Goldsun Building Materials Co., Ltd. I. Company Profile II. Summary of Business Operations

December 7, 2020 Company I. Company Profile information (I) Company history

Invested in Wellpool (stock code 8424), with 51% in Established a ready-mix concrete shareholding in 1984. Key domestic plant in Suzhou from 2003 to Established Taipei Port re-investment 2005. Terminal Company in 2009, Established Jin Shun Maritime in and officially started companies 2012. operations in 2016 Established Yuan Shun Maritime in 2013. Established Gimpo Marine in 2018. Established in 1954. Listed At present, we have 6 dredging in the Stock ships, and import 6-10 million tons Exchange since 1978. of sand and gravel a year. Current capital at NT$11.8 billion. Company history

A leader in Taiwan's ready-mix Domestic concrete market. Overseas operating 28 ready-mix plants in Taiwan, re-investment activities accounting for 16% of market share. Revitalization of the corporate companies group's land assets and innovation of construction business. P.1 (II) Structure of consolidated revenue Company of Goldsun Building Materials in the information past three years (after internal revenue write-off) 2018 15% 15.40%

59.60% 10%

2019 2020H1 0 8.20% 12.90% 7.60% 17.30%

65.90% 79.40%

8.70% Unit: NT$ 100 million Business unit / Year 2018 Year 2019 Year 2020 YearH1 Taiwan Business Unit - Concrete 111.19 59.6% 125.2 65.9% 67.33 79.4% Taiwan Business Unit - Other 18.61 10.0% 16.6 8.7% 6.48 7.6% China ready-mix business 28.7 15.4% 32.8 17.3% 10.95 12.9% China cement business 28 15.0% 15.5 8.2% 0.0% Total 186.5 190.1 84.76 P.2 Company information (III) Product cost structure of the concrete industry

Raw material costs can account for more than 83% of production costs so that the control of sources of materials is the key.

Raw material costs

Manufac Labor Item turing Total cost Sand and Blast furnace cost Cement Fly ash Agent Subtotal gravel slag

Taiwan ready-mix 45% 25% 9% 2% 2% 83% 5% 12% 100% plant

Suzhou ready-mix 51% 24% 7% 2% 3% 87% 1% 12% 100% plant

P.3 Company Main sources of sand and gravel for the information domestic concrete industry Taipei area: Imported sand and gravel (mostly from China), domestic sand and gravel (Hualien and Taitung [Hualien River system and Liwu River system]) (Yilan [Lanyang River (I) system]), Sanxia and Taoyuan underground, and some from Da-an River (transported by trucks on their returning trips) and others. Taoyuan, Hsinchu, and Miaoli area: Local rivers (Dahan River system, Houlong River system, and (II) Zhonggang River system), underground and a small amount from Da-an and Dajia (transported by trucks on their returning trips).

Taichung, Yunlin and Chiayi area: Local rivers (Da-an River system , Dajia River system, Zhuoshui River system, and (III) Dadu River system), imported sand, underground and mountain streams. Note 1

Tainan and area: Local rivers (IV) (Gaoping River system)

Due to the cost (transportation) factor, the use of gravel aggregates shows differences in regions.

Note 1: The quality of materials from dredging works in mountain streams is relatively low, and the materials are used to supply other industry peers for the construction projects in mountain areas. P.4 Company Distribution table of information materials sources from China

Luoyuan County

Minhou County (Songmen, Qingzhou)

Shihu

Shijing

P.5 (IV) Total floor area of the building permits 5,000,000 Previous period This period Unit: Square meters

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000 2019 November December 2020 February March April May June July August September October January

2020 Year / Month 2019 October November December 2020 January February March April May June July August September Total

Previous period 3,014,029 3,447,168 3,286,448 3,316,817 1,560,524 2,767,499 3,377,823 3,522,207 2,907,154 3,456,427 2,897,915 2,916,456 26,722,822

