Sinkang Industries Co., Ltd. · TWSE:2032

Sinkang Industries — Investor Presentation (January 2023)

40 slides from Sinkang Industries's investor presentation, Jan 16, 2023

1. Slide 1: Sinkang Industries Co., Ltd Investor Conference

   Stock Code: 2032 SINKANG INDUSTRIES CO., LTD Investor Conference 2023.01.16 1

2. Slide 2: Disclaimer

   Disclaimer The forward-looking statements contained in this presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements. Sinkang Industries Co., Ltd. makes no representation or warranty as to the acc

3. Slide 3: Content

   Content 1. Company Profile 2. Industry Overview 3. Financial Results 4. Q&A 3

4. Slide 4: Company Profile

   Company Profile 4

5. Slide 5: Company Profile

   Company Profile Date of establishment 1971.07.10 Date of listing 2000.09.11 Capital NTD1.3 Billion (130,521,545 shares) (Number of shares received) Number of employees About 200 COSMOS NEW INVESTMENTS LIMITED Chairman Representative: I Hung Cheng General manager I Hung Cheng Main business Processing

6. Slide 6: Operation Locations: Xinzhuang Plant

   Operation Locations Xinzhuang Plant 6

7. Slide 7: Operation Locations: Xinzhuang Plant

   Operation Locations Xinzhuang Plant

8. Slide 8: Operation Locations: Tayuan Plant

   Operation Locations Tayuan Plant 8

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10. Slide 10: Operating Offices

    Operating Offices Taipei Operations Headquarters (Xinzhuang Factory ) Business line : (02)22020172 Taichung Office Business line :(04)23357606 Tainan Office Business line:(06)2542452-3 Kaohsiung Office Business line :(07)3724707-8 10

11. Slide 11: Industry Overview

    Industry Overview 11

12. Slide 12: Line of Business

    Steel Making TE、YUSCO、 Line of Business Hot Rolled TM、WALSIN... Cold Rolled SINKANG INDUSTRIES CO., LTD SINKANG INDUSTRIES CO., LTD Next Process Cutting Process Surface treatment Shearing、Slitting、re-coiling Food industry Machine industry Chemical industry Medical industry Office equipment Transport

13. Slide 13: Machinery Equipment

    Machinery Equipment Name of Name of Thickness Width Length Quantity EquipmentEquipment (mm) (mm) (mm) Leveling & Shearing Line 0.3~3.0 50~1560 100~6100 6 machines Coil Polishing Line 0.4~3.0 500~1570 2 Machine Sheet Polishing Line 0.6~3.0 700~1570 1220~5000 2 Machine Slitting Line Machines 0.3~6.0 1

14. Slide 14: Tayuan Plant: Surface treatment

    Tayuan Plant Next Process Surface treatment 5'Oil Method Coil Polishing Line Machine T: 0.4mm - 3mm W: 500mm - 1570mm Hair Line Finish No.4 Finish 14

15. Slide 15: Tayuan Plant: Slitting Line

    Tayuan Plant Cutting Process Shearing、Slitting、 re-coiling 5'Slitting Line Machine T: 0.3mm - 3mm W:400mm-1570mm 15

16. Slide 16: Tayuan Plant: Leveling and Shearing Line

    Tayuan Plant Cutting Process Shearing、Slitting、 re-coiling 5'Leveling and Shearing Line Machine T: 0.3mm - 3mm W: 500mm - 1600mm L: 400mm - 6100mm 16

17. Slide 17: Xinzhuang Plant: Leveling and Shearing Line

    Xinzhuang Plant Cutting Process Shearing、Slitting、 re-coiling 5'Leveling and Shearing Line Machine T: 0.3mm - 3mm W: 400mm - 1590mm L: 400mm - 6250mm 17

18. Slide 18: Xinzhuang Plant

    Xinzhuang Plant 4'Leveling and Shearing Line Machine T: 0.3mm - 2mm W: 400mm - 1300mm L: 350mm - 4300mm

19. Slide 19: Xinzhuang Plant: Hydraulic Shear Machine

    Xinzhuang Plant Cutting Process Shearing、Slitting、 re-coiling 10‘Hydrulic Shear Machine T: 0.3mm -3mm L: < 3050mm W:85mm-1250mm 19

