ky — Investor Presentation 2021

Nov 19, 2021

Disclaimer
Profile
Operating Strategies
Financial Data
Business Activities—Existing Houses
Business Activities—Development

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.

Establishment & Background
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.
Disclaimer
Profile
Operating Strategies
Financial Data
Business Activities—Existing Houses
Business Activities—Development

Company name	Kuo Yang Construction Co., Ltd.
Stock Code:	2505
Date of establishment	June 2, 1972
Time to market	November 14, 1979
Paid-in capital	NT$5.766 billion
Market capitalization	NT$7.87 billion (estimated based on the closing price of NT$13.65 on 2017/11/30)
Revenue	NT$2.634 billion (2017/1/1 – 2017/11/30)
Company website URL	www.kycc.com.tw/

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$3.8 billion
6. Market Capitalization: NT$9.3 billion (Estimated based on the closing price of NT$24.54 on 2021/10/31)
7. Revenue: NT$4.8 billion (2021/1/1-2021/10/31)
8. Company Website URL: www.kycc.com.tw/
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

A. Operating Model:
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.
Disclaimer
Profile
Operating Strategies
Financial Data
Business Activities—Existing Houses
Business Activities — Development

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.

C. Management:
Improve corporate governance as well as work and management efficiency.

Build happy homes for Kuo Yang's customers.

Make customers' dreams come true.

Unit: NT$1,000
| Item | 2018 | 2019 | 2020 | 2021Q1-Q3 |
| --- | --- | --- | --- | --- |
| Operating revenue | 752,654 | 1,923,024 | 14,277,915 | 4,624,606 |
| Operating costs | (521,191) | (1,458,300) | (8,752,481) | (3,323,558) |
| Operating profit | 231,463 | 464,724 | 5,525,434 | 1,301,048 |
| Gross profit margin | 31% | 24% | 39% | 28% |
| Operating profit (loss) | (39,351) | 126,498 | 5,003,829 | 978,467 |
| Non-operating income | (15,821) | (63,023) | 155,761 | 98,625 |
| Pre-tax profit (net loss) | (55,172) | 63,475 | 5,159,590 | 1,077,092 |
| Income tax (expenses) profit | 4,183 | (6,587) | (216,523) | (232,575) |
| Net profit (net loss) for the period | (50,989) | 56,888 | 4,943,067 | 844,517 |
| Earnings (loss) per share | (0.08) | 0.08 | 7.58 | 2.22 |
Disclaimer
Profile
Operating Strategies
Financial Data
Business Activities—Existing Houses
Business Activities—Development

Case	Location	Number of units	Area (pings)	Sales amount (NT$100 million)	Ratio of Kuo Yang’s investments
Kuo Yan	Kaohsiung City	17 households	3,086	12	100%
The Green Place	Tainan City	79 households	9,716	23	65%
Smile Era	Kaohsiung City	158 households	5,098	11	70%
Good morning, Kuo Yang Phase 1	Keelung	561 households	20,104	20	55%
Disclaimer
Profile
Operating Strategies
Financial Data
Business Activities—Existing Houses
Business Activities—Development

Notes:

| Case | Location | Category | Land area acquired (pings) | Estimated building license approval | Ratio of Kuo Yang’s investments |
| --- | --- | --- | --- | --- | --- |
| Jilin Urban Renewal | Taipei City | Residential buildings | - | Nov 2021 | 100% |
| Neihu Project | Taipei City | Plants and offices | 2,127 | Jan 2022 | 50% |
| Good morning, Kuo Yang Phase 2 | Keelung | Residential buildings | 4,979 | Feb 2022 | 55% |
| Sanchong Project | New Taipei City | Plants and offices | 1,828 | Jun 2022 | 50% |
| Xindian Baoyuan Urban Renewal | New Taipei City | Residential buildings | - | Jan 2023 | 80% |
| Tucheng Project | New Taipei City | Plants and offices | 3,590 | Mar 2025 | 50% |
Disclaimer
Profile
Operating Strategies
Financial Data
Business Activities—Existing Houses
Business Activities—Development

The illustrations are provided for reference only

Notes:

Q & A
Thank you