NanPao Resins Chemical Group 4766 TT

Investor Presentation

Integrity v Teamwork v Innovation v Efficiency

June 2020

2

NanPao by the Numbers

NT$17.1Bn2019 Global Sales

NT$17.0BnMkt Cap on 29 May 2020

15%2015-2019 Avg ROE

NT$6.0/share2019 Cash Dividend

21 – 7 Factories – Countries

3,000+ Employees

50 Countries – Sales

900+R&D + Technical Sales

2019 Review

v Revenue reached a record high NT$17.1bn, growing by 7% YoY. This followed 10% revenue growth in 2018.

v Key contributors to top line growth were footwear adhesives and non-woven adhesives.

v OPEX % of sales fell for the 3rd straight year to 17.7%.

v Operating margin rose to 9.8%, the highest level since 2016.

v EPS grew 66% to NT$10.19, and ROE was 12.7%.

v The BOD has proposed a cash dividend of NT$6.0/share for 2019, the fourth straight year of NT$5.0/share DPS or greater – in line with our pledge to investors.

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Factors Enabling 2019 Growth

v Our footwear adhesives business grew 9% YoY in 2019, driven by market share gains with Tier 1 International brands and with Chinese domestic brands.

v Sales of Specialty Adhesives grew 8% YoY, with hot melt glue for domestic China consumer applications spurring growth. Applications are diapers, home appliances and pressure-sensitive adhesives.

v Product pricing and raw material cost trends were positive.

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5

Investing in Growth

v 2019 R&D spending increased by 6% YoY to US$14.4m.

v We develop advanced materials that enable clients to differentiate their products from competitors and to increase value added.

1.7%1.6%

1.3%1.6%

1.8% 1.7%

2.0%2.3%

2.6% 2.6% 2.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Investing in GrowthR&D % of Sales

Update: Carbon Fiber Composite

v NanPao New Materials (Huaian) Co., Ltd., based in HuaianCity, Jiangsu Province, China was established in early 1Q20.

v The company is a 70-30 joint venture between NanPao and a team of compound injection manufacturing engineers with sales contacts in consumer electronics and automotive.

v Compound injection will be used to mate plastic parts to NanPao’s carbon fiber composite substrate.

v Trial production is targeted for mid-3Q20.

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NanPao Strategic Vision For 2023

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Become the Benchmark

Asian Chemical Resins

Producer

Convert R&D Spending into

New High-Margin Products

Aim to Achieve Consistent Annual Top

Line Growth*

Raise Eco-Friendly Product Sales to 80%+

Pay at Least NT$5/Share

Cash Dividend for 2020-2023*

*Uncertainties introduced by the COVID-19 pandemic may negatively impact our top line growth goals and dividend paying capability in the near to mid-term.

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Commitment to Sustainability

72% of production by volume from green

products – no VOCs, water-based, solvent free.

On-site nurse; free health checks and

cancer screening for employees

9,944 tons of wastewater purified and recycled in 2019

(86% more than in 2018)

89% of solvents used in the production of PU-based

compounds recycled in 2019 vs 76% in 2018.

LEED-Gold Certification

(Vietnam HCM Plant)

Annual CO2 emissions reduced by 470 tonnes by converting

boilers to burn natural gas instead of heavy oil.

Taiwan Facilities Certified forOHSAS 18001

ISO 50001ISO 14001ISO 90001

1Q20 Financial Results

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1Q20 Review

v 1Q20 sales were NT$3.7bn, flat YoY and down 17% QoQ.

v EPS was NT$1.95, up 56% YoY.

v We allocated more production to Southeast Asia (mainly Vietnam) and Taiwan to adjust to the dual challenges of COVID-19 and the US-China Trade War.

v Product Mix remained mostly unchanged compared to 2019.

v Gross Margin was 27.7% in 1Q20 vs. 27.6% in 4Q19.

