天美麻花星空九一

Aug 22, 2024

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 2nd quarter of 2024.

2024 Q2 Financial Results

w Consolidated revenue for Q2 was NT$1.74 billion, an increase of 22.5% over the last quarter and a decrease of 22.5% compared with the same period last year. The revenue composition ratio of each product is renewable energy (45.6%), injection molding machine (22.5%), and industrial machinery (31.9%).

w The tonnage shipped this quarter was39,632 tons, an increase of 23.2% over the last quarter and a decrease of 15.6% compared with the same period last year.

w Consolidated gross margin for the quarter was -3%, an increase of 7% over the last quarter, and a decrease of 22% compared with the same period last year.

w The net operating margin for the quarter was -18%, an increase of 10% from the previous quarter's -28%; a decrease of 22 percentage points from the same period last year’s 4%.

w The net operating loss was NT$ 309 million, the previous quarter’s operating net loss was NT$ 399 million, and the net operating profit for the same period last year was NT$ 105 million.

w Net loss after tax for the quarter was NT $ 395 million, net loss after tax for the previous quarter was NT $ 549 million, and net profit after tax for the same period last year was NT $ 80 million; net loss per share for the quarter was NT $ 3.33. The net loss per share for last quarter was NT $ 4.62, and the net profit per share for the same period last year was NT $ 0.73.

w   2024 Q2 Revenue and annual growth rates:

w   In the second quarter, although revenue declined compared with the same period last year, it has rebounded from the previous quarter. The market demand for industrial machinery and injection molding machines and other related industries in Europe and the United States is still in the current high interest rate environment, and the recovery is not obvious yet. At the same time, although mainland China's foreign trade maintains a steady growth trend, its domestic consumer spending is not strong, and the driving force of export growth for three consecutive months is still not enough to stimulate overall economic performance. Therefore, the overall demand for orders for industrial machinery and injection molding machines is still weak. In the wind power industry, overcapacity in the mainland wind power supply chain has also intensified price competition and eroded the gross profit margin of the supply chain. However, the installed capacity this year has increased slightly compared with the same period last year, by about 10%, which will help reduce inventory. In the second half of the year, it is worth paying attention to whether the demand for wind power can continue to heat up and even drive prices back up.

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 When and how much the U.S. will cut interest rates will affect the global financial situation and affect market prosperity and industrial development dynamics. If it enters the interest rate cut range, order demand is expected to accelerate, so the company will pay close attention to changes in U.S. financial policies.

w The company has adjusted its order structure, focusing on the market for high-margin products and strengthening the development of orders for die-casting machines, punch presses, machining machines and other industries. At the same time, we will increase efforts to develop business volume in markets outside mainland China, such as Japan.

w Yongguan 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.