2019 ANNUAL REPORT Electric and Communication Cable System CEO Hyoung Kyun Na Establishment 1955....

The Way to a Global Leading Company

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A N N U A L

R E P O R T

TAIHAN, THE POWER LIGHTING UP THE WORLD

The global cable & solution company,

Taihan move forwards to a better future

The cables used as a backbone system delivering energy

and information which moves the world. Taihan supplies the

best quality cable system to the right places for the smooth

operation of social infrastructure, for a wide range of

purposes from everyday life to industrial sites. Taihan,

through its accumulated technology and core abilities

developed over 60 years, endeavors to provide the best

services to its global customers. We will create a sustainable

growth engine with our innovative spirit and passion that

will never settle for the present. Taihan never stops going

towards a prosperous future where we live together in

abundance.

01. Review of Operations

EHV Cable

Industrial Cable

Cable Accessories

Communication Cable

Base Metal

Engineering & Construction

R&D

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02. Sustainable Management

Transparent Management

Ethical Management

People

Social Responsibility

Safety & Health Management

Environmental Management

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03. Financial Section

Independent Auditors' Report

Separate Statements of Financial Position

Separate Statements of Comprehensive Income

Separate Statements of Changes in Shareholders' Equity

Separate Statements of Cash Flows

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CONTENTS

Company Pro�le

Financial Highlights

Performance Highlights

CEO Message

Business Philosophy

History

Organizational Chart

Global Network

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05

06

08

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about Taihan

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As of December 2019

Company Pro�le

Company Name Taihan Electric Wire Co., Ltd.

Business Areas Power Cables, Communication Cables, Base Metal, etc.

Products and Services

Design, Manufacturing and Installation in Electric and Communication Cable System

CEO Hyoung Kyun Na

Establishment 1955. 02. 21

Address Taihan Smart Tower, 317 Simindae-ro, Anyang-si, Gyeonggi-do, Korea

Employees 863

IPO date 1968. 12. 27

Fiscal Year End December

No. of Shares 856,473,009 Shares

Face Value 500 KRW

External Auditor EY Han Young

Auditors Opinion In review

Main Bank Hana Bank

Taihan consistently offers the best values in the wire & cable industry, leads the development of technology for the future of human race, and lights up an abundant future with cutting-edge technology.

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2017 2018 2019

Sales 1,465,409 1,528,860 1,394,968

Gross Pro�ts 106,287 104,023 75,261

Operating Income 46,353 44,673 25,864

EBITDA 69,947 69,956 51,691

Income Before Tax (14,106) 5,723 (10,995)

Net Income (14,106) 5,657 (27,382)

For the years ended

2017 2018 2019

Current Assets 585,701 572,478 623,040

Property, Plant and Equipments 464,005 452,618 435,766

Total Assets 1,206,813 1,170,831 1,193,510

interest bearing Debts 582,619 580,200 620,324

Net Debts 489,429 477,777 430,671

Total Liablities 842,519 812,695 863,192

Capital Stock 428,237 428,237 428,237

Capital Surplus (43,196) (38,367) (38,804)

Retained Earning (33,038) 67,211 31,208

Capital Adjustment 12,291 (98,945) (90,323)

Total Shareholder's Equity 364,294 358,136 330,317

Financial Highlights

As of the years ended

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Taihan was selected as ‘the Top Quality

Power Manufacturer’ by KEPCO

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Taihan was selected as ‘the Top Quality Power Manufacturer of the Year’ at the ‘2019 BIXPO Awards’ hosted by KEPCO on November. The selected items were underground cables for distribution, and received high scores for quality excellence and management ability.

'the Top Quality Power Manufacturer’ is to select, award, and incentivize companies that have excellent quality and management performance of KEPCO's power equipment, and has been implemented every year since 2014.

This year, the evaluation was conducted on 661 companies that supplied a total of 89 items and went through three stages of verification. The final 10 companies were selected, and Taihan is the only cable manufacturer. In addition to quality evaluation factors such as defect rate, failure rate, the screening was difficult for the contribution of electricity quality and violation of fair trade. Through this selection, Taihan will benefit from the ease of inspection tests when supplying equipment to KEPCO in the future.

Taihan will contribute to the stabilization of the power grid through continuous quality control of not only EHV, HV cables but also MV, LV cables. In addition, as Taihan continue to supply distribution cables to high-tech plants that produce semiconductors and displays like Samsung Electronics, it will expand its presence in related domestic and overseas markets.

help establish stable communication at the scene of a fire without using any additional equipment or working to install new facilities. In particular, firefighters dispatched to an underground structure often lose contact with the command center above ground when auxiliary wireless communication equipment servicing the underground structure fails to function properly due to deterioration, malfunction, fire damage, or missing components. In that event, the RF Light Line can establish a clear line of communication. As such, Taihan expects its RF Light Line to make some significant contributions towards improving fire safety.

and securing the required production facilities in Riyadh and by obtaining the necessary quality certifications.

Construct (Turn-Key) project, not only supplying cables and it’s accessories but also system design, civil works, cable installation, jointing and commissioning tests.

The 330kV cable grade is the highest voltage used in Australia. Taihan was selected because of several prior successful turn-key projects. Taihan has established a good reputation for the successful delivery of 132kV and 275kV projects in Australia and 220kV projects in New Zealand.

TransGrid has been planning this project for a couple years for the stable power supply in Sydney’s CBD and surrounding suburbs, so It is very meaningful for Taihan to win this contract in competition with major global companies. Also, Taihan looks forward to continued market expansion in Australia due to steep population growth and infrastructure expansion led by government.

Taihan launched its new 'RF Light Line' product capable of establishing communication lines and securing emergency exits simultaneously at the scene of a fire. RF Light Line infuses what is known as a Light Line (a type of a light-emitting cable) with radio frequency (RF) technology, making it the first of its kind in Korea.

A Light Line specifically refers to a mandatory type of firefighting equipment installed at access points to underground structures to help people evacuate and secure emergency exits in the event a fire breaks out underground. RF Light Line incorporates a telecommunication cable to this Light Line, which can

Taihan announced the successful conclusion of its opening event, hosted on August in Saudi Arabia, for its 'Saudi Taihan' electric cable accessory company. More than 100 guests attended the event, including the Deputy Minister of Energy, Industry and Mineral Resources (MEIM), the executives of Aramco (state-owned oil corporation in Saudi Arabia), the Saudi Arabian Electricity Authority, the National-Grid Agency, power construction companies, and major clients from GCC countries. The event featured a series of ceremonial and congratulatory addresses, followed by a report on the establishment of the corporation. Guests were also taken on a tour of the facilities to round out the event.

CEO Na Hyoung-kyun explained the progress and future vision of Saudi Taihan, saying, "As the only local corporation capable of supplying HV cable accessories to the SEC, we will supply high-quality products at competitive prices. This will help alleviate the pressure on the Saudi Arabian power sector, which has been importing all electrical cables and accessories from overseas.” He added, “We plan to expand from Saudi Arabia to other GCC countries, the African continent, and Europe. To do so, we are going to continue exploring ways to broaden Saudi Taihan’s production facilities moving forward.”

Saudi Taihan is the first HV cable accessories producer in the GCC region. It was established in February 2017 based on the joint investment. After that, the company has been laying the groundwork for a stable supply of products by building factories

Taihan continues to stand out in the US cable market. The company won large-scale projects in many regions, with annual orders amounting to about KRW 270 billion (approx. USD 220 million). This is the largest sum total Taihan has ever recorded in the United States, far more than double the orders secured in 2018.

Orders came from across the United States, but those from the East were particularly large. In the fourth quarter alone, the company won orders for large-scale turnkey projects worth KRW 69 billion, KRW 41 billion, and KRW 36 billion only from the East.

Taihan evaluates that expanding its sales power and diversifying its products have resulted in this achievement. In 2017, Taihan opened its US East Coast branch office, expanding its sales reach from the West Coast to the entire country. This enabled sales representatives to work closely with local market stakeholders and deliver better sales. Starting last year, Taihan also expanded and diversified its range of products from the existing EHV underground cables to EHV overhead cables and MV/LV cables.

In fact, the situation in the United States was difficult to win orders because the United States has been in the process of strengthening protectionism. Nevertheless, Taihan was able to record its best-ever performance in the United States because the company has been recognized for its differentiated solutions and technology that it has introduced in the US market.

Taihan have signed a contract for the provision of 330kV cable with TransGrid for its Powering Sydney’s Future project in December. TransGrid is one of largest transmission utilities in Australia. The contract value is around AUD 173 million.

This project is designed to prepare Sydney for the expected increase in power demand in the CBD (Central Business District) and surrounding suburbs. Taihan will carry out this contract as a full Design and

Taihan establishes a joint venture in Kuwait for the production of fiber optic cables. It will be the first fiber optic cable production subsidiary in Kuwait, and local companies including Rank General Trading and Contracting Company will participate in the joint investment.

Taihan has been discussing the joint venture establishment process with the Kuwait government agency, KDIPA (Kuwait Direct Investment Promotion Authority). In December, Taihan entered into a full-fledged business by signing a contract with a partner company to establish a joint venture. The joint venture plans to build facilities in Mina Abdullah Industrial Area located in the southeast of Kuwait City within the first half of next year; and achieve sales in the second half of the year.

