YC — Investor Presentation 2022

Nov 29, 2022

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‧ Quality comes first integrity first

‧ Quality Sincerity

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LISTED CODE ： 2069

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About Us

Management Company Team History

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About Us
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 Date of Established ：

July,1987

• Capital ： NT$ 1.66 billion

 Chairman ： Yen, Te-Ho

• General Manager ： Yen, Teh-Wei

 ： Address of Headquarter 13F, No. 235 Jungjeng 4[th] Rd, Chianjin Chiu, Kaohsiung, Taiwan  ： Subsidiary Ningbo Qiyi Precision Metals Co. Ltd

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 ： 620 Number of Employees

• Listed Date ：

22[nd] , March, 2016

• Main Services ：

Stainless Steel Material Processing and Merchandising

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Our History
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Foundation
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Growth
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Transformation
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• •Founded by the chairman, Mr. Yen, Te-Ho in 1987

• •Yuen Chang formally entered the field of Stainless Steel manufacturing, processing and merchandising.

• 1988-1993

• Plant in Gangshan was completed.

• Plant in Yanchao was completed to cover Gangshan’s over-loading capacity.

• 1993-2011

• Ningbo Qiyi Precision Metals Co. Ltd was founded and commenced to run the stainless steel market in China

• Headquarter was founded in Kaohsiung, Taiwan

• ‘Awarded for International Trade in 2008’ by MOEA

• Plant in Dafa as a Stainless Steel Service Center was completed to expand other overseas markets.

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Our History
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• 2012 –

• Continuous expansion at Dafa Plant- factory building, new equipment for Fly-Shear CutTo-Length and Polished line were completed.

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Expansion
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• Certificated as Bonded Factory by Customs Administration, Ministry of Finance

• The Dafa Plant has been awarded as an Excellent Bonded Factory by Customs Administration, Ministry of Finance since 2014.

• Ningbo Qiyi was awarded as ‘National High & Advanced Technological Enterprise’ in China

• Initial Public Offering in 2014, Registered to emerging Stock Board in 2015 and listed in 2016

• New plant of Nignbo Qiyi was completed in Ning Hai on Sept.30, 2018

• The newly built office building at Dafa Plant-factory will start using of 2021.

• Daihatsu four plant expansion.

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Title	Name	Academic Background	Professional Experience
Chairman	Yen, Te-Ho	EMBA, National Sun Yat-sen University
General Manager	Yen, Teh-Wei	BBA, Department of Business National Taiwan University MBA, University of Missouri	Manager of Financial Supervision, American Express Commissioner of Import and Export Department, Citi Bank
Managing Director of Administration Division	Yeh, Mei-Yum	EMBA, National Sun Yat-sen University	Finance & Accounting Department, Kao Group
Vice President of Production Division/Research and Development Team	Wu, Huang-Yen	BSc, Department of Aeronautics and Astronautics, National Cheng Kung University MSc in Mechanical Engineering, National Chung Hsing University	Managing Director of Production Division, Yieh Mau Corp. Vice General Manager, YowJaan Chern Enterprise Co. Ltd (GuangDong Branch)
Managing Director of Purchase Division	Huang, Ying-Hsueh	BBA, Department of Business Administration, National Sun Yet-sen University	Section Manager of Sales Department, Yieh United Steel Corp. Assistant Vice President, Ningbo Qiyi Precision Metals Co. Ltd
Assistant Vice President of Finance and Accounting Division	Chu, Pei-Chen	BBA, Department of Accounting, Tung Hai University MA in Business Management ,National Kaohsiung University of Applied Science	Director of Auditing, Crowe Horwath TW CPAs

Current Industry Situation

Production Production Introduction Flow

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Current Stainless Steel Industry Situation
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Upstream Midstream Downstream End User
Electronic Products
Integrated Mobile Phone,
Retailer or
Stainless Steel Mill Stainless Steel Tablet, Hard Disk,
TISCO,BAOSTEEL,POS Distributor LED Monitor
Service Center
CO, WALSIN LIHWA,
YUEN CHANG
TANG ENG, FUXIN
Home Appliances
●GRINDING &
Fridge, Washing
POLISHING
Machine, Dish Dryer,
●SLITTING Coffee Machine,
●SHEARING Microwave Oven
Stainless Steel
Stamping and
QIYI
Cold Rolled Mill
Construction
Moulding
●SLITTING
QIYI
Manufacturer Engineering
●SHEARING
●Cold Rolling Petrochemical Tank
●Bright Annealing Mechanical Equipment
Building Façade
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Mobile Phone,
Tablet, Hard Disk,
LED Monitor

