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YC Investor Presentation 2021

Dec 21, 2021

52391_rns_2021-12-21_c554083d-7d01-44a9-82ad-4997fbc4eadb.pdf

Investor Presentation

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YC GROUP PROFILE legal person briefing session

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Contents

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Manufacturing Group Profile Business Real Estate Financial Business Information

Distribution Business Future

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Manufacturing Business

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Distribution Business

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Real Estate Business

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Group Profile

Financial Information

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Future

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Group roP file _Information

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Since in 1978 Share Capital:TWD 6.38 billions President:LI CHIH-HSIEN , Number of employees:2,309 persons Stock Listed:2000 year (No .4306) Product:Tape、Packaging Materials 、 BOPP、Construction Industry

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Group roP file _ Three business groups

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Manufacturing Business(YC/ACHEM)

Tapes
• BOPP
Distribution Business( XIN CHIO GLOBAL)
• Path、Platform

Packaging Materials
Real Estate Business( WANG CHIO )

Construction Industry
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Group roP file

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_Proportion of business

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Manufacturing Business Distribution Business Real Estate Business

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10% 4%
86%
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Group Profile

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Distribution Business Real Estate Business Financial Information

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Manufacturing Business

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_86% Of Revenue

Future

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Manufactur ng i Bus nessi

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_Product

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PE Protective Double
OPP PVC
Tapes Sided Tapes
Specialty Specialty
BOPP
Tapes Chemical
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Manufactur ng i Bus nessi _OPP Tapes

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  • Production Capacity 210 Million M[2] per month

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  • Market share : 8%

  • Available in solvent, emulsion and Synthetic rubber base

  • A pp li ca ti on a d op t e d i n:

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  • Packaging

  • Stationery

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  • Surface protection

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  • Widely use in:

  • Consumer market

  • Industrial applications

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Manufactur ng i Bus nessi _PVC Tapes

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  • Production Capacity 25 Million M[2 ] per month

  • Market share : 20%,

  • Application adopted in:

  • Electrical wiring harness & degaussing

  • Pipe/duct wrapping/insulating

  • S ur f ace pro t ec ti on

  • Widely use in:

  • Consumer market

  • Auto market

  • Construction

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Manufactur ng i Bus nessi

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_PE Protective Tapes

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  • Production Capacity 5 Million M[2] per month

  • Widel y use in:

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  • Cold Rolled Stainless Steel

Aluminum

Plastic Sheets

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Decorative Laminates

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Manufactur ng i Bus nessi

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_Double Sided Tapes

  • Production Capacity 3 Million M[2] per month

  • Application adopted in:

  • Fastening/Positioning

  • Mounting

  • Stationery

  • Widely adopted in:

  • Electronics component market

  • Automobile market

  • C onstruct on mar i k et

  • Consumer market

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Manufactur ng i Bus nessi

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_BOPP

  • Production Capacity 6,500 t/month

  • Application adopted in:

, ,  print Tape bag making  label

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Manufactur ng i Bus nessi

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_Specialty Chemical

 Major business items:

With high p u rit y chemical sol v ent production and foundry in IC /optoelectronics/semiconductor industry. manufacturing solvent recycling in IC/ optoelectronics/semiconductor.

containers clean in IC/optoelectronic/semiconductor chemical.

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Manufactur ng i Bus nessi _Strength

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Development Manufacturing
and integration
Technology
Automated
Tapes
Technology Production
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Manufactur ng i Bus nessi _ Strength _Manufacturing integration

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Vertically-integrated production to reduce operation cost

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Up Raw Material
Rubber, Acrylic, Hot melts PE, PVC and BOPP film.
stream Manufacture
Mid Tape Production
PE, PVC, BOPP, Double sided
stream Manufacture
and Masking tape, etc.
Down Processing
Distribution
stream
Centers Worldwide distribution development
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Manufactur ng i Bus nessi

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_ Proportion of Product Sales

2021/10/31 Proportion of Product Sales

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18% OPP
40%
PVC
17%
BOPP
25%
others
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17

17

Manufactur ng i Bus nessi

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_Global partners

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Vanguard Internation
Semiconductor Corporat
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Manufactur ng i Bus nessi _Worldwide Locations-Taiwan

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2015 stationed in Neihu headquarters

Yangmei Tape Plant - Established in 1983c Land area 125,490 M[2]

