HONMYUE ENTERPRISE Investor Conference 2016

Presentation：陳滄俊 Vice General Manager

The information published on this conference is for our company use only，including Operating Achievements 、financial status & Business development.

The Company never Announcing Financial Forecast ，but the opinions of Company”s financial、Business 、 Q&A and Business development might be a little difference in the future. The cause of the differences could be variety of market、fluctuation of price、competitions、Global economics、Fluctuation of International Exchange、bargain of suppliers. Risk factors that we couldn’t control。

This conference represent the company’s view of the future. We won’t be able to update the opinions of our company for the changes or adjustments.

2

Company Introduction

Operating & Strategy

Marketing &

Brand Development

Q & A

I

III

II

IV

3

Introduction I

4

1970- Honmyue established

1997-Initial public offering (IPO)

1999 –Officially published in Taiwan Stock Exchange

Market. 2009-Completed ISO-14001 Environmental Certification

2014 – department of labor 「Balance of life & Career –Metal of work leisurely」Award

2010-Completed bluesign® certification – Taiwan & China

Milestone

1997 – Completed iso 9000 international standards

2012 – Completed GMP certification for Medical Fabric

2015 – Completed GRS global recycle certification

5

Textile Supply Chain

Paper

Manufacturing

Petrochemical

Industry

EG、PTA、AM、CPL

Synthetic Fiber

Manufacturing

Natural Fiber

Manufacturing

Synthetic Fiber

(Upper stream) Oil &

Petrochemical

Industry

Textured

Yarn

Industry

Yarn

Spinning

Mills

Textiles

Mills

Industry

Knitted

Weaving

Industry

Fabric

Mills

Industry

PU、PVC、Synthetic

Leather

Home

Textile

Apparel

Textile

Yarn Spinning, Fabric &

Finishing Industry

(Middle stream)

Leather & Apparel

Manufacturing

(Down stream)

Honmyue

Textile Supply Chain

6

Operating & Strategy II

7

item 2016 First half 2015 First half divergence (This period-last period)

income 1,658,539 1,744,325 (85,786)

cost (1,434,904) (1,557,222) 122,318

gross profit 223,635 187,103 36,532

Gross margin 13.48% 10.73%

Operating profit 88,947 59,793 29,154

current net profit 64,319 45,760 18,559

EPS 0.50 0.35 0.15

unit：NTD

business turnover -abridge Profit and Loss Account

8

business turnover –financial analysis

years

Financial Ratios 2016 First half 2015 First half

Paid-up capital： (thousand) 1,298,970 1,298,970

Net revenue： (thousand) 1,658,539 1,744,325

financial analysis

Current Ratio 145.04% 128.37%

Quick Ratio 81.79% 72.60%

Debts ratio 45.48% 50.94%

ROE 3.53% 2.56%

9

business turnover -

2016/09 vs 2015/09 Cumulative revenues

Year 2016 2015 Growth

over(decline)rate

Jan ~ Sep 2,409,244 2,588,028 (6%)

unit：thousand NTD

10

2,000,000

2,200,000

2,400,000

2,600,000

fluctuation of raw material

price

Fluctuation of International

Exchange

Adjustment of product structure

Quality & Cost control benefits

Decline in Turnover, Profitable growth Analysis

Full production maintenance

Efficiency level up control

Material Cost

11

The proportion of products

60% 28%

8%

4%

工業用布

成衣用布

傢飾用布

醫療用布

Gross margin 13%

Gross margin 22%

Gross margin 7%

Gross margin 23%

Medical fabric

Industrial fabric Clothing Fabric

Furnishing fabric

12

What are our products?

13

Application

Industry Fabric

Indoor Furnishing

Fabric

Clothing Fabric

Medical Fabric

Water-

proof Abrasion Resistant

splashing

Anti-Stain

Mildew antibacterial

Flame proof

Light fastness

Electrostatic

Dissipating

Water-proof

Breathable

deodorisation

Anti-UV

Electrostatic Dissipating

Mildew

antibacterial

splashing

treatment

Flame

proof

14

Back pack Luggage Stroller

caparison

Golf Bag

Treadmill Belt

Industrial Fabric

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3C deivece

Clothing Fabric

Casual Wear

Shirts Skirt

Sports Coat

Suits Trousers

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indoor

Furnishing Fabric

Sofa

Pillow

Curtain Solar Screen

Cushion

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Placemat

Tablecloth

Shower Curtain

Beach Chair

Parasol Gazebo

Cushions

Sling Chair

Tent Outdoor furnishing Fabric

Awning

18

Electrostatic Dissipating Medical Clothing

Gown

Scrubs

Surgical drapes

19

Marketing &

Brand Development

III

20

Marketing & Own-Brand Selling

- Indoor Furnishing Fabric

Presentation：

Cosmos Yeh Manager

21

Furnishing Textile Key Direction

Honmyue Furnishing

Textile

Window Covering – Solar Screen

Functional Outdoor Furnishing Fabric

Other Technical Textile (ie. Geo-textile、transport textile)

• Key Direction: Multivariate and Niche Markets

22

Window Covering - Solar Screen

23

Honmyue Solar Screen

Honyi Shot Sun

During ancient time, there were 10 suns causing the earth to scorch and seas to dry up. Honyi shot down 9 of them to let people to

live.