As fiber optic cables transmit large amounts of data quickly and securely, demand continues to increase over the world in line with the fourth industrial revolution and 5G infrastructure expansion based on IoT and AI.

Kuwait has imported all of its fiber optic cables. Taihan is planning to preoccupy the Kuwait fiber optic cable market with the quality and price competitiveness through local production. The company is also expected to expand its presence to GCC countries in the Middle East, taking advantage of the network, which has been built on long-standing trust, and the tariff-free advantages in the Middle East.

Performance Highlights

01

Taihan’s biggest-ever win in the

United States04

Taihan procures mega project

valued AUD 173M. in Australia05

Saudi Taihan, Taihan’s new production

base in the Middle East, now open

for business03

Taihan establishes a joint venture

to catch the fiber optic cable market

in Kuwait06

Taihan launches the first-ever

'RF Light Line' in Korea02

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Vision

V2025

People

SolutionFuture

A People-centric cultureA people-centric corporate culture, focusing on communications and mutual trust

Customer valueCustomer satisfaction through technology and quality

Future-orientedA brighter future through creative thinking and taking on challenges

·Realize High Technology·Secure Global Top 3 Technology

·Promote Localization of the Big Market·Strengthen Global Network

·Realize Global Top 10 Sales·Invest in the New Growth Business

Mid/Long-Term Management Plan

We Connect the FutureTo a Better Future

Provide Total Cable Solution

Strengthen Global Competitiveness

Realize the Growth of Volume & Value

Strengthen Product Portfolio Localize Global Network Achieve Sustainable Growth

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To our honorable clients, shareholders, and all other stakeholders of Taihan!

On behalf of the company, I would like to express my sincere gratitude for your unwavering interest and support in Taihan.

Last year, Taihan devoted all of its energy and resources into expanding its global market and enhancing its competitiveness with the aim of securing new growth engines. Taihan has promoted its overseas branch offices to headquarters, strengthened its order-winning ability by expanding the sales network, and expanded the investments to enhance the competitiveness of overseas subsidiaries. Various investments have been made in major markets, including the investment in new facilities in "Taihan Vina," the Vietnamese subsidiary; the establishment of the first optical cable production corporation in Kuwait; and the introduction of a Dutch sales company to target the European market.

These efforts bore fruits: winning orders. The total amount of orders won in 2019 has increased by more than 25% compared to the previous year. This is more than 10% higher than the business plan established at the beginning of the year, and this achievement is attributable to winning large turnkey projects in major global markets such as the United States, Australia, and the Middle East. Despite this achievement, however, the sales and operating profit in consolidated financial statements in 2019 recorded KRW 1.5547 trillion and KRW 33.2 billion, respectively, down from a year earlier. The main factor is the delayed implementation of high-yield EHV cable projects that have already been secured, because of the US-China trade war and the global economic slowdown.

Still, Taihan is encouraged that a large-scale project won in the second half of last year will

foster this year's performance. In addition, full-scale results are expected not only in the Middle East and Asia, which have been strong in the past, but also in areas poured with aggressive marketing such as Europe and North America.

To our honorable clients, shareholders, and all other stakeholders!

The market situation in 2020 is more difficult than ever. This is because it is difficult to predict at present how the global spread of the new infectious disease COVID-19 will affect the global economy and the overall industry. However, Taihan is taking various measures to overcome the crisis. Taihan established a Business Continuity Plan (BCP) for all tasks, including production, raw material supply and demand, and human resource management, to manage all places of business. At the same time, Taihan is making the best use of its entire sales network to communicate closely and respond to the circumstances of its customers and countries.

We, all executives and employees, will brace ourselves and strive to keep our record-high performance of orders last year, with a view of actualizing "Performance Creation" and "Sustainable Growth”. We ask for your support and encouragement.

Thank you.

Hyoung Kyun Na

CEO of Taihan

CEO Message Business PhilosophyIn recent years, in an attempt to improve its corporate value, Taihan has been devoting all of its energy and resources into reforming its financial, business, and organizational characteristics. In 2020, 'Innovation' and 'Growth' are the key words of Taihan, and we will invest heavily in key strategies such as 'Performance Creation,' 'Sustainable Growth,' and 'Organizational Transformation.'

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Organizational ChartHistory

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1941 Chosun Electric Wire was founded1955 Taihan was founded1958 Started to produce PVC sheathed cables

History Begins

1995 Developed 765kV ACSR1996 Obtained the ISO 9001 certification in electric cable accessory field1997 Expanded the entrance into overseas markets and won the 500 million dollar export tower award

Enhancement of Product line of Cable & Cable Accessory

2010 Developed the domestic first EHV polymer insulator.

2011 Completed the construction of ‘Dangjin Plant’

2012 Developed the first express trolley running at 400km/h in domestic

Developed the first 500kV EHV cable and passed the PQ Test in domestic

2013 Developed the first express trolley running at 400km/h in domestic

Developed the first 500kV EHV cable and passed the PQ Test in domestic

2014 Started to produce the ACCC type dual capacity transmission line

2015 Started to supply 500kV EHV cables to North America for the first time

Acquired by IMM PE2016 Acquired the whole shares of

the Legal Entity in Vietnam and launched <Taihan Vina>

2017 Established of cable accessory corporate <Saudi Taihan> in Saudi Arabia

Established of new desired talents of staff members

Declared new CI Selected as the company of

'Best Family-Friendly Management'

2018 Obtained the offshore wind power distribution submarine cable order in southwestern sea

Declared the mid-to-long term management plan V2025

2019 Selected as ‘the Top Quality Power Manufacturer’ by KEPCO

Signed a contract to establish a joint venture for the optical cable production in Kuwait

Completion of the Construction of Dangjin Plant & Leaping as a Global Leading Company

1964 Obtained the ‘KS’ mark for cable products for the first time in South Korea Started to export wire & cable products for the first time in South Korea1969 Developed 33kV XLPE cables for the first time in South Korea

Localization of Products & Establishment of Business Basis 1960s

1940s

1976 Started to produce 154kV OF cables for the first time in South Korea1977 Developed optical communication cables for the first time in South Korea

Modernization of Production Basis & Leading the Wire & Cable Technology1970s

1984 Completed the construction of optical communication cable factory and started to produce 154kV XLPE cables.1987 Produced OPGWs and Developed 345kV OF cable & cable accessory

Full-scale Growth of Electric Wire & Cable Business1980s

1990s

2000 Established <M-TEC> as a wire & cable production company in the Republic of South Africa2007 Completed the construction of ‘Dangjin Cable Accessory Plant’ and won the 100 Million Export Tower Award2008 Entered into the turn-key markets for EHV cable in Australia, USA and Russia2009 Developed a 400kV enamel coated conductor cable and an EHV polymer insulator

Establishment of the Global Production Bases2000s

2010s

CEO

EHV Cable Business Division

Communication Business Division

Overseas Sales Dept.

Industrial Cable Business Division

Finance & Strategic Planning Unit

The Board of Directors

Overseas Sales Team 1 Domestic Sales Team 1

MENA Regional Headquarters

Europe Regional Headquarters

Oceania Regional Headquarters

Australia New Zealand

The America Regional Headquarters

USA-West

USA

USA-East

Asia Regional Headquarters

Singapore

UK

Dubai

Indonesia

Russia

Kuwait

Malaysia

Netherlands

Saudi Qatar

EHV Construction Management Team

EHV Cable Production Team

Information & Communications Technologies Team

Communication Cable Production Team

Communication Cable Engineering Team

Overseas Sales Team 2 Domestic Sales Team 2

EHV Construction Team

EHV Cable Technical Team

Overseas Sales Team 3

Global Infra Team

Industrial Cable Overseas Sales Team

EHV Engineering Team 1

EHV Engineering Team 2

Dubai Construction Office

Sales Dept.

Industrial Cable Production Team

Industrial Cable Technical Team

Bus Duct Business Team

Human Resources & General Affairs Team

Process Innovation Team

Public Relations Team

Internal Audit Team

Sales Management Team

Production Support Unit

EHV Power Cable Accessory Headquarter

Research & Development Lab

Production Support Team

EHV Accessory Production Team

EHV Accessory Technical Team

EHV Accessory R&D Team

Technology Education Center

Power Solution Research Team

Material Research Team

Production Planning Team

Plant Engineering Team

Business Management Team

Legal Team

Trading Support Team

Finance Team

M-TEC Taihan Vina Saudi Taihan

Business Strategy Team

Procurement Team

Internal Accounting TFT

Accounting TeamDomestic Sales Team 1

Domestic Sales Team 2

EHV Engineering & Construction Business Division

Base Metal Business Division

Base Metal Sales Team

Base Metal Production Team

Global Network

Saudi Taihan

Taihan Netherlands

Taihan Vina

M-TEC

Los Angeles

United Kingdom

Saudi ArabiaKuwait

Qatar

Malaysia

Australia

New Zealand

DubaiAbu Dhabi

SingaporeIndonesia

Russia

New Jersey

Taihan USA

Subsidiary

Branch O� ce

Taihan is strengthening its global competitiveness in the cable production area as its major business area based on 5 overseas subsidiaries and 14 branches after having constructed the production bases in some emerging markets, such as, the Republic of South Africa and Vietnam, etc., starting with the main production facility, ‘Dangjin Plant’.

