1Q23 Key Highlights

• Acter* reported 1Q23 revenue NT$5.58 billion, net profit attributable to owners of the parent company NT$0.45 billion, and earnings per share (EPS) NT$3.75, an increase of 4% YoY, 27% YoY, and 22% YoY, respectively.
• Gross profit margin, operating profit margin, and after-tax net profit margin all showed improvement compared to the same period last year, reaching 20%, 13%, and 10%, respectively.
• By region, Taiwan accounted for 53% of revenues, followed by mainland China 41%, and Southeast Asia 6%.
• Accumulated backlog is sufficient to support the operation of the group in next 1-2 years.
• Acter* has been ranked in the top 5% of the 9th Taiwan Stock Exchange Corporate Governance Evaluation, marking the company's eighth consecutive year to receive this honor.

1Q23 Overview

• Acter* reported 1Q23 consolidated revenue NT$5.58 billion, net profit attributable to owners of the parent company NT$0.45 billion, and earnings per share (EPS) NT$3.75, an increase of 4% YoY, 27% YoY, and 22% YoY, respectively. The growth momentum was mainly driven by stable revenue recognition of completed projects and strict cost control. Compared with the previous year, the supply of raw materials remained tight, but Acter* has maintained good relationships with all accredited suppliers and contractors, actively tracking project progress in various regions and adjusting project timelines to ensure the execution of project budgets and schedules, maintaining steady growth.
• In 1Q23, the overall gross profit margin, operating profit margin, and after-tax net profit margin reached 20%, 13%, and 10%, respectively. Although the overall operation is still affected by related cost factors such as raw materials and labor, by using precise construction drawings, rational work scheduling, lean on-site management, and collaborative supply chain management to reduce waste and create win-win situations, we strive to achieve the optimal solution for our clients. We effectively managing project timelines, we can increase the output per person, maintain superior performance with improved profitability vs. 1Q22.
• Breaking down by customer location, in the first quarter, revenue from Taiwan accounted for 53%, mainland China 41%, and Southeast Asia 6%. By industry, semiconductors accounted for 49%, electronic assembly 28%, and other 23%. Due to completion of semiconductor-related projects, its revenue share has decreased compared to the same period last year, which was 70%. In terms of project type, revenue mainly came from cleanroom engineering and system integration, accounting for 60%, followed by water and gas supply system engineering, accounting for 28%.

2023 Outlook

• Looking forward, although Taiwan's new order momentum is like to decelerate due to the high base effect in 2022, in the long run, the structural growth in demand for semiconductors driven by artificial intelligence and electric vehicles will lead to continuous investment and expansion by Taiwan's semiconductor factories to maintain their leading position. Taiwan's integration into the global resilient supply chain process will continue to bring new opportunities for Acter* as customers continue to invest. In mainland China, customers' investments in mature semiconductor manufacturing process and the development of third-generation semiconductors will continue to drive new project opportunities, and Acter*'s new orders from mainland China would increase. In the Southeast Asian regions, Acter*'s new orders momentum should accelerate with opportunities coming from the reallocation of the global supply chain.
• For new project opportunities, Taiwan and China are still the main contributing regions, while the Southeast Asian regions will show a strong momentum. Although operating environment remains challenging, Acter*'s strategy is to reduce negative impact through a business layout of multiple industries, regions, and skill sets. In addition, with accumulated backlog, the group's operations are supported for the next 1-2 years.

Sustainable development

• This year, Acter* has been ranked in the top 5% of the 9th Taiwan Stock Exchange Corporate Governance Evaluation, marking the company's eighth consecutive year to receive this honor. In the 2022 CommonWealth Magazine evaluation, Acter* also won the 4th place in the medium-sized enterprise group of the CSR Sustainable Citizen Award, and was listed in the "CommonWealth Sustainability 100" list of best ESG (environmental, social, and corporate governance) performance in Taiwan. Acter*'s core business is engineering system integration services. Therefore, in the face of global climate change and industrial transformation challenges, Acter* will focus on investing in the research and development of green innovation technologies, providing customers with energy-saving/green energy environmental protection economic engineering solutions from the technical side, integrating professional skills and accumulated knowledge and experience, and working together with partner factories. In the global ESG and carbon-neutral market environment, Acter* acts as a driving force for green engineering, helping customers achieve carbon neutrality and creating green business opportunities.

Acter* 1Q23 consolidated financial summary

Unit: NTD in thousand

2022 Dividend Semi-Annual Payout Schedule (par value NT$5/share)

The company's par value per share is NT$5. Total cash dividend reaches NT$11.92 per share in 2022. If converted to 10 par value per share, the distribution is equivalent to NT$23.84 in cash dividends.

News Contact:

ACTER GROUP CORPORATION LIMITED:

Assistant Vice President     Miss Tsao   (04)2261-5288  ir@acter.com.tw

IPR Advisors   Tim Chen   (02)2758-0339  ir@ipradvisors.com