ky — Interim / Quarterly Report 2017

Dec 11, 2017

-Kuo Yang Construction -

2017 Kuo Yang Construction Co., Ltd. Kuo Yang Construction (2505 TW)

==> picture [720 x 370] intentionally omitted <==

----- Start of picture text -----

Vitality Life New Architecture Kuo Yang Construction
----- End of picture text -----

-Kuo Yang Construction -

MENU

D isclaimer

• Disclaimer

• Profile

• Operating Strategies

• Financial Data

• Business Activities— Existing Houses

• Business Activities— Pre-sale Houses

• The prospective statements released or mentioned in this presentation are based on our company’s data as well as the current situation.

• The forward-looking statements contained in this presentation are affected by risks, uncertainties, and people’s inferences. As a result, actual results may differ materially from those in the forward-looking statements. There are various factors that can affect our prospective statements, including but not limited to the increasing cost of raw materials, market demands, changes of policies or financial situations, and risks that our company cannot control.

• Our company makes no representation or warranty, whether explicitly or implied, as to the accuracy, completeness or reliability of these forward-looking statements, nor do the statements represent a complete description of our company, the current situation, or further important developments. Our statements on future outlook represent our company’s views regarding the future and the data. Our company does not guarantee the accuracy of the data nor undertake any obligation to update or correct any forward-looking statements, whether as a result of new information or future events.

• No third party may use the presentation and its contents without our company’s written permission.

-Kuo Yang Construction -

P rofile

MENU

Establishment & Background

• Disclaimer

• Profile

• Operating Strategies

• Financial Data

• Business Activities— Existing Houses

• Business Activities— Pre-sale Houses

Founded in 1972, Kuo Yang Construction grew as Taiwan's economy started taking off. Over the past 40 years, Kuo Yang's focus has turned into the technology industry. And as technology has developed into today's exquisite tourism and culture-creative industries, we continuously pursue excellence and express it in the architecture that Kuo Yang has so long been praised for.

In 2000, Kuo Yang foresaw a new era that would be affected by globalization and a love of quality lifestyles. As a result, Kuo Yang took the lead in integrating resources such as construction planning and property management. By successfully utilizing creativity in construction, Kuo Yang has added new value to buildings. That value lies in making architecture not just be buildings, but in being homes that carry on a dialog with life, and which bring a feeling of safety. A home should also be the source of energy and growth for all family members.

==> picture [157 x 142] intentionally omitted <==

Red→Vitality

Energetic & Innovative Represents the company's energy and reflects its young spirit

Green→Life

Alive & Environmental

Represents the company's management philosophy of providing better living spaces

by promoting a green and environmentally-friendly lifestyle.

Profile:

1. Company Name: Kuo Yang Construction Co., Ltd.

2. Stock Code: 2505

3. Date of establishment: June 2, 1972

4. Time to market: November 14, 1979

5. Paid-in capital: NT$5,766,000,000

6. Market capitalization NT$7,870,000,000 (Estimated based on the closing price of NT$13.65 on 2017/11/30)

Blue→New Architecture

New Architecture & A New Era

Represents the company's modern fusion of architectural vocabulary and expresses the company's solid determination to reach sustainability and

1. Revenue: NT$2,634,000,000 (2017/1/1—2017/11/30)

2. Company website URL: www.kycc.com.tw/

-Kuo Yang Construction -

MENU

O perating Strategies

A. Operating Model:

• Disclaimer

• Profile

• Operating Strategies

• Financial Data

• Business Activities— Existing Houses

• Business Activities— Pre-sale Houses

Add value to the land with brand advantages and improve after-sales service; establish the brand’s image to address the changes in the real estate market, and thereby propose correct selling strategies.

B. Product Marketing and Product Value: Reduce market risks through the advantages of products and prime locations.

C. Management:

Improve corporate governance as well as work and management efficiency

D. Customer Service:

Provide construction schedules, develop a comprehensive community, and provide checks for the structural health of houses. These services help make our company a thoughtful construction company for house buyers.

-Kuo Yang Construction -

MENU

F inancial Data

• Disclaimer

• Profile

• Operating Strategies

• Financial Data

• Business Activities— Existing Houses

• Business Activities— Pre-sale Houses

Item	2014	2015	2016	2017Q1—Q3
Operating revenue	1,556,611	3,000,361	1,458,192	2,633,892
Operating costs	-1,060,289	-2,159,815	-1,065,171	-2,106,768
Operating profit	496,322	840,546	393,021	527,124
Gross profit margin	31.88%	28.01%	26.95%	20.01%
Net operating profit	95,502	364,779	50,950	222,378
Non-operating income	-55,337	-8,104	-19,944	-11,944
Pre-tax profit	40,165	356,675	31,006	210,434
Income tax expenses	10,174	-18,448	-24,794	-2,468
Net income after tax	50,339	338,227	6,212	207,966
Net profit	3.23%	11.27%	0.43%	7.90%
EPS	0.10	0.61	0.01	0.36

-Kuo Yang Construction -

MENU

B usiness Activities—Existing Houses

• Disclaimer

• Profile

• Operating Strategies

• • Financial Data

• Business Activities— Existing Houses

• Business Activities— Pre-sale Houses

								Ratio of Kuo
					Number of	Sales	Sales amount	Yang’s
			Case	Location	units	Area (pings)	(NT$100 million)	investments
			Kuo Yan	Kaohsiung City	24 households	4,168	19	100%
			The Green Place A	Tainan City	28 households	3,586	9	60%
			The Green Place B	Tainan City	74 households	9,188	23	60%

-Kuo Yang Construction -

MENU

B usiness Activities—Pre-sale Houses

• Disclaimer

• Profile

• Operating Strategies

• Financial Data

• Business Activities— Existing Houses

• Business Activities— Pre-sale Houses

	Case	Location	Number of units	Sales Area (pings)	Sales amount (NT$100 million)	Ratio of Kuo Yang’s investments
	South Manor	Taipei City	87 households	4,084	30	60%
	Kuo Yang Silicon Valley	New Taipei City	101 households	23,315	70	50%
	Zhongxiao Courtyard	New Taipei City	206 households	7,274	33	55%
	Good morning, Kuo Yang	Keelung	579 households	20,104	37	55%
	The Green Place C	Tainan City	108 households	9,375	22	60%
	Smile Era	Kaohsiung City	748 households	22,821	47	70%

-Kuo Yang Construction -

==> picture [83 x 520] intentionally omitted <==

Q & A Thank you