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Stainless Steel
Cold Rolled Mill
QIYI
●Cold Rolling
●Bright Annealing
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Fridge, Washing
Machine, Dish Dryer,
Coffee Machine,
Microwave Oven

Petrochemical Tank
Mechanical Equipment
Building Façade
Elevator

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Cold Rolled Stainless Steel Production Flow
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20 High SendzimirMill
HR or CR Coil
Horizontal BA Line
Vertical BA Line
3

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BA Coil
Slitting Tension Levelling Skin Pass Mill
Cold Rolled
Shearing
Product
Flat Product
Slitted Coil
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Product Introduction Type

Ni-Cr Series 90%

Ni-Cr
Series 20%

Cr Series 80%

Cr Series
10%

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Product Introduction Type

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Stainless
Steel Coil
Stainless
Steel Strip
Stainless
Steel Sheet
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Introduction
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Eco-Friendly
3C Product Automobile
Energy
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Construction
Appliance Battery
Engineering
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Introduction
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Sales Proportion
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 Consolidated Sales Ratio

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Vehicles, Batteries, Eco- Vehicles, Batteries, Eco-
energies…etc. energies…etc.
Others Others
9% 9%
Electronic Electronic
Processing &
Component Logistics Component Processing &
11% 9%
33% Logistics
37%
Construction Construction
Engineering Engineering
Home
31% 32%
Appliance Home
16% Appliance
13%
2021 2022Q3
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Performance Competitiveness

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Performance
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Sales Revenue
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Thousand NT$	2019	2020	2021	2022Q3
Yuen Chang	5,333,532	4,206,311	9,971,374	8,552,679
Qiyi	3,394,372	3,227,292	4,289,042	2,633,911
Consolidation	8,727,904	7,433,603	14,260,416	11,188,590

Revenue

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16,000,000
2021
14,000,000
2022Q3
12,000,000
2021
10,000,000 2022Q3
2019
2020
8,000,000
2021
6,000,000 2019 2020
2020
4,000,000 2019 2022Q3
2,000,000
0
Yuen Chang Qiyi Consolidation
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Gross Margin
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％	2019	2020	2021	2022Q3
Yuen Chang	5.82	3.66	14.93	11.62
Qiyi	5.97	10.86	10.28	4.96
Consolidation	5.88	6.81	13.55	10.06

Gross Margin

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16 2021
2021
14
2022Q3
12 2020
2021 2022Q3
10
8 2020
2019 2019 2019
6 2022Q3
2020
4
2
0
Yuen Chang Qiyi Consolidation
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Performance Net Profit
Thousand NT$ 2019 2020 2021 2022Q3
Yuen Chang 46,258 (56,061) 605,981 381,203
Qiyi (38,352) 96,218 134,759 (166,971)
Consolidation 7,906 40,157 740,740 214,232
Net Profit
2021
800,000
2021
600,000
2022Q3
400,000
2022Q3
2021
200,000 2020
2019 2020
2019
0
Yuen Chang2020 2019 Qiyi Consolidation
-200,000
2022Q3
-400,000
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Competitive Advantages Yuen Chang Taiwan

DUTY

CONCESSION

The Dafa Plant As A Bonded Factory by free duty, taking great advantages of purchase cost of material.

Full-Equipped Products Satisfy Customers’ Demand In One Stop Shop.

FULLEQUIPPED PRODUCT

CONVENIENT TRANSPORTATI ON

The Dafa Plant Is Near By Kaohsiung Harbour. Its Location Facilitates Transportation To Global Stainless Steel Market.

Fully Associated with Major Global Stainless Steel Systems And Thus Easy To Obtain Timely Market Information. This Enables The Whole Group to Adjust Strategy With The Market .

MARKET

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Competitive Advantages Ningbo Qiyi

CAPACITY OF R&D

Great Capacity For Customised Products, Co-development With Suppliers And Customers From R&D To Production. Enhance Added Value Of Product .

CRAFTSMANSH IP & TECHNIQUES

Excellent Craftsmanship and Techniques in Producing Ultrathin Stainless Steel Foster Qiyi’s Competitiveness

GEOGRAPHIC ADVANTAGE

Located in China, The Largest Country of Stainless Steel Material Supply, Stable Material And Localised Services Have Won Qiyi An Essential Position In Chinese Supply Chain .

Significant Market Share In China’s Precision Stainless Steel Market Has Stablised Its Dominant Position. DOMINANT POSITION

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Q ＆ A

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