Stock Code: 2023

ANNUAL REPORT 2022

Information declaration: http://sii.twse.com.tw

Open information website: http://mops.twse.com.twCorporate Website: https:// www.yiehphui.com.tw

Date of Publication: April 30, 2023

  1. Names, Titles and Contact Information of the Company's Spokesperson and Deputy Spokesperson:
    Spokesperson: Wen-Chung Tien
    Title: Assistant Vice President
    Tel: (07) 611-7181
    Email: stock@yiehphui.com.tw
    Deputy Spokesperson: Mou-Lieh Huang

Title: Associate Manager

Tel: (07) 611-7181

Email: stock@yiehphui.com.tw

II. Address and Telephone Number of HQ and Factory:

Head Office: No.369, Yuliao Rd., Qiaotou Dist., Kaohsiung City 825, Taiwan (R.O.C.)

Tel: (07) 611-7181

Factory: No.369, Yuliao Rd., Qiaotou Dist., Kaohsiung City 825, Taiwan (R.O.C.) (Kaohsiung Plant)

Tel: (07) 611-7181

Factory: No.297, Yuliao Rd., Qiaotou Dist., Kaohsiung City 825, Taiwan (R.O.C.) (Kaohsiung Plant)

Tel: (07) 611-7181

Factory: No.6, Gongye 6th Rd., Pingtung City, Pingtung County 900, Taiwan (R.O.C.) (Pingtung Plant)

Tel: (08) 755-0979

Factory: No.909, Fuxing Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.) (Luzhu Plant)

Phone: (07) 697-4428

Factory: No.600, Zhong'an Rd., Yanchao Dist., Kaohsiung City 824, Taiwan (R.O.C.) (Yancao Plant)

Phone: (07) 616-3001

  1. Name, address, website, and telephone of stock transfer agency: Name: Shareholder Service Dept., Yieh Phui Enterprise Co., Ltd
    Address: 15F., No.30, Beiping E. Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.)
    Company website: www.yiehphui.com.tw
    Tel: (02) 2395-6780

IV. Contact Information of the Certified Public Accountants for the Latest Financial Report:

Names of CPAs: Ling-Wen Huang, Shu-Man Tsai

Name of Accounting Firm: Crowe Horwath (TW) CPAs

Address: 27F., No.6, Siwei 3rd Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.)

Website: www.crowehorwath.net/tw

Tel: (07) 331-2133

V. Overseas Trading Places for Listed Marketable Securities and Ways of Making Inquiries:

Listing location: none

Ways for query: none

VI. Company website: www.yiehphui.com.tw

Content

Chapter 1 Letter to Shareholders……………………………………………….…...1

Chapter 2 Company Profile……………………………………………………..…...9

  1. Date of Incorporation……………………………………….………………………9
  1. Company History……………………………………………………..…..….……. 9
    Chapter 3 Corporate Governance Report…………………………………….…....11
  1. Organization………………………………………………………….……...11
  1. Information on the Directors, President, Vice President, Associate Managers
    and Heads of Departments and Branch Offices ………………………………..14
  1. Compensations to Directors, President and Vice Presidents…………....….…....41 IV. Implementation of Corporate Governance…………………………….….…....49
  1. Information on CPA Expenses……………………………..………….……..103
    VI. Information on Replacement of CPAs…………….………………………… 103 VII. The Company's Chairman, President, Manager of Finance or Accounting who
    has worked in CPA Firms or their Affiliates within the latest Fiscal Year…….…103 VIII. Transfer or Pledge of Equity by the Company's Directors, Executive Officers and
    Shareholders with more than 10% of the Company's Shares…….……….…..….104

IX. Information on the Top 10 Shareholders of the Company Who Are Identified as Related Parties, Spouse or Relative within Second-Degree of Kinship………….107

  1. Number of Shares invested by the Company, any of the Company's Directors, Supervisors, Executive Officers and Businesses directly or indirectly controlled by the Company, and Consolidated Percentage of Shareholding….…………....113

Chapter 4 Funding Status……………………………….…………..……..…..…..115

  1. Capital and Shares……………………………….………..…………..…….115
  1. Source of Capital………………….…..…………..…………..…….115
  1. Structure of Shareholders……………….………..…….………...….118
  1. Share Distribution………………….…………….………….…...….118

(IV) List of Major Shareholders……….……………….…………..….….119

  1. Information on Market Price, Net Worth, Surplus and Dividend per
    Share for the Most Recent Two Years….……………………………..120

(VI)

Dividend Policy and Implementation Status………………….…...….121

(VII)

Impact on Business Performance and Earnings Per Share (EPS) of any

Stock Dividend Distribution Proposed or Adopted at the Most Recent

Shareholders' Meeting…………………………………………...….122

(VIII)

Compensation to Employees and Directors…………….…….…...….122

(IX)

Repurchase of Shares by the Company…………………..….…....….124

  1. Issuance of Corporate Bonds………………………………..……….…..….124
  1. Issuance of Preferred Shares…………………………………….............….124 IV. Issuance of Global Depository Receipts………………………….……....….124
  1. Employee Stock Options…………………………………………….......….........124 VI. Issuance of Employee Stock Options………………………….…....….........124 VII. Issuance of New Shares in Connection with Mergers and Acquisitions…….….124 VIII. Implementation of Capital Utilization Plan…………………….………....….124

Chapter 5 Operational Overview……………………………………..….…..…...125

  1. Business Content…………………………………………………..…...…..125
    1. Scope of Business…………………………………….……….........125
  1. Industry Overview………………………………………...…..........128
  1. Technology and R&D Overview……………………….………..…..130

