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Dear Investor,

YG Group-KY(1589) hereby announces its self-settlingfinancial results for the year 2019 and the 4th quarter of 2019¡£

2019 Annual Financial Results

           ¡ô   Consolidated revenue for the year was NT$7.90 billion£¬an increase of 27.5% over last  year¡£
           ¡ô   The tonnage shipped this year was 164,117 tons£¬an increase of 22.9% over the same period last year¡£

                 The revenue compositionratio of each product is renewable energy£¨55.4%£©£¬injection molding

                  machine£¨20.0%£©£¬and industrial machinery£¨24.6%£©¡£
           ¡ô   Consolidated gross margin for the year was 17.3%£¬an increase of 3.9 percentage points from 13.4% last

                 year¡£
           ¡ô   The net operating margin for the year was 2.7%£¬an increase of 6.7 percentage points from last

                 year's -4.0%¡£
           ¡ô   Net profit after tax for the current year was NT$164 million£¬an increase of NT$438 million from the

                net loss after tax of NT$274 million last year¡£
           ¡ô   Earnings per share for the year were NT$1.54,an increase of NT$4.02 from the net loss per share of

                NT$2.48 last year¡£
           ¡ô   2019 Revenue and annual growth rate£º

           ¡ô   With the substantial efforts of our employees£¬we were able to turn a profit last year under the

                       unfavorable environment of the injection molding machine and industrial machinery market¡£Given

                       the long-term visibility of renewable energy orders and the strong demand from renewable energy

                       customers in all regions of the world£¬we will continue to increase our capacity for onshors and

                       offshore wind energy products¡£The renewable energy market accounted for more than 60% of

                       our revenue in the fourth quarter of 2019£¬ and we expect that renewable energy demand shall

                       remain our main drive for growth in 2020 as well¡£In the injection molding machine and industrial

                       machinery markets£¬ we are relatively conservative about the future outlook due to the global

                       impact of the COVID-19 outbreak¡£

2019 Q4 Financial Results

           ¡ô   Consolidated revenue for the quarter was NT$2.229 billion£¬an increase of 3% from the previous

                 quarter and an increase of 31% from the same period last year¡£

           ¡ô   The tonnage shipped during the quarter was 45,612 tons£¬an increase of 1% from the previous quarter

                 and an increase of 27% from the same period last year¡£The revenue composition ratio of each product

                 is renewable energy£¨66.6%£©¡£
           ¡ô   Consolidated gross margin for the quarter was 20.6%£¬an increase of 2.6 percentage points from the

                previous quarter's 18.0%£»an increase of 5.0 percentage points from the 15.6% for the same period

                last year¡£
           ¡ô   The net operating margin for the quarter was 4.4%£¬a decrease of 0.4 percentage point from the

                 previous quarter's 4.8%£»an increase of 6.1 percentage points from the same period last year -1.7%¡£
           ¡ô   Net profit after tax for the quarter was NT$171 million£¬net profit after tax for the previous quarter

                was NT$80 million£¬and net loss after tax for the same period last year was NT$60 million£»earnings

                per share for the quarter was NT$1.63¡£The earnings per share for last quarter was NT$0.75,and the

                net loss per share for the same period last vear was NT$0.55¡£

2020 Operational Outlook

           ¡ô  For the performance in the first quarter of 2020£¬due to the outbreak of the COVID-19 virus£¬the

               Chinese government required companies to postpone the start of work after the Spring Festival in

               order to control the disease.The employees of YG Group in Mainland China also assisted the local

               government in all infection prevention efforts in a timely manner£¬and the subsidiaries of YG group

              in Mainland China also successively obtained permits to resume work from the local government between

              February 17 and 21¡£ In order to ensure that YG Group's subsidiaries are fully protected against the

             spread of COVID-19 internally and to effectively avoid secondary shutdowns due to COVID-19 diagnosis

             of the company's employees after resumption of work£¬we have arranged so that once our employees

            return to the cities of our factories they need to be quarantined at their residence for a period of time

            before theycan return to work¡£Thus there are no COVID-19 infections occurring in YG Group's

            subsidiaries at thepresent¡£It is expected that our production in March will be restored to 70% of normal

            production capacity£¬and production output will gradually resume to normal¡£It is expected that the

            revenue of the  first quarter of 2020 will be greatly affected by the COVID-19 outbreak situation¡£

           ¡ô   Looking forward to the 2020 shipment target£¬considering with the realities described above£¬YG

               Group estimates that it will grow by 10-20%£¨180,000-196,000 tons£©on the base of 2019 shipments

              £¨164,000 tons£©¡£

Chart 1: Revenue and Shipment by quarter

Safe Harbor Notice

This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Except as required by law, we undertake no obligation to update any forward ¨C looking statements, whether as a result of new information, future events or otherwise.