Dear Investors,

    YG Group-KY (1589) hereby announces its financial results for the 2nd quarter of 2020.

2020 Q2 Financial Results

           ◆   Consolidated revenue for the quarter was NT $ 2.136 billion, an increase of 89% from the previous quarter and an increase of 9% from

                the same period last year.

           ◆   The tonnage shipped during the quarter was 46,328 tons, an increase of 91% from the previous quarter and an increase of 14% from the

                same period last year. The revenue composition ratio of each product is renewable energy (66.99%), injection molding machines (14.13%),

                and industrial machinery (18.88%)。

           ◆   Consolidated gross margin for the quarter was 22%, an increase of 11 percentage points from the previous quarter's 11%; an increase of 6

                percentage points from the 16% for the same period last year.

           ◆   The net operating margin for the quarter was 7%, an increase of 17 percentage point from the previous quarter's -10%; an increase of 5

                percentage points from the same period last year’s 2%.

           ◆   After-tax net profit for the quarter was NT $ 193 million, after-tax net loss for the previous quarter was NT $ 113 million, and

                after-tax net profit for the same period last year was NT $ 19 million; this quarter ’s earnings per share was NT $ 1.82, net loss per

                share for the previous quarter was NT $ 1.06, and earnings per share for the same period last year was NT $ 0.75.

           ◆    In the first half of the year, the cumulative consolidated revenue was NT$3.266 billion, the cumulative net profit after tax was NT$80

                million, and the EPS was NT$0.75.  

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".

           ◆   It has been more than 8 months since the COVID-19 pandemic started and YGG continues to have weekly contacts with customers to

                understand the latest developments and how we can better respond to new market demands in a timely manner. Renewable energy

                customers are so far expecting the demand for onshore and offshore wind power to remain unchanged for this year, and hope that YGG

                will continue to deliver products per agreed schedules. Due to higher than expected demand in the wind energy market next year, our

                wind energy customers have now started negotiation for price and capacity for 2021, which is much earlier than usual. Compared with last

                year, the demand of injection molding machine and industrial machinery customers is experiencing a downward trend, which is mainly

                related to the market uncertainties in the equipment demand of end-users as well as in the future economic trend, being overshadowed

                by COVID-19. In regards to the impact of the COVID-19 epidemic on our annual shipment target for this year, we need to continue to

                observe the developments in all industry sectors and regions before making any adjustments.

           ◆   Looking forward to the third quarter of this year, wind energy customer’s orders will continue to maintain a high level. Coupled with

                stable customer demand for injection molding machines and industrial machinery, the company expects that shipments will have a chance

                for some growth. Considering that the transaction volume of the raw materials market in mainland China is relatively stable, the company

                expects that the operating results in the third quarter will be slightly better than that of the second quarter.

Revenue and Shipment by quarter

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.