YL — Investor Presentation 2019

Apr 10, 2019

TW：2201

YULON MOTOR CO., LTD.?Investor Conference

2019/04/10

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Agenda

Agenda	Time	Speaker
Opening	-	Chien Hui Li –Vice President
Financial Results & Future Prospects	10 min	Lo Wen Yi –General Manager
Q&A	20 min	Chien Hui Li –Vice President Lo Wen Yi –General Manager

Financial Results & Future Prospects

2019/1~3 Sales Volume in Taiwan

The sales volume in Jan.~Mar. 2019 decreased by 16.7% year on year,The proportion of CKD and CBU cars is about 52%:48%. A number of new cars will be launched, and it is expected that will be stable in Q2.

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Auto Sales in Taiwan Through the Years

42 (F)

The sales volume in 2018 of Taiwan is 432K units, and 2.6% decrease rate year on year.(In August, CBU cars and the overall market showed a significant decline for the first time).The sales volume in Jan~Mar. 2019 is 93K units.
“Chung-Hua Institution for Economic Research“ and “Taiwan institute of Economic Research” predicted economic growth rate of Taiwan are about 2.12% and 2.18% in 2019 respectively. The “Directorate General of Budget” forecast the economic growth rate of Taiwan is about 2.27% showing the economic grow steadily in 2019.
A number of new cars will be launched, but due to the diminishing effect of the old car replacement subsidy policy, Presidential election, the uncertainties of the Mainland CHINA-US trade war, the overall Taiwan auto market is estimated to be 420K units in 2019 which is the same as 2018.

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Auto Sales in MainlandChina Through the Years

2,810 (F)

The sales volume in 2018 of China is 28.08 million units, and 2.8% decline rate year on year; the sales volume in Jan.~Feb. 2019 of Mainland China is 3.85 million units, include 3.24 million units passenger car which is declined 17.5% compared to that of last year.
“Global Insight” and “International Monetary Fund” predicted economic growth rate of Mainland China are 6.3% and 6.2% in 2019 respectively. The “People‘s Bank of Mainland China” forecast the economic growth rate of Mainland China is between 6% to 6.5% in 2019 showing steady economic growth in 2019. The main reason is that Mainland China-US trade war has affected corporate investment and consumer confidence, the population growth has slowed down and the housing bubble may expand.
Despite the impact of Mainland China-US trade war on Mainland China's economy, tightening environmental protection, and the downward pressure on the implementation of the National Sixth Emissions Standard, expansion of the scale of tax reduction, the inclusive tax cuts and structural tax cuts, and the continued optimization of new subsidy structure of energy vehicles and the promotion of rural automobile renewal and other industrial policies have been introduced to promote the consumption of domestic demand vehicles. It is estimated that the overall auto market in China will reach 28.1 million units in 2019, similar to 2018.

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Consolidated Comprehensive Income Statements

Unit：NTD Million

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Consolidated Balance Sheets

Unit：NTD Million

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Luxgen Sales Volume in Mainland China and Taiwan

units

1.Luxgen
In 2019, Luxgen launch the「843」plan, covering all aspects of new product development, marketing experience services and contribution to the society, annual sales volume is expected to reach 12,000~15,000 units.
New models which will be launched in 2019: M7 M/C,S5 GT and GT220 annual changes, and the new model URX.
2.Dongfeng Yulon Motor (DFYL)
In 2019, DFYL focus on improving the vehicle revenue, penetrating new energy vehicles, and adding to the cloud experience clubs. Annual sales volume is expected to reach 12,000~15,000 units.
New models which will be launched in 2019: the new model URX, U5 EV and U5 and GT220 annual changes.
3.Strengthening the competitiveness of Luxgen
Luxgen invested 7.137 billion to purchase technical assets including two models, a new shared chassis and a high-performance shared engine to Haitec. It’s for the main purpose of strengthening the competitiveness of the Luxgen brand in the Mainland China and Taiwan automobile market. In the future, many new models of Luxgen will be developed on the basis of modular platforms and shared power systems, looking forward to more flexible responding to future market changes, and providing solutions to create niches.

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第一季發表U5/U6 「迎賓座椅」與 M7 第二排獨立雙座「Ottoman 座椅」
第二季發表 S5 GT/GT220
第三季發表全新 5+2人座 URX
第三季至 2020 上半年：二款新電動車 U5 EV+ 與 S3 EV+
2020 上半年推出代號 MBU、全新跨界 SUV

Real Estate Development - Xindian
Progress of real estate development in Xindian:
1. Commercial district
Commercial district has started construction in Q2 2017, diaphragm wall and pile engineering has been completed, and it is estimated building usage permit will be obtained in Q2 2023 and it will start operating in Q1 2024.
Total floor area of Commercial district is about 66,000 ping, the B1~7 floor is planned to be the shopping mall, B2~B5 floor is the parking space, and the 8~40 floor is the residence. It’s expected to be sold in Q3 2020.
2. Residential district
Total floor area of Residential district is about 46,000 ping, B1~B5 floor is planned to be the parking space, and 1~40 floor is the residence. Building permit is expected to be obtained in the second half of 2019.

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CSR &Tourism Factory
CSR Honor
2018/08 Won Common Wealth Magazine Excellent CSR Large Enterprises TOP 13.
2018/12 Selected in the Stock Exchange Taiwan Sustainability Index
2019/03 Won Taiwan Corporate Governance Association awarded the external
evaluation of corporate governance performance to "standard" or above
Sanyi Tourism Factory
The first Automobile-Manufacturing company which obtained the qualification certification of the tourism factory, and the car experience center was set up in 2018, looking forward to communicating the CARS spirit to the tourists through the experience tours.
CARS means C「Culture」、A「Attitude」、R「Refresh」、S「Skill」

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