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M-TEC (Malesela Taihan Electric Cable)

M-TEC that is located in the Republic of South Africa was founded as a joint venture company in 2000 as the advanced base for entering into the African continent. Taihan has leaped the best wire & cable company in the African continent as a comprehensive wire & cable company producing optical communication cables and power cables.

www.m-tec.co.za

Saudi Taihan

Saudi Taihan that is the Saudi Arabia’s first HV-class electric power generation company was established for strengthening the competitiveness of Taihan through the localization of the production. Saudi Taihan will expand its markets to Africa and Europe as well as the Middle East as its global electric power generation bases.

Dangjin Cable Accessory PlantDangjin Cable Accessory Plant that was completed in 2007 is producing various kinds of cable accessories, such as EHV cables accessories and terminations, etc., including 500kV XLPE cable accessories. Moreover, this plant has produced link boxes, GIS insulators and composite hollow bushings depending on the requirements of each client.

Taihan USA

Taihan USA was founded in 2000 for expanding the sales of Taihan in the Americas. We have strengthened our business bases for entering into the local markets while having expanded the taken orders for EHV and MV/LV products from the electricity board of each region in the east and west regions of the USA since 2003 and are planning to expand the sales of electric power and new information & communication products in the future in the Americas.

Dangjin Plant

Dangjin Plant is the world largest wire & cable plant as a single plant which was completed in 2012. The plant is the best level of facility having the up-to-date systems, such as, the comprehensive controlling, risk detections and energy efficiency optimization systems, etc., as well as having enhanced its productivity through the concentration of various kinds of production facilities, such as, electric power, communication and elements production facilities, etc.

Taihan Vina

Taihan Vina that was launched newly through the investment by Taihan solely in 2016 is a comprehensive wire & cable company providing various kinds of cables, such as, electrical and communication cables, etc. Taihan Vina is growing as a global production base with the investments of technology and equipment for highly profitable products such as EHV cables and ACCC, etc.

www.Taihan cable.com.vn

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In 2019, the global economy entered a state of depression due to the increasing uncertainties such as the intensifying trade war between the US and China, Brexit, rising tensions in the Middle East, and the Hong Kong crisis. The global economic growth rate, which was originally expected to be 3.2%, fell compared to 2018 and came in at 2.9% The domestic economy was also a�ected by the global economic downturn, resulting in sluggish exports and weak domestic demand, and the economic growth rate remained at 2%.

Even under such global economic depression, Taihan bid and won contracts for a total of KRW 630 billion in 2019. In particular, the company achieved great success in its strategic and new markets. More speci�cally, the company won a contract of KRW 150 billion in the US (strategic market), a 330 kV large-scale project in Australia, and a 380 kV project in Europe (new market). Taihan also successfully won orders to build a large power grid in Kuwait, based on steady performance in the Middle East. Taihan's medium- and low-voltage cable performance was as good as that of extra-high voltage cables. Taihan continued to grow as it succeeded in entering new overseas markets such as the US and Australia, and the sales of high value-added products have increased. In the case of the domestic market, the performance improved as the construction industry recovered and large companies issued plant orders in spite of declining orders from public institutions.

So far, Taihan has been showing good results as it is committed to provide sustainable growth. Taihan reexamined the existing V2025, the Mid-/Long-Term Management Plan, revised the strategy of the plan, and focused on strengthening its internal stability by business divisions advancement. While invigorating global production corporations such as Saudi Taihan, Taihan is moving toward globalization by promoting the establishment of an optical cable production corporation in Kuwait.

In addition, Taihan has continued to develop technologies related to strategic products and review investments to expand its portfolio. The company is committed to establishing strategic production bases and sales subsidiaries across the globe by directly investing in overseas markets and forming joint ventures with partner companies. With these international endeavors, Taihan will do its best to increase the company in size and capacity as well.

AmericaThanks to the combination of a booming economy, expanding cities, and increasing investment in infrastructure (including new renewable energy and a new power grid replacing the old one), demand in the North American market is expected to rise moving forward. In 2019, the result of Taihan’s e�orts in the US was remarkable. The number of orders Taihan secured in the US that year was the highest Taihan has ever earned since the company entered the US market. It is especially noticeable that Taihan has expanded its market to the eastern part of the country. In 2017, the company opened its US East Coast branch o�ce, expanding its sales reach from the West Coast to the entire country. As a result of this e�ort, Taihan won a large turnkey project worthy of tens of billions of KRW in a row in the US East Coast and established its position as a major maker in North America.

Taihan is proposing optimized bids through active communication with customers from Argentina and other Latin American countries. The company also expects to enter new markets as it continues to strive to �nd additional demand.

AsiaIn Singapore, Taihan successfully �nished entire section commissioning of the cable circuit for the �rst 400kV tunnel project for the country. The company led the �rst tunnel project in Singapore, which is home to the most innovative power system in the world. In doing so, Taihan proved its world-leading technology in the EHV sector.

Meanwhile, in Malaysia, Taihan made bids for projects to supply and install 275 kV XLPE cables. In India, the company won contracts for a Transmission Line project of 400 kV enamel-coated conductors, the top available speci�cations for power cables locally in India for the �rst time.

Europe Europe is expected to increase demand due to diversi�cation of energy sources, increase of inter-country grid connection and replacement of old power grid. Taihan is making continuous e�orts to enter the market and strengthen its position.

The Swedish project won in 2018 was successfully completed, followed by winning the 380 kV/400 kV subterranean lines in the Netherlands and the United Kingdom in 2019, continuing Taihan's business activities. On the basis of this, the company expects various business opportunities in the European market in the future.

EHV Cable

Overseas Sales

EHV Cable

Engineering & Construction

Industrial Cable

Communication Cable

Cable Accessories

R&D

Base Metal

REVIEW OF OPERATIONS

01

14

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Middle East & AfricaWith infrastructure investment across the region dwindling because of the prolonged trend of low oil prices, the Middle Eastern market su�ered an overall downturn in 2019. Despite some extremely dire circumstances, Taihan successfully won a new large-scale 400 kV project with the Public Authority for Housing Welfare (PAHW), a Kuwaiti public institution. Moreover, the company continued to win new EHV and HV projects in the UAE and Oman, solidifying its position as a leader in the extra-high voltage cable market in the Middle East. In Africa, the company was the �rst to win an OF cable project in South Africa, creating a high value-added market.

In 2020, Taihan expects to receive large-scale EHV project orders from Kuwait and Qatar. Taihan also plans to gradually expand the market by winning new extra-high voltage-cables, including OF cables in Africa.

OceaniaContinuing a promising trend from the previous year, Taihan produced some steady results this year in the Oceanic region. In particular, the company solidi�ed its footing as a “total solution provider” in Australia, landing all three 132 kV projects commissioned by Ausgrid, the country’s largest power corporation. In addition, the company has won an order to build a mega-sized 330 kV power grid turnkey project from Transgrid, the largest transmission operator of New South Wales. Taihan will supervise the entire project, from designing the electrical grid to producing and connecting cables/connecting components, civil engineering works, and testing. The company is also attempting to expand its scope to hydroelectric power projects. The 220 kV project won in New Zealand is almost in the completion phase, and the 66 kV project secured in South Island has opened a new market.

Governmental MarketDue to the tighter �scal policies at KEPCO, Taihan’s main client in the public sector, the overall demand for cable equipment and materials contracted. To overcome this crisis, Taihan is accelerating product development for upcoming High-Voltage Direct Current (HVDC) projects and product customization. Although the domestic governmental market is expected to remain unfriendly in 2020, Taihan will try to improve performance year-on-year with the high-yield products.

Civilian MarketTaihan supplies and installs extra-high voltage cable products to coal, LNG, and renewable energy plants; SOC projects in the public sector; and wire undergrounding projects in large-scale residential development areas. Recently, the renewable energy plants project is increasing as the construction of coal power plants has been restricted due to environmental problems, and some facility investment is promising because of the picking up of the semiconductor industry. The public sector is looking forward to seeing a slight increase, as the investment in the railroad business is expected to increase compared to the previous year because of the government's budget increase in�uenced by the revitalizing domestic economy. Based on its competitiveness in quality and construction capabilities, Taihan has won a contract for Hyundai Chemical's Heavy Feed Petrochemistry (HPC) project in 2019 and is working on it with the aim of completion in 2020.

Domestic Sales

In 2019, Taihan continued to supply cables to a major market such as North America as well as the Southeast Asian and Australian markets.

In the US market, orders for insulation overhead lines and 35 kV subterranean lines have been maximized. Through Taihan Vina, the Vietnamese corporation, Taihan stably supplied products to power stations in major global markets and successfully carried out a Factory Audit for new electric power plants to complete additional vendor registration. In the second half of 2019, the company was the �rst to win the value-added underwater power distribution cables in the Russian market and successfully won two HTLS projects in the Taiwanese market.

