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Outline of Revenue Shipping
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2020 Self-settling Profit Press Release

2021-03-17 6394


Dear Investor,

YG Group-KY (1589) hereby announces its self-settling financial results for the year 2020 and the 4th quarter of 2020。


2020 Annual Financial Results

           ◆  Consolidated revenue for the year was NT $ 8.18 billion, an increase of 3.6% over last year。
           ◆  The tonnage shipped this year was 176,531 tons, an increase of 7.6% over the same period last year. The revenue composition ratio of

                each product is renewable energy (68.0%), injection molding machine (14.0%), and industrial machinery (18.0%)。
           ◆   Consolidated gross margin for the year was 22%, an increase of 4 percentage points from 18% last year。
           ◆   The net operating margin for the year was 6%, an increase of 3 percentage points from last year's 3%。
           ◆   Net profit after tax for the current year was NT $ 517 million, an increase of NT $353 million from the net profit after tax of NT $

               164 million last year。
           ◆   Earnings per share for the year were NT $ 4.81, an increase of NT $ 3.27 from the net profit per share of NT $ 1.54 last year

           ◆   2020 Revenue and annual growth rate:

 


2019

2020

YoY

Renewable   Energy

4,379,578

5,562,951

27.0%

Injection   Molding Machines

1,579,157

1,144,634

-27.5%

Industrial   Machinery

1,941,251

1,476,688

-23.9%

Total

7,899,986

8,184,273

3.60%

Unit: NTD 1,000s

 

           ◆   In 2020, under the influence of the COVID-19 epidemic, the world’s economies went through unprecedented turmoil. The market

                    demand for injection molding machines and industrial machinery castings has shrunk as implementation of epidemic prevention

                    measures in various countries led to the general decline in economic activities, while the renewable energy market business has seen

                    significant growth due to the strong demand for China's onshore wind power market. Thanks to Yeong Guan's diversified market

                    strategy and the active development of new customer in China's wind power market back in H2 2019, our performance in 2020 has

                    achieved positive growth despite the tough business environments。


2020 Q4 Financial Results

           ◆   Consolidated revenue for the quarter was NT $ 2.487 billion, an increase of 2.4% from the previous quarter and an increase of 11.6%

                from the same period last year。

           ◆   The tonnage shipped during the quarter was 53,612 tons, an increase of 2.4% from the previous quarter and an increase of 17.5% from

                the same period last year. The revenue composition ratio of each product is renewable energy (67.4%), injection molding machines

                (14.4%), and industrial machinery (18.2%)。

           ◆   Consolidated gross margin for the quarter was 24.8%, an increase of 0.8 percentage points from the previous quarter's 24.0%; an

                increase of 4.2 percentage points from the 20.6% for the same period last year。

           ◆   The net operating margin for the quarter was 8.2%, a decrease of 4.0 percentage point from the previous quarter's 12.2%; an increase of

                3.8 percentage points from the same period last year 4.4%。

           ◆   Net profit after tax for the quarter was NT $ 226 million, net profit after tax for the previous quarter was NT $ 210 million, and net

                profit after tax for the same period last year was NT $ 170 million; earnings per share for the quarter was NT $ 2.11. The earnings per

                share for last quarter was NT $ 2.24, and the net profit per share for the same period last year was NT $ 1.62。

 

This quarter, due to strong demand from wind power customers and the gradual recovery of injection molding machine and industrial machinery demand as economic development begins to recover after the epidemic, there was a slight increase in revenue and shipment when compared to the previous quarter。
 

2021 Operational Outlook

 

The following statements about future prospects are based on expectation of the current situation,but at the same time subject
to known or unknown risks or uncertainties,please refer to the attached“Disclaimer”。

           ◆  In the first quarter of 2021, in order to avoid the resurgence of the COVID-19 virus, the Chinese government required companies in

               Mainland China to encourage their employees to spend their Chinese New Year holidays without travels to decrease the risk of community

               infection caused by gatherings and taking public transportation. Under the leadership of Yeong Guan’s management, all employees

               cooperated and assisted with all local government's epidemic prevention policies, and thus all Yeong Guan subsidiaries resumed work from

                February 16-17 and achieved a work resumption rate of more than 98%. In order to ensure that the Group’s subsidiaries are protected

                against the virus, and to avoid being shutdown as a result of positive COVID-19 diagnosis amongst the work force, Yeong Guan arranged

                for employees who traveled during the holiday to be self-isolated at home to ensure their health prior to returning to work. Therefore,

                there is no COVID-19 infection thus far in all subsidiaries of the group and it is expected that production in March will be restored to

                normal production capacity. It is expected that the revenue in the first quarter of 2021 will have the opportunity to hit a record high for

                the period since our public listing。


           ◆   Looking forward to the 2021 shipment target, considering the gradual recovery of the injection molding machines and industrial

                machinery markets, Yeong Guan estimates that the shipment volume in 2021 can grow by 5-10% to between 185,000-193,000 tons。


Chart 1: Revenue and Shipment by quarter

 

 


1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

Revenue/NTD K

1,552,357

1,950,616

2,168,195

2,228,818

1,130,199

2,135,664

2,430,601

2,487,810

shipment/tons

32,619

40,649

45,237

45,612

24,222

46,328

52,370

53,612

Revenue %

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

Renewable

Energy

43.3%

47.9%

59.4%

66.6%

60.7%

67.0%

72.8%

67.4%

Injection Molding   Machine

26.9%

24.3%

16.7%

14.6%

17.7%

14.1%

11.7%

14.4%

Industrial   Machinery

29.8%

27.8%

23.9%

18.8%

21.6%

18.9%

15.5%

18.2%

 

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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