Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 1^st quarter of 2022.

2022 Q1 Financial Results

w   Consolidated revenue for Q1 was NT$1.81 billion, a decrease of 21% over the last quarter and a decrease of 16% compared with the same period last year. The revenue composition ratio of each product is renewable energy (33.8%), injection molding machine (32.4%), and industrial machinery (33.8%).

w   The tonnage shipped this quarter was 37,247 tons, a decrease of 24% over the last quarter and a decrease of 18% compared with the same period last year.

w   Consolidated gross margin for the quarter was 11%, a decrease of 5 percentage points from 16% last quarter, and a 15 percentage points loss from 26% of the same period last year.

w   The net operating margin for the quarter was 7%, a reduction of 7% from the previous quarter's 0%; a decrease of 16 percentage points from the same period last year’s 9%.

w   The net operating loss was NT$118 million, the previous quarter’s operating net loss was NT$ 2 million, and the net operating profit for the same period last year was NT$200 million.

w   Net loss after tax for the quarter was NT $ 196 million, net loss after tax for the previous quarter was NT $ 82 million, and net profit after tax for the same period last year was NT $ 126 million; net loss per share for the quarter was NT $ 1.75. The net loss per share for last quarter was NT $ 0.73, and the net earnings per share for the same period last year was NT $ 1.13.

w   2022 Q1 Revenue and annual growth rates:

w   Due to the severe outbreak of COVID-19 in Shanghai and surrounding cities, the Chinese government has required cities in the Yangtze River Delta and Shanghai Port to implement strict COVID-19 prevention and control measures, affecting the capacity of inland logistics and container exports. Thus the delivery volume in this quarter was lower than expected. Considering the lower shipment volume this quarter, as well as the rising cost of raw materials (pig iron, scrap steel) since the end of February caused by the outbreak of war in Europe, the company's gross margin this quarter is lower compared to the previous quarter.

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   Although the COVID-19 epidemic continues to affect Shanghai and surrounding areas, the company's main production bases in China (Liyang, Suzhou, Ningbo, and Dongguan) are not under lockdown measures and continue to operate normally.

w   Due to the resurgence of the COVID-19 virus in many parts of mainland China and the adoption of strict lockdown measures, economic activities have been severely dampened in China. China’s April manufacturing PMI fell from 49.5 to 47.4, and its non-manufacturing PMI fell from 48.4 to 41.9, the lowest since February 2020; Under the government’s dynamic COVID clearing policy, many foreign institutions/banks have lowered their GDP growth forecasts for mainland China this year. Economists polled by Bloomberg last month again lowered their China growth forecast for 2022 to 4.9%. To stabilize the economy, the Beijing government plans more economic stimulus in the coming quarters, including more infrastructure investment, as well as further interest rate and reserve ratio cuts. The People's Bank of China cut the reserve requirement ratio by 0.25% on April 25, releasing an estimated 530 billion yuan in long-term funds. As the economic outlook in mainland China becomes more bleak in the past few weeks, the company's order books still has have orders for 2 to 3 months, and it is expected that in the second half of the year, when the government's economic stimulus policies will bear fruit, our customer’s demand will recover.

w   Looking forward to the second quarter, considering that the COVID-19 lockdown measures in the surrounding areas of Shanghai continues, shipments to customers in that region and the export business will continue to be affected; Thus the growth of shipment volume in the 2^nd quarter could be limited.

Revenue and Shipment by quarter

Investor Relations

Kevin Tsai

Investor Relations, 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.