G-SHANK Enterprise Co., Ltd. www.gs.com.tw

2019 Third Quarter Earnings Conference

Nov.11, 2019

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G-SHANK

Disclaimer • This presentation is based on the information obtained from G-Shank

Enterprise, included Business Forecasts, Development and Financial status. Please note that while the company has used its best efforts to make sure the accuracy and comprehensiveness of this presentation, all information shall be subject to the public financial information submitted to government authorities by the company. G-Shank is not responsible for the respective update changes or adjustments that might occur in the near future.

• This document may contain “forward-looking statements” and any non-historical information, including the company's operating strategies, operating plans and future prospects, are forward-looking statements based on our assumptions about future operations and uncertain factors such as government regulations, economic changes, market trend... etc., so actual results may differ.

• This document shall not be considered as an inducement to buy or sell securities or other financial products.

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1 About G-SHANK 2 Operational

Performance

3 Current Status And Prospect 4 Q&A

Agenda

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2 Operational Performance

3 Current Status And Prospect 4 Q&A

1 About G-SHANK

G-SHANK

Who We Are?

Est. 1975

Capital: $1.85B (NTD)

Group Revenue Percentage

663 (TW)

(Transaction within the group)

*3Q 2019

(TWSE: 2476)

Chairman: Yu-Huang Lin

CEO: Ying-Shou Lin

THE LARGEST

COMPANY

DEDICATED TO

PRECISION

STAMPINGS IN

ASIA

Employees

2,663 (Worldwide)

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G-SHANK

Malaysia

Japan (Tokyo)

World

Headquarters (Taoyuan, Taiwan)

& Taiwan Bade Branch

Indonesia

Thailand

Mexico

Global

Service Branch/ Factory

Headquarters

Office

1

14

2 17

Where We Are?

Tianjin

Qingdao

Shanghai

Suzhou

Wuhan

G-Long (Dongguan)

Shenzhen

G-Bao (Shenzhen)

Xiamen

G-SHANK AMERICA (TX)

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G-SHANK

How We Start?

2009 Electroplating Lines Est.

2010 Est. Insert-Molding Dept.

2012 Est. Japan Branch

2012 Est. Wuhan Branch

2012 Record High Die PO (209

sets/mo)

2012 Stamping, Electroplating,

Insert-Molding, Automatic

Assembly Vertical Integration

2018 Est. Automotive Market Div.

1973 2000 2010

Stamping Vertical Integration

Global Growth

3C

80%

Automotive

10%

1973 Founded

1980 Est. Design Center

1984 Est. 6S Policy

1989 Est. Malaysia Branch

1994 Est. G-Shank Mexico & USA

1996 ISO 9001 Certified

1996 Est. Shanghai Branch

1998 Listed in Over-The-Counter

(The First Company in Metal Stamping Industry in TW)

1998 Est. Thailand & Taiwan Bade Branches

2000 Est. Shanghai II Branch

2001 Listed in TWSE (2476)

2001 Est. Dongguan, Xiamen,

Suzhou, Qingdao Branches

2002 Est. Indonesia Branch

2003 Est. Tianjin Branch

2005 ISO14001& ISO/TS16949 Certified

2006 Est. Shenzhen I Branch

2007 Est. Shenzhen II Branch

Industrial & Others

23%

Industrial &

Industrial & Others

10%

2018

3C

62%

Automotive

15%

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G-SHANK

Au (Gold) Sn (Tin)

Die Design

Machining

Stamping

Electroplating

Insert-molding

Automated

Assembly

x110 sets

(Monthly

Capacity)

x554

• Vertical CNC Machine

• Jig Grinder

• Profile Grinder

• Wire E.D.M

• Grinder

• Lathe

• Milling Machine

• Sawing Machine

• E.D.M

• Drilling E.D.M

• Precision E.D.M

• Horizontal Profile

Grinder

x692 (10 - 400T)

4 Machines

8 Lines(Hoop)

x34 (35 -110T)