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1Q20 Review - Footwear

v Footwear adhesives revenue grew 0.5% YoY and fell 17% QoQ.

v Nike had a surprisingly good first quarter with worldwide revenues growing 7% YoY, while Adidas saw a 22% YoY decline, with its sales falling precipitously starting in Mid-March.

v Chinese brands also had a tough 1Q20, with press reports estimating a 20% YoY decline in Lining’s sales, a 25% drop for Anta, and 25-30% for 361 Degrees.

v China domestic demand fell due to the widespread COVID-19 lock down, so Chinese footwear brands adapted by selling to SE Asia, which was not heavily impacted by the virus in 1Q20.

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1Q20 Review – Specialty Adhesives

v Specialty Adhesives revenues fell 2.6% YoY. Strength in consumer staples made up for weakness in export-related sectors.

v NanPao was the Number 1 supplier of Hot Melt Glue in China for the lamination of COVID-19 protective non-woven medical gowns.

v Diaper adhesive revenue weakened to mid single-digit growth vs. last year’s double-digit growth. We continue to make market share gains.

v Adhesives for textiles and woodworking saw declining demand, while adhesives for F&B-related flexible packaging saw increased demand.

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• 1Q20 revenue was NT$3.7bn, decreasing 0.4% YoY and 17% QoQ. • Gross margin was 27.7%, roughly in line with the 4Q19 level of 27.6%.• However, operating expenses rose to 19.4% of sales versus only 17.3% in 4Q19, due to the QoQ drop in revenue.

Source: TEJ and CIQ

Revenue & Margin Trends

-5%

0%

5%

10%

15%

1,000

2,000

3,000

4,000

5,000

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Quarterly Revenue Trend

Revenue Growth (YoY)

(NT$ million)

2%

6%

10%

14%

18%

22%

24%

26%

28%

30%

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Quarterly Margin Trend

Gross Margin (LHS) Operating Margin (RHS) Net Margin (RHS)

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Sales Breakdown

1Q20 by Plant Location

31% Mainland China

21% Taiwan

26% Vietnam

12% Australia

10% SE Asia Ex-VNM

2019 by Plant Location

36% Mainland China

20% Taiwan

24% Vietnam

11% Australia

9% SE Asia Ex-VNM

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Sales Breakdown

2019 By Business Unit1Q20 By Business Unit

43% Footwear Materials

30% Specialty Adhesives

18% Construction & Others

9% Coatings

44% Footwear Materials

10% Coatings

31% Specialty Adhesives

15% Construction & Others

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• 1Q20 operating income rose 18% YoY to NT$311m.• 1Q20 net income rose 55% YoY to NT$235m. • 1Q20 EPS was NT$1.95, up 56% YoY.

Source: TEJ and CIQ

Earnings Trend

-50%

0%

50%

100%

150%

0

150

300

450

600

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Earnings & Growth Trend

Operating Profit Net Income to Parent Net Income Growth (YoY)

-50%

0%

50%

100%

150%

0.00

1.00

2.00

3.00

4.00

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

EPS

EPS (LHS) YoY (RHS)

(NT$ million) (NT$)

COVID-19 & the Outlook for 2020

v May sales were NT$1.0bn, down 33% YoY and 15% MoM. April-May cumulative sales were NT$2.18bn, down 26% YoY.

v Based on current order visibility, June single month sales seem likely to be close to May levels.

v As a result, 2Q20 sales are likely fall QoQ and YoY. This will result in reduced economies of scale, likely outweighing the benefit from reduced raw material costs in 2Q20.

v Cash dividend income from non-consolidated subsidiaries will provide a modest boost to the 2Q20 bottom line.