In 2020, Taihan is planning to acquire type-test certi�cation for underwater power distribution cables to provide a bridgehead for entering the market. Also, the company will carry out aggressive promotions in Taiwan, the US, and other countries where demand for wind power is concentrated. In addition, the company, along with its partner CTC, will step up its promotion to major power stations, in line with the surging demand for HTLS worldwide. On the basis of this, Taihan will solidify its position as a global cable maker that generates high-quality and high-yield pro�ts.

Governmental MarketSales in the domestic government bond market rose 150% year-on-year in 2019, but orders were greatly reduced because of KEPCO's emergency management. Nevertheless, it is encouraging that Taihan completed the main project of the southwest coast o�shore wind power plant development project in time. It is also commendable that Taihan won the dual-capacity transmission project and that sales performance is good. Based on o�shore wind power supply performance, the company will

Industrial Cable

Overseas Sales

Domestic Sales

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lay a cornerstone by strengthening its position in the underwater cable market in the future and focus on winning major project orders. In 2020, the company targets to expand orders for ACCC products as part of the high-capacity conductor (overhead cable) project commissioned by KEPCO. KEPCO’s decision to use ACCC products appears to be the result of Taihan’s continued e�orts to introduce ACCC products in the project. With this �rst step, the company will seek to increase its market share with vigorous future sales activities

Civilian MarketThe domestic civilian market improved greatly in 2019, in terms of both sales and operating pro�t. This improvement is the result of active investment in manufacturing facilities led by the electrical and electronics sector in spite of a sluggish housing market and the increasing risk of bad loans. In 2020, facility investment in the electrical and electronics sector is expected to decrease slightly, but large-scale plant investments are scheduled, following the facility replacement and expansion cycle in the petrochemical sector. In addition, as active investments are anticipated in the SOC and renewable energy sector, Taihan will accelerate its e�orts to expand the market in the �eld.

Taihan has developed extra-high voltage cable connection devices up to 500 kV in an effort to improve its technical capabilities and product quality and is supplying products that meet customers' requirements and international standards in the global market. In addition, through continuous quality improvement efforts, the company succeeded in securing international certifications for bolt-type connection devices and plug-in type terminations that have increased ease of construction.

As the competition among global wire companies is gradually intensifying, Taihan has launched a solo cable accessory business to present a new growth model and expand high-yielding products, and the results are showing. The main products of the solo business are premolded cable accessories, termination cable accessories, and epoxy insulators.

The company is gradually expanding its market in the Middle East, a major market, and is achieving steady results in Southeast Asian markets such as Indonesia and Singapore. In 2019, the company signed new supply contracts in the US, Britain, and Argentina, raising expectations for market expansion.

Meanwhile, Saudi Taihan, Saudi Arabia's first HV-class power device production corporation, was established in February 2017 to launch a localization strategy in the Middle East and began operation in August 2019 with strong support from the Saudi Arabian government. In 2020, Taihan will establish a growth bridgehead to enter the MV- and EHV-class Accessory markets as well as HV products, securing a gradual growth engine.

Cable Accessory

19

20 21

Taihan is running the ICT (Information and Communications Technologies) Business based on the production and sales of communication cables and, especially, holds the domestically biggest production equipment for producing Communication Copper Cables. As its major products, there are data cables, including U/UTP, F/UTP, SF/UPT, S/FTP, and RF feeder cables, foam skin cables, railway signaling cables, signal cables for machine vision, such as CL, CXP, Analog, etc. we are positioned as the top vendor domestically and internationally.

Taihan has secured stable sales outlets based on more than 100 clients, including major domestic telecommunication companies such as KT, SKT, and LG U+; mid- to large retailers and leading global telecommunication companies; and overseas Structured Cabling System (SCS) companies, although the domestic economy faced a recession in 2019 due to a slump in the construction market.

We are strengthening our sales capabilities of high-value-added products such as leakage coaxial cable for railway, data cable for ships, photoelectric composite cable, etc. and proactively responding to future changes in the communication environment by discovering a new growth engine in communication solutions.

Communication Cable

In 2019, Taihan’s sales in the base metal business amounted to MT 100,000, the ratio between domestic and overseas sales being 7:3. The domestic market has declined slightly due to the overall industry recession, including automobile and parts makers, which are major customers. As for the overseas market, Southeast Asia and India have been the major importers for Taihan. Its target markets include the Philippines, India, Australia, Indonesia, and Bangladesh.

Magnet wire has decreased in the equivalent amount and price. This is also because of the decrease in the production of domestic auto parts companies. However, a gradual recovery is anticipated with the growth of electric car businesses.

This year's base metal market is expected to see �erce competition as demand is decreasing because of the economic slowdown in ASEAN countries, which are our major demand sources, while supply is overloaded with competitors' new investment facilities.

The department of base metal business in Taihan will maintain stabilized sales to major domestic buyers based on its high-quality products and extend the sales channel by targeting the niche market, particularly focusing on nations that have concluded FTA with Korea.

Base Metal

22

The recent needs of customers for EHV systems are varying from design and construction to operation and maintenance, requiring an engineering service and construction capabilities with diverse know-how including high technology, energy efficiency, and stability.

Taihan is laying the foundation for providing total solutions to customers by continuously securing talents in the engineering sector and strengthening its technological power and is expanding its business expansion strategy into related fields. Taihan has been successful in winning large-scale full turnkey projects from Australia, Kuwait, and Singapore last year, based on its long-standing cost innovation and efforts to convert its portfolio to high-yielding products. As of the end of 2019, the order backlog of the E&C business was around KRW 250 billion, and sales grew by 150% year-on-year. In 2020, the company will continue to grow based on its increased overseas order backlogs and accelerate growth by expanding coverage of new markets and new products.

Low oil prices and global economic fluctuations that have lasted the past years have resulted in the reduction and holding of investments and orders of major buyers of electric wire including nations in the Middle East, and the competition among global cable companies is becoming more and more strenuous. Despite hostile environment, Taihan's E&C business continues to expand its market share in advanced countries such as the United States, Australia, and Singapore based on its accumulated customer trust and technological capabilities. In addition, it is anticipating further growth as its efforts to expand into Europe, Southeast Asia, and Central and South America, where the replacement of electric facilities and new investments are actively taking place, are bringing to fruition.

An EHV Cable is an item whose added value is very high among electrical cable products as a product for which the engineering and quality management standards are the strictest. Taihan's E&C division is recognized as leading the technology and construction capabilities in the market, and is continuously expanding the partnership with major customers. In particular, Taihan confirmed the position of the absolute leader in the extra-high voltage market in Oceania by winning 330 kV orders from Australia's Transgrid, against Japanese competitors. Moreover, by successfully carrying out multiple projects in Kuwait, Singapore, and the US, Taihan also gained a foothold to improve customer trust and lead the market.

Continued large-scale orders in these regions are evidence of customer confidence in Taihan's E&C business capabilities. In 2020, it is expected that the sales volume and operating income will increase based on demands for replacing cables in advanced countries due to the recovery of global economy and the extension of electric power equipment in developing countries. In addition, it is also expected that new markets might be pioneered centered on Europe together with the reorganization of business portfolio owing to the expansion of new project areas, such as, array cables for offshore wind farms and HVDC underground cables, etc.

Taihan has concentrated its capabilities on new product development and basic technology research related to its �agship product, cable and connection material, under the leadership of its Technology Research Center.

The global market for High Voltage Direct Current (HVDC) projects continues to surge due to increased demand for high-e�ciency power transmission systems. In response to this promising trend, Taihan is currently researching and developing an HVDC Voltage Source Converter (VSC)-type cable system and a Line Commutated Converter (LCC), simultaneously using its technology in extra-high voltage 500 kV-capacity AC cable technology. The company anticipates that the products will satisfy a wide range of client requirements.

With the development and application of eco-friendly products becoming a trend, Taihan has been developing 154 kV Polypropylene (PPP) cables for transmission and 170 kV eco-friendly Dry Type Plug-in transformer bushing as part of national projects. Compared to the conventional XLPEs, PP insulated cables are eco-friendly as they have larger transmission capacity, can be reused, and also have less manufacturing process. Not only that, thanks to their relative indi�erence to space charge, PP insulated cables are expected to be used in DC systems as well as AC systems. Dry type plug-in transformer bushing has the advantage of reducing greenhouse gas emissions and e�cient maintenance. In addition, to accumulate cable-based technologies and apply new products to the �eld, Taihan is carrying out new national projects related to 154 kV-class aluminum conductor cables and 154 kV Triplex cables, and in an e�ort to understand the adequacy of the cable design life, the company is conducting life expectancy prediction tasks.

Besides, Taihan is looking forward to expanding into new markets and creating new sales revenue based on research and development. For example, the company is conducting the development task of 154 kV self-recovering nanocompound insulators that prevent the breakdown of cable connection materials.

Engineering & Construction R&D

23

25

Taihan is constantly striving to have a positive in�uence on society based on its social responsibility. We are well aware that our will and practice should lead us to the right path for our customers, shareholders, employees, and local communities to grow together. Taihan will always consider the various perspectives of our stakeholders and be a reliable company that continually generates value and new opportunities.

