LILYTEXTILE — Investor Presentation 2021

Dec 10, 2021

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Lilytex Group Investor briefing 2021/12/14

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Disclaimer

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 This briefing and the relevant information released at the same time are based on the Company’s internal data and external sources, as well as the Company’s outlook going forward to reflect the Company’s views to date about the future. In case of any change or adjustment to these views, the Company is not responsible for issuing timely reminders or updates.

 This document does not constitute a forecast. Statements regarding the Company’s finances, business, or Q&A contained in this briefing may differ from actual results in the future. The reasons behind these differences may include changes in market needs, fluctuations in ex works prices and raw material prices, competitor behavior, international economic trends, foreign exchange fluctuations, the upstream and downstream supply chain, and other risk factors beyond the control of the Company.

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Briefing Agenda

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1. Company profile 2. Operational results of 2021 3. Important matters 4. Q&A

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Company profile

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• November 1972: Company established with a capital of TWD 36,000,000

 February 1990: Stock exchange listing through IPO  August 2011: Capital amount is TWD 1,353,430,110  November 2016: Construction of 1 temperature-controlled warehouse and 1 regular warehouse in Pingzhen District with a combined surface area of 20,000 m[2] (213,000 sq ft)  March 2017: Closure of cotton textile plant due to lack of viability of cotton textile products

• March 2019: Construction of 2 warehouses leased to Eslite Logistics and HAVI Logistics

 October 2021: Construction of the Phase 2 warehouse in Yangmei, which is expected to be completed in April 2022; the warehouse can accommodate 2,600 pallets.

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Consolidated Balance Sheet of Assets and Liabilities

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Consolidated Income Statement of Profits and Losses

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Consolidated Income Statement of Cash Flows

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A Masked year

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• How did Lilytex cope with changes on the market where the logistics was faced with the crisis brought about by a Level 3 alert in pandemic prevention issued in May 2021.

• Brick-and-mortar stores were closed one after another as a result of the pandemic. The consumer market turned to e-commerce platforms where transactions were completed.

• Lilytex worked for the first time with MOMO and SHOPEE in 2021.

• Lilytex worked with large e-commerce operators for the November 11 shopping spree.

• Dynamic reaction to changes on the market with proactive adaption of operational strategies

• Opportunities and stress in an effort to play a good role as stabilizer in logistics

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Timeline of Lilytex for 2022

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• Continuous growth in business for optimal performance again in 2022

• Realized Phase 3 project planned as part of the gradual realization of the Pingzhen Logistics Park of Lilytex

• Continued further collaboration with large e-commerce operators

• Reinforced systematic automation of internal logistics operations with planned introduction of the quick e- commerce operational patterns to hopefully help accomplish more efficient logistics service and quality with e-commerce

• Customized service to satisfy the needs of various customers for logistics

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Logistics Introduction

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Company Establishment
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LILY TEXTILE CO., LTD. was established in 1972

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Logistics Establishm
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“LILY Logistics Center” was established in 1994

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Floor Space
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The total floor space of logistics in Taiwan is 45,000 pings

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Professional Services
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Integrated logistics services including “one stop” and “customized” are offered

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Legally Licensed
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The land used for logistics is in compliance with the government regulations, and warehouses are legally licensed

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Safety Measures
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Security system, 24-hour guard patrol, qualified fire protection system in all areas

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The Growth of Logistics

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Havi Logistics (Taiwan)
Nankan Logistics Center Pingzhen Logistics Park Limited
Floor space : over 52,893 m [[2]] Floor space : over 85,950 m [2] A rental area of over
(569,336 sq ft) (925,166 sq ft) 20,000 m [2] (213,000 sq ft)
1994 2012 2018 2019 2020 2021
Eslite Logistics Center Newly built warehouse in
Yangmei Logistics Center
A rental area of over Yangmei
Floor space : over 3,306 m [2]
28,099 m [2] (302,455 sq ft) Floor space : over 1,983 m [2]
(35,583 sq ft)
(21,345 sq ft)
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Nankan Logistics Center Floor space : over 52,893 m[[2]] (569,336 sq ft)

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Page 1111
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The Growth of Logistics

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Phase 1 of Phase 2 of Phase 3 of Pingzhen Logistics Pingzhen Logistics Pingzhen Logistics Nankan Yangmei Park Park Park Warehouse Warehouse LILY Logistics started in 1994 as a third-party logistics service provider. In 2018, it shifted its business focus to Pingzhen Logistics Park. In addition to third-party logistics services, its emphasis is on the construction of Pingzhen Logistics Park. Phase 1 was completed went online smoothly in 2018. Phase 2 was completed in 2019 and went online smoothly in 2019. The planning of Phase 3 is currently underway and is scheduled for completion in 2022. Once Phase 3 is successfully completed, the Pingzhen Logistics Park will become a modern standard professional logistics park.