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COVID-19 & the Outlook for 2020

v The full benefit of raw material pricing declines is likely to be felt in 3Q20.

v Order visibility into 3Q20 is still limited, as infections continue to rise worldwide and with a second wave of infections occurring in some areas. Our customers remain cautious.

v Our current order book indicates that 3Q20 orders may improve over 2Q20. If economies continue to open, it seems likely that 2Q20 will have been the bottom for NanPao’s sales. But the strength and speed of recovery remains to be seen, and a retrenchment in orders is possible, pending further developments in the Covid-19 pandemic.

v NanPao has not implemented layoffs. We have instituted a policy of no replacement of employees who retire or resign and a temporary hiring freeze. We can ramp up production quickly once demand strengthens.

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2H20 Outlook – Footwear

v Orders from domestic Chinese athletic footwear brands for July to September are currently running at about 70-80% of 2019 levels.

v Orders from global branded athletic footwear producers are showing some signs of recovery, but OEM footwear producers will need time to get production back to more normal levels.

v Sales of higher end athletic shoes have held up better than those for mainstream athletic shoes. As a result, NanPao’s footwear adhesive sales fell less than the overall market and should recover faster.

v However, even under the most optimistic projections, our footwear adhesives sales will only recover to 80-85% of 2019 levels by 4Q20.

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2H20 Outlook – Specialty Adhesives

v YTD sales of specialty adhesives have fallen by less YoY than those of footwear adhesives. Orders have also recovered more quickly, though we remain cautious pending Covid-19-related developments.

v 1Q20 was likely the bottom for special adhesives, with 2Q20 likely to be flat to slightly better than 1Q20.

v If current demand indications from clients hold up, specialty adhesive 2H20 sales could show a modest decline versus 2H19.

v Orders for woodworking adhesives have strengthened recently, while demand for textile adhesives remains soft.

v Demand for non-woven adhesives and PSA have been resilient and YOY growth is likely/possible for both segments in 2020.

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Income - QuarterlyConsolidated Statements of

NT$ million 1Q20 4Q19 1Q19 QoQ YoYNet Revenue 3,734 4,525 3,748 -17% 0%Gross Profit 1,033 1,247 965 -17% 7%

Gross Margin 27.7% 27.6% 25.8%Operating Expenses (723) (782) (702) -8% 3%

SG&A percent of Sales 19.4% 17.3% 18.7%Operating Income 311 465 263 -33% 18%

Operating Margin 8.3% 10.3% 7.0%Net Non-Operating Income (Loss) 18 (18) 1 Pre-Tax Income 329 446 264 -26% 25%Income Tax Expense (82) (85) (96)Minority Interest (12) (26) (17)Net Income to Parent 235 336 151 -30% 55%

Net Margin 6.3% 7.4% 4.0%EPS (NT$) 1.95 2.79 1.25 -30% 56%

ROE – not annualized 2.4% 3.5% 1.6%Depreciation and Amortization 101 101 92 CAPEX 170 147 123

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Consolidated Balance Sheet

NT$ million 2020/3/31 2019/12/31 2019/3/31$ % $ % $ %

Cash and Cash Equivalents 4,671 26% 4,492 24% 4,184 24%Notes & Accounts Receivable, Net 3,397 19% 3,810 21% 3,422 19%Inventories 2,184 12% 2,241 12% 2,300 13%Other Current Assets 590 3% 567 3% 646 4%Long-term Investments 1,222 7% 1,389 8% 1,544 9%Fixed Assets 3,970 22% 4,097 22% 3,964 22%Other Long-term Assets 1,946 11% 1,802 10% 1,624 9%Total Assets 17,981 100% 18,398 100% 17,684 100%

Current Liabilities 4,487 25% 4,908 27% 4,439 25%LT Debt 1,625 9% 1,524 8% 1,381 8%Other Non-Current Liabilities 1,367 8% 1,409 8% 1,372 8%Total Liabilities 7,479 42% 7,842 43% 7,192 41%Common Stock 1,206 1,206 1,206Total Equity 10,502 58% 10,557 57% 10,492 59%Book Value per Share (NT$) 80.5 80.8 80.8

