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Press Release for Yeong Guan’s 2020 Q3 consolidated financial results

2020-11-09 6163



Dear Investors,

    YG Group-KY (1589) hereby announces its financial results for the 3rd quarter of 2020.


2020 Q3 Financial Resultss

           ◆   Consolidated revenue for this quarter was NT$2.431 billion, an increase of 13.81% from the previous quarter; an increase of 12.10% from

                 the same period last year.

           ◆   The tonnage shipped during the quarter was 52,370 tons, an increase of 13.04% from the previous quarter and an increase of 15.77%

                from the same period last year. The revenue composition ratio of each product is renewable energy (72.8%), injection molding machines

               (11.7%), and industrial machinery (15.5%).

           ◆   Consolidated gross margin for the quarter was 24%, an increase of 2 percentage points from the previous quarter's 22%; an increase of 6

                percentage points from the 18% for the same period last year.

           ◆   The net operating margin for the quarter was 12%, an increase of 5 percentage point from the previous quarter's 7%; an increase of 7

                percentage points from the same period last year’s 5%.

           ◆   Net profit after tax for this quarter was NT$207 million, net profit after tax for the previous quarter was NT$193 million, and net

                profit after tax for the same period last year was NT$80 million; earnings per share for the quarter were NT$1.94, earnings per share

                for the previous quarter It was NT$1.82, and the earnings per share in the same period last year was NT$0.75.

           ◆    The cumulative consolidated revenue for the first three quarters was NT$5.696 billion, the cumulative net profit after tax was NT$287

                 million, and the earnings per share were NT$2.70.


2020 Q3 Review and 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".


            2020 Q1-Q3 Data

Revenue/NT$1000

20Q1-3

19Q1-3

YoY

Renewable Energy

3,886,107

2,895,173

34.2%

Injection Molding Machine

785,313

1,253,230

-37.3%

Industrial Machinery

1,025,044

1,522,765

-32.7%

Total

5,696,464

5,671,168

0.4%


           ◆   Due to the strong demand for wind energy products in mainland China and the European and American markets, the renewable energy

                revenue continued to grow in the third quarter and YG achieved new records for single-quarter revenue and shipments. The business of

                injection molding machines and industrial machinery product was affected by factors such as the COVID-19 epidemic and China-US trade

                frictions, which lead to customers reducing demand and inventory.


           ◆   Looking forward to the fourth quarter, since most of the new wind farms in mainland China are located in the north, the installation

                progress will be affected by the winter climate, which will slightly slow down the shipment of wind energy products in the region. The

                demand for wind energy customers in Europe and the United States as well as injection molding machines and industrial machinery

                continues to trend steadily. Therefore, we expect that shipments in the fourth quarter will grow slightly from the second quarter.


           ◆   The COVID-19 epidemic situation is getting worse in some countries in Europe and America. YG continues to maintain close contact with

                our European and American customers and monitor their status. At present, the operations of our European and American customers has

                not been affected by the new wave of COVID-19 infections, and the our shipments to European and American customers remains normal.


Revenue and Shipment by quarter


4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

Revenue/NTD K

1,702,768

1,552,357

1,950,616

2,168,195

2,228,818

1,130,199

2,135,664

2,430,601

shipment/tons

36,007

32,619

40,649

45,237

45,612

24,222

46,328

52,370

Revenue %

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

Renewable

Energy

38.8%

43.3%

47.9%

59.4%

66.6%

60.7%

67.0%

72.8%

Injection Molding   Machine

29.2%

26.9%

24.3%

16.7%

14.6%

17.7%

14.1%

11.7%

Industrial Machinery

32.0%

29.8%

27.8%

23.9%

18.8%

21.6%

18.9%

15.5%


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 – looking statements, whether as a result of new information, future events or otherwise.

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