Honmyue Product

Honmyue product has decent heat and light blocking functionality while keep transparency. It can protect from glare and UV ray.

24

Brand Story

25

HONYI Solar Screen Features

1. Energy Saving 有效節約能源

2. Visual Comfort 舒緩視線

3. Transparency 視覺穿透性

4. UV Block Protective 隔離UV光

5. Excellent Durability 優異的耐用性

6. High Color-fastness to Light 高日光牢度

7. Fire Retardant 阻燃功能

8. Anti-mold and Antibacterial 防霉抗菌功能

9. Environmental Friendly 具環保性

10.Wide Collection 完整的產品系列

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HONYI Solar Screen Collection

HONYI complete solar screen collection

HONYI solar stocked

sample book

27

HONYI Solar Screen Market

Domestic Home Use

Commercial

& Hospitality

Oversea

North America (US/Canada)

South EU (Spain)

Middle East

South America

Australia (esp. Outdoor)

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Functional Outdoor Furnishing Fabric

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Outdoor Furnishing

Polyester

•Solid

• Yarn Dyed

•Solution Dyed

• Print

PP Olefin

•Solid

• Linen

•Dobby

•Stripe

Sling (PVC

Coated Yarn)

• 1x1

• 2x1

• 8x8

•Dobby

Outdoor Furnishing

Fabric

One Stop Solution for

Outdoor Furnishing Fabric

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weather proof

material

Special Weaving

Technique

Nano-tech Finishing

New Generation Outdoor Furnishing

Fabric

( Functionality+Comfort+Outlook)

1. Comfort (NC): Sling mixed solution dyed poly

2. Elegant (NE): Sling mixed nep/Spaced dyed yarn

3. Fusion (NF): Sling mixed filament/ATY Yarn

4. Dual (ND): Sling (Dual tone) mixed solution dyed

poly

Main Function:

- Water Repellent 潑水

- Oil Repellent 潑油

- Stain Resistance 抗汙

- Easy Clean 易清洗

- Color Fastness to Light 高日牢

31

Outdoor Furnishing Market

Main Market:

European Outdoor Furniture Brand

(Germany,UK,Holland,Belgium,Austria)

32

33

Marketing & Own-Brand Selling

-Medical Fabric

Presentation：

Terry Hong Vice G.M.

34

Medical Career Introduction GMP Qualify, friendly and safe production.

【GMP0913】

Medical equipment Level 2 approval, including

”Honmyue” Scrub 【衛署醫器製字第003970號】

”Honmyue” Surgical Clothing and accessories

【衛署醫器製字第003891號】

Medical equipment Level 1 approval, including

“Honmyue” Medical Clothing

“Honmyue” Medical Bandage(un-sterilize)

35

I4040 Medical Clothing & I4370 Surgical drapes and accessories

產品介紹

Customize Products

Cotton Scrub Water-proof Scrub

Water-proof Gown

Water-proof hole-towel Surgical

drape Water-proof cover

36

Features identity - Electrostatic Dissipating, Reduce equipment

interference.

Water repellence treatment , water proof anti- Liquid permeation （DUPONT Teflon 、 Mercerized)

High temperature washing and

High temperature sterilize.

End Use- Water-proof Scrub for Clinical trial

、 Water-proof Gown、 hole-towel 、

Cover and Surgical drape 37

HONMYUE

ENTERPRISE

Haojie

Company

Washing

Cloth Folding、

Packaging

Expatriate、Delivery

Medical

Equipment

Factory

Medical

Clothing

38

Our Client

39

Marketing & Own-Brand Selling

-Brand Development

Presentation： Mike consultant

40

We are Nuwa 女媧企業

We are Nuwa

女媧

41

X

43

X 44

Mission: New Market Development

Team Members: 5.5 People

Avg. Age: 30

Team Achievement: NTD$210,000,000 (2015)

Foreign Work Experience: USA, UK, Australia, China, Peru 45

Photo credit: Foolish Lego

Segmentation 細分市場

North America

Outdoor Activity

Brands Designer Bags & Packs

46

Targeting 目標市場

Differentiated Product

Various Specification

Unique Features

More Expensive

Flexible Customization Ex: Victorinox Co-Brand Series

47

Revenue

Profit

Low High

Low

High

Positioning 市場定位 48

Revenue

Profit

低 High

低

High

Positioning 市場定位 49

We are Nuwa 女媧企業

Fresh Ideas For Serious

Fabrics

X

50

Marketing & Brand Development- R & D

Presentation： JP KUO Vice G.M.