(IV) Short- and Long-Term Business Development Plans……….....….…..131

  1. Market, Production and Sales Overview………………………..….….…….132
    1. Market Analysis…………………………………………….…………….132
    1. Applications and Manufacturing Processes of Main Products……...........….135
    1. Supply of the Main Raw Materials…………………………...…...….…..137

(IV) Information of Customers that Contribute More Than 10% of Total Purchases/Sales in the Most Recent Two Years…………….......………...….138

    1. Production Volume and Value of the Most Recent Two Years.......………….140 (VI) Sales Volume and Value of the Most Recent Two Years.......………..…….140
  2. Employee Information.......…………………………………………….......141 IV. Environmental Protection Expenditure…………………………….….....….142
  1. Labor-managementRelations…………………………………………...….144

VI

Cyber security management………………………………………………..……149

VII. Important Contracts…………………………………….…….……..……..154

Chapter 6

Financial Conditions…………………………….…….…..…........….154

  1. Condensed Balance Sheet and Consolidated Income Statement for the Most Recent Five Years…………………………….………………….…...…...154
  1. Financial Analysis for the Most Recent Five Years……………………..……158 III. The Audit Committee's Audit Report of the Most Recent Fiscal Year….….….164

IV. The Most Recent Fiscal Year's Consolidated Financial Statements of the Parent Company and Its Subsidiaries Audited and Attested by the CPAs.……..….….165

  1. Parent Company Only Financial Statement for the Most Recent Fiscal

Year……………………………………………………………..…….….165

VI. Impact on the Company's Financial Status due to Financial Difficulties Experienced by the Company and Its Affiliates…………………………..….165

Chapter 7 Review and Analysis of the Company's Financial Position and Financial Performance, and Listing of Risks ………………………166

  1. Financial Status………………………………………………….………...166
  1. Financial Performance………………………………….……………...…..166
  1. Cash Flow…………………………………………………………………170

IV. Major Capital Expenditures in the Most Recent Fiscal Year and Their Impact

on the Company's Financial Affairs………………………………….…..….171

  1. Investment Policies for the Most Recent Fiscal Year, the Main Reasons for the Profits or Losses Generated thereby, Improvement Plans, and Investment Plans for the Coming Year………………………………………………...….…..171

VI. Risk Analysis and Assessment…………………………………………..…172

VII. Other Important Matters…………………………………………..…….…175

Chapter 8 Special Items…………………………………………………..…...….176

  1. Information on Affiliated Companies………………………………...…….176 II. Private Placement of Marketable Securities………………………......…….191
  1. Holding or Disposal of Company's Shares by Subsidiaries…………….....…191
    IV. Other Supplementary Information …………………………….……….…..191

Chapter 9 Events which have Material Impact on Shareholders' Equity or the Company's Securities as Prescribed in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act, and Have Occurred from the Most Recent Year to the Printing Date of This Report…………………………...……………………………..….….191

Chapter 1 Letter to Shareholders

To Stockholders:

The pandemic has come to an end in 2023 and inflation has been dealt with by rate increases in Europe and the US. The negative impact of the war between Ukraine and Russia has slowed down. The opening of China and stimulus policy will bring strong demand as companies intend to replenish their inventory. IMF has increased the global economic growth from 2.7% to 2.9% and that of China be 5.2% from 4.4% last year. The case of the US will be from 0.2% to 0.7%. The majority of the countries will be in positive territory.

The supply of steel has been affect by inflation last year. Worldsteel estimated 1.879 billion tons of steel 80 million tons less than 1.958 billion tons in 2021. The prospect is positive this year. In 2022 October Worldsteel predicted that this year will be 1.815 billion tons, a growth of 1%. The mismatch of supply/demand will improve and the worst part is gone.

In 2018 China had reduced 150 million tons steel capacity as designated in thirteenth five-year plan. Last year the steel production was down to 101.3 million tons and the export was 67 million tons, showing that its steel industry is still under reform and the impact of its export decreases. After locking down, the housing, car and infrastructure markets will be strengthened, increasing the demand for steel further.

The most recent prediction by IMF shows that the growth for China is 5.2%, making the share of the global economic growth to that before the pandemic. Though Europe and the US has adopted contractionary policies, the US performed much better in the third and fourth 2022 with no significant cut in consumption. The EU has cut its reliance on energy and the drop in its price, showing the inflation could have peaked. The contraction in the economy could be shallow and limited, avoiding deep recession. The economic growth of China, the US, Europe all turn positive. The prospect of Taiwan will be 2.75%, according to the statistics of Directorate-General of Budget, Accounting and statistics, Executive Yuan.

For 2023 the world will be able to get away from Covid-19, but the inflation and geopolitical issues like Russia-Ukraine war and uncertainty of natural disasters will aggravate the uncertainty of the world economy. Yieh Phui's action of daring to change, flexibility, innovation to promote dynamic competitiveness will be able to maintain nimbleness and robustness to find the best solution and to create value for a new era.

1.The Operation of 2022

Comparing 2022 with 2021 the sale volume of Yieh Phui decreased 15.25% and that of revenue decreased NT$3.241 billion (-8.81%). Yieh Phui (China)'s sales volume decreased 12.81% compared to the previous year and the decreased in revenue is NT$8.358 billion (-20.64%). The sales volume of Yieh Hsing decreased 9.80% compared to the previous year and the decreased in revenue is NT$0.190 billion (-2.71%). Overall, the consolidated revenue is NT$83.676 billion, a decreased of 7.07% compared to the previous year of NT$90.047 billion. The consolidated net income after tax is NT$0.522 billion, a reduction of 4.698 billion of the previous year, of which NT$0.810 billion is for the mother company, comparing with the previous year of net profit after tax NT$5.203 billion. a reduction of 4.393. billion.

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Yieh Phui Enterprise Co. Ltd. published this content on 06 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2023 06:09:49 UTC.