Nov 07, 2023

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 3rd quarter of 2023.

2023 Q3 Financial Results

w Consolidated revenue for Q3 was NT$1.94 billion, a decrease of 17.2% over the last quarter and a decrease of 21.9% compared with the same period last year. The revenue composition ratio of each product is renewable energy (51.4%), injection molding machine (18.9%), and industrial machinery (29.7%).

w The tonnage shipped this quarter was38,933 tons, a decrease of 17.1% over the last quarter and a decrease of 23.8% compared with the same period last year.

w Consolidated gross margin for the quarter was 14%, a decrease of 5% over the last quarter, and the same as period last year.

w The net operating margin for the quarter was -5%, a reduction of 9% from the previous quarter's 4%; a decrease of 7 percentage points from the same period last year’s 2%.

w The net operating loss was NT$ 100 million, the previous quarter’s operating net profit was NT$ 105 million, and the net operating profit for the same period last year was NT$ 59 million.

w Net loss after tax for the quarter was NT $ 220 million, net profit after tax for the previous quarter was NT $ 80 million, and net loss after tax for the same period last year was NT $ 135 million; net loss per share for the quarter was NT $ 1.85. The net profit per share for last quarter was NT $ 0.73, and the net loss per share for the same period last year was NT $ 1.21.

w   2023 Q3 Revenue and annual growth rates:

w   Compared with the same period last year, revenue in the third quarter dropped by more than 20%. In addition to the global boom, the continued interest rate hike measures taken by Europe and the United States to curb inflation have led to a weakening of market consumption power. Mainland China, another major engine of the global economy, has not only seen its export data decline for more than four consecutive months, but also suffered from the decline of real estate companies. The combination of multiple factors such as lacks of consumer confidence has resulted in sluggish overall demand for industrial machinery and injection molding machines. Although the installed capacity of the wind power industry has increased year-on-year this year, the total installed capacity in mainland China has not reached expectations, resulting in excess reserved capacity in the supply chain. Due to allocation, the growth of the company's wind power orders has not been as expected.

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 the fourth quarter, it is expected that the demand for industrial machinery and injection molding machine customers will increase slightly compared with the third quarter due to the early Christmas and New Year holidays. The demand from energy customers still needs to be observed.

w Yeong Guan Group has actively participated in exhibitions to increase the coverage of contact with potential customers, and has also continuously strengthened visits and interactions with new and old customers to enhance communication, strive for the development of new products and new models, and strive to improve the service quality of existing products. To enhance customer stickiness. In addition, in order to cope with the intensifying market competition and get rid of the fierce price war with peers, the company has increased its efforts to expand the application market of new material products and customers with higher process complexity requirements. As a response strategy to increase product unit price and gross profit, continue to explore markets and seek business opportunities for the group company.

w Yeong Guan Group is continuing to accelerate the production schedule of new factories. The new Taichung factory which has successively delivered prototypes for customer testing and certification; the Thailand factory is also actively accelerating the pace of factory construction. Since the factory covers an area of 960,000 square meters, apart from the workshops and space required for the group's business production, the rest is initially planned to combine industry-related upstream and downstream manufacturers to establish a foundry industrial park. Many well-known companies have expressed their high willingness to settle in the park. Yeong Guan Group also welcomes new and old friends to participate in this grand event and jointly enrich the industrial aspect of the park.

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.