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Dear Investors,

YG Group-KY (1589) hereby announces its self-settling financial results for the year 2022 and the 4th quarter of 2022¡£

2022 Annual Financial Results

w Consolidated revenue was NT$9.384 billion, an increase of 4.87% over last year.

wThe tonnage shipped this year was 192,082 tons, a decrease of 1.4% compared to the same period last year.

wThe revenue share of each product application is renewable energy (46.3%), injection molding machine (25.9%), and industrial machinery (27.8%).

wConsolidated gross margin for the year was 14.3%, a decrease of 5.5 percentage points from 19.8% last year.

wThe net operating margin for the year was 1.0%, a decrease of 2.5 percentage points from last year's 3.5%.

wNet profit after tax for the current year was a negative NT $ 444 million, a decrease of NT$ 658 million from the net profit after tax of NT$ 214 million last year.

wEarnings per share for the year were a negative NT$ 3.96, a decrease of NT$ 5.91 from the net profit per share of NT $ 1.95 last year.

w   2022 Revenue and annual growth rate:

Although the prices of production raw materials and auxiliary materials continue to remain high, and due to the characteristics of the energy industry, it cannot fully reflect the cost pressure and thus erode the group's profit performance. In addition, due to the closure of the epidemic in mainland China and the fact that the global market has not yet recovered in the post-epidemic era, the order demand and shipment ratio of high-margin products such as industrial machinery items are relatively low. Fortunately, in order to boost the economy, mainland China has increased investment in infrastructure projects, thereby boosting demand in the wind power industry. With the unremitting efforts of all employees under many difficulties and challenges, Yeongguan Group has successfully achieved the highest revenue and the second highest shipment since its listing.

2022 Q4 Financial Results 

w   Consolidated revenue for the quarter was NT $ 2.76 billion, an increase of 11.2% from the previous quarter and an increase of 20.2% from the same period last year. The application of each product accounts for the proportion of revenue as renewable energy (56.4%), injection molding machine (21.5%), and industrial machinery (22.1%).

w   The tonnage shipped during the quarter was 56,382 tons, an increase of 10.3% from the previous quarter and an increase of 14.6% from the same period last year.

w   The consolidated gross profit margin of this quarter was 17.9%, an increase of 3.8 percentage points from 14.1% in the previous quarter; and an increase of 1.8 percentage points from 16.1% in the same period last year.

w   The net operating margin for this quarter was 6.3%, an increase of 3.9 percentage points from 2.4% in the previous quarter, and an increase of 6.3 percentage points from 0% in the same period last year.

w   The net loss after tax in this quarter was NT$21.3 million, the net loss after tax in the previous quarter was NT$135 million, and the net loss after tax in the same period last year was NT$82 million; the loss per share in this quarter was NT$0.19 The loss per share in the previous quarter was NT$1.21, and the loss per share in the same period last year was NT$0.73.

w In order to make up for the delayed demand caused by the epidemic lockdown in the first half of the year, wind power customers in China have strong shipments this quarter, which has grown significantly compared to the previous quarter.

2023 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".

w   Looking forward to 2023, Yeongguan will continue to improve production efficiency and technology, expand new customers and meet the booming demand of the renewable energy market. Increase by 15~20% to more than 220,000 tons. At the same time, Yeongguan-KY's Taichung new foundry will supply large-scale castings for domestic offshore wind turbines starting in 2023, which is expected to further increase profitability.

Revenue and Shipment by quarter

Investor Relations£º

Nick Lee

Add: 4F., No93, Xinhu 1St Rd., Neihu Dist., Taipei, Taiwan(R.O.C.)

Tel : +886-2-2791-7198 ext.17

Mobile : +886-978-705-865

E-mail : ir@ygget.com

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.