2024年03月12日

Dear Investors,

YG Group-KY (1589) hereby announces its self-settling financial results for the year 2023 and the 4th quarter of 2023。

2023 Annual Financial Results

w Consolidated revenue was NT$8.671 billion, a decrease of 7.59% over last year.

wThe tonnage shipped this year was 175,045 tons, a decrease of 8.87% compared to the same period last year.

wThe revenue share of each product application is renewable energy (54.18%), injection molding machine (18.38%), and industrial machinery (27.44%).

wConsolidated gross margin for the year was 13.8%, a decrease of 0.5 percentage points from 14.3% last year.

wThe net operating margin for the year was -2.0%, a decrease of 3.0 percentage points from last year's 1.0%.

wNet profit after tax for the current year was a negative NT $ 276 million, an increase of NT$ 168 million from the net profit after tax of a negative NT$ 444 million last year.

wEarnings per share for the year were a negative NT$ 2.35, an increase of NT$ 1.61 from the net profit per share of a negative NT $ 3.96 last year.

w   2023 Revenue and annual growth rate:

Orders in the European and American markets are still affected by the high inflation and high interest rate environment in the post-epidemic era, and demand continues to be sluggish; while the mainland Chinese market has not only fallen into a quasi-deflationary environment, but also has structural problems such as the bursting of the real estate bubble and excessive debt leverage. Sexual issues have caused the market to show no signs of recovery. In addition, the mainland wind power industry has overcapacity and fierce price competition, which has further weakened the selling price and profitability of this type of product. Therefore, both revenue and shipments in 2023 will decline compared with 2022.

2023 Q4 Financial Results 

w   Consolidated revenue for the quarter was NT $ 2.17 billion, an increase of 12.06% from the previous quarter and a decrease of 21.28% from the same period last year. The application of each product accounts for the proportion of revenue as renewable energy (56.21%), injection molding machine (17.31%), and industrial machinery (26.48%).

w   The tonnage shipped during the quarter was 44,801 tons, an increase of 15.07% from the previous quarter and a decrease of 20.54% from the same period last year.

w   The consolidated gross profit margin of this quarter was 2.52%, a decrease of 11.19 percentage points from 13.71% in the previous quarter; and a decrease of 15.33 percentage points from 17.85% in the same period last year.

w   The net operating margin for this quarter was -12.85%, a decrease of 7.68 percentage points from -5.17% in the previous quarter, and a decrease of 19.16 percentage points from 6.31% in the same period last year.

w   The net loss after tax in this quarter was NT$205 million, the net loss after tax in the previous quarter was NT$221 million, and the net loss after tax in the same period last year was NT$21 million; the loss per share in this quarter was NT$1.75. The loss per share in the previous quarter was NT$1.85, and the loss per share in the same period last year was NT$0.73.

w This season coincides with the Christmas and New Year holidays and is close to the Lunar New Year. It is a traditional peak season for consumption, and many customers and merchants have made arrangements to purchase goods in advance, which in turn drives demand for shipments. Therefore, shipments and revenue have increased compared with the previous quarter.

2024 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 2024, the company will flexibly adjust the sales ratio to reduce the proportion of orders received in the wind power industry to less than 50%, and accelerate the development of market orders in Europe, the United States, India and Japan, and sprint towards the full-year shipment target of 190,000 tons. At the same time, we pursue constructive changes and improve product technology and quality to improve profitability. In addition, the company will also strengthen team building, improve the professional level of middle and senior management, and do a good job in the construction and optimization of the Taichung factory and the Thailand factory, with the goal of accelerating and shortening the learning curve, strengthening actual combat capabilities, and striving to make contributions to the group's revenue as soon as possible. Contribution and commitment to both short- and long-term benefits.

Revenue and Shipment by quarter

Investor Relations：

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