WEI CHUAN — Interim / Quarterly Report 2021

Nov 23, 2021

Stock Code: 1201 Company Name: Wei Chuan

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Investor Conference

November 23, 2021

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Disclaimer

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1. The consolidated financial information in this presentation were prepared based on IFRS and audited by a CPA.

2. The Company has not published any financial forecasts. Description of the financial and operation conditions of the Company in this presentation may differ from the actual results in the future if it involved the opinion of the Company toward its future operational and business development. The reason for such difference may include various risk factors beyond the control of the Company, such as changes in market demands, price fluctuations, competition, international economic conditions, exchange rate fluctuations, and upstream and downstream supply chain.

3. The content of this presentation shall not be used or replicated by third parties unless authorized by the Company in writing.

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Report Overview

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1 Financial Performance 2 Business Strategy 3 Future Outlook

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Consolidated Profit and Loss

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， 2021 1-9M Consolidated profits increased the key factor was Mainland Business’s profits grew.

Unit: NTD in Million	2021 1-9M	2020 1-9M	YoY
Operating Revenue	14,856	13,942	6.6%
Gross Profit Gross Profit %	4,378 29.5%	4,084 29.3%	7.2% 0.2ppt
Operating Income	545	484	12.6%
Non-operating Income and Expense	9	(71)	112.7%
Net Income Before Tax	554	413	34.2%
Tax Expense (Income) Net Profit	(167) 387	(89) 324	-88.8% 19.3%
Net Profit Attributable to Owners of Parent	386	323	19.4%
Net Profit Attributable to Non-controlling Interests Earnings Per Share/NT$	1 0.76	1 0.64	-8.3% 0.12元
Consolidated financial income	(88)	(120)	26.7%

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Revenue Contribution

2021 1-9M Taiwan and Mainland Business’s Revenue increased.

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Unit: NTD in Million
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1,500 2,000 2,500 3,000 3,500 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 Taiwan Business Mainland China Business
Unit: NTD in Million	2019 1-9M		2020 1-9M		2021 1-9M		YoY
	AMT	%	AMT	%	AMT	%
Taiwan Business Mainland China Business Others	5,761 9,222 449	37 60 3	5,933 7,502 507	43 54 4	6,110 8,327 419	41 56 3	3.0% 11.0% -17.4%
Total	15,432	100	13,942	100	14,856	100	6.6%
Note:Exchange rate from RMB to NTD	4.53		4.26		4.34

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Cash Flow

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Reduction in Net Liabilities .

Unit: NTD in Million	2021 1-9M	2020 1-9M	2020
	AMT	AMT	AMT
Cash and cash equivalents at beginning of period	1,905	2,222	2,222
Effect of exchange rate changes on cash and cash equivalents Net cash flows from (used in) operating activities Net cash flows from (used in) investing activities Net cash flows from (used in) financing activities	710 (663) (95) 10	958 (464) (943) (1)	1,873 (629) (1,550) (11)
Cash and cash equivalents at end of period	1,867	1,772	1,905

Trend of Net Liabilities:

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Unit: NTD in Million
8,000
7,000 6,352
5,793
6,000
5,000 4,580
3,926
4,000
3,000
1,772 1,867
2,000
1,000
0
20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3
Consolidated borrowings Cash and cash equivalents Net liabilities
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Financial Indicators

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The Company's overall financial indicators exhibit better than year-over-year.

		September 30,2021	September 30,2020	December 31,2020
Key Finanical Indicators	Net Value Per Share(NT$) Debt Ration(%) Current Rate(%) Time Interest Earned Return On Equity (ROE) Return On Assets (ROA)	13.6 63.8% 106.5% 7.3 5.6% 2.1%	13.0 64.7% 84.9% 4.5 4.8% 1.7%	13.5 62.0% 96.2% 4.6 7.8% 3.5%

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1 Financial Performance 2 Business Strategy

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Future Outlook

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Business Strategy

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1. Create profits  Businesses in Taiwan

• Reengineer the value of core brand equity, and cultivate and develop potential brands

• Optimize an operating model that adopts an omnichannel strategy and creates customer value

• Engage in structural adjustment, optimize gross profit, and deepen rationalization of expenditure

• Businesses in Mainland China

• Focus on the development of core refrigerated categories and continuous market expansion and penetration

• Enter into Room temperature category businesses

• Develop, establish, and expand businesses into different regions, major cities, and channels；Enhances E- commerce channels.

2. Optimize financial structure

• Focus on managing the food business and creating profits

• Increase the effectiveness of asset investments and reduce debt ratio

3. Optimize food safety, quality assurance, and

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1

Financial Performance

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2 Business Strategy 3 Future Outlook

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Future Outlook

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Future Outlook＿Financial Strategy

1. Create operating profits

• Continuously increase and improve sales and profits from businesses in Taiwan

• Speed up contribution from businesses in Mainland China to sales and profit growth

2. Optimize financial structure

• Increase ROE and ROA

• Reduce loans and debt ratio

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Future Outlook

Future Outlook＿Business Strategy

Continuous improvement of competitiveness in the food business

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1. Businesses in Taiwan

Reengineer the value of brand equity and deepen core competitive advantages

• Focus on investing in core and potential brands and creating the value of brand equity

• Optimize an operating model that adopts an omni-channel strategy and creates customer value

• Continuously deepen the ability to develop fundamental R&D engineering and applications

• Enhance the integration, reengineering, and effectiveness of the production, marketing, and supply chain system

2. Businesses in Mainland China:

• Rapidly develop and establish brands, products, and regional markets  Reshape and reengineer the value of brand equity and develop differentiated new product categories

• Expand businesses into East China and speed up development in outer regions to deepen the development and establishment of channels

• Develop and establish production bases to improve the efficiency of the production and marketing system

3. Continuously optimize food safety, quality assurance, and business management systems in Taiwan and Mainland China

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Thank you for your support and encouragement!