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Dear Investors,

    YG Group-KY (1589) hereby announces its financial results for the 1st quarter of 2020.

2020 Q1 Financial Results

           ¡ô   Consolidated revenue for the quarter was NT $ 1.13 billion, a decrease of 49% from the previous quarter and a decrease of 27% from the

                same period last year.

           ¡ô   The tonnage shipped during the quarter was 24,222 tons, a decrease of 42% from the previous quarter and a decrease of 26% from the

                same period last year. The revenue composition ratio of each product is renewable energy (60.7%), injection molding machines (17.7%),

                and industrial machinery (21.6%).         

           ¡ô   Consolidated gross margin for the quarter was 11.2%, a decrease of 9.46 percentage points from the previous quarter's 20.6% due to the

                 impact of the COVID-19 virus; a decrease of 2.83 percentage points from the 14% for the same period last year.

           ¡ô   The net operating margin for the quarter was -9.910%, a decrease of 14.34 percentage point from the previous quarter's 4.4%; a

                decrease of 7.5 percentage points from the same period last year -2.43%.

           ¡ô   The operating net loss for the quarter was NT $ 111 million, the operating net profit for the previous quarter was NT $ 98 million, and

                the operating net loss for the same period last year was NT $ 38 million.

           ¡ô   After-tax net loss for the quarter was NT $ 113 million, after-tax net profit for the previous quarter was NT $ 171 million, and

                after-tax net loss for the same period last year was NT $ 106 million; this quarter ¡¯s loss per share was NT $ 1.06, Earnings per share

                for the previous quarter was NT $ 1.63, and net loss per share for the same period last year was NT $ 1.00.
           ¡ô   2020 Q1 Revenue and annual growth rate£º                                        

    Due to the continued effect of the COVID-19 outbreak, all YGG¡¯s production bases are actively co-operating with the relevant local authorities to control the spread of the virus. After the resumption of business operations in February, the company carried out extensive protection measures under the premise of protecting the health and safety of all employees. Due to the delay in resumption of production, revenue/shipping in the first quarter were greatly affected.¡£

Operational Outlook

The following statements about future prospects are based on expectations of the current situation, but at the same time subject to known or unknown risks or uncertainties. Please refer to the attached "Disclaimer".

           ¡ô   As the spread of the COVID-19 virus is gradually coming under control in the region/countries where our main customers are located,

                YGG have weekly contacts with customers to understand the latest developments in anti-virus measures and how we can better respond

                to new market demands in a timely manner. Renewable energy customers are so far expecting the demand for onshore and offshore wind

                power to remain unchanged for this year, and hope that YGG will continue to deliver products per agreed schedules. Compared with last

                year, the demand of injection molding machine and industrial machinery customers is experiencing a downward trend, which is mainly

                related to the market uncertainties in the equipment demand of end-users as well as in the future economic trend, being overshadowed

                by COVID-19. In regards to the impact of the COVID-19 epidemic on our annual shipment target for this year, we need to continue to

                observe the developments in all industry sectors and regions before making any adjustments.

           ¡ô   Presently, some customers in India have asked for delayed deliveries due to the country ¡¯s extension of epidemic control measures.

                Our Indian customers emphasized that the order quantity remains unchanged and hopes that we will be ready to resume shipment as soon

                as the Indian government relaxes the quarantine measures.

           ¡ô   Looking forward to the second quarter of this year, our orders on-hand are still at historically high levels and the production capacity has

                returned to normal. We will make every effort to manufacture the products our customers need on time. In terms of raw material prices,

                due to the drop in demand for pig iron, we can expect that market pricing will adjust accordingly.

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.