Honmyue Enterprise Co.,LTD(1474)．

2020 Investor Conference

Weaving a better world with you. Together.

2020/12/23

Disclaimer •The information published in this conference is for our company use only， including Operating Achievements 、Financial Status & Business development.

•The Company never announce Financial Forecast ，and the opinions of Company’s financial、Business 、 Q&A and Business development might be slightly different in the future. The causes of the differences could be varied from market、 fluctuation of price、competitions、Global economics、Fluctuation of International Exchange、 bargain of suppliers, to Risk factors that could not be controlled 。

•This conference represents our company’s view of the future. We will not be responsible for updating any changes or adjustments.

Agenda

• Company History

• Financial Statement

• Market trend-Marketing and development

• New development

• Q&A

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Company Introduction

Mr.Hsu Spokesman

Assistant manager

4

Company Information:

Milestone

Found in 1970

Listed in 1999

IPO in 2000

Capital

NTD 1.298

billion

EPS

2020

Q3

NT.14.81

Certification

1998.02：ISO9002

2008.05：ISO14001

2010.11：BLUE SIGN

2012.07：GMP

2015.08：ISO9001

2020.09：GRS

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Textile Supply Chain

Paper Manufacturing

Petrochemical Industry

Oil & Petrochemical Industry

Honmyue

EG、PTA、AM、CPL

Synthetic Fiber Manufacturing

Natural Fiber Manufacturing

Synthetic Fiber (Upper stream)

Textured Yarn Industry

Yarn Spinning Mills

Textiles Mills Industry

Knitted Weaving Industry

Fabric Mills Industry

Medical Fabric department

Home Textile

Apparel Textile

Yarn Spinning, Fabric & Finishing Industry (Middle stream)

Leather & Apparel Manufacturing (Down stream)

PU&PVC Synthetic Leather

Medical Fabric department

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Taiwan：

Chenghua (HQ)

• Shengang/Hemei/Chuansing (Weaving)

Honmyue Taipei Office

Nuwa Enterprise Co., LTD.

Yu Zhan Startup Co.,LTD(Dying)

China：

Honmyue Textile(Zhejiang)Co.,LTD(Weaving/Dying)

Jiujiang DeYu Co., Ltd. (Planning)

Vietnam：

Grand and Great Textile.(Joint Venture)

Production Site

Product Application

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Industrial Fabrics Apparel Fabrics Furnishing Fabrics Medical

Textiles

Industrial Fabric

9

10

Apparel Fabric

11

Furnishing Fabric

12

Medical Textile

Corporate Social Responsibility

13

• Raise「Changhua County Honmyue charity」，participate

in social welfare, support disadvantaged in the community.

• Beach cleanup、reduce polyester bottle 、trees-

planting……etc。

• Donate scholarship to poor people、blood donation、

book donation..etc.。

• Donate fire engine、fire equipment、fabric to prison and

school。

Award

14

Ministry of Labor「Balance in work and life

Award」

Changhua County 「Happy Enterprise 4

stars award 」

Ministry of Labor「Labor Award」

Ministry of Education 「Sports Enterprise Award」

15

Finance

Item 2020 Jan.~Sep. 2019 Jan.~Sep. Difference

Revenue 2,011,251 2,560,198 (548,947)

Operating Cost 1,746,741 2,337,563 (590,822)

Gross profit 264,510 222,635 41,875

Gross margin 13% 9% 4%

Income From Operations

(Loss) 29,002 (12,639) 41,641

Net Income(Loss) 44,704 (18,818) 63,522

EPS (In NT$ dollars) 0.39 (0.07) 0.46

In NT$ thousands

Business-Combined Income statement

16

In NT$ thousands

Year 2020 Jan.~Nov. 2019 Jan.~Nov. Growth Rate

(same period)

Revenue 2,580,934 3,146,230 -17.97%

2020 Jan.~Nov. 2,580,934

2019 Jan.~Nov. 3,146,230

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Revenue

17

In NT thousands

18

2020.Jan-2020.Nov All items proportion

Item Revenue

Greige+yarn 1,599,439

Finished cloth 801,881

ODM 179,614

Total 2,580,934

Greige + Yarn 62%

Finished Cloth 31%

ODM 7%

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Market Trend

Mr.Yeh Sales and RD Senior Manager

HONMYUE 50

Corporate Identity System(CIS)

SERVICE

CARE

DEVELOPMENT

We keep close relationship with customer，

Build long term relationship，

We provide full range of customization，

develop suitable product 。

We cherish our environment，

Through environment certification，

Provide eco fabric。

We keep moving forward，

In every stage，

keep innovation，

That is our goal。

SUBKARMA

SUBKARMA

TO PROVIDE FABRICS THAT HOLD THE WORLD TOGETHER.

W E A V I N G A B E T T E R W O R L D . T O G E T H E R .

Corporate Identity System(CIS)

Corporate Identity System(CIS) Vedio

• https://www.youtube.com/watch?v=lIyzxuU3uy8

Market Trend and product development

Market Trend –Sustainability with New vision

• The name Nüwa comes from a acient goddess in China, protecting

people from disaster ，as Honmyue’s initial intention. Our

continuous in progress provide more protection to our earth.

• Nüwa Eco is a whole new sustainable brand Honmyue launch to

cooperate with CIS system.

Market Trend –Sustainability with New vision

M Main product line

• NüCycle Polyester

Transform recycle polyester bottle into fabric to reduce the use of petroleum

• NüCycle Nylon

Re collect the waste of Nylon yarn and waste water , make it fabric again

to reduce the waste and the use of petroleum .

