TYCOONS — Investor Presentation 2021

Aug 31, 2021

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TYCOONS GROUP ENTRRPRISE CO., LTD 2021 INVESTOR CONFERENCE

2021.09.01

Stock code : 2022

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• Disclaimer

This presentation is based on the information obtained from various sources which the Company believes to be reliable. But at some point in the future, there are a variety of factors which could cause actual results to differ materially from those statements. Therefore, please refer to the information on MOPS website as the main basis if has any adjustment been made.

（http://mops.twse.com.tw/mops/web/index）

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1. Company Overview

2. Operation Overview

3. Market Overview and Future Outlook

4. Corporate Social Responsibility

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1. Company Overview

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Tycoons Group Main Products

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Wire Rod Annealing Wire Steel Bar
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Tycoons Group Main Products

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Window Collated
Screws Screws
Roofing Shear
Screws Connectors
Self-tapping
Screws
Wood Chipboard
screws Screws
Euro Drywall
Screws Screws
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Tycoons Taiwan

Year of Establishment：1980 Product Range：Wire、Screws Area：24,453m[2]

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Tycoons Thailand

Year of Establishment ：1996

Product Range：Wire、Screw、Bolt & Fastener、Steel Bar Area ：510,198m[2]

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Tycoons China

Year of Establishment ：2003 Product Range ：Wire Area ：72,007m[2]

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Tycoons Vietnam

Year of Establishment ：2013 Product Range ：Wire Area ：76,000m[2]

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2. Operation Overview

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2021 Consolidated Statements of Comprehensive Income

		Unit：NTD Thousand (except EPS) 2010/1-6 2010/1-12 4,304,647 7,930,384 230,925 532,957 5% 7% 19,179 117,682 0% 2% (191,279) (219,823) (162,872) (185,640) (0.34) (0.39)
	2021/1-6	2010/1-6
Net Sales	6,262,217	4,304,647
Gross Profit	905,424	230,925
Gross margin%	14%	5%
Operating Income	651,771	19,179
Operating Margin%	10%	0%
Net Income(loss)	474,344	(191,279)
Net Income (loss) Owner of parent	340,170	(162,872)
EPS (NT$)	0.71	(0.34)

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2021 Consolidated Condensed Balance Sheet

Unit：NTD Thousand (except BV)

Cash Inventory Property, Plant and Equipment Total Assets Bonds payable, current portion Long-term borrowing, current portion Long-term Bank loans Total Liabilities	2021/6/30 700,987 2,924,537 3,342,927 8,926,950 200,000 36,142 25,000 3,291,716	2010/6/30 542,448 2,033,358 3,666,143 8,170,818 0 55,036 262,276 3,145,710	13 2010/12/31 252,026 2,387,923 3,694,924 8,162,208 200,000 52,165 37,500 2,711,010 33% 5,451,198 11.36
Debt Ratio (%)	37%	39%
Shareholders' Equity	5,635,234	5,025,108
Book Value ---- NT$	11.74	10.47

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3. Market Overview and Future Outlook

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Market Overview

1. China canceled the export steel tax refunds in the first half year of 2021 and United States plans to set Infrastructure construction into action actively. Such instructions caused strongly steel market demand; the iron ore has been boosted Even the ire ore price higher shortly. price

revised down recently, the coal mine price raised strongly which support the global steel market stay in the high-end price. It is hard to find the decrease trend from the US or EU market. The high demand of steel keep working without change in 2021. Q4 is the traditional hot season will have nice performance definitely.

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Market Overview

1. With the continuous positive development of steel market, our company keep rising progressively. To satisfy the mass order request from clients, the current equipment will renew to up the whole This trend could more in the near

capacity. positive bring advantage future.

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Future Outlook

1. Regard to the export tax increased in Russia and the hot-rolling/ cold rolling steel 13% export refunds canceled in China, the expected global steel will and unbalance. Based on the demand more supply tighter

than supply, the high-end price trend will clearer in the market.

1. With the vaccine coverage rate increasing popularity in many countries, the infrastructure construction and consumption back to normal smoothly. The steel request will be released step by step. The international logistic has some troubles recently under lack of container, vessel space, and harbor fills serious uncertain factors. The freight cost and schedule have significantly delay to make the cost more expensive than normal period.

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Future Outlook

1. The COVID-19 still transforming, Delta and other virus might spread the infected areas. The vaccination plan is not the same in each country, it will affect the economic recovery timetable and demand from each market directly and indirectly.

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4. Corporate Social Responsibility

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Corporate Social Responsibility

Corporation Governance Evaluation

2020 the Seventh Corporation Governance Evaluation ranks top 21-35%

Employee Welfare

Apart from providing labor and health insurance for employees, the Company also purchases group insurance for employees (including foreign employees) and provides lunch to employees at the cafeterias to take care of their diet. Every year, medical check-ups are also organized for employees and their families.

On-site Medical Services

In accordance with the frequency of medical professionals providing on-site medical services stipulated by the Labor Health Protection Act, Article 4, the Company arranged two on-site visits by doctors in 2020, and two on-site visits by nurses every month. The Company also arranges for service items stipulated in the Labor Health Protection Act, Article 10 to be provided to employees. 20

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Corporate Social Responsibility

Employee Training

The Company holds training for new recruits and existing employees. All trainings are recorded and filed. The training program aims to enhance the employees’ capabilities and serves as a reference for their promotions.

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Corporate Social Responsibility

Carbon Reduction

1. The main of business of the includes the scope Company manufacturing,

trading and fabrication of wire rods, screws and wires. For the prevention of pollution sources, the Company has installed dust removal systems, waste water and gas treatment facilities, exhaust equipment and other equipment. Furthermore, as per the environmental protection regulations, the Company has to undertake the measures designated personnel pollution prevention

depending on the on-site operations, and engaged inspection institutions approved by the Environmental Protection Administration to perform inspections from time to time. Therefore, with appropriate control engineering, the Company meets the emission standards stipulated by the Environmental Protection Administration.

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Corporate Social Responsibility

Carbon Reduction

1. By adjusting production procedures, utilizing energy conservation equipment (e.g. gas-fired boilers, switching to high-performance motors of IE3 level or higher) and other measures, the Company seeks to reduce its greenhouse gas emissions.

2. By controlling the optimal air-fuel ratio, using clean fuel, lowering sludge moisture content etc., the Company seeks to meet waste reduction targets and develop toward green production.

3. The Company makes concerted efforts to reduce the carbon footprint of the manufacturing process and gives priority to green procurement as much as possible. In 2020, green procurement amounted to T$3,395,834. The Company shall insist on its environmental protection philosophy going forward and giving priority to green products in the manufacturing process.

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Thanks

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