YH — Investor Presentation 2020

Aug 27, 2020

Investor Conference

==> picture [69 x 449] intentionally omitted <==

YIEH HSING ENTERPRISE CO., LTD. 2020 INVESTOR CONFERENCE

： Stock Code 2007

2020/8/27

P. 1/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

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 any adjustment has been made. https://mops.twse.com.tw/mops/web/index

2020/8/27

P. 2/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

Table of Contents

Company Overview Operating Performance Market Overview & Future Outlook – - Main Investment E Sky Land Hall A

2020/8/27

P. 3/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

COMPANY OVERVIEW

2020/8/27

P. 4/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

INTRODUCTION

Time Establishment July 18, 1978 Capital Investment 5.3 billion Chairman Lin-Maw Wu President Robert Sen-Long Chen Number of 437 (June, 2020) Employee Stock Time to October 4, 1988 Market

==> picture [470 x 293] intentionally omitted <==

2020/8/27

P. 5/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

MILL LOCATION INTRODUCTION

==> picture [528 x 367] intentionally omitted <==

2020/8/27

P. 6/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

WIRE ROD MANUFACTURING PROCESS

==> picture [203 x 31] intentionally omitted <==

----- Start of picture text -----

Carbon Steel Product
----- End of picture text -----

==> picture [922 x 397] intentionally omitted <==

----- Start of picture text -----

Wire rod Reba
Raw Material Rolling Mill
r
Billet
Reheating Furnace Rolling
Carbon
Carbon
Bar
Carbon Steel series
Stainless
Alloy Steel series
-
Free Cutting series
Annealing &
Pickling Plant
Stainless Steel Product
Annealing Furnace Pickling
Wire rod
200 series
300 series
Stainless
400 series
Welding series
----- End of picture text -----

2020/8/27

P. 7/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

STATUS OF WIRE ROD INDUSTRIES

YIEH HSING DOWNSTREAM ENDUSERS

CARBON WIRE ROD MELTING SHOP STAINLESS WIRE ROD RAW MATERIAL BILLET

==> picture [35 x 44] intentionally omitted <==

DRAWING

==> picture [156 x 138] intentionally omitted <==

----- Start of picture text -----

BAR POLISH
SCREW
FORGING
----- End of picture text -----

==> picture [34 x 44] intentionally omitted <==

==> picture [157 x 236] intentionally omitted <==

----- Start of picture text -----

BOLT/NUT
SPRING WIRE
WELDING WIRE
LINEAR
PROFILES
FINE WIRE
----- End of picture text -----