To open the way for a better future for all-this is what Taihan regards as sustainable management.




Ethical Management


People


SUSTAINABLEMANAGEMENT

02

24

Taihan is realizing the transparent management for protecting the rights of shareholders and enhancing the values based on its advanced corporate governance, such as, establishment of a professional management system and securing the independence of the operation of the board of directors, etc.

Composition of ShareholdersThe Total Number of Outstanding Stocks of Taihan is 856,473,009 shares of common stocks in total and is transacted after being listed on the Korea Stock Exchange. The biggest shareholder of Taihan is currently NI-KE Co., Ltd., which has 61.30% of share ratio as of the end of December 2019. In Taihan, the CEO reports the management status to the shareholders through a shareholders’ meeting and the matters needing a decision-making process shall be decided while the opinions of shareholders are re�ected. In addition, Taihan is making e�orts for improving the rights of shareholders by a�rmatively re�ecting the shareholders’ suggestions that are received through the IR-related department onto the corporate policies and operation via the review by the management and the board of directors.

Strengthening the Independence of Construction and Operation of the Board of DirectorsTaihan is enhancing the transparent management through the independence of the construction and operation of the board of directors. The board of directors is composed of 6 members. Among the members, the outside directors are 2 members taking 33% of the total. The directors of Taihan are supporting the creative management activities aggressively and are contributing to enhancing the corporate values by using their abundant experiences and

professional knowledge. Taihan is implementing the responsible management by using the professional managers under the transparent management system while holding the board of directors meeting once per month.

Operation of Audit Committeeafter having established the Audit Committee in accordance with the paragraph 1, Article 25 of the Articles of Association for implementing the accounting and auditing works and the assessment of the internal control systems. For securing the independence of the Audit Committee, more than majority (2/3) of the Committee are composed of outside directors and they play the roles for the execution and monitoring of the duties of a director, the execution of legal rights including the appointment of outside auditors and the implementation of works entrusted by the board of directors.

Enhancement of Transparency through Sharing of Corporate InformationTaihan noti�es its domestic and overseas shareholders, creditors and mass media on the Sales Performance and Other Kinds of Current Status of Taihan periodically. Such kinds of promotion activities of Taihan are a part for sharing the corporate information with the domestic and overseas stakeholders. The major management activities and overall information of Taihan can be checked all the time through the homepage (www.taihan.com) and DART (Data Analysis, Retrieval & Transfer System, www.dart.fss.or.kr). Taihan is helping the shareholders to understand the company well by posting major �nancial matters and the IR data of Taihan continuously on the homepage.

26

Speci�ed and Codi�ed Action Guidelines for Members

- Ethics Charter- Code of Ethics

Operation of Organization fulling in charge of Ethical Management and Various kinds of Systems

- Ethical Management O�ce- Online Reporting System- Internal Audit

Formation of Consensus between members through some systematic education, etc.

- CEO Message- Ethics Pledge by Executives and Employees- Periodic Education on Ethics

Corporate Code of Ethics Operation of Organization/System

Formation of Consensus

Ethical Management

27

Taihan is pursuing the Human-Oriented Management based on its belief, ‘No People, No Company’. The executives and employees are conducting their duties creatively while having their passions and sense of responsibility with one accord based on the New Vision of the Company, so called, ‘We connect the Future, Toward Better Future’.

Securing and Nurturing Global TalentTaihan will secure the right people who have the ability to perform their duties as required by the company in order to achieve the company’s vision and management objectives. Based on talented individuals with an open mind and professionalism, we will employ the right people following the in-depth recruitment process through several steps. We will also nurture the talents with global competitiveness by o�ering various education programs, such as Global Biz Skill, and English PT, to grow their global mind and ability.

Fair Assessment & RewardsTaihan develops and operates a fair evaluation and compensation system. Individual goals to perform duties are set according to the organization's goals, and the annual performance is analyzed and evaluated from various perspectives. The company also supports personal capacity building by making employees set up necessary competencies and re�ecting them in the assessment. On the basis of the evaluation results, the wage is adjusted and a performance-based bonus is given. The result is also re�ected in the promotion; thereby task motivation and job satisfaction are enhanced.

While the in�uential power by a company on countries and societies becomes bigger, the level of corporate ethics required by a society is getting higher, too. The executives and employees of are sympathizing deeply with the importance and responsibilities of the ethical management and are practicing the honest management through the works abiding by the basic principles

Regular AuditIn 2018, Taihan carried out its regular audit to inspect the appropriateness of the work the company executed throughout the year, and improved unreasonable or ine�cient tasks. Moving forward, Taihan plans to execute in-depth audits to prevent risk and raise the company’s value.

Ethical Management EducationTaihan used case studies to inform and train its employees regarding overarching ethical management issues and the Anti-graft Act as part of its ongoing e�orts to reinforce ethical conduct across the company. Particularly, the company utilized online comics for its online ethical training for the employees' ease of understanding and sent newsletters to them on ethical management to build everyone's consensus on the subject. Later, the company will carry out training local overseas subsidiaries regarding ethical management issues to bolster the ethics of overseas employees.

Building Sound Organizational CultureTaihan develops various communication programs centered on member participation in order to establish a healthy organizational culture. Like the 3355-meeting-program, which breaks the ice between departments and helps them communicate and collaborate smoothly, the company seeks to establish an in-house human network through various leisure and club activities. Labor and management aim for a win-win labor-management culture, and the history of cooperating without a single dispute over the past 30 years is the pride of Taihan.

Pursuing the realization of work–life balanceTaihan was selected as the �rst family-friendly certi�cation company in the same industry in December 2017 through family-friendly certi�cation hosted by the Ministry of Gender Equality and Family. The company is conducting a regular leave system, Family Day for Dangjin factory employees to leave two hours early every Friday, and an intensive break system for employees to enrich their lives.

In addition, Taihan has been making e�orts to improve work commitment and e�ciency through in-house campaigns and to support its employees to live happily.

Internal & External Publicity on Ethical ManagementTaihan sent a letter from the CEO on the subject of ethical management to its employees in order to emphasize the importance of ethical management. The current status and new cases of ethical management are posted on the company's homepage and groupware as well.

Taihan sent disposition forms on the subject of ethical management to its cooperating companies as well to explain its current status on ethical management. The company distributed consent forms ensuring fair and transparent transactions, reinforcing its determination to instill ethical management across its entire corporate ecosystem. With all of these initiatives across different communication and promotional channels, Taihan is improving the ethics of not only its own staff, but also the staff members at cooperating companies.

People

28 29


Motto

Working together to make a happier world

Mission

One Contribution per Person

Employee Volunteer Activities- Free Meal Service for homeless people (5 times) - Support for single senior citizen households (2 times)- Cultural Experience Support for alienated people (2 times)- Environmental Management Activities (4 times)- Junior Electricity Class for children (8 times) and extra activities

Social Contributions in 2019

Volunteer Activities of Executives and Employees

Taihan is continuously practicing the sharing activities for isolated neighbors under the slogan for Social Contribution saying, ‘Working Together to Make a Happier World’. Taihan is operating the ‘One Contribution per Person’ system under which every each executive and employee participates voluntarily in volunteer activities not less than once per year. The social contribution programs under which the family members and relatives as well as the executives and employees participate together are implemented while maximizing the value of sharing.

Over 65 years, stakeholders of Taihan, including employees, clients, and local community groups, have poured their passion and e�orts into the company. Taihan promises never to forget that the company was built together by everyone involved. Moving forward, Taihan aspires to become a guiding light that shares and delivers hope for a better, more beautiful society together.

- Developing art and culture- Expanding the art and culture

community

A company coexisting with society- Volunteer activity of employees - Corporate donations

- Support for fostering talent- Support for advancing science

& technology

Art & Culture Welfare Education

Support for the Alienated Class of SocietyTaihan has implemented the social contribution activities on a regular basis while cooperating with the local welfare facilities. The executives and employees visit local residents plagued with safety and hygiene, stemming from poor living conditions, to improve their residential environment. Taihan also provides the children of a low-income family which have lack of opportunities of the cultural experiences and education, etc., with the opportunities to conduct many kinds of experience activities. Moreover, they participate in various activities for the local communities, such as, Filial piety volunteer works and kimchi-making events, etc., for the aged people within the community.

Free Meal Service for homeless people In cooperation with the Love and Hope Center at An-yang, an organization supporting homeless people, Taihan volunteered for a free meal service for elderly people living alone and homeless people. This campaign with more than 30 Taihan participants was held five times. Taihan also made a lump-sum donation to the center to help it keep serving free meals.

Environmental Protection ActivitiesTaihan carries out environmental protection activities on a regular basis in areas near its corporate headquarters and production plants. In Dangjin, where its plants are located, the company collects waste discarded near Janggohang Harbor, the breakwater, and the wharf area where the local festival gets underway, to improve the local community and its environment. In Anyang, where its corporate headquarters is located, Taihan also continues to carry out environmental protection activities to ensure it faithfully ful�lls its social responsibility and duties as a corporation.

Junior Electricity ClassTaihan hosts a ‘Junior electricity class’ for elementary school students in Dangjin, where its plants are located. This class is a Talent donation initiative, where Taihan employees participate and hold classes as one day teachers.