20. Slide 20: Major Product

    Major Product 1% Steel material 7% 304 316 92% 400 20

21. Slide 21: The Rate of Customer Business

    The Rate of Customer Business Transportation Other Elactronic Devices 2% 1% Midstream Process 7% Fire Building Materials Machine Manufacture 6% Midstream Process Process Manufacture 23% Kitchenware Kitchenware 7% Machine Manufacture Elactronic Devices Transportation Other Fire Building Materials Pro

22. Slide 22: Fireproof Building Materials

    Fireproof Building Materials Elevator door door & lock Building appearance expansion network Wave board 22

23. Slide 23: Process Manufacture

    Process Manufacture BBQ grill Washing machine inner tank 23

24. Slide 24: Kitchenware

    Kitchenware sink refrigerator kitchen counter 24

25. Slide 25: Machine Manufacture

    Machine Manufacture ultrasonic cleaner refrigeratory freezer 25

26. Slide 26: Electronic Devices

    Electronic Devices dry cabinet electrical box 26

27. Slide 27: Other

    Other waste bin Food storage bucket traffic mirror 27

28. Slide 28: Stainless Steel Market Overview

    Stainless Steel Market Overview 140,000 120,000 100,000 80,000 公噸 60,000 40,000 20,000 - 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 110年 111年 COLD ROLLED sales volume domestic sales Export quantity inventory STAINLESS STEEL SHEET IN COIL Source:Ministry of Economic Affairs

29. Slide 29: Human Resources

    Human Resources Average age of employees :45 The rate of employees age: 20↓ 0% 21-39 25% 40-59 65% 60↑ 10% 29

30. Slide 30: Financial Results

    Financial Results 30

31. Slide 31: Statement of Comprehensive Income

    Statement of Comprehensive Income In NT Thousand Dollars Jan.-Sep., 2022 Jan.-Sep., 2021 Amount % Amount) %) Net Revenues 2,604,606 100 2,603,552 100 Gross Profit 78,305 3 284,455 11 Operating Income (Loss) 9,426 - 197,712 8 Profit (Loss) Before Income Tax 35,325 1 208,087 8 Profit (Loss) for the Pe

32. Slide 32: Operation Performance Analysis

    Operation Performance Analysis Jan.-Sep., 2022 Jan.-Sep., 2021 Average collection turnover (times) 4.90 4.88 Average collection days(days) 74.47 74.81 Average inventory turnover (times) 9.10 8.51 Average inventory days(days) 40.13 42.90 Average payable turnover (times) 102.77 47.82 Property, plant a

33. Slide 33: Profitability Analysis

    Profitability Analysis Jan.-Sep., 2022 Jan.-Sep., 2021 Return on total assets (%) 2.01 10.45 Return on equity (%) 2.38 12.74 Pre-tax profit to paid-in capital ratio 3.61 21.26 (%) Net profit ratio (%) 1.20 6.45 Earning per share (NT$) 0.24 1.29 33

34. Slide 34: Net Revenues Trend

    Net Revenues Trend In NT Thousand Dollars 4,000,000 3,489,139 As of 3,500,000 3,266,944 Sep 30th 3,067,403 3,000,000 2,789,687 2,844,436 2,604,606 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 2017 2018 2019 2020 2021 2022 34 From：MOPS

35. Slide 35: Employee Benefits

    Employee Benefits Covid insurance 35

36. Slide 36: Take care of the employees

    Take care of the employees Hold AED & CPR teaching, provide employees with first aid knowledge and drills, and improve workplace security. Promote health and Lohas lectures , with doctors and nurses on site instructing the three- high prevention, through smart eating, healthy exercise, and awareness

37. Slide 37: Workplace Safety Certification

    Workplace Safety Certification As a commitment to our corporate governance and sustainable business goals, and to enhance and ensure workplace safety and the physical and mental health of our employees, we have passed ISO45001:2018 the International Standard certification for Occupational Health and

38. Slide 38: Green energy - Solar energy

    Green energy -Solar energy Cooperating the government‘s development of low-carbon renewable energy policies, the roof of Xinzhuang and Dayuan factory was leased to lay solar panels, and the electricity was sold back to the Taiwan Power Company. At present , the Xinzhuang plant is also laying solar p

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