Nov 07, 2024

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 3rd quarter of 2024.

2024 Q3 Financial Results

w Consolidated revenue for Q3 was NT$1.85 billion, an increase of 6.2% over the last quarter and a decrease of 4.7% compared with the same period last year. The revenue composition ratio of each product is renewable energy (44.6%), injection molding machine (24.6%), and industrial machinery (30.8%).

w The tonnage shipped this quarter was41,423 tons, an increase of 4.5% over the last quarter and an increase of 6.4% compared with the same period last year.

w Consolidated gross margin for the quarter was 1%, an increase of 4% over the last quarter, and a decrease of 13% compared with the same period last year.

w The net operating margin for the quarter was -15%, a growth of 3% from the previous quarter's -18%; a decrease of 10 percentage points from the same period last year’s 5%.

w The net operating loss was NT$ 273 million, the previous quarter’s operating loss profit was NT$ 309 million, and the net operating loss for the same period last year was NT$ 100 million.

w Net profit after tax for the quarter was NT $ 338 million, net loss after tax for the previous quarter was NT $ 395 million, and net loss after tax for the same period last year was NT $ 221 million; net profit per share for the quarter was NT $ 2.82. The net loss per share for last quarter was NT $ 3.33, and the net loss per share for the same period last year was NT $ 1.85.

w   2024 Q3 Revenue and annual growth rates:

w   In the third quarter, although inflationary pressures in Europe and the United States were contained, the high interest rate environment still affected the industrial machinery and injection molding machine industries that are highly related to people's livelihood and consumption fields. The market demand for the above two major industries has not yet recovered significantly; at the same time, in China In addition to the lack of GDP growth in mainland China in the third quarter, which raised concerns that the full-year economic growth target may not be achieved, various financial data show that mainland China has entered a real deflationary environment, so the overall demand for orders is in a weak downward trend. In the wind power industry, overcapacity in the mainland's wind power supply chain has also intensified price competition and eroded the gross profit margins of upstream and downstream industries.

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 may increase due to the Christmas and New Year holidays, with a slight increase compared with the third quarter. The demand from energy customers still needs to be observed.

w The company will continue to increase and deepen the scale of cooperation with existing customers. For example, the gas turbine industry and the shipbuilding industry will be the focus of expansion. At the same time, we will develop new customer groups, such as orders for die-casting machines, punch presses, water pump valve bodies and other industries. We will also increase our efforts to develop business volume in markets outside mainland China and continue to seek business opportunities for the group company.

w In addition, in response to the increasingly severe competition in product prices, the company strives to deepen and expand the sales of products with higher unit prices and gross profits, as well as customers with higher process complexity requirements, as a response.

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.