs storage in one bracket for easy arrangement and transportation. The bracket can be folded for saving space.

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Environmental Friendly Composite Support Storage

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*After use, the support can be collected in the exclusive bracket.

*144 pcs storage in one bracket for easy arrangement and transportation.

*The bracket can be folded for saving space.

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Environmental Friendly Composite Formwork Use

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Thank you for listening 

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