YL — Investor Presentation 2020

Aug 19, 2020

TW：2201

YULON MOTOR CO., LTD.?Investor Conference

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Agenda

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

2020/1~7 Sales Volume in Taiwan(excluded heavy turcks)

The sales volume in Jan.~July. 2020 decreased by 0.6% year on year,The proportion of CKD and CBU cars is about 49.7%：50.3%. Main factors：(1)Exchange rate factors and the scale of mass production of models make the price of imported cars more competitive.(2)The product portfolio of imported cars is diversified and the benefits of new model launch.

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Auto Sales in Taiwan Through the Years

42.2 (F)

The sales volume in Jan~July. 2020 is 246K units, and 0.6% decrease rate year on year.
“Chung-Hua Institution for Economic Research“,“Taiwan institute of Economic Research” and The “Directorate General of Budget” predicted respectively economic growth rate of Taiwan are about 1.33%,1.83% and between 1.67%% in July 2020. But COVID-19 epidemic has not been effectively controlled in 2020, adjust to reduce economic growth rate will likely occur.
Due to the COVID-19 epidemic, the overall Taiwan auto market is estimated to be 422K units in 2020, and 1.1% decrease rate year on year.

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Auto Sales in MainlandChina Through the Years

2,000 (F)

The sales volume in Jan.~Jul. 2020 of Mainland China is 12.36 million units, include 11.65 million units passenger car which is declined 18.2% year on year.
“IHS Markit” and “International Monetary Fund” predicted economic growth rate of Mainland China are 1.0% and 1.6% in 2020 respectively. The main reason is that COVID-19 epidemic ,and Mainland China-US trade war has affected corporate investment and consumer confidence.
Coming from the COVID-19 epidemic that has not been effectively controlled and the automotive component value chain has not been fully restored, It is estimated that the overall auto market in China will reach 20.0 million units, and 22.4% decrease rate year on year.

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Consolidated Comprehensive Income Statements

(NT $ Million)
(1~6)
(1~6)

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Consolidated Balance Sheets

(NT $ Million)
(6/30)
(12/31)

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Consolidated Cash Flow Statements

(NT $ Million)
(1~6)
(1~6)

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Commercial Real Estate Development - Xindian
The building floors are B3 ~ 8F, about 43,000 pings. B1F ~ 4F will rent Eslite, 6F ~ 8F rent VIESHOW, and 5F will be reserved for additional leasing.
Commercial district,1F RC structural engineering has been completed, and is now being implemented B1F reverse work method now and Ground floor steel structure construction(as attachment)。It is expected that 2021 Q3 will be delivered to customers for decoration, and the Q2 mall will be opened in 2022.

Aerial view of Zhongxing Road
Aerial view of Green Lake Park

Capital Reduction Schedule
The share capital was reduced from NTD 15.729 billion to NTD 10 billion, with a capital reduction ratio of 36.4239%
2.Important timeline for capital reduction：
(1)「Base date of capital reduction」：2020/8/11。
(2)「Old stock last trading day」：2020/10/6。
(3)「Period of suspension of transfer of old stocks」：2020/10/12~2020/10/16。
(4)「Base date for capital reduction and stock exchange」：2020/10/16。
(5)「Listing date of new stocks and date of termination of listing of old stocks」：2020/10/19。

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減資比例及減資後金額

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