Current Ratio 242% 226% 238%Net Cash (Debt) to Equity 13% 12% 12%

A World Class Chemical Materials Supplier

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Executive Summary

vWe are the World No. 1 producer of adhesives for athleticfootwear, and a leading Asian supplier of chemical resins forspecialty adhesives, coatings and construction products.

vWe excel at providing a customized total product solution toour clients, including precision resin compound engineering andsophisticated spraying, automation & application support.

vDuring the past decade, we broadened the horizons of ourR&D efforts, looking beyond OEM client needs to the materialsscience-based products that would be required by theconsumers of the future.

vA rich pipeline of new products is emerging from our R&Dwork, which we expect will usher NanPao into its next stage ofsustained, robust top and bottom line growth.

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NanPao Competitive Edge

vTier One Know-How: We are involved at the design-in stage with Tier 1 athletic shoe producers,producing purpose-engineered resin adhesives, and advising on application, automation and sprayingtechnology. In the fragmented adhesives market, these skills give us an edge over smaller, cost-focusedplayers who compete with us in other product segments.

vCustomized & Localized Total Solution: Precision resin engineering capability at the local levelcombined with sales technicians with deep customer knowledge allow NanPao to provide an integratedand specialized customer solution in all core geographies it competes in.

vHigh Switching Costs: Our products are integral to product durability.

vOperational Efficiency: Every single NanPao plant is profitable.

vStrong cash flow and healthy margins: Supports re-investment in the business.

vNew Blood and Competitor Intel: As it has spread into new geographies and new productcategories, NanPao has hired staff with specialized knowledge and experience in competing firms.

New Geographies

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Our Products & Applications

Resins and Specialty Adhesives Coatings Construction Materials

1987 Thai NanPao

Resins Chemical

1984Began production of waterproofing sealer

1983 Licensed production of Ripolin powder coating

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2017 Listed on Emerging

Board of Taipei Exchange

1973Co-op with Hoechst

AG to produce Water-based resins

1971 Est. R&D Center

1965 Footwear Adhesives

1963Founded by Dr. Huang

International Expansion

New Product Development

Company Milestones 2018

IPO on TWSENov 2018

2012NanPao

Resins India Pvt

1999Established NanPao

Resins Vietnam

1997China

Expansion: NanPao Resins

Kunshan1992

China: Established Dongguan and Fuqing

NanPao Resins

1991P.T. Indo NanPao Resins Chemical

2005 NanPao divided

into 3 BUs

2004China Expansion: NanPao Resins

FoShan

2008 Established Construction

Materials Business

2020NanPao New

Materials (Huaian) Co., Ltd.

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Our Geographic Reach

Distribution Hub

Factory

Sales Office

Los AngelesNew York Spain Italy

MEA

SA

China (Foshan, Kunshan,Dongguan, Fuqing)

IndiaTaiwan

Thailand Vietnam

Indonesia & Singapore

Australia

Peru

Chile

Mexico

Brazil

How We Will Reach Our Targets – Organic Growth

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§ Market share gain amongst Global Tier 1 athletic footware brands.

§ Strong focus on increasing our share with China Tier 1 and Global Tier 2 & 3 athletic footware brands.

§ Target domestic brands in India and South Asia

§ Longer term, increase our share of the athletic footwear BOM

Footwear Other BUs

§ Establish manufacturing plants in South Asia.

§ Robust growth in Hot Melt Glue sales for non-woven, white goods and other applications.

§ Break through to Tier 1 clients in large volume consumer goods markets.

§ Establish sales channels for our innovative products such as carbon fiber composite, nano coating and pressure sensitive adhesives.

How We Will Reach Our Targets

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Innovation Acquisition

§ Channel or MFG players in targeted areas for Geographic expansion – US, EMEA & India

§ Target young companies with new & green technologies.

§ Horizontal & vertical extension of existing business lines

§ Spend 2-3% of sales on R&D

§ Systematic search to apply existing core technology to new product opportunities.