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Factory building 75,377 M[2]

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Changbin Plant - Established in 1991

Land area 88 , 780 M[2] Factory building 60,829 M[2]

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Manufactur ng i Bus nessi _ Worldwide Locations-China

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Foshan Plant - Established in 1991

Dongguan Changan Plant - Established in 2001 Ningbo Plant - Established in 2002 Haian Plant - Established in 2014

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Manufactur ng i Bus nessi

_ Worldwide Locations - Vietnam Vietnam Plant – E s t a bli s h e d i n 2011 Land area 30,000 M[2] Factory building 10,000 M[2]

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Manufactur ng i Bus nessi _ Worldwide Locations-America

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Our Group set up three service centers in the US to upgrade the service quality and meet the needs of customers.

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Chicago, IL

Midwest Service Center

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Los Angeles, CA
America headquarters
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Charlotte, NC East Coast Service Center

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Group Profile

Manufacturing Business

Real Estate Business

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Distribution Business

Financial Information

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_10% Of Revenue

Future

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Distribution usB i ness

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_Product

Item Detail Product
Industrial Adhesion、heat conduction
Paer
p
packaging
materials
Casing、Packaging Box
Plastic BOPP heat-wrapping、Ziploc
Industrial Buffer
packaging
PP Corrugated Board
Packaging
Machinery
Adhesive Tape Sealing machine
Tape BOPP Packaging Tape、Double Sided Tapes、PVC Tape
Livelihood Livelihood Home Cleaning series
O h
t ers
d
i
V l
es ccant、e cro
special Custom-made Standing bag、Fruit bag

Distribution usB i ness _Main Product And Customer

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Area C
ustomer
d
Pro uct
Taiwan Electronic industry


protect membrane 、Packaging Materials
F
d i d
t
oo
n us ry
Chi Electronic industry Tape、Packaging Materials 、protect
na Optoelectronics industry membrane
  • * Taiwan ' s real effective trading customers reached more than 10,000, customers base decentralized and stable.

  • *The main lock in mainland China to large and medium-sized d ea ers an l d t arge t i n d us t r es n i i th e ma n manu i f ac t urer.

Distribution usB i ness _ Strength

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Product
Diversification
Vertical
Customized
Integration products
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Group Profile

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Manufacturing Business

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Distribution Business

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Real Estate Business

Financial Information

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_4% Of Revenue

Future

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Real Estate us B iness _Past performance

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2005 2008 城市之洲 2013 旺洲極品or旺洲More 2018 [旺洲逸品] 2020 [炎洲THE ONE]
Wang Chio is
established and
expan d e d i n t o th e
real estate business.
2006 世界之洲 2010 峰華苑 or 旺洲雲品 2015 [Group] [headquarters] 2019 炎洲旺年匯
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Group Profile

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Manufacturing Business

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Distribution Business

Financial Information

Real Estate Business

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Future

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Financ ai l Information _Financial Information

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Thousand dollars(NTD) Thousand dollars(NTD) Thousand dollars(NTD) Thousand dollars(NTD) Thousand dollars(NTD)
It
em
2019 2020 2021Q3
Consolidated
R
16,177,441 13,948,716 12,918,780
evenue
Gross
Margin
12% 16% 18%
Afte ta
r-
x
profit and loss
(509 016)
,
805 604
,
740 869
,
EPS (0.99) 1.51 1.27

Financ ai l Information _Dividend Distribution

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2017 2018 2019 2020
Cash Dividend 0.59 0.49 0.3 0.59
Share Dividend - - - 0.59
T t l
o a
0 59
.
0 49
.
0 3
.
1 18
.

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Group Profile

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Manufacturing Business

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Distribution Business

Future

Real Estate Business

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Financial Information

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Future

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_ Manufacturing Business

OPP

PVC

Special tape

Special chemistry

•The group promotes the OPP film Sales 2 . 0 strategy, that is, increasing the proportion of consumer product film categories and developing biodegradable products.

• We will continue to d eve op l th e ou S th eas t Asian market, develop new products for special purposes and enhance global competitiveness.

• Co-develop protective c o l thi ng ape w t ith Textile Research Institute and garment industry in Taiwan. • Electronic adhesive tape.