The program offers a new learning opportunity for children who suffer from a somewhat lacking academic infrastructure in the region and explains difficult scientific principles in easy-to-understand terms to help children grow as talented scientific minds capable of leading our future.

30 31


Taihan has established and operated the safety & health management system based on the business ideology respecting human beings and the safety & health management policy. Each member of the executives and employees

is making e�orts for realizing accident-free workplace and happy home by implementing the safety & health activities autonomously and aggressively.

Vision & Goal

VisionWe pursue the eco-friendly and human respecting corporate activities through the resource management as well as achieving the customer satisfaction by providing flawless products and service in order for the customers to use them without fear.

GoalWe drive for safety and health activities for happy life.

Promotional Direction· Promotion of Improvement Activities for Developing and Producing Safe Products· Setting and Operating Quantified Goals· Observing the Relevant Laws and Regulations and Other Requirements· Continuous Improvement and Promotion of Contamination Preventive Activities· Recycling and Weight-Reducing of Resources

Operation of EHS SystemTaihan has introduced and operated the EHS (Environment, Health & Safety) Management Systems, such as ISO 45001, etc., as well as PSM (Process Safety Management) System for re�ecting the Safety & Health-related

matters, such as, risk assessment, education & training, safety inspection and responding to emergent cases, etc., onto the whole course of management and for improving, operating and managing such matters continuously.

ISO 45001 Certi�cates

Employee Health Checkup

Emergency Evacuation Drill

ESH Integrated Management System

Planning Practice Improvement Evaluation

Risk Control and Prevention

· Regulation control

· Risk evalution and control

· Capability management

· Information and communication

· Process management

· Evalution and improvement

· Achievement management

· Follow-up management

· Partners management

ActivitiesHolding a Meeting of the Industrial Safety & Health Committee

Taihan has held the meeting of the Industrial Safety & Health Committee for enhancing the senses of safety & health of the executives and employees, creating the optimum working environment and observing the Industrial Safety & Health Act. The matters determined by the committee shall be applied to a collective agreement and the Industrial Safety Regulations and the Labor and the Management shall observe those agreement and regulations

Safety and Health Inspection

To identify risk factors and improve the working environment, Taihan regularly conducts safety inspections to create an accident-free workplace. The company checks the implementation of safety and health activities in the workplace and holds meetings to carry out appropriate safety measures for risk factors so that accidents are prevented and employees work in a safe environment.

- Safety and health diagnosis through external professional organizations

Education on Safety and Health

Taihan raises employees' awareness of safety and health and regularly provides training on work safety rules. For educational materials, the company publishes and distributes the “Environmental Safety and Health Bulletin” every month on the subject of safety and health issues.

Win-Win Collaboration Program

Taihan established a “Win-win Collaboration Program” for health and safety in consort with in-house cooperating companies. The company also extended its support, in both human and physical resources, for risk assessment and technical assistance at cooperating companies to improve their health and safety conditions. The company has contributed to and keeps promoting the symbiotic development with its cooperating companies by preventing their industrial accidents and improving their level of safety and health management.

Improvement of Health of Employees

We conduct comprehensive health screenings and regular survey of the harmful factors for the continued health care of our employees. Employees whose �ndings are abnormal receive regular examinations and treatment in order to prevent the aggravation of the disease. In addition, the health of our employees is protected by the regular inspections of their working environment, as well as through health care, health promotion, and industrial hygiene management.

Enhancement of Emergency Response Ability

All employees receive regular training in order to prevent emergencies, such as accidents due to natural disasters, �re, and explosion, and to minimize damages in the case of their occurrence as well as to eliminate the cause as soon as possible. Taking proactive action safeguards the safety of the employees and their workplace.

Risk Reducing Activities

Removing and Improving Risk Factors

200 cases

250 cases

125%

· Removal and Improvement of Factors of Safety Accidents caused

by unsafe actions or conditions

· Safety and health diagnosis through external professional

organizations

Reference

Target to Control

Results in 2019

Achievement Rate (%)

Remarks

No Smoking and No Drinking Campaign

32 33


To ensure the sustainable growth of both humankind and nature, Taihan has established a mid- and long-term roadmap for environmental preservation and an action plan for eco-friendly management of the company. Speci�cally, it has set an in-house threshold for its emission of environmental pollutants, and has improved its capacity to recycle resources and manage

hazardous chemicals to minimize the load it imposes on the environment. Additionally, Taihan has been operating a well-organized certi�ed Environment Management System (ISO-14001), and has formed a TFT to respond actively to climate change issues - energy saving, production of eco-friendly products, responding to climate policies, etc.

Eco-friendly ManagementOperating an Environment Management System

To attain the sustainable management of its businesses and legal management of the overall environment, Taihan has established its own environment-health-safety policies, and appointed an environment manager in each division so that it can govern its environmental policies in a well-organized and systematic manner. Each department is required to establish and execute environment, health, and safety goals; carry out environmental impact assessments; and improve environment-related facilities. The environment manager monitors and shares such activities. During the �rst half of 2019, Taihan conducted a postreview of its ISO 14001 (Environment Management System) and succeeded in maintaining the certi�cation. The company continues to operate and

manage the environment management system by monitoring its quarterly performance in environment, health, and safety issues and by carrying out internal evaluations.

Improving Transparency for Corporate Environment Information

Taihan submits various reports regarding its performance in environmental management to competent authorities each year, and it also discloses relevant information on government websites in compliance with domestic/international requirements from the Ministry of Environment, NGOs, local residents as well as relevant legislations.

More speci�cally, data on environmental management performance includes statistics on chemical substances, emission levels, waste

IS0 14001 Certi�cates

product processing and handling results, water usage and wastewater treatment results, air pollutant emissions results, greenhouse gas emissions, etc. In particular, Taihan discloses environment-related information under the ‘Environmental Technology and Industry Support Act,’ to make information on its overall environmental management activities available for the public.

Minimizing the Impact on the Environment

Minimizing Air PollutantsAir pollutants produced during production processes at Taihan include six di�erent types of substances, including dust, sulfur oxides, nitrogen oxides, etc. To mitigate the impact of air pollutants and the odor they produce, including VOCs, the company uses preventative facilities such as multicyclones, dust collectors, or absorbents to maintain air pollutant emissions within 20% of the permissible emissions threshold. In addition, Taihan carries out quarterly in-depth inspections on facilities that emit air pollutants. During these inspections, the company engages in a variety of activities to reduce emissions, for example, replacing activated carbon �lters/dust collection �lters and improving facilities that help prevent the deterioration of equipment. Meanwhile, in terms of fuel for two of its boilers used to supply steam and for the heat source used during the production of copper wire, Taihan uses LNG, a clean fuel, to minimize its emission of air pollutants.

Minimizing Water PollutantsTaihan operates a high-e�ciency wastewater treatment system that prevents it from wasting any water resources, helps it minimize water pollutants, and solves the nation's water shortage problem. In fact, more than 90% of the water used at production sites is used as a coolant. The company treats wastewater through a treatment facility and then recycles it 100%. For wastewater that can no longer

be recycled, Taihan commissions an external service provider that specializes in wastewater treatment. In 2019, the company reduced the volume of outsourced wastewater treatment by 70%, thanks to improvements made to production processes and working conditions.

Recycling Waste as ResourcesTo make sure it disposes of all waste products lawfully, Taihan selects and evaluates authorized treatment companies for each item on an annual basis. On the basis of its evaluations, it enters into outsourcing contracts and carries out the entire waste treatment and disposal process transparently using the Allbaro waste product processing system governed by the Ministry of Environment. Moreover, it prepares reports on the hazardousness of designated waste product items that are classi�ed as toxic waste to ensure safe storage, transportation, and disposal of those items.

In line with a variety of resource recycling policies set forth by the government, Taihan recycled or reused more than 80% of all waste products generated at its Dangjin plant in 2019. To dispose the remaining non-recyclable waste, the company used safe measures available under the law (incineration, land�ll). Given the increase in production volume, the volume of waste continues to increase. However, Taihan continues to maintain a keen cooperative relationship with the government in terms of its waste product reduction policies as evidenced by the ‘MOU for the pilot project to reduce waste products’ the company signed with the Ministry of Environment.

Eco Marsh ManagementAutomated Sewage Processing System Rainwater Treatment Flow Chart

Used Water Volume, Outsourced Wastewater Treatment Volume

Sort Used Water Volume (m3)

132,781 487

139,271 366

125,344 103

Outsourced Wastewater Treatment Volume (m3)

2017

2018

2019

34 35

Current Waste Product Handling Status

Recovery and Recycling Performance for Plastic Contained in Discarded

Sort

Sort

2016 2018

2018

2017

2017

2019

2019

Land�ll

Used volume of plastic in power and telecommunication cables

25 -

16,642

-

13,852

24

14,260

Unit: ton

623 1,167

2,789 3,554

2,146 2,387

979

2,742(16.48%)

2,480(17.9%)

2,994(E)(21%)

635

2,928 2,710

1,949 2,050

Incineration

Recycled volume of plastics (recycling rate, %)

Total

Recycling

In particular, Taihan has been a staunch advocate of ful�lling its responsibilities as a producer. Based on its ‘Agreement on the voluntary recovery and recycling of plastic waste products’ signed in 2008 with the Ministry of Environment, the company tries to recycle as much cable materials it supplies to the domestic market. As per the ‘Agreement on the voluntary recovery and recycling of plastic waste products,’ the

Ministry of Environment sets recycling targets for discarded power and telecommunication cables, which Taihan works towards achieving. More speci�cally, the company works together with the Korea Electric Wire Industry Cooperative as well as other wire/cable companies to provide �nancial and technical support to recycling companies or to �nd new recycling companies.