• NüSolution

Add Color MasterBatch into weaving section . Aside from excellent color fastness ,

nusolution also reduce chemical input and save more energy.

Post-epidemic era New Product Demand (1)

• Covid-19 is overwhelmed globally ，to avoid direct people contact，otaku economy raise

• Stay home –Many country block the city, results in people spending more time at home. The need of relevant product raise, such as Curtains

Post-epidemic era New Product Demand (2)

• Electronic devices –Demand of distance

learning increase, the need of

merchandise spike.

Post-epidemic era New Product Demand (3)

• The change of transportation

results in the increasing demand

of bicycle related fabric.

Market Expansion -Shanghai textile • Time：2020/09/23-25

• Items：Apparel 、backpack and recycle fabric

Market Expansion –

TITAS Taipei • TIME：2020/10/13-15

• Items：Apparel 、backpack and recycle fabric

Post-epidemic era –Digital marketing

• Activity：Thai on line meeting

• Time： 2020/11/4-11/6

• Activity：Indian on line meeting

• Time： 2020/12/16-12/17

Post-epidemic era –Digital marketing • ISSUE platform：Briefing of digitization

Post-epidemic era –Digital marketing

Frontier Alibaba.com

• Raise more reputation in different platform

Post-epidemic era –Digital marketing

• Raise more reputation in different platform

Global Sources Taiwan Export Promotion TAIWANTEX

R&D Product Development

Mr.Kuo RD-Manager

Main Topics of RD Product Sustainability

Recycled Material

Dope Dyed Bio-Based

Material Degradable

material

PFC Free W/R

Lower Tem. Dying

Energy Saving

Digital Printing

Safety x Protection

Lightweight and

high tenacity

Anti-Abrasion

Resistant Reflective and

Luminous

Anti-Static

Water proof and

anti climate

Fire Retardant

Funcationl x Comfortable

Cotton like

Wool like

Liene Like

Stretch

Breathable

Lightweight and

keep warm

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Recent new developments

• Save 60% energy、reduce 26% of CO2 discharge. NüCycle™ Nylon

Recycle Nylon fabric

• Save59% energy、reduce 32% CO2 discharge. NüCycle™ Polyester

Recycle Polyester

• Good performance in color fastness，reduce 89% waste water

discharge and 63% chemical usuage，save 63% energy、reduce 62% CO2 discharge

NüSolution™

Recycle Solution Dye

• Excellent in WR and anti-dirt, high density and can be washed repeatedly. Anti-static medical fabric

• 100% block UV rays, with light adjustment

function and provide privacy.

HONYI High density anti-sun

M456370_Photocatalyst Yarn

M562856 _Cooling Yarn Structure

M565209 _ PVC Coated Yarn

M565209_Reinforce Reflective yarn

Raw Material

RD Patent

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M562968_Cooling Yarn Structure

M506837-Spacedye woven fabric

M566722_ECO-Friendly Mesn

M553733_High tenacity mesh

M553601_Luminous solar screen

Weaving Part

RD Patent

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•M581604_Repairable Fabric

•M551425_Reflective lamination fabric M553735 _Embossed mesh

M559330_Camougflage crinkle fabric

Finishing

RD Patent

M563358 _Multi-layer emboss fabric

M563348_Emboss Wax fabric

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M582901_3 layer lamination bagpack fabrics M581125_Anti-Abrasion Resistant printing fabric

M581531_2 layer lamination muti-color effect

Finishing

RD Patent

M581115_Paper feel lightweight fabric

I76067

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2016 ISPO Textrend Awards

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2017 ISPO Textrend Awards

Digital Printing+Reflective

Vintage Nylon

3D Luminous Fabric

Wool Tech

2018 ISPO Textrend Awards

Crinkle Nylon ripstop

Triangle Dobby

Anti Abrasion Reflective

Bio Based Nylon Muti-Color Dope Dyed

• 3 Fabric-Top 10

• 4 Fabric-Selection

High Tenancity Yarn dye ripstop

2019 ISPO Textrend Awards

Muti-Color Solution Dyed Zero Dyed Eco-Fabric Recycled Nylon Emboss Lightweight high tenancity

Paper like Crinke Nylon

2020 ISPO Textrend Awards -Equipment

2020 ISPO Textrend Awards –coating and filament

Persistence is the key to success!

「channel has changed，adjustment of commodity」

The change of gross profit !

「In early years: 3%~4%

But now 8% in 2019，13% in 2020」

「Honmyue is in the right path，

we are making positive transformation .」

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Item 2020 Q2

(2020.April~June)

2019 Q2

(2019.April~June) Difference

Revenue 592,699 853,698 (260,999)

Operating Cost 509,200 783,855 (274,655)

Gross profit 83,499 69,843 13,656

Gross Profit Rate 14% 8% 6%

Operating Income(Loss)

1,348 (8,258) 9,606

Net profit (loss) 18,389 (13,380) 31,769

EPS(dollar) 0.15 (0.08) 0.23

Unit：NT1000

Consolidated Income statement

52

Item 2020 Q3

(2020.July~September)

2019 Q3 (2019.July~September)

Difference

Revenue 739,201 842,563 (103,362)

Operating Cost 641,092 754,742 (113,650)

Gross profit 98,109 87,821 10,288

Gross Profit Rate 13% 10% 3%

Operating Income(Loss)

17,828 11,584 6,244

Net profit (loss) 25,716 (3,347) 29,063

EPS(dollar) 0.21 (0.01) 0.22

Unit：NT1000

Consolidated Income statement

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Honmyue Enterprise Co., LTD(1474)

Weaving a better would with you , together

54