SINMAG EQUIPMENT CORPORATION 1580TT

Company Profile Consolidated Income Statement Company’s currently financial and operational

highlights Top and Bottom share price of each year and

company value Market Overview of China Market Overview of other subsidiaries Bakery factory in Congo (Kinshasha) Development Strategy

Summary of Presentation

Company Profile

Established in 1983, 31 years anniversary in this year. Sinmag subsidiaries are strategically located in Wuxi, U.S.A., Malaysia,

Thailand and India. Sinmag is the largest bakery equipment manufacturer in Asia, also among

Top 6 in the world. Sinmag has developed most of the needed bakery equipments for retail

bakery and is now developing automatic production line for industrial bakery.

Sinmag has started manufacturing of food service equipment for 5 years, and has sold many chicken rotisserie, meat processing equipment to supermarkets. Sinmag pizza equipments are in good sales progress.

We started selling dish washers, tray washing machine and transfer-box washing machines recently. The washing machine had been sold to Uni-President’s bakery factory in Kunshan (China). This new machine operates well according to our client.

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Consolidated Income Statement (1)

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Unit:NTD thousand dollars

　 2006 2007 2008 2009 2010 2011 2012 2013 Q1~Q3 2014

Sales 1,195,001 1,468,871 1,705,436 1,902,825 2,593,199 3,009,807 3,462,815 3,950,328 3,022,980

Net profitafter tax

87,648 135,135 137,441 244,421 370,100 402,505 401,919 495,868 353,225

Capital 271,100 351,700 351,700 369,285 387,749 407,137 427,494 448,868 475,800

EPS(NT DOLLARS) 3.23 4.27 3.91 6.62 9.54 9.89 9.40 11.05 7.42

Consolidated Income Statement (2)

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Top and Bottom share price of each year and company value

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NTD bnNTD

Company’s currently financial and operational highlights (1)

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1. 2013 consolidated revenue is NT$3,950M, which grows by 14.08%

compared with the revenue of NT$3,462M in 2012.

Q1~Q3 2014 consolidated revenue is NT$3,023M, which grows by 10.99% compared with the revenue of NT$2,724M in Q1~Q3 2013. The growth comes mainly from China market.

2. China market revenue in 2013 and Q1~Q3 2014 grows 24.19% and 19.65%, accounting for 58.75% and 60.67% of consolidated revenue respectively.

3. Sinmag has sold product to about 70 countries .

Headquarter Taiwan and five subsidiaries are among top11sales territories.

The top five in order : China, U.S.A, South Africa, Malaysia,and Taiwan.

Sales of top 11 territories is 92% of total consolidated sales.

Company’s currently financial and operational highlights (2)

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4. Growing markets (Q1~Q3 2014)

(1)China 19.65%

(2)South Africa 14.24%

(3) U.S.A 14.02%

(4) Malaysia 11.06%

Market Overview of China (1)

1. Q1~Q3,2014 sales in China increasrd by 19.65%.

2. We saw impressive sales results of large machines/ automation products.

Among many successful cases, our customer in Shanghai could one a good

example. This Shanghai customer produces and sell frozen foods originally.

In mid 90's, this client started selling frozen pissa to supermarket. In this year,

the client purchased an automated production line to produce 4,500 pizza/hour

from Sinmag. This line consists of equipment from mixing, dividing, rounding,

flattening, topping and baking to produce both prebaked pizza crust and baked

pizza with topping.

3. We also saw many bakery chains buy machines from Sinmag for their new stores.

For example, new chains, e.g. 貝克新語 , 慕蘭卡 , are our new clients on top of

seeing growths from existing clients from 85 度 C, 好利來 , 味多美 , 一鳴 .

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Market Overview of China (2)

4. In our new segment of pizza machines, we also see many new stores use

Sinmag’s pizza machines. For instance, 北京好倫哥 added 17 new stores in

2014; 比格 has debut 8 new stores. All these new stores have installed

Sinmag’s machines.

5. We saw the growth of new stores in the supermarkets slowed down due to

weaker real estate business and development.

6. The sales of moon cake decreased but it didn’t cause major impact to Sinmag.

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Market Overview of other subsidiaries

YoY for Q1~Q3, 2014:

1. U.S.A ： Increases 14.02%.

2. Malaysia : Increases 11.06%.

3. South Africa : Increases 14.24%.

4. Thailand ： Decrease 10.87% in Thailand due to political

issue.

5. India ： For India, we think the GDP still too low for bakery

market. It takes time.

6. In general, due to depreciation to Dollar, the export growth

momentum is not strong in 2014.

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Bakery factory in Congo (Kinshasha)

1. Building for our bakery is expected to be completed mid of Dec. 2014.

2. The 1st part of production equipment will arrive to our factories by the

end of Nov 2014. The 2nd part of equipments will be installed by the end

of Dec 2014.

3. We have sent two engineers to Congo for assisting the factory

construction. They will help on constructing of utility, water, electric

and gas etc in our factories.

4. The chief of plant and warehouse manager will depart to Congo in Nov;

other managers will be there at the end of Dec. 2014.

5. In Jan 2015, pilot- run of the new machines is expected; products of

breads will be made and sold in Feb 2015 officially.

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Development Strategy

Keep developing automatic production equipments for bread and cake.

Keep developing kitchen equipments.

Strengthen the market leader position in China by enhancing after sales service and baker service.

Evaluate to expand our business by establishing overseas subsidiaries to grow sales revenue.

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