Managing Hazardous ChemicalsTaihan continues to maintain its management policy for hazardous materials to ensure the safety of its places of business and the surrounding region. New materials are tested in advance with experts in the environment, health, and safety �elds to make sure they are safe to use on-site. All materials are handled lawfully in compliance with the Act on Registration, Evaluation, etc. of Chemicals, the Chemical Control Act, and the Occupational Safety and Health Act. Taihan also develops in-house chemical management programs to help manage its inventory of chemicals systematically and accurately. The company even has a TFT to help minimize the amount of hazardous chemicals it has to handle.

The “installation inspection” conducted by Korea Gas Safety Corporation on Taihan’s facilities dedicated to handling hazardous chemicals con�rmed that the company satis�ed all legal requirements. Taihan carried out an “External

Impact Assessment,” which involves evaluating the impact on the area near the place of business if a chemical accident occurs, to establish safety countermeasures in the event of an accident of hazardous chemicals. On the basis of national policies on chemicals, the company surveys its chemical emissions on an annual basis, carries out statistical surveys, and reports imported chemicals and its handling of hazardous chemicals to the Ministry of Environment.

Development of Chemical Management Programs

Climate Change Response

To respond actively against climate change issues and create new opportunities, Taihan created its Climate Change Response TFT in March 2009, which still exists today. In compliance with the national roadmap for the reduction of greenhouse gases, the company’s goal by 2030 is to reduce greenhouse gases produced under ‘Business As Usual (BAU)’

Managing Greenhouse Gas InventoryTo help manage its greenhouse gas emissions, Taihan been using a greenhouse gas inventory system since 2007. Each year, it prepares an overall plan and emissions statement to monitor its greenhouse gas emissions. Moreover, it attempts to improve transparency and expert handling of issues involving greenhouse gas emissions by commissioning inspections to a third-party inspection organization.

Managing Risks Associated with the Emissions Trading SchemeTaihan has been participating in the greenhouse gas emissions scheme since 2015. Throughout the �rst leg of the initiative (2015–2017), its emissions fell within the allocated greenhouse gas quota for each of the 3 years. For the second leg of the initiative (2018–2020), its emissions fell around 90% of the greenhouse gas volume allocated for the �rst leg, so it has been allocated 3 years of gas emission quota in October 2018. In 2017, the government acknowledged the company’s outstanding past performance in reducing greenhouse gas emissions, handing out an additional quota. This helped Taihan mitigate the risk of having an insu�cient greenhouse gas emission quota. Each year, Taihan engages in managerial activities to establish strategies aimed at purchasing emission trading rights and decide whether to invest in equipment that can help reduce energy consumption in order to prepare in the mid- and

conditions by 37%. To ensure the company can meet its target, Taihan sets carbon reduction targets and action plans each year. Moreover, the company continues to work diligently with energy diagnosis initiatives, use of eco-friendly products, and installation of smart factory systems to produce tangible results pertaining to climate change.

long- term against the risk of emitting more greenhouse gases than its allotted quota.

Activities of Saving Energy & Reducing GHG Emissions1. Central Power Control System using an IFS An IFS (Intelligent Factory System) was completely

constructed in 2012 as an intelligent factory system providing with pleasant work and business environments as well as energy saving. Taihan minimizes the consumption of necessary cooling & heating energies and electrical power by using a high e�ciency energy system, that is, an IFS including automated equipment and power monitoring telemetry, etc.

* Automatic O�ce Light On/O� System: 12:00 ~13:00 and 18:00 ~ 19:00

* Central Cooling & Heating Control: Summer: - 26˚C, Winter: - 20˚C

2. Replacement to clean energy Taihan is making the e�orts to minimize the

generated green gas and air pollutants by replacing the existing B/C Boilers (E�ciency 87%) with Fire-tube LNG Boilers (E�ciency: 92%).

3. Introduction of High E�ciency Facilities Each Plant replaced the Piston-type compressors

(850HP x3) with Turbo-type & Screw-type ones.

4. Installation of High E�ciency LED Lamps Taihan reduced the power consumption by

4,226,096kWh per year by replacing 1,848EA of Metal Lamps and 4,827EA of Fluorescent Lamps with High E�ciency LED Lamps in 2016.

· Establish plans to reduce energy consumption· Diagnose and monitor energy usage· Increase the use of new renewable energy

· Develop low-carbon products· Create “Green Factories”· Recognize the seriousness of climate change

· Respond to national climate change policies· Manage the emission trading scheme· Improve greenhouse gas inventory

Climate Change

Climate Change Response Secretariat

Energy Reduction Team Low-Carbon Product Production Team Climate Change Policy Response Team

57,9

00

49,7

61

38,7

1037

,529

38,1

7736

,851

39,7

61

34,8

41

60,5

8140

,491

2015 2016 2017 2018 2018

Allocation of Greenhouse Gas Emission

Greenhouse Gas Emission

Climate Change Response Organization

Unit: ton

37





Separate Statements of Cash Flows


FINANCIAL SECTION

03

36

OpinionWe have audited the accompanying separate �nancial statements of Taihan Electric Wire Co., Ltd. (the “Company”), which comprise the separate statement of �nancial position as of December 31, 2019 and 2018, and the separate statements of comprehensive loss, separate statements of changes in equity and separate statements of cash �ows for the years then ended, and notes to the separate �nancial statements, including a summary of signi�cant accounting policies.

In our opinion, the accompanying separate �nancial statements present fairly, in all material respects the �nancial position of the Company as of December 31, 2019 and 2018, and its separate �nancial performance and its separate cash �ows for the years then ended in accordance with Korean International Financial Reporting Standards (“KIFRS”).

Basis of opinionWe conducted our audit in accordance with Korean Auditing Standards (“KGAAS”). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the �nancial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the �nancial statements in the Republic of Korea, and we have ful�lled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained issu�cient and appropriate to provide a basis for our opinion.

Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most signi�cance in our audit of the separate �nancial statements of the current period. These matters were addressed in the context of our audit of the separate �nancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have ful�lled the responsibilities described in the Auditor’s responsibilities for the audit of the separate �nancial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the separate �nancial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying separate �nancial statements.

The Shareholders and Board of DirectorsTaihan Electric Wire Co., Ltd.

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accounting estimates and related disclosures made by management.

· Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi�cant audit �ndings, including any signi�cant de�ciencies in internal control that weidentify during our audit.

Assessment of the feasibility of deferred tax assetsAs describe in Note 2.2.21 of the accompanying separate �nancial statements, the Company assesses the carrying amount of the deferred tax assets at each reporting date and deferred tax assets are recognized to the extent that it is probable that taxable income will be available against to which the deferred tax assets can beutilized.

Complexity is involved in the assessment of the feasibility of deferred tax assets as it requires management’s judgement in determining the period in which the estimated future taxable income and tax credits will be utilized. We identi�ed the feasibility of deferred tax assets as a key audit matter, taking into account theinherent uncertainty and signi�cant judgement of key variables such as sales and operating expenses when estimating future taxable income.

The primary audit procedures we performed to address this key audit matter are as follows:

· Assessed the key input variables such as sales and operating expenses used to determine future taxable income through inspection of recent business plans and past performance reported to the Board of Directors

· Compared the Company's actual operating performance and future taxable income available before the auditor’s report date in order to evaluate the accuracy of the Company’s estimation of future taxable income.

· Assessed the expected utilization period of the deductible temporary di�erences and assessed loss as prepared by the Company.

Responsibilities of management and those charged with governance for the �nancial statementsManagement is responsible for the preparation and fair presentation of the separate �nancial statements in accordance with KIFRS and for such internal control as management determines is necessary to enable thepreparation of �nancial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate �nancial statements, management is responsible for assessing

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters thatmay reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were ofmost signi�cance in the audit of the separate �nancial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest bene�ts of such communication.

The partner in charge of the audit resulting in this independent auditor’s report is Hee Kyun Shin

the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s �nancial reporting process.

Auditor’s responsibilities for the audit of the �nancial statementsOur objectives are to obtain reasonable assurance about whether the separate �nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KGAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to in�uence the economic decisions of users taken on the basis of these �nancial statements.

As part of an audit in accordance with KGAAS, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:· Identify and assess the risks of material

misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of

March 21, 2019

This audit report is e�ective as of March 19, 2020, the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the auditor’s report date to the time this report is used. Such events and circumstances could signi�cantly a�ect the accompanying separate �nancial statements and may result in modi�cations to this report.