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Logistics Service Locations

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Lilytex- Nankan Logistics Center
No. 313, Section 2, Nanshan Road, Luzhu
District, Taoyuan 33582
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Lilytex- Yangmei Logistics Center
No. 199, Section 1, Zhongshan North Road,
Yangmei District, Taoyuan 32665
Lilytex- Pingzhen Logistics Center
No 65, Section 1, Shuangfu Road, Pingzhen
District, Taoyuan 32451
2021/11/30
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Professional logistics services

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Integrated
logistics
services
Integrated
information
services
Diversified
warehousing
environment Professional
services Additional
services
including
processing and
packaging
Warehouse
tallying service
Transportation
and distribution
services
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Assurance and Achievement

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2013: Innovative Benchmark in Services and Teaching from the Ministry of Economic Affairs

2013: June edition of MANAGER Today

2013: Logistics Yearbook

2013: Servitization guidance from the Ministry of Economic Affairs

2012: Servitization guidance from the Ministry of Economic Affairs

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Logistics real estate performance

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Shanjiao Warehouse (6,612 m[2] [71,171 sq ft]): Yusen Logistics Co., Ltd. (NYK) Nankan Warehouse (52,893 m[2] [569,336 sq ft]): Scandinavian Health Limited (SHL) Pingzhen Phase 2 (27,438 m[2] [295,340 sq ft]): Eslite Spectrum Corporation Pingzhen Phase 2 (13,223 m[2] [142,331 sq ft]): HAVI Logistics (Taiwan) Limited

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Logistics Real Estate (Yusen Logistics Co., Ltd.)

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Logistics Real Estate (SHL)

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Logistics Real Estate (Phase 2 of Pingzhen Logistics Park)

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Logistics Real Estate (Eslite Spectrum Corporation)

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Logistics Real Estate (HAVI Logistics (Taiwan) Limited)

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Logistics Real Estate (Phase 3 of Pingzhen Logistics Park)

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Logistics Real Estate (planning of Pingzhen Logistics Park)

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Phas
Phas
e 4
e 5
HAVI
Phas
e 3
Eslite
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Pingzhen Logistics Park

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Lilytex’s outlook for 2021 and beyond

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• With the new challenge facing the logistics industry during the post-pandemic era, Lilytex will deal with this new challenge robustly on solid ground.

• By providing customers with a sound logistics warehousing environment as needed on the market besides making the best better on the basis of current logistics operations.

• And by continuing to maximize resources that are currently available to make the best of either software or hardware.

• While creating a logistics Utopia meeting customers’ expectations.

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Service Locations

Nankan Warehouse: No. 313, Section 2, Nanshan Road, Luzhu District, Taoyuan 33582. TEL: (03)324-6606 FAX: (03)324-6603 Yangmei Warehouse: No. 199, Section 1, Zhongshan North Road, Yangmei District, Taoyuan 32665. TEL: (03)4787144 FAX: (03)478-7145

Pingzhen Warehouse: No 65, Section 1, Shuangfu Road, Pingzhen District, Taoyuan 32451. TEL: (03)490-8690 FAX: (03)490-8691

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Service Locations

Nankan Warehouse: No. 313, Section 2, Nanshan Road, Luzhu District, Taoyuan 33582. TEL: (03)324-6606 FAX: (03)324-6603 Yangmei Warehouse: No. 199, Section 1, Zhongshan North Road, Yangmei District, Taoyuan 32665. TEL: (03)4787144 FAX: (03)478-7145 Pingzhen Warehouse: No 65, Section 1, Shuangfu Road, Pingzhen District, Taoyuan 32451. TEL: (03)490-8690 FAX: (03)490-8691

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