• R J 45 Connector

• D-SUB Connector

• Automatic Laser Welding Machine

• Automatic Silver Brazing Assembly

• Automotive Safety Device Assembly

• Servo Feeds

• AOI Machine Inspection

• 3D/CAD Design

• Design Database System

• AOI Machine Inspection

• Vertical, Horizontal Insert-molding Machine

One Stop Solution

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G-SHANK

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Processes

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1 About G-SHANK

3 Current Status And Prospect 4 Q&A

2 Operational Performance

G-SHANK

Billion (NTD) $4.75

$4.91 $5.14 $5.13

$3.71

Group Fiscal Revenue

2.90 2.97 3.09 3.05 2.08

0.86 0.87 0.85 0.88

0.65

0.98 1.07 1.20 1.20

0.98

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G-SHANK

Items Nine Months, 2019 Nine Months, 2018 Growth%

Sales revenue 3,706,745 3,786,438 -2.1%

Operating costs (2,749,222) (2,800,970) -1.8%

Gross Profit 957,523 985,468 -2.8%

Gross Profit% 25.8% 26.0% -0.2ppts

Operating Expense (656,428) (637,134) 3.0%

Net operating income 302,438 349,330 -13.4%

Gains from Operations % 8.2% 9.2% -1.0ppts

Non-operating income and expenses 123,971 94,183 31.6%

Foreign exchange gain (loss) 22,878 48,031 -52.4%

Income before Tax 426,409 443,513 -3.9%

Tax expense (income) (126,845) (197,712) -35.8%

Income tax % 29.7% 44.6% -14.9ppts

Profit (loss) 299,564 245,801 21.9%

Profit (loss), attributable to owners of parent 267,144 200,303 33.4%

Consolidated Net Income Attributable to Parent

Company %7.2% 5.3% +1.9ppts

Basic earnings per share 1.44 1.08 33.3%

Composite Income Sheets(In Thousands of New Taiwan Dollars)

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G-SHANK

Amount % Amount %

Cash & Marketable Securities 3,786,959 49.3% 3,259,093 44.7%

notes receivable and Accounts

receivable,net1,218,295 15.8% 1,297,831 17.8%

Current inventories 763,211 9.9% 842,387 11.6%

Long-term Investments 321,058 4.2% 284,735 3.9%

Property, Plant and Equipment 1,245,986 16.2% 1,318,756 18.1%

Right-of-use asset 155,305 2.0% - 0.0%

Total Assets 7,688,142 100.0% 7,282,994 100.0%

Total Liabilities 2,511,270 32.7% 2,211,447 30.4%

Total equity attributable to owners of

parent4,606,794 59.9% 4,487,446 61.6%

Non-controlling interests 570,078 7.4% 584,101 8.0%

Total Equity 5,176,872 67.3% 5,071,547 69.6%

Book Value Per Share 24.9 24.3

Balance Sheets(In Thousands of New Taiwan Dollars)

ItemsSep. 30, 2019 Sep. 30, 2018

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G-SHANK

Items Sep. 30, 2019 Sep. 30, 2018

Debts Ratio 32.7% 30.4%

Current Ratio 315.0% 329.0%

Quick Ratio 272.6% 275.9%

Average collection days 96 97

Average inventory turnover days 80 79

Financial Analysis

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G-SHANK

Items Nine Months, 2019 Nine Months, 2018

Cash and cash equivalents at beginning of period 2,688,052 2,874,317

Net cash flows from operating activities 542,580 402,696

Capital expenditures (82,722) (146,740)

Net cash flows from (used in) investing activities (32,662) (24,918)

Net cash flows from (used in) financing activities (7,253) (362,223)

Effect of exchange rate changes on cash and cash

equivalents(41,110) (52,489)

Cash and cash equivalents at end of period 3,066,885 2,690,643

Cash Flow(In Thousands of New Taiwan Dollars)

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1 About G-SHANK 2 Operational

Performance

3 Current Status And Prospect 4 Q&A

G-SHANK

What We Do?

2018: 15% 2019Q3: 16%

2018: 23% 2019Q3: 28%

2018: 9% 2019Q3: 9%

2018: 17% 2019Q3: 14%

2018: 36% 2019Q3: 33%

*3Q 2019

Automotive • Regulators

• Transmission Coolers

• GPS/ USB/ Charger Connectors

• Airbag & Seat Belt Connectors

• Air Conditioning

• Fuses

• Button Adaptors

• TPMS

• Headlight Parts

• Anti-theft Systems

Industrial

and Others • Sensors

• Relays

• No Fuse Breakers/ Switches

• PLC

• Timers

• Blood Sugar Testers

• Scalpels

• Semiconductor Lead Frames

• Furniture Parts

• Electronic Cigarettes

PC/NB • I/O

• Type C

• USB

• HDMI

• FPC/ FFC

• Memory Cards

• Board-to-board

Consumer

Electronics • Appliances

• Digital Cameras

• Gaming Parts

• Switches

• Video Recorders

Communications Mobile Phones

•ADSL

• Internet Related

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Automotive Lens

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1 About G-SHANK 2 Operational

Performance

3 Current Status And Prospect 4 Q&A

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Thank You

G-SHANK Enterprise