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Thousands of Korean Won

Notes 2019 2018

Liabilities and Shareholders' equity

Current liabilities :

Trade payables 5, 6, 17, 39 122,486,341 135,719,588

Short-term borrowings 5, 6, 18, 39 148,896,320 119,893,835

Current portion of long-term liabilities 5, 6,18, 39 471,427,681 9,736,926

Other �nancial liabilities 5, 6, 14, 17, 39 48,206,577 46,548,133

Current income tax liability 33 340,811 0

Current provision 20 3,761,412 3,905,986

Other current liabilities 21 29,297,774 14,741,900

Total current liabilities 824,416,916 330,546,368

Non-current liabilities :

Long-term borrowings 5, 6, 18, 39 0 450,716,109

Net de�ned bene�t liabilities 19 33,819,087 26,487,310

Other �nancial liabilities 5, 6, 14, 17, 39 1,439,148 2,521,169

Non-current provisions 20 3,517,032 2,423,553

Total Non-Current Liabilities 38,775,267 482,148,141

Total Liabilities 863,192,183 812,694,509

Shareholders' Equity

Issued capital 22 428,236,505 428,236,505

Other paid-in capital 23 (38,803,681) (38,367,248)

Other components of equity 24 (90,323,424) (98,944,478)

Retained earnings 25 31,207,950 67,211,314

Total Shareholders' Equity 330,317,350 358,136,093

Total Liabilities & Shareholders' Equity 1,193,509,533 1,170,830,602


Notes 2019 2018

Assets

Current assets :

Cash and cash equivalents 5, 6, 7 189,652,712 102,423,109

Financial assets at fair value through pro�t or loss 5, 6, 9 1,320,467 1,549,600

Financial assets at amortized cost 5, 6, 9 1 1

Trade receivables 5, 6, 8 220,447,494 257,536,623

Short-term loans 5, 6, 8 1,981,749 3,280,597

Other �nancial assets 5, 6, 8,14 9,352,611 5,030,628

Inventories, net 10 167,453,300 174,139,098

Income tax receivable 33 - 452,145

Other current assets 11 32,831,520 28,066,631

Total current assets 623,039,854 572,478,432

Non-current assets :

Financial assets at amortized cost 5, 6, 9 600 2,382,513

Financial assets at fair value through OCI 5, 6, 9 56,358 56,358

Financial assets at fair value through pro�t or loss 5, 6, 9 41,982,386 34,901,908

Long-term loans 5, 6, 8 24,341 4,790

Investment in Subsidiaries, Associates and Joint Ventures 12 31,443,266 32,997,495

Other �nancial assets 5, 6, 8,14 5,187,481 3,341,210

Property, plant and equipment, net 13, 38 435,766,211 452,618,285

Intangible assets, net 15, 38 11,824,789 11,472,113

Investment properties, net 16 2,029,653 2,575,958

Deferred tax assets 33 42,154,594 58,001,540

Total other non-current assets 570,469,679 598,352,170

Total assets 1,193,509,533 1,170,830,602

As of December 31, 2019 and 2018

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For the Years Ended December 31, 2019 and 2018 For the Years Ended December 31, 2019 and 2018


Issued capital

Other paid-in capital

Other Components

of Equity

Retained earnings Total

Balance at January 1, 2018 428,236,505 (43,196,395) 12,291,005 (33,037,478) 364,293,637

E�ect of adoption of new accounting standards (100,200,820) 95,306,631 (4,894,189)

Pro�t for the year 0 5,657,103 5,657,103

Re-measurements gain (loss) on the net de�ned bene�t plans

0 (714,942) (714,942)

Gain(Loss) on valuation of derivatives (11,034,663) 0 (11,034,663)

Total comprehensive income (loss) (11,034,663) 4,942,161 (6,092,502)

Share-based payment 4,829,148 4,829,148

Exercise of share-based payment (2,561,916) (2,561,916)

Disposal of treasury shares 275,238 275,238

Gain on disposal of treasury shares 2,286,677 2,286,677

Total changes in equity due to transactions with owners of the Company As of December 31, 2018

428,236,505 (38,367,248) (98,944,478) 67,211,314 358,136,093

Balance at January 1, 2019 428,236,505 (38,367,248) (98,944,478) 67,211,314 358,136,093

Loss for the year 0 (28,421,626) (28,421,626)

Re-measurements loss on the net de�ned bene�t plans

- - - (3,097,984) (3,097,984)

Loss on valuation of derivatives - - 4,136,117 - 4,136,117

Gain on Fair value through OCI - - 1,183 0 1,183

Total comprehensive income (loss) - - 4,137,300 (31,519,610) (27,382,310)

Disposal of �nancial assets at fair value through OCI

- - 4,483,754 -4,483,754 -

Exercise of share-based payment - -2,185,201 -2,185,201

Disposal of treasury shares - 201,411 201,411

Gain on disposal of treasury shares - 1,547,357 1,547,357

Total changes in equity due to transactions with owners of the Company As of December 31, 2019

428,236,505 (38,803,681) (90,323,424) 31,207,950 330,317,350


Notes 2019 2018

Sales 26, 27, 38 1,394,967,712 1,528,860,215

Cost of sales 26, 27, 32, 38 1,319,706,716 1,424,837,647

Gross pro�t 75,260,996 104,022,568

Selling and administrative expenses 28, 32 49,396,498 59,349,931

Operating income 25,864,498 44,672,637

Non-operating income and expense:

Financial income 5, 31 10,585,187 15,791,019

Financial expense 5, 31 55,537,198 52,484,832

Other non-operating income 29 21,211,292 16,187,961

Other non-operating expenses 29 12,023,912 23,324,141

Loss on investment of subsidaries, associateds 30 (2,134,057) 4,880,823

(37,898,688) (38,949,170)

Net income (loss) before income tax 33 (12,034,190) 5,723,467

Income tax expense 16,387,436 66,364

Net income (loss) (28,421,626) 5,657,103

Other Comprehensive Income (Loss) :

Other comprehensive income that will not be reclassi�ed to pro�t or loss in subsequent periods (net of tax):Re-measurements gain (loss) 19 (3,097,983) (714,942)on the net de�ned bene�t plans

Gain on Fair value through OCI 1,183 Gain(loss) on valuation of derivatives 8, 24 4,136,116 (11,034,663)

Net other comprehensive income(loss) that will not be reclassi�edto pro�t or loss in subsequent periods (net of tax): 24

1,039,316 (11,749,605)

Comprehensive income (loss) (27,382,310) (6,092,502)


Earnings (loss) per share :Basic earnings (loss) per share 34 (34) 7

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Separate Statements of Cash FlowsFor the Years Ended December 31, 2019 and 2018


Notes 2019 2018

Financing Activities :

Proceeds from short-term borrowings 468,460,997 560,892,054

Proceeds from long-term borrowings - 12,380,000

Increase in other �nancial liabilities - 45,040

Repayment of short-term borrowings -436,294,123 -568,628,242

Repayment of current portion of long-term borrowings -9,500,000 -8,500,000

Repayment of long-term borrowings 0 (16,912,448)

Decrease in other �nancial liabilities (4,820,132) (50,120)

Net Cash Flows Used in Financing Activities 17,846,742 (20,773,716)

Net increase in cash and cash equivalents 85,591,444 8,019,422

Cash and cash equivalents at January 1 102,423,109 93,190,488

Cash and cash equivalents at beginning of the year 34

E�ect of exchange rate �uctuations on cash and cash equivalents 1,638,159 1,213,199

Cash and cash equivalents at December 31 34 189,652,712 102,423,109


Notes 2019 2018

Operating activities :

Pro�t (Loss) for the year (28,421,626) 5,657,103

Adjustments to reconcile pro�t before tax to net cash �ows 35 84,381,221 70,378,609

Working capital adjustments: 35 42,775,609 (44,183,600)

Interest received 1,842,314 2,047,174

Interest paid (18,323,606) (19,141,083)

Dividends received 387,471 160

Income taxes refund (paid) (477,109) 437,120

Net Cash Flows Provided by Operating Activities 82,164,274 15,195,483

Investing activities :

Decrease in short-term loans 1,736,277 1,024,537

Decrease in long-term loans 7,241 6,502,160

Decrease in �nancial assets at fair value through pro�t or loss 314,426 11,021,569

Decrease in �nancial assets at fair value throught OCI 1,517 -

Decrease in �nancial assets at amortized cost 1,500,000 -

Decrease in Investments of Subsidary - 4,333,156

Decrease in other �nancial assets 734,944 500,274

Proceeds from disposal of property, plant and equipment 33,390 70,548

Proceeds from disposal of intangible assets - 20,000

Increase in short-term loans -596,912 (2,595,688)

Increase in long-term loans (26,792) (4,780)

Increase in fair value through pro�t or loss (11,021,569) (192,201)

Increase in investments of Subsidary -579,828 0

Increase in other �nancial assets (492,018) (496,223)

Acquisition of property, plant and equipment -4,511,436 (6,585,697)

Acquisition of intangible assets (1,518,812) 0

Net Cash Flows Used in Investing Activities (14,419,572) 13,597,655

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2019 ANNUAL REPORT Electric and Communication Cable System CEO Hyoung Kyun Na Establishment 1955....

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