51

Main Topics of Product

52

Environmental Sustainability

Energy Saving

Safety

Natural Like

•Recycled

•Solution Dye

•Bio-Based

•ECO Water Repellent

•Easy Dye

•Light Weight

•High Tensile

•Anti Tearing

•Durable

•Reflective

•Luminous

•Anti Static

•Water Proof

•Weatherable

•Flame Retardant

•UV Shading

•Block heat

•Temperature control

•Light control

•Carbon reduction

•Cotton Like

•Wool Like

•Linen Like

•Stretch

•Comfort

•Natural Style

Outlines

Main Performance of R&D

Future Product Development

RD Equipment & System

Related Patent & Awards

53

Main Performance of R&D

54

Main R&D Results

55

Heat Blocking Solar Screen

Solution Dye Material Fabric

Recycled & Bio-base Fabric

Fine Denier Light Weight Series

High Performance Fabric

Reflective & Luminous Series

Anti Static Medical fabric

Weatherable Outdoor Fabric

Natural Like material Fabric

Environmental

Sustainability

Energy Saving

Safety

Natural Like

Main R&D Result(1)

Solution Dye Material Fabric Product Features

• Solution Dye PET/ PP

• Eco process without dyeing

• Carbon and waste water reduction

• High colorfastness

• Application for Backpack , Equipment,Outdoor furniture

56

Main R&D Result(2)

Recycled & Bio-base Fabric Product Features

• Fabric series – Recycle Nylon

– Recycle Polyester

– Bio Base Material

• Petrochemical resources saving

• Reduce carbon emissions

• Application for Backpack ,Equipment, Apparel

57

Main R&D Result(3)

Heat Blocking Solar Screen Product Features

• With ECO high tensile coating yarn

• Design for different openness(1%~20% )

• One-way perspective, filtering glare,light adjust

• Heat insulation,energy saving,fire retardant, easy clean

• Effectively reduce the use of air conditioning

• Application for indoor and outdoor shading

58

Main R&D Result(4)

Fine Denier Light Weight Series Product Features

• Design with fine denier fibers

• High density and ripstop weaves

• Water proof/ Down proof

• Wind block / Anti-UV

• Outdoor wear and equipment application

59

Main R&D Result(5)

High Performance Fabric Product Features

• Lightweight／High Tensile

• High Abrasion & Tearing Strength/ Anti-cut

• With high performance fiber(Tsunooga/Dyneema/Kevlar/Cordura)

• Application for light weight pack,luggage,outdoor equipment

60

Main R&D Result(6)

Reflective & Luminous Series Product Features

• Application of high-reflective and luminescent materials

• Reflective & Luminous Printing Design

• Effectively enhance the safety of night outdoor activities

• Application for Backpack, sports jackets, outdoor equipment products

61

Main R&D Result(7)

Anti Static Medical fabric Product Features

• Excellent water repellent / Dirt proof / Dust proof

• High density weave with protection

• High-quality conductive fiber components

• Good static dissipation effect

• Light weight fabric can be washed repeatedly

62

Main R&D Result(8)

Natural Like material Fabric Product Features

• Design with special polyester and nylon new materials

• Cotton like/ Linen like/ Wool like

• Two tone/Muilt tone/Natural style

• Application for Urban/Casual/Daily Bag

63

Main R&D Result(9)

Weather-proof Blended Outdoor Fabric Product Features

• Combine Textilene and PP ATY Fancy yarn

• Double-layer construction design to create different touch and outlook in both sides

• High colourfastness/water-proof/UV protection/Anti-stain

• Natural Outlook/Soft touch

• Application for Outdoor Furniture

64

Future Product Development

65

66

FUTURE PRODUCT DEVELOPMENT

Medical Textile

Smart Textile

Protection textile

Work-wear Textile

ECO /Green Textile

Technical Textile

Functional Solar Screen

Architecture Textile

Geo Textile

Combine 3 Main Trends

Environmental

Sustainability

Energy Saving Safety

RD Equipment & System

67

RD Equipment & System

68

小型整經機

Swatch Design

Textile Simulation

Product Mapping

Testing Lab

Dobby Pro

Easy Map

Related Patent & Awards

69

Related Patent

70

M506837_Spacedye Fabric

M456370_ Photocatalyst yarn

Description: Weaving with the section

dyeing yarn to design for variability of fabric and make the

effect of significant colorway in the three-dimensional

structure.

Description:

• Coating with TiO2 material on core yarn

•To applicate the yarn technology in textiles with

effect of antibacterial, deodorant, mildew proof, air

purification

2016 ISPO Textrend Award

71

3 items of Top 10

3 items of Selection

Awards of Munich Outdoor Equipment fabrics

Conclusion

Sustainable environmental protection is still the main direction of product development

To meet the needs of brand customers product features

To expand the medical textile market

72

Q & A

IV

Thanks