CHAINTECH — Interim / Quarterly Report 2018

Dec 13, 2018

Chaintech Technology Corporation Investment orumF

2018.12.13

Declaration

The information in this document won’t contain financial forecasts .

The information in this document was acquired from TSE MOPS and sources available to the company.

Product Portfolio

2018/1/1 to 9/30 VGA M/B others 2018年1-9月 % VGA M/B others Total 72.58% 24.49% 2.93% 100.00%

20171/1-12/31

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VGA
M/B
others
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		2017		%
	VGA	M/B	others		Total
	81.49%	17.34%	1.17%		100.00%

Financial Statement

Statement of Comprehensive Income(2018 each Quarter)

Accounting Title	2018/1/1t o3/31	%	2018/4/1 To6/30	%	2018/7/1 To9/30	%	2018/1/1 to9/30 %	2018/1/1 to9/30 %
Operatingrevenue	953,106	100.00	968,529	100.00	1,108,495	100.00	3,030,130	100.00
Operatingcosts	-829,409	-87.02	-869,227	-89.75	-1,015,763	-91.63	-2,714,399	-89.58
Grossprofit(loss)from operations	123,697	12.98	99,302	10.25	92,732	8.37	315,731	10.42
Operatingexpenses
Sellingexpenses	-9,915	-1.04	-12,065	-1.25	-12,492	-1.13	-34,472	-1.14
Administrative expenses	-12,274	-1.29	-13,821	-1.43	-12,191	-1.10	-38,286	-1.26
Research and development expenses	-5,398	-0.57	-5,640	-0.58	-5,292	-0.48	-16,330	-0.54
Total operatingexpenses	-27,587	-2.89	-31,526	-3.26	-29,975	-2.70	-89,088	-2.94
Net operatingincome(loss)	96,110	10.08	67,776	7.00	62,757	5.66	226,643	7.48
Non-operatingincome and expenses
Total other income	4,055	0.43	4,022	0.42	9,447	0.85	17,524	0.58
Othergains and losses,net	-23,600	-2.48	45,325	4.68	2,485	0.22	24,210	0.80
Finance costs,net	-453	-0.05	-880	-0.09	-372	-0.03	-1705	-0.06
Total non-operating income and expenses	-19 998 ,	-2 10 .	48 467 ,	5 00 .	11 560 ,	1 04 .	40 029 ,	1 32 .
Profit (loss) from continuing operations before tax	76,112	7.99	116,243	12.00	74,317	6.70	266,672	8.80
Total tax expense(income)	1300	0.14	-24335	-2.51	-19,434	-1.75	-42,469	-1.40
Profit(loss)from continuingoperations	77,412	8.12	91,908	9.49	54,883	4.95	224,203	7.40
Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss
Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	0	0.00	0	0.00	-56,207	-5.07	-56,207	-1.85
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	6,549	0.69	-4,297	-0.44	-12,370	-1.12	-10,118	-0.33
Other comprehensive income,net	6,549	0.69	-4,297	-0.44	-68,577	-6.19	-66,325	-2.19
Total comprehensive income	83,961	8.81	87,611	9.05	-13,694	-1.24	157,878	5.21
Profit (loss), attributable to owners of parent	77,412	8.12	91,908	9.49	54,883	4.95	224,203	7.40
Comprehensive income attributable to:
5 Comprehensive income, attributable to owners of parent	83,961	8.81	87,611	9.05	-13,694	2 -1.24	018/12/13 157,878	5.21

Statement of Comprehensive Income(QoQ)

Accounting Title	2018/7/1To9/30	%	2018/4/1To6/30	% QoQ(%)	% QoQ(%)
Operatingrevenue	1,108,495	100.00	968,529	100.00	14.45
Operatingcosts	-1,015,763	-91.63	-869,227	-89.75	16.86
Grossprofit(loss)from operations	92,732	8.37	99,302	10.25	-6.62
Operatingexpenses
Sellingexpenses	-12,492	-1.13	-12,065	-1.25	3.54
Administrative expenses	-12,191	-1.10	-13,821	-1.43	-11.79
Research and development expenses	-5,292	-0.48	-5,640	-0.58	-6.17
Total operatingexpenses	-29,975	-2.70	-31,526	-3.26	-4.92
Net operatingincome(loss)	62,757	5.66	67,776	7.00	-7.41
Non-operating income and expenses
Total other income	9,447	0.85	4,022	0.42	134.88
Othergains and losses,net	2,485	0.22	45,325	4.68	-94.52
Finance costs,net	-372	-0.03	-880	-0.09	-57.73
Total non-operating income and expenses	11,560	1.04	48,467	5.00	-76.15
Profit (loss) from continuing operations before tax	74 317 ,	6 70 .	116 243 ,	12 00 .	-36 07 .
Total tax expense(income)	-19,434	-1.75	-24,335	-2.51	-20.14
Profit (loss) from continuing operations	54,883	4.95	91,908	9.49	-40.28
Other comprehensive income
Components of other comprehensive income that will not be reclassified toprofit or loss
Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	-56,207	-5.07	0	0	-
Components of other comprehensive income that will be reclassified toprofit or loss
Exchange differences on translation	-12,370	-1.12	-4,297	-0.44	187.88
Other comprehensive income, net	-68,577	-6.19	-4,297	-0.44	1495.93
Total comprehensive income	-13,694	-1.24	87,611	9.05	-115.63
Profit (loss), attributable to owners of parent	54,883	4.95	91,908	9.49	-40.28
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-13,694	-1.24	87,611	9.05	-115.63
Diluted earnings (loss) per share from continuing operations	0.54		0.90		-40.00
2018/12/13 6