2020/8/27

P. 8/22

==> picture [265 x 32] intentionally omitted <==

Stainless Welding Steel

==> picture [104 x 96] intentionally omitted <==

APPLICATIONS OF WIRE ROD

Linear

==> picture [160 x 94] intentionally omitted <==

==> picture [431 x 135] intentionally omitted <==

General Applications

==> picture [153 x 86] intentionally omitted <==

Stainless Spring Steel Wire

==> picture [138 x 113] intentionally omitted <==

Investor Conference

Stainless Fine Wire

==> picture [151 x 86] intentionally omitted <==

Stainless Profiles/Polished

==> picture [176 x 74] intentionally omitted <==

2020/8/27

P. 9/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

VARIOUS CERTIFICARION

ISO 9001 ISO 14001

==> picture [203 x 287] intentionally omitted <==

==> picture [205 x 35] intentionally omitted <==

OHSAS 18001

==> picture [203 x 287] intentionally omitted <==

==> picture [205 x 110] intentionally omitted <==

ISO 50001

==> picture [203 x 287] intentionally omitted <==

==> picture [205 x 35] intentionally omitted <==

2020/8/27

P. 10/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

==> picture [272 x 366] intentionally omitted <==

EU PED AND AD2000 W0

==> picture [303 x 393] intentionally omitted <==

India ISI FMCS

2020/8/27

P. 11/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

OPERATING PERFORMANCE

2020/8/27

P. 12/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

CONSOLIDATED INCOME STATEMENT

==> picture [716 x 397] intentionally omitted <==

----- Start of picture text -----

Amount Unit :
NT$ thousand dollars
Year 2020/1~6 2019/1~6 2019
Item Amount Amount Amount
Operating Revenue 2,786,702 3,560,104 6,552,804
Gross Profit (131,613) (80,269) (235,118)
Net Operating Income (profit/loss) (227,351) (200,468) (477,680)
Net Income (profit/loss) (315,530) (285,161) (652,969)
Total comprehensive (profit/loss)
For this period attributable to (307,811) (277,928) (642,187)
Owners of the arent com an
p p y
Earning per Share (dollars) (0.58) (0.52) (1.21)
----- End of picture text -----

2020/8/27

P. 13/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

OVER THE YEARS REVENUE AND PRODUCTION CHANGES MAP

==> picture [816 x 367] intentionally omitted <==

----- Start of picture text -----

Revenue Unite: Production Unit:
NT$100 million ● Revenue Amount ● Production 10,000 tons / year
100 45
42.7
90 38.5 87.4
40
79.9
80 75.0
72.7 35
31.9
31.3
70 65.5 28.9
30
60
25
50
20
40
27.9 15
30 11.2
10
20
5
10
- -
2015 2016 2017 2018 2019 2020/1~6
----- End of picture text -----

2020/8/27

P. 14/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

PROPORTION OF REVENUE 2020 JAN. ~ JUN.

Various products sales ratio

Domestic and foreign sales ratio

Carbon Wire Other Income Rod 3.03% 23.11%

Export Revenue 27.29%

Stainless Steel Wire Rod 73.86%

Domestic Revenue 72.71%

2020/8/27

P. 15/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

MARKET OVERVIEW & FUTURE OUTLOOK

2020/8/27

P. 16/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

MARKET OVERIEW

 Affected by Covid-19 pandemic, export orders from January to June this year has decreased by about 20% compared with last year. As the epidemic continues to spread, the demand for purchases in major markets in Europe and America has been delayed.

 In order to remedy the economy, governments of all countries have expanded their monetary easing policies, and hot money has entered the market in large quantities. It causes the nickel price to fluctuate sharply and break the cost structure of raw material supply and demand, and increasing the complexity of downstream purchasing decisions.

2020/8/27

P. 17/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

FUTURE OUTLOOK

• Expand the market for high value products.

• Continue to actively expand the source of steel billet to optimize the supply of raw materials.

• Provide customized products (such as stainless steel 400 series, duplex steel... etc.) to improve the flexibility of customer services.

• The progress of vaccine research and development in various countries has entered human experiments, which is expected to help curb the spread of the epidemic and gradually resume economic activities.

• After the 11/3 presidential election in the United States, the US unilateral trade and trade policy

• with China may face adjustments, which will help alleviate trade barrier disputes caused by political factors and restore the global trade market order.

2020/8/27

P. 18/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

– MAIN INVESTMENT - E SKY LAND HALL A

2020/8/27

P. 19/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

INTRODUCTION - E SKY LAND HALL A

==> picture [372 x 462] intentionally omitted <==

O eration Item Coo erator Remarks p p Boutique The investment has shopping center built 31 floors above ground and 6 floors underground. The total International Marriot floor area of the Tourist Hotel Group building is 77,000 pings.

This investment project is expected to trial operation in 4[th] quarter of 2020.

2020/8/27

P. 20/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

- E SKY LAND HALL A LOCATION

==> picture [573 x 405] intentionally omitted <==

----- Start of picture text -----

Boai 1st Rd .
Hall
A
Ziyou 1st Rd.
----- End of picture text -----

2020/8/27

P. 21/22

Investor Conference

==> picture [265 x 32] intentionally omitted <==

==> picture [550 x 104] intentionally omitted <==

~ Thank You ~

2020/8/27

P. 22/22