§ R&D team composed of polymer experts with knowledge beyond resins

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Industry Characteristics

High Value-Added Chemical Resins are an Attractive Market Segment

*Limited Cyclicality – Adhesives and coatings are direct inputs into downstreamconsumer discretionary and consumer staple products, offering greater opportunity fordifferentiation and value-add than for middle and upstream chemical producers.*Low Capital Intensity – The capex-to-sales of key global players ranges from 2-6%.*Secular Trend Towards Urbanization – growing middle class in emerging marketcountries, moving to and living in cities and increasingly buying manufactured goods.*APAC region is the fastest growing user of adhesives globally*Consolidation: Larger players are taking advantage of industry fragmentation to buyentry into product groups and geographies.*Opportunities for Growth – The Global Adhesives market was roughly US$50bn in2019 and was projected to grow by 5% annually prior to the onset of the Covid-19pandemic.

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NanPao Core Values

vNanPao began its existence as a family-friendly Tainan-basedenterprise where management and staff work & spend leisure timetogether, succeeding with a strong work ethic and a strict eye oncost control.

vWhile the above values are still important, NanPao has shifted itsmanagement orientation to growth and dynamism, driven by thecore values of innovation, passion, accountability and delegation ofresponsibility.

vManagement has placed a strong emphasis on board, C-Suiteand staff Code of Conduct, encouraging legal, safe and justbehavior, plus avoidance of conflicts of interest. The Code states‘Ethical behavior is the key nutrient for business growth.’

vUnity of mission has been enabled by a clear equity ownershipstructure put in place by the 2nd generation members of the Huangfamily.

Growth Through Innovation

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New Product Pipeline

Growth Drivers

Carbon Fiber

Composites PSA for Electronic

Films

Advanced Materials for

Footware

Construction Materials

Insulating Glass

Sealant for Doors & Windows

Water-based Industrial

Paints

Flexible Packaging Adhesives

Water-Based Nano

Coating

Adhesives for Non-Woven

Products

Several products are emerging from our R&D pipeline, with strong potential to propel NanPao to a period of high growth over the next five years.

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• Proprietary formable thermoset carbon fiber composite material.

• High strength, self-curing, fire retardant, halogen free and solvent free.

• The finished product has a glossy and smooth finish, without using labor-intensive grinding, patching and smoothing.

• Near term applications with the greatest promise are automotive (B-Pillar and interior trim), laptop A & keyboard covers, as well as motorcycle helmets.

• We provide a total solution to clients, creating custom made product designs and assisting in manufacturing equipment design and remodeling of existing customer equipment.

Key Points

Product Attributes

Prospects

Carbon Fiber Composite

Product Attributes

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Non-Woven Adhesives

•The size of China’s disposable hygiene products market was RMB 55Bn in 2019 and has been growing by 10%+ pa. Consumption of adhesives for diapers was 190,000 to 200,000 tonnes, 85% of which was for domestic use.

•We have a 25%+ share with 2nd and 3rd tier producers and are focused on gaining share with Tier 1 producers.

Market Fundamentals

•Our Tier 1 client marketing strategy is innovation-driven.•We have developed high wet-strength adhesives to extend diaper durability even after wetting.

•NanPao ultra-soft adhesives for the elastic band and diaper outer surface provide greater comfort, remaining soft to the touch in both cold and warm weather.

Product Innovation

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• We aim to gain a 5%+ market share for polarizer-use PSA within 5 years

• We have recently been certified by two Chinese polarizer manufacturers

• Certification is in process with the China-based plant of the largest Taiwan-owned producer of polarizers

• Global polarizer production is dominated by Japanese and Korean producers, who use domestic sources of adhesives.