- Statement of Comprehensive Income2018(YoY) 1

Accounting Title	2018/7/1To9/30	%	2017/7/1To9/30	%	YoY(%)
Operatingrevenue
Total operating revenue	1,108,495	100.00	1,753,562	100.00	-36.79
Operatingcosts
Total operatingcosts	-1,015,763	-91.63	-1,716,556	-97.89	-40.83
Gross profit (loss) from operations	92,732	8.37	37,006	2.11	150.59
Operatingexpenses
Sellingexpenses	-12,492	-1.13	-9,578	-0.55	30.42
Administrative expenses	-12,191	-1.10	-9,211	-0.53	32.35
Research and development expenses	-5,292	-0.48	-5,411	-0.31	-2.20
Total operatingexpenses	-29,975	-2.70	-24,200	-1.38	23.86
Net operatingincome(loss)	62,757	5.66	12,806	0.73	390.06
Non-operating income and expenses
Other income
Total other income	9,447	0.85	3,230	0.18	192.48
Other gains and losses
Othergains and losses,net	2,485	0.22	-6,398	-0.36	-138.84
Finance costs
Finance costs,net	-372	-0.03	-314	-0.02	18.47
Total non-operating income and expenses	11,560	1.04	-3,482	-0.20	-431.99
Profit (loss) from continuing operations before tax	74,317	6.70	9,324	0.53	697.05
Tax expense(income)
Total tax expense (income)	-19,434	-1.75	820	0.05	-2470.00
Profit(loss)from continuingoperations	54,883	4.95	10,144	0.58	441.04
Profit(loss)	7 54,883	4.95	10,144	2018/ 0.58	12/13 441.04

- Statement of Comprehensive Income2018(YoY) 2

Accounting Title	2018/7/1To9/30	%	2017/7/1To9/30	%	YoY(%)
Other comprehensive income
Components of other comprehensive income that will not be reclassified toprofit or loss
Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	-56,207	-5.07	0	0.00	-
Components of other comprehensive income that will not be reclassified toprofit or loss	-56,207	-5.07	0	0.00	-
Components of other comprehensive income that will be reclassified toprofit or loss
Exchange differences on translation	-12,370	-1.12	5,393	0.31	-329.37
Components of other comprehensive income that will be l ifi d fi l rec ass e topro t or oss	-12,370	-1.12	5,393	0.31	-329.37
Other comprehensive income,net	-68,577	-6.19	5,393	0.31	-1371.59
Total comprehensive income	-13,694	-1.24	15,537	0.89	-188.14
Profit(loss),attributable to:
Profit (loss), attributable to owners of parent	54,883	4.95	10,144	0.58	441.04
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-13,694	-1.24	15,537	0.89	-188.14
Basic earningsper share
Basic earnings (loss) per share from continuing operations	0.54		0.09
Total basic earningsper share	0.54		0.09
Diluted earningsper share
Diluted earnings (loss)per share from continuingoperations	0.54		0.09
8 Total diluted earningsper share	0.54		2 0.09	018/1	2/13

2018 Q3 Consolidated Condensed Balance Sheets-1

	Accounting Title	2018/9/30	%	2017/12/31	%	YTD
	Assets
	Current assets
	Cash and cash equivalents	738,491	32.85%	596,533	30.00	23.80
	Current financial assets at fair value through profit or loss	8,536	0.38%	0	0.00	-
	Accounts receivable, net	224,610	9.99%	316,341	15.91	-29.00
	Accounts receivable due from relatedparties, net	716,502	31.87%	760,762	38.26	-5.82
	Current inventories	225,014	10.01%	114,790	5.77	96.02
	Other current assets	83 054 ,	3 69% .	53 014 ,	2 67 .	56 66 .
	Total current assets	1,996,207	88.79%	1,841,440	92.62	8.40
	Non-current assets
	Non-current financial assets at fair value through other comprehensive income	117,932	5.25%	0	0.00	-
	Property,plant and equipment	123,979	5.51%	134,335	6.76	-7.71
	Deferred tax assets	137	0.01%	1,869	0.09	-92.67
	Other non-current assets	10,057	0.45%	10,596	0.53	-5.09
	Total non-current assets	252,105	11.21%	146,800	7.38	71.73
	Total assets	2,248,312	100.00%	1,988,240	100.00	13.08

