天美麻花星空九一

May 09, 2023

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 1st quarter of 2022.

2023 Q1 Financial Results

w Consolidated revenue for Q1 was NT$2.22 billion, a decrease of 19.6% over the last quarter and an increase of 22.3% compared with the same period last year. The revenue composition ratio of each product is renewable energy (58.4%), injection molding machine (18.5%), and industrial machinery (23.1%).

w The tonnage shipped this quarter was 44,341tons, a decrease of 21.4% over the last quarter and an increase of 19% compared with the same period last year.

w Consolidated gross margin for the quarter was 19%, an increase of 1 percentage points from 18% last quarter, and an 8 percentage points increase from 11% of the same period last year.

w The net operating margin for the quarter was 5%, a reduction of 1% from the previous quarter's 6%; an increase of 12 percentage points from the same period last year’s -7%.

w The net operating profit was NT$102 million, the previous quarter’s operating net profit was NT$ 174 million, and the net operating loss for the same period last year was NT$118 million.

w Net profit after tax for the quarter was NT $ 69 million, net loss after tax for the previous quarter was NT $ 21 million, and net loss after tax for the same period last year was NT $ 196 million; net profit per share for the quarter was NT $ 0.62. The net loss per share for last quarter was NT $ 0.19, and the net earnings per share for the same period last year was NT $ -1.75.

w   2023 Q1 Revenue and annual growth rates:

w   In the first quarter, the turnover increased significantly compared with the same period last year, which was benefited from the improvement of the epidemic situation in the mainland, the recovery of logistics, and the wind power industry has entered an upward cycle driven by policies in mainland China, and the demand momentum is strong. At the same time, the gross profit margin increased significantly in the first quarter. In addition to the slight downward revision of raw material prices, the increase in production output and efficiency optimization at the production end were the main reasons for the increase in gross profit margin.

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   According to the data of relevant research institutions, the new installed capacity of wind power in Mainland China in 2023 is expected to reach 60-80GW. Therefore, wind power customer orders are expected to remain buoyant throughout the year.

w   China's National Bureau of Statistics has announced that the GDP for the first quarter of this year is 4.5%, which is higher than the general expectations. Most institutions predict that each industry will show a moderate recovery trend for the entire year. Therefore, there is hope that the ordering situation for customers in the industrial machinery and injection molding machine related industries will warm up in the second quarter.

w   The various production bases of Yeong Guan Group are actively expanding their production capacity and continuously reducing costs to optimize gross profit performance. At the same time, the assessment of the trend of raw materials is considered stable with a weak tendency and a pattern of downward consolidation. Therefore, the gross profit margin is expected to increase quarterly.

Revenue and Shipment by Quarter

Investor Relations

Nick Lee

Investor Relations

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

Tel : +886-2-2791-7198

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