PDF《永冠能源科技集团有限公司》

P1 Presented by: Mr.

Tsai Shu-Ken April 10th

2012 IPO Press Conference 永冠能源科技集团有限公司 (Yeong Guan Energy Technology Group Co. Ltd.) P2 1. YGG Introduction 2. YGG Operation Overview 3. Market Trends, Industry Position and Competitive Advantage 4. YGG Innovations and Future Ambitions Content P3 YGG Introduction P4 Name: Yeong Guan Energy Technology Group Co. Ltd. Founded on: January

2008 Registered in: British Cayman Islands Capital: NTD

800 Million Chairman:Zhang Xian-Ming General Manager: Tsai Shu-Ken Employee: 2,112 (As of Dec. 2011, incl. subsidiaries) Revenue: NTD 5.261 Billion (2011 consolidated revenue) Business Locations: Dong Guan (Guanzhou, PRC), Ningbo (Zhejiang, PRC), Liyang (Jiangsu, PRC),Taoyuan (Taiwan) Overview P5 1. Company Structure P6 Board of Directors Title Name Background Chairman Zhang Xian-Ming Chairman of Yeong Guan Foundry Co., Ltd. Vice Chairman Zhang Zheng-Zhong Chairman of San He Electronics Co., Ltd. Manager of Wu Li Electronics Co., Ltd. Trustee Zhang Wen-Long Bachelor of Taiwan University, President of Yeong Guan Casting Co., Ltd. Trustee Xu Yu-Ye Supervisor of San He Electronics Co., Ltd. Trustee Chen Wu-Ji Vice President of Yeong Guan Foundry Co., Ltd. Trustee Wu Ding-Cai Chairman of Qi Rui Machinery Co., Ltd. and Ningbo General Machinery Co., Ltd. Trustee Tsai Shu-Ken Master of NTUST, Chief Engineer of MIRDC Trustee Zhang An-Li MBA of Drexel University, President of Chen-Da International Investment Co., Ltd. Ind. Trustee Chen Qing-Hong MBA of Taiwan University, President of Ri-Sheng Technology Co., Ltd. Ind. Trustee Zhang Shun-Tai Material Sciences Phd of Connecticut State University、 Head of China Iron and Steel Research and Development, DepartmentProfessor at Taiwan University Ind. Trustee Zhang Cheng-Long MBA of Stanford University, Director of Tong-Yi Securities Co., Ltd. Accounting Lecturer at Tamkang University P7 YGG Operation Overview P8 Wind Turbine casting Gas Turbine casting Plastic Injection Molding Machine casting ?Castings Products P9 Rough/Finish Machining ?Welding ?Machining Products Welding and Machining of Machine Tool frame P10 Medical Equipment Assembly ?Assembly Products ? Energy (Wind) ? Plastic Injection Molding ? Industrial Machinery Product Range P12 Culture Fundamentals Honesty、Teamwork、Discipline Energy、Innovation、Honor Business Philosophy Pursue Excellence, become a world-class enterprise Realize employee potential, ensure customer satisfaction Strategic Vision Become the world?s most advanced, innovative and largest metal secondary processing service provider (casting, welding, machining, assembly). Together with our customers, create a powerful force in the metal secondary processing industry. P13 Performance

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2008 P15 Revenue (NTD Million) Revenue (NTD Million) Revenue (NTD Million) EPS 7.33 EPS 3.94 EPS 5.83 EPS 3.72 Performance Revenue P16 Market Trends, Industry Position and Competitive Advantage P17 Wind Energy Market Area Installed by

2011 2011 Newly Installed

2010 Newly Installed YoY China 62,733MW 18,000MW 18,923MW -4.9% USA 46,919MW 6,739MW 5,021MW 34.2% Germany 29,075MW 1,860MW 1,438MW 29.3% Spain 21,673MW 997MW 1,811MW -44.9% India 15,800MW 2,735MW 1,258MW 117.4% Italy 6,747MW 950MW 947MW 0.3% Global 238,604MW 41,975MW 36,863MW 13.9% Source:WWEA According to BTM?s newest statistics and forecast, annual new wind energy installations reached 41.7 GW globally in 2011, and will reach