• we take toward the spr it e o f“th e transformation of group enterprises”, actively expand specialized industries, and increase the sales of electronic and semiconductor productsas our everlasting pursuit and provide high - quality products for feedback.

  • Access to large

  • international auto plants through wire harness tape.

• Sales of PE tape are i ncreas ng year y year. i b

  • •Promote the uni q ueness of oily OPP tapes and increase sales.

  • •Flexibly adjust the group ' s global supply chain in response to international trends to enhance competitiveness.

  • Stren g then the promotion of environmentally friendly water-based PVC products .

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.
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Future

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_ Distribution Business

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XIN CHIO GLOBAL CO., LTD.
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• XIN CHIO(3171) benefited from the early layout of e‐commerce channel development and solidification of existing customers. At the same time, by optimizing the product portfolio and promoting project sales, and so on four big face, as the driving force of business growth, XIN CHIO(3171) promoted the performance not to decline but to rise during the epidemic period, driving the growth of revenue. However, due to the sharp rise of materials affected the performance of gross profit margin considerably, XIN CHIO(3171) will continue to develop new suppliers for bulk specification unified purchase products in the future , In order to improve the purchase cost advantage and strive to improve the gross profit margin.

  • Looking forward to 2022, XIN CHIO(3171) will continue to invest in the development of new electronic materials and environmentally friendly packaging materials, and will strengthen supply chain management and cross the international trade business; XIN CHIO(3171) is optimistic that the demand for packaging materials will increase ‐

  • due to the post epidemic era of zero contact business opportunities , it is expected that the growth trend of the industry will remain unchanged.

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Future _ Real Estate Business

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WANG CHIO Construction
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Location
Pre-sale
construction

Total sales
amount

Sales rate
Building
completion
Location
Pre-sale
construction

Total sales
amount

Sales rate
Building
completion
Location
Pre-sale
construction

Total sales
amount

Sales rate
Building
completion
Location
Pre-sale
construction

Total sales
amount

Sales rate
Building
completion
Location
Pre-sale
construction

Total sales
amount

Sales rate
Building
completion
Location
Pre-sale
construction

Total sales
amount

Sales rate
Building
completion
Location Pre-sale
construction
Total sales
amount
Sales rate Building
completion
j
pro ects
(NTD) year
Xinzhuang
District, New

旺年匯 NT$1 billion 100% 2022
T i
i Ci
a pe
ty
Linkou District, 逸品 NT$3 billion 95% 2023
New Taipei City
Xinzhuang THEONE NT$18 billion 100% 2024
District, New
Taipei City

.

Future

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_Financial aspects

Continuous pruning strategy to improve financial structure:

  • Dis p osed business assets: Wan Chio Petrochemical Co., Ltd.

  • Plan to dispose idle assets: ACHEM Technology(Shanghai) Limited.

Other important financial matters:

  • The cash inflow in the disposal case of Wan Chio Petrochemical Co., Ltd. is about NT $1.8 billion. Together with the completion recognition of the three - pre sale construction projects from 2022 to 2024 , the cash inflow is about NT $5.8 billion, which will effectively reduce the debt ratio.

  • WINDA optoelectronic Co., Ltd., the Group's mainland-based converted i l li h e Be k Exc h b h e en d o f nvestment company, p ans to st on t iji ng Stoc ange y t 2022 which will open up the market channel for the growth and expansion of the enterprise.

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Future

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_ Energy saving and carbon reduction /Digital transformation

Getting worse impact on global warming, evidence shows that frequent extreme weather is closely related to greenhouse gas emissions, and the world has begun to raise an independent awareness o f car b on re d uc ti on. n or I d er o mee t t thi s c h a ll enge, emc Y hi o h as launched a carbon management plan to implement energy conservation and carbon reduction. In addition to appointing external experts as consultants ,Yemchio has set a goal of reducing the group's energy consumption by 30% within five years, At the same time, it is also planned to import iso50001 energy management project to make full preparations for the zero carbon trend.

In the aspect of transformation and innovation, Yemchio takes the establishment of a digital headquarters as the starting point, step by ste p p lans to p romote ener gy mana g ement s y stems, intelli g ent manufacturing systems, etc., and realizes the transformation of the business model with using digital technology. Yemchio, a traditional manufacturing industry, will create new competitive advantages through digital transformation and find new driving forces for future growth.

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  • Tanks for you attention

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