Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 3rd quarter of 2021.

2021 Q3 Financial Results

w   Consolidated revenue for this quarter was NT$2.27 billion, a decrease of 1.60% from the previous quarter; a decrease of 6.59% from the same period last year. The revenue composition ratio of each product is renewable energy (43.2%), injection molding machines (26.5%), and industrial machinery (30.3%).

w   The tonnage shipped during the quarter was 49,531 tons, a decrease of 1.82% from the previous quarter and a decrease of 5.42% from the same period last year.

w   Consolidated gross margin for the quarter was 17%, a decrease of 3 percentage points from the previous quarter's 20%; a decrease of 7 percentage points from the 24% for the same period last year.

w   The net operating margin for the quarter was 1%, a decrease of 2 percentage point from the previous quarter's 3%; a decrease of 11 percentage points from the same period last year’s 12%.

w   Net profit after tax for this quarter was NT$29 million, net profit after tax for the previous quarter was NT$141 million, and net profit after tax for the same period last year was NT$207 million; earnings per share for the quarter were NT$0.27, earnings per share for the previous quarter It was NT$1.27, and the earnings per share in the same period last year was NT$1.94.

w   The cumulative consolidated revenue for the first three quarters was NT$6.651 billion, the cumulative net profit after tax was NT$296 million, and the earnings per share were NT$2.68.

2021 Q3 Review and 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   2021 Q1-Q3 Data

w   Several factors contributed to this third quarter's turnover being less compared to the same period last year: the renewable energy customers still had higher inventory levels built up from the wind farm project rush which started last year and continued to H1 2021, thus demand in Q3 was delayed. In addition to the high sea freight costs, port congestion and insufficient containers have negatively affected the customer's demand and shipment arrangements. While it seems sea freight capacity and freight rates are all improving, but in reality, we still need to pay close attention to actual market conditions.

w   Looking forward to the fourth quarter, the power restriction policy in mainland China will affect some of our production capacity. In the future, flexible scheduling will be used to balance the impact of power restrictions. It is expected that this problem will have little impact on output in the fourth quarter based on the current situation. The company will focus on optimizing and improving production efficiency and reducing costs, actively adjusting selling prices to reflect the current cost situation, and planning flexible staff scheduling to maximize production capacity in order to achieve our 2021 shipment targets.

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.