天美麻花星空九一

May 09, 2024

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 1st quarter of 2024.

2024 Q1 Financial Results

w Consolidated revenue for Q1 was NT$1.42 billion, a decrease of 34.6% over the last quarter and a decrease of 35.9% compared with the same period last year. The revenue composition ratio of each product is renewable energy (40.3%), injection molding machine (26.0%), and industrial machinery (33.7%).

w The tonnage shipped this quarter was32,162 tons, a decrease of 28.2% over the last quarter and a decrease of 27.5% compared with the same period last year.

w Consolidated gross margin for the quarter was -10%, a decrease of 12.5% over the last quarter, and a decrease of 29% compared with the same period last year.

w The net operating margin for the quarter was -28%, a reduction of -15% from the previous quarter's -13%; a decrease of 33 percentage points from the same period last year’s 5%.

w The net operating loss was NT$ 3.99 million, the previous quarter’s operating net loss was NT$ 279 million, and the net operating profit for the same period last year was NT$ 102 million.

w Net loss after tax for the quarter was NT $ 549 million, net loss after tax for the previous quarter was NT $ 205 million, and net profit after tax for the same period last year was NT $ 69 million; net loss per share for the quarter was NT $ 4.62. The net loss per share for last quarter was NT $ 1.75, and the net profit per share for the same period last year was NT $ 0.62.

w   2023 Q3 Revenue and annual growth rates:

w   Sales in the first quarter showed a decline compared with the same period last year. In related industries such as industrial machinery and injection molding machines, as Europe and the United States continued to maintain high interest rates, market demand has not yet recovered. In addition, the mainland China market has not recovered due to the real estate bubble and excessive debt leverage have led to insufficient consumption momentum, poor investment confidence and the order volume has fallen. Although the installed capacity of mainland China's wind power industry in 2023 has begun to rebound to close to the volume in 2020, there is still a big gap with the original plan. Therefore, the production capacity prepared by the market is greater than the actual demand, resulting in the intense price war and affect the profits of the entire industry. On the other hand, in 2024, China's domestic installed demand has slowly picked up, and at the same time, international demand has also reached a new high. Thus, the price decline has stabilized, and there may be a chance for a moderate correction after the second quarter. 

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 If Europe and US enter an interest rate cut cycle due to inflation falling back to a reasonable range, it is expected to promote the recovery of the industrial machinery and injection molding machine markets and accelerate and increase the development and construction capacity of wind fields.

w Yeong Guan Group strengthens its efforts to develop orders for die-casting machines, punch presses, machining machines and other industries to achieve the annual goal of accounting for more than 50% of orders for die-casting machines and other products. At the same time, we will increase efforts to develop business volume in markets outside mainland China, such as Japan.

w Yeong Guan Group will continue to implement lean measures to eliminate old production capacity, implement cost reduction and increase efficiency, and improve product quality and management efficiency to cope with the new era of global supply chain restructuring and industrial structure transformation.

Revenue and Shipment by Quarter

Investor Relations

Nick Lee

Assistant General Manager

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.