• Chinese LCD and Touch Panel producers have prioritized domestic production of polarizers

• The size of the global market for polarizer adhesives is US$280m

• New purpose-built, high performance PSA plant with automated reactor recently completed

• Most promising application is use in polarizers. Gross margin outlook for this application is attractive

• Sales of our Optically Clear Adhesive film (OCA Film) is also growing rapidly

Key Points

Market Fundamentals

Prospects

High Performance PSA

Annual Historical Financials 2015 to 2019

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Key Financial Performance

(NT$ million)

(NT$)

14,422 14,474 14,615 16,022 17,114

1,032

1,325

882 673

1,228

0

400

800

1,200

1,600

10,000

12,000

14,000

16,000

18,000

2015 2016 2017 2018 2019

Revenue (LHS) Net Profit after Tax (RHS)

$10.59 $13.32 $8.22 $6.15 $10.19

20.2%21.5%

12.4%7.9%

12.7%

0%

10%

20%

30%

0

4

8

12

16

2015 2016 2017 2018 2019

EPS (LHS) ROE (RHS)

(NT$ million)

(NT$)

29.7% 31.8%26.8%

23.8%27.6%

11.2% 12.8%8.2%

5.6%9.8%

0%

10%

20%

30%

40%

2015 2016 2017 2018 2019

GPM OPM

4.0 5.0 5.0 5.0 6.0

36%40% 62%

90%

59%

0%

25%

50%

75%

100%

0

2

4

6

8

2015 2016 2017 2018 2019

Dividend Per Share (LHS) Payout Ratio (RHS)

40

Income Statement Highlights

NT$ million 2015 2016 2017 2018 2019YoY (%)

2015 2016 2017 2018 2019

Sales Revenue 14,422 14,474 14,615 16,022 17,114 -1% 0% 1% 10% 7%

Cost of Goods Sold (10,141) (9,865) (10,692) (12,215) (12,396) -8% -3% 8% 14% 1%

Gross Profit 4,281 4,609 3,923 3,807 4,718 22% 8% -15% -3% 24%

Operating Expense (2,660) (2,753) (2,730) (2,906) (3,036) 0% 3% -1% 6% 4%

Operating Profit 1,620 1,856 1,193 901 1,682 91% 15% -36% -24% 87%

Income before tax 1,547 1,882 1,161 1,036 1,793 67% 22% -38% -11% 73%

Net Income 1,032 1,325 882 673 1,228 56% 28% -33% -24% 83%

EPS (NT$) $10.59 $13.32 $8.22 $6.15 $10.19 56% 26% -38% -25% 66%

Gross Margin 29.7% 31.8% 26.8% 23.8% 27.6%

Opex/Sales 18.4% 19.0% 18.7% 18.1% 17.7%

Operating Margin 11.2% 12.8% 8.2% 5.6% 9.8%

Net Margin 7.2% 9.2% 6.0% 4.2% 7.2%

ROE 20.2% 21.5% 12.4% 7.9% 12.7%

2013-1H17 Balance Sheet

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Balance Sheet Highlights

NT$ million 2015 2016 2017 2018 2019% of Total Assets

2015 2016 2017 2018 2019TOTAL ASSETS 11,820 13,876 15,199 17,363 18,398 100% 100% 100% 100% 100%

Cash 2,855 4,277 3,867 3,679 3,743 24% 31% 25% 21% 20%

NR & AR 3,251 3,150 3,284 3,764 3,810 28% 23% 22% 22% 21%

Inventory 1,646 1,709 2,252 2,347 2,241 14% 12% 15% 14% 12%

Fixed Asset 2,449 2,662 3,347 3,960 4,097 21% 19% 22% 23% 22%

TOTAL LIABILITIES 6,041 6,746 7,083 7,008 7,842 51% 49% 47% 40% 43%Long-Term Debt 963 1,153 1,604 1,392 1,524 8% 8% 11% 8% 8%

AP 1,586 1,728 2,001 1,959 1,949 13% 12% 13% 11% 11%

TOTAL EQUITY 5,779 7,130 8,116 10,355 10,557 49% 51% 53% 60% 57%

A/R turnover days 88 81 80 80 81

Inv turnover days 61 62 68 69 68

A/P turnover days 60 61 64 59 58

Cash conversion cycle 89 82 84 90 91

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(NT$m) 2015 2016 2017 2018 2019