This period 3,009,342 3,554,791 3,424,589 3,149,307 2,980,795 3,169,704 3,916,132 2,842,095 4,438,321 3,620,151 3,005,492 3,942,474 31,064,471

Difference -4,687 107,623 138,141 -167,510 1,420,271 402,205 538,309 -680,112 1,531,167 163,724 107,577 1,026,018 4,341,649

% Increase or -0.2% 3.1% 4.2% -5.1% 91.0% 14.5% 15.9% -19.3% 52.7% 4.7% 3.7% 35.2% 16.2% decrease *Source: Construction and Planning Agency, Ministry of the Interior. Total floor area of building permits refers to the area of concrete structure + steel- reinforced concrete structure + steel structure of total floor area of building permits P.6 (V) Reconstruction opportunities worth 13 trillion for 4.36 million houses nationwide that are more than 30 years old Number of tax-registered residences more than 30 years old nationwide and in six special municipalities Item Total number of House average Number of houses % of all houses properties age more than 30 more than 30 (residences) (years) years old years old Region (residences) Nationwide 8,810,119 31 4,365,243 49.55% Taipei City 899,693 35.49 634,959 70.58% Tainan City 701,063 32.95 349,020 49.78% Kaohsiung City 1,072,440 31.57 546,968 51.00%

New Taipei City 1,636,188 29.43 756,385 46.23%

Taichung City 1,045,910 28.51 407,704 38.98% Taoyuan City 854,508 26.3 291,956 34.17% Source: Real estate information platform of the Ministry of the Interior. Table by reporter Yi-Ping Hsu

According to the real estate information platform of the Ministry of the Interior, of the 8.81 million houses nationwide with household registration in 2020 Q2, 4.36 million of them are more than 30 years old, which meet the criteria for urban renewal and old buildings renovation. Assuming that each rebuilt property averages about 30 pings at NT$100,000 per ping, the opportunity for construction would value as much as 13 trillion, nearly 70% of last year's GDP. P.7 "Reconstruction and Urban Renewal of Old Buildings" that has been introduced for only three years has approved nearly a thousand projects worth about 100 billion

According to statistics from the Ministry of the Interior, of the 1,462 projects applied for reconstruction of old buildings program nationwide, 935 of them have been approved as of the end of August 2020, and each 1 project averaged about 205 pings in space. Taipei City has the most at 292, accounting for 31% of the nationwide total.

In contrast, the urban renewal program that has been implemented for more than 20 years has approved 898 cases nationwide as of the end of August. The reconstruction of old buildings program, with almost more than 1,000 projects, introduced for 3 years has exceeded the urban renewal program and become the main focus in the new city project. 2 According to the statistics of the Residential Development Magazine, the new construction projects introduced to the market through urban renewal and reconstruction of old buildings in Taipei City the past three years have accounted for 33% in 2018, 42% in 2019, and 65% as the end of July 2020 of all residential projects. P.8 II. Company's Business Opportunities and Their Specific Results and Goals (I) Analysis of the current and future “operating environment (opportunities)”: In view of the repatriation of Taiwanese businesses and expansion of foreign companies in Taiwan, as well as the clustering effect of TSMC and other major companies, it is becoming difficult to find land plots near and . The “Tainan Park” is especially popular, as it has expanded south to Xinhua, Rende, and 1 Guiren, and north to Anding, Xigang, and Madou. The “Taiwan Sugar Machouhou Industrial Park” in Puzi of Chiayi also already has large companies taking spaces. The “Kaohsiung Science Park” has also added Qiaotou Industrial Park and “Renwu Industrial Park”, showing an unprecedented housing boom.

It will drive the recovery and rise of the previously unpopular industrial parks in places such as the ones in the coastal area of Changhua, Puzih(with Yi-jhu) of Chiayi, and 2 Nanzih Export Processing Zone of Kaohsiung.

The emerging industrial parks will drive the demand and prosperity of the surrounding 3 construction and real estate properties. Industry migration + Construction in place + Population migration ≒ New town.

