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Sheh Fung Screws Co., Ltd

(SQL：2065)

Daniel Huang, VGM August 21, 2019

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This presentation and release contain “forward-looking statements”

which may include projections of future results of operations, financial

condition or business prospects based on our own information and

other sources. • Our actual results of operations, financial condition or

business prospects may differ from those expressed or implied in these

forward-looking statements for a variety of reasons, including but not

limited to market demand, price fluctuations, competition, international

economic conditions, supply chain issues, exchange rate fluctuations

and other risks and factors beyond our control. • The forward-looking

statements in this release reflect the current belief of Sheh Fung screws

company as of the date of this release. Sheh Fung screws company

undertakes no obligation to update these forward-looking statements

for events or circumstances that occur subsequent to such date.

DISCLAIMER STATEMENT

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CONTENT

General introduction

Market Distribution

Competitive Advantages

Future Prospects

Operating Achievement

01

02

03

04

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General introduction

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Date of Establishment: 1973.8.9

Paid-in Capital: TWD 327 Million

Main Products: Construction Screws

Number of Employee: 295

President Terry Tu

General Manager Kent Chen

Manufacturing Facilities

Mituo

Heading

Pinch Pointing

Threading

Packing

Yong An

Coating

Head Coating

Ciaotou

• Heat Treatment

• Electronic Plating

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Competitive Advantages

Customized Service

Production Integration

Quality Assurance

Intelligent Production 01

02

03

04

679,298

162,093

301,350

94,438

163,102

600,416

97,585 134,325

43,863 50,114

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2016年

2017年

2018年

2019年1~6月

Unit: TWD 1,000

USA Europe Oceania Asia Other

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Market Distribution

11…

15…

5%

5%

65%

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Recent Events

01

02

03

EPS in Q2 of 2019 is 1.65 and in H1 of 2019 is 2.48

Acquired the ETA certificate

Brought the 200,000 m2 land use rights which is located Ham Kiem II Industrial Park, Vietnam

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2015 2016 2017 2018 Jun 2019

Revenue 1,155,447 1,118,385 1,087,241 1,400,282 926,303

Gross margin 15.5% 17.6% 13.2% 16.5% 19.9%

Net Profit Margin 4.7% 8.0% 3.5% 6.7% 8.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Operating Results

+29% -3% -3% +38%

Unit: TWD 1,000

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2015 2016 2017 2018 Jun 2019

EPS 1.86 3.04 1.20 2.87 2.48

Dividend 2.00 3.00 1.58 2.70

Dividend yield 108% 99% 132% 94%

2.48

0%

20%

40%

60%

80%

100%

120%

140%

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Operating Results

Unit: TWD

11

Vertically

Integration

Intelligent

Management

Expanding

Markets

Future Prospects

To be Reliable

Partner

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Exporting Country HS Code USA Europe China

Taiwan

731812 12.5 3.7 8.0

731814 6.2-8.6 3.7 8.0

731815 6.2-8.5 3.7 8.0

Vietnam

731812 12.5 3.7 8.0

731814 6.2-8.6 3.7 8.0

731815 6.2-8.5 3.7 8.0

Prospects-Tariff

0% 0%

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Europe Canada China ASEAN USA Oceania

Sheh Fung Taiwan Sheh Fung Vietnam

Prospects-Market Development

Q&A

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