Net profit 1,032 1,325 882 673 1,228

Dividends Paid 371 532 543 603 723

DPS (NT$) 4.0 5.0 5.0 5.0 6.0

Payout ratio 36% 40% 62% 90% 59%

Dividend yield1 2.2% 3.1% 3.2% 3.5% 4.3%

Capex 383 546 912 813 610 Capex/Sales 2.7% 3.8% 6.2% 5.1% 3.6%

Dividend Payout and Capex

Notes: 1. Based on NanPao market capitalization as of market close on 29 May 2020.

Appendix

43

Glossary of Key Terms

HMA – Hot Melt Adhesive: In industrial use, hot melt adhesives provide several advantages over solvent-based adhesives. Volatileorganic compounds are reduced or eliminated, and the drying or curing step is eliminated.

PSA – Pressure Sensitive Adhesive: Pressure-sensitive adhesive (PSA, self-adhesive, self-stick adhesive) is adhesive which forms abond when pressure is applied to marry the adhesive with the adherend. No solvent, water, or heat is needed to activate the adhesive.PSAs are usually designed to form a bond and hold properly at room temperatures.

PUD – Polyurethane Dispursions: These adhesives are fully-reacted, linear polymers that are emulsified and dispersed in water. It is aconsidered a green compound, as it does not require solvents to cure and has very low or no VOC.

PUR – Polyurethane Reactive Adhesive: These adhesives are capable of curing by absorbing the moisture in the air. It is a considereda green compound, as it has very low or no VOC. Hot Melt Adhesives are a type of PUR adhesive.

Tm – Melting temperatureVOC – Volatile Organic Compounds: Compounds that have boiling points roughly in the range of 50 to 250 degrees Celsius. VOCs areregulated by law, especially indoors, where concentrations are the highest. Harmful VOCs typically are not acutely toxic, but havecompounding long-term health effects.

TPU – Thermoplastic Polyurethane: Thermoplastic polyurethane is any of a class of polyurethane plastics with many properties,including elasticity, transparency, and resistance to oil, grease and abrasion. Technically, they are thermoplastic elastomers composed ofhard and soft segments.

ZDHC: The ZDHC Roadmap to Zero Programme takes a holistic approach to tackling the issue of hazardous chemicals in the globaltextile, leather and footwear value chain. To learn more, see roadmaptozero.com.

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Waterproofing

• Water Tank• Basement• Roofing• Gardening• Swimming Pool• Exterior wall• Interior wall• Bridge decks• Pedestrian path• Patios• Decks• Terraces

Sealant & Adhesive

• Window Frame • Gap Filling – Industrial

Areas• Cool Storage Room• Airport Tarmac • Dry Wall• Masonry• Air Conditioning

Vents• Panel Assembly• Transport Sealant• Hardware

Flooring

• Industrial • Food Processing

Plant • Gardening• Parking Lot • Swimming Pool• Stadium• Entertainment

Venue• Hospital• Warehouse

Construction Grout

• Tile Joint Grout• Wall Plaster• Precast Concrete• Tile Adhesive• Steel Structure Grout• Tunnel • Harbor• Wall & Floor Levelling • Ceiling Rendering• Water Tank

Advanced Materials

• Protective Coating • Heat Insulation • Anti-Damping• Fireproofing• Construction Tape• Waterproofing Agent• Carpet Tape• Sound Absorption

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Construction Products

R&D Focus

46

Disclaimer

•The information contained in this confidential document ("Presentation") has been prepared by Nanpao Resins Chemical Group (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers gives, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision or supplement thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers takes any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness or injury of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation or the information.

•Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved by the Company to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

•This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

•This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, general economic, market or business conditions and other unforeseen events. Prospective Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

Thank You!

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