68 GW by 2016. Due to an expected compound annual growth rate of 10%. P18 Wind Energy Market P19 Plastics Injection Market 2006-2011Q3 Industry Revenue Industry Revenue (Millions Euro) 1531.9 1752.0 1320.0 767.2 1477.3 1319.7 0.0 300.0 600.0 900.0 1200.0 1500.0 1800.0

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16 European Plastic Injection Molding Machine makers. Industry Position and Competitive Advantage P21 Yeong Guan JS Jixin Dalian Huarui Business Scope Casting (Iron) Casting (Iron) Casting (Iron, Steel, Bronze), Forging

2010 Iron Casting Revenue (NTD) 4.425 Billion 9.366 Billion 1.293 Billion (Total 6.456 Billion) % of Revenue Source outside of China 38.74% 18.25% 10.09% P21 NB Yeo-Tian Suppliers Future Investment DG Yong Guan JS Bright Steel NB Yeong Shang NB Lulin Yeong Chen AP NB YHS Subcontractors Subcontractors Future Investment NB Yeong Shang JS Bright Steel Future Investment YGG have the unique ability to consolidate the entire metal secondary processing supply chain Industry Position and Competitive Advantage Raw Material Casting, Welding Machining JS Bright Steel Assembly P22 ?With close cooperation and innovative processes, we offer professional metal secondary processing solutions to our customers, thus distancing ourselves from competitors. ?YGG holds ASME and CCS Certificates. Industry Position and Competitive Advantage We employ highly engineered, no-bake process to produce top grade Ductile Iron casting used by makers of the most efficient machineries. Spheroidal Ductile Iron Microstructure >280 nodules/mm2

8 sec cycle time equals 10,000 movement/day Industry Position and Competitive Advantage P24 ?Alternative to Castings Casting is one of the oldest metal forming processes, but remains the most efficient way to form complex metal structures. The foundry industry lays the foundation for all OEM industries, and irreplaceable for all kinds of OEM. Commercial machinery, transport machinery, industrial machinery and even the demanding aerospace and national defense industry rely on foundries to provide vital components. Due to its advantages, the casting process will not be substituted by other metal forming processes (welding or forging) in the near future. ?Coping with economic cycles Since metal secondary processing industry is the basis for OEM industries worldwide, thus it is more susceptible to global economic trends. YGG is actively diversifying its product range, to minimize any one OEM industry?s influence on YGG. Industry Position and Competitive Advantage SWOT Analysis P25 Strengths Leading Know-How and Quality Complete Service (One stop shop) Suppliers of well-known Western OEMs Highest Priced in the Industry Evenly distribute revenue sources, minimize risks Weaknesses Raw Material prices directly affect costs JS Bright Steel initial capacity utilization is low Opportunities China, USA and Indian governments continue to subsidize the wind energy industry. China?s beverage market continues to grow, stimulating need for plastic injection machines Higher Value products in the industry, attracting more customers Exploring new markets in ship engine casting, and construction vehicles castings Threats Adjustment Period of China?s Wind Energy Market Price Competition, Competitors improving processes and quality P26 YGG Innovations and Future Ambitions P27 Innovations ?Economic Flasks (Pat#:ZL

2009 2 0302575.3) ?Ventilation Flasks ( Pat# :ZL

2009 2 0302563.0) ?Riser Molds ( Pat# :ZL

2009 2 0302562.6) ?Gated Pouring Basin ( Pat# :ZL

2009 2 0302576.8) ?Filler Spheres ( Pat# :ZL

2009 2 0302565.X) ?Anti-Spill Risers ( Pat# :ZL

2009 2 0302573.4) P28 Future Innovations ? Wider use of Casting Simulation and results comparison ? Improve existing pattern and runner system design ? Improve anti-corrosion technology ? Development of Large MW (more than 6) Wind Turbine castings ? Development of Ocean Vessel castings Thank you! P29 Q&A P30 We welcome any questions from investors IPO on April 27th

2012 永冠能源科技集团有限公司 Yeong Guan Energy Technology Group Company Limited Code:1589