The "520 Deadline" meant to demolish factories illegally built after May 20, 2016, gradually helped the movement of factories on farmland to industrial land, creating larger clusters which 4 also drove companies' demand for industrial land and plant construction.

In order to solve the problems of demand for industrial land, the program of the renewal of 5 factories and offices will accelerate to create energy-saving, smart, energy storage-enabled, and functional factories and offices. P.9 The abovementioned high-end electronics factories highly value quality and speed. Only those who are capable of conducting pouring of factories of large-scale technology 6 companies and landmark buildings within a short time have the capability to receive such orders, so leading listed companies are usually the suppliers of these projects.

The Ministry of the Interior has actively amended laws to establish floor area ratio incentives for urban renewal. At present, the renewal of old buildings, offices, and factories has experienced significant growth. In the future, more residential projects will be released. 7 According to the statistics of the Ministry of the Interior, there are 4.36 million residential properties more than 30 years old, presenting business opportunities worth 13 trillion.

A Forward-Looking Infrastructure program worth NT$800 billion over 8 years is ongoing, 8 such as Tainan MRT, underground railways, HSR special zone, an extension of Kaohsiung MRT, and the circular light rail in Kaohsiung.

The boom of pre-sales residential construction projects in the second half of 2020 will drive 9 waves of construction in the first quarter of next year, which will show prosperity.

The above trend (business opportunity) of demand for concrete is Conclusion just the beginning, and we expect that it should last for a while.

P.10 (II) Current “operating performance” and future outlook:

Consolidated income statement summary for the last three years: (Current operating results -> 2020 Q3 gross profit margin has exceeded 18.2%) Unit of amount: NT$100 million Jan to Sept Jul to Sept Item/Year 2018 2019 2020 2020 Operating revenue (Note 1) 186.45 190.05 132.03 47.07 Operating gross profit 14.08 12.90 21.28 8.57 Gross profit margin (%) 7.55% 6.79% 16.12% 18.20% Operating expenses 9.58 9.26 5.61 2.08 1 Operating Expense Ratio (%) 5.14% 4.87% 4.25% 4.43% Non-operating income and 0.90 9.07 3.07 1.19 expenses (Note 2) Pre-tax net profit 5.40 12.71 18.74 7.67 Net profit after tax 5.91 11.86 18.07 7.38 Earnings per share (NT$) 0.37 0.80 1.31 0.57

Note 1: 2018 and 2019 include NT$2.798 billion and NT$1.546 billion in revenue, respectively, from the plant in Fujian, while there is no such revenue in 2020. Note 2: Non-operating income and expenditure: About NT80 million in cash dividends are recorded every year. In 2019, there is income from the disposal of cement plants in Fujian and the building in Zhongli. In 2020, there is a refund of overpaid royalties from Taipei Port Terminal. P.11 Based on the aforementioned “operating business opportunities” and the ample domestic 2 capital and recovery of the real estate boom, the company has actively implemented its factory expansion plan.

In response to the government's "Eastern District Gateway Program," the development of 3 the “Nangang Depot” will create substantial asset appreciation and realize future benefits.

We have sufficient assets. They were acquired back in the day, so the cost is low. They have room for growth in capital gains, which will bring stable cash flow and non-operating income. The recent sharp appreciation of the Taiwan Dollar has made the benefits even more apparent. The 3 key assets with the greatest growth potential are shown as follows:  The Company has 21 concrete plants with a total area of 54,000 pings throughout Taiwan. 4  The construction land plot on Zhonghua East Road in Tainan City is measured at 1,260 pings. It is next to “T.S. Dream Mall” and Pingshi Camp Redevelopment Zone and will become a new landmark in the East District of Tainan City.  The residential land plots of 2,028 pings on Minzu Road and Da-Shun Road in Kaohsiung City are close to “E Sky Land Kaohsiung Marriott Hotel” owned by E United Group.

Focus on the fundamental business and the effective development and use of assets to 5 promote industry transformation and profit growth, further increasing the EPS.

P.12