YL — Call Transcript 2021

Nov 16, 2021

TW ： 2201

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YULON MOTOR CO., LTD. Investor Conference

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Copyright © Yulon Motor, All rights reserved.

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Disclaimer Statement

1. This document is provided by Yulon Motor Co., Ltd. (the “Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountant or independent expert. The Company makes no express or implied representations or warranties as to the fairness, accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. The Company, its affiliates and their representatives do not accept any responsibility or liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any loss or damages arising from the use of this document or the information contained herein or anything related to this document.

2. This document may contain forward-looking statements, including but not limited to all statements that address activities, events or developments that the Company expects or anticipates to take place in the future based on the projections of the Company toward the future, and various factors and uncertainness beyond the Company's control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

3. This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer. ‡

4. The copyright of this document is owned by the Company and / or our affiliates and may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose.

Copyright © Yulon Motor, All rights reserved.

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Agenda

Agenda Time Speaker Opening - Chien Hui Li – Senior Vice President Financial Results & Future 10 min Chien Hui Li – Senior Vice President Prospects

Chien Hui Li – Senior Vice President Q&A 20 min Wen Yi Lo – Assistant Vice President Hsun-Kuei Hsieh– Department Manager

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0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0	Auto Sales in Taiwan Through the Years (F) 31.9 36.8 35.5 37.0 41.4 41.1 43.0 43.5 42.3 42.7 44.4 43.7 10.5% 15.5% ~~-3.6%~~ 4.3% 12.0% -0.9% 4.8% 1.0% -2.6% 0.8% 4.0% -1.6% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TIV volume (unit: 10K) Growth rate (%)	Auto Sales in Taiwan Through the Years (F) 31.9 36.8 35.5 37.0 41.4 41.1 43.0 43.5 42.3 42.7 44.4 43.7 10.5% 15.5% ~~-3.6%~~ 4.3% 12.0% -0.9% 4.8% 1.0% -2.6% 0.8% 4.0% -1.6% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TIV volume (unit: 10K) Growth rate (%)	Auto Sales in Taiwan Through the Years (F) 31.9 36.8 35.5 37.0 41.4 41.1 43.0 43.5 42.3 42.7 44.4 43.7 10.5% 15.5% ~~-3.6%~~ 4.3% 12.0% -0.9% 4.8% 1.0% -2.6% 0.8% 4.0% -1.6% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TIV volume (unit: 10K) Growth rate (%)
	31.9 36.8 35.5 37.0 41.4 41.1 43.0 10.5% 15.5% 4.3% 12.0% -0.9% 4.8%	(F 43.5 42.3 42.7 44.4 43.7 1.0% -2.6% 0.8% 4.0% -1.6%	)
	~~-3.6%~~ 2010 2011 2012 2013 2014 2015 2016

1. The sales volume from Jan. to Oct. in 2021 is 357K units which increase 0.7% compared to 2021. New car sales were affected by factors such as shortage of automotive core chips and logistics and freight.

2. In the follow-up, it still need to observe the impact status of the port congestion and the shortage of automotive parts.

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	(NT $ Million)
	Amount % Amount % Amount % Consolidated 2021Q3 2020Q3 Difference Consolidated Consolidated
Operating revenue	57,759 100% 58,553 100% (794) -1%
Gross profit	17,608 30% 14,596 25% 3,012 21%
Operating income	5,457 9% 901 1% 4,556 506%
Nonoperating income and expense	1,616 3% 2,983 5% (1,367) -46%
Consolidated income before income tax	7,073 12% 3,884 6% 3,189 82%
Consolidated net income 5,610 10% 3,090 5% 2,520 82% ―Owner of the Company 3,414 6% 1,509 2% 1,905 126% ―Non-controlling interests 2,196 4% 1,581 3% 615 39% Other comprehensive income, net (357) -1% (329) -1% (28) -9% Total comprehensive income 5,253 9% 2,761 5% 2,492 90%
EPS 3.49 1.54 1.95 127%

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Consolidated Balance sheet Statements

(NT $ Million)

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Consolidated Cash Flow Statements

(NT $ Million)

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i-Cargo (electric logistics vehicles)

1. In 2021, YL collaborative with strategic partner Adiva to develop i-Cargo electric logistics vehicles which had high mobility, high load capacity, replaceable batteries, last mile delivery and other elements.

2. The future is mainly for the export market demand, includes Europe, Japan, Singapore, etc.

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Commercial Real Estate Development - Xindian

1. The building floors are B3 ~ 8F, about 43,000 pings. B1F ~ 4F will be rented by Eslite, 5F ~ 6F will be rented for shopping mall, 7F ~8F for cinema. 2. The construction has completed the steel structure engineering in ground floor, and external curtain wall(detailed with photos). The electric-escalator installation, mechanical-electrical engineering, landscape engineering and decoration engineering works are currently in progress. Due to Covid-19 epidemic, the shopping mall will open in Q1 2023.

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Copyright © Yulon Motor, All rights reserved.

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Social responsibility Woodcarving craft inheritance and root

， 1. In 2021, Taiwan International Competition of Wood Sculptu we sponsored the "Yulon Wood Carving Inheritance Award" and "Yulon Wood Carving Innovation Award" winning works, each with a prize of NTD $300,000. 2. From 2014 to 2021, we sponsored Taiwan International Wood Carving Festival NTD $2 million each year to promote the internationalization of wood carving art.

Inheritance Award

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Innovation Award

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THANK YOU FOR WATCHING

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