2018 Q3 Consolidated Condensed Balance Sheets-2

Accounting Title	2018/9/30	%	2017/12/31	%	YTD
Liabilities
Current liabilities
Current borrowings	37,206	1.65	0	0.00	-
Accounts payable	374,172	16.64	212,724	10.70	75.90
Other payables	56,682	2.52	45,407	2.28	24.83
Current tax liabilities	44,687	1.99	4,374	0.22	921.65
Other current liabilities	3,291	0.15	685	0.03	380.44
Total current liabilities	516,038	22.95	263,190	13.24	96.07
Non-current liabilities
Deferred tax liabilities	0	0	0	0.00	-
Other non-current liabilities	1,365	0.06	1,423	0.07	-4.08
Total non-current liabilities	1,365	0.06	1,423	0.07	-4.08
Total liabilities	517,403	23.01	264,613	13.31	95.53
2018/12/13 10

2018 Q3 Consolidated Condensed Balance Sheets-3

Accounting Title	2018/9/30	%	2017/12/31	%	YTD
Equity
Equity attributable to owners of parent
Total capital stock	1,014,988	45.14	1,092,488	54.95	-7.09
Retained earnings
Legal reserve	97,859	4.35	97,859	4.92	0.00
Special reserve	84,131	3.74	84,131	4.23	0.00
Unappropriated retained earnings (accumulated deficit)	629,559	28.00	478,452	24.06	31.58
Total retained earnings	811,549	36.10	660,442	33.22	22.88
Other equityinterest
Exchange differences on translation of foreign financial statements	-39,421	-1.75	-29,303	-1.47	34.53
Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	-56,207	-2.50	0	0.00	-
Total other equity interest	-95,628	-4.25	-29,303	-1.47	226.34
Total equity	1,730,909	76.99	1,723,627	86.69	0.42
Total liabilities and equity	2,248,312	100.00	1,988,240	100.00	13.08
2018/12/13 11

Financial Ratio

2018.9.30 2017.12.31 23.01% Debt Ratio 24.21% 386.83% Current Ratio 387.62% 343.00% Quick Ratio 346.34% 4.00 AR Turnover 4.07 Da s sales in AR 91.25days 89.75da s y y 21.31 Inventor Turnover 27.59 y Avera e da s in sales 17.13days 13.23da s g y y 96.30% Cash Flow Ratio 70.82%

Consolidated Condensed Cash Flow Statements

Accounting Title	2018/1/1To9/30	2017/1/1To9/30
Cash flows from(used in)operatingactivities,indirect method
Profit(loss)from continuingoperations before tax	266,672	-45,900
Adjustments
Depreciation expense	9,012	9,356
Net loss (gain) on financial assets or liabilities at fair value throughprofit or loss	-415	0
Interest expense	1,705	1,206
Interest income	-3,774	-1,154
Dividend income	-4,340	0
Loss(gain)on disposal ofproperty, plan and equipment	17	50
T t l dj t t t il fit(l ) o a a us men s o reconc epro oss	2 205 ,	9 458 ,
Changes in operatingassets and liabilities
Changes in operatingassets
Decrease (increase) in financial assets at fair value through profit or loss,mandatorilymeasured at fairvalue	-8,121	0
Decrease(increase)in accounts receivable	91,408	309,597
Decrease (increase) in accounts receivable due from related parties	44,260	77,223
Decrease(increase)in other receivable	-139	18
Decrease(increase)in inventories	-110,224	-41,809
Decrease(increase)inprepayments	0	1,552
Decrease(increase)in other current assets	675	8,201
Decrease(increase)in other operatingassets	539	248
13 Total changes in operatingassets	18,398	2018/12/13 355,030

Consolidated Condensed Cash Flow Statements

Changes in operating liabilities
Increase (decrease) in accounts payable	161,448	103,158
Increase (decrease) in other payable	11,248	-17,336
Increase (decrease) in other current liabilities	2,607	123
Total changes in operating liabilities	175,303	85,945
Total changes in operating assets and liabilities	193,701	440,975
Total adjustments	195,906	450,433
Cash inflow (outflow) generated from operations	462,578	404,533
Interest received	3,724	1,154
Dividends received	4,340	0
Interest paid	-1,679	-1,227
Income taxes refund (paid)	-424	-13,469
Net cash flows from (used in) operating activities	468,539	390,991
2018/12/13 14

Consolidated Condensed Cash Flow Statements

Cash flows from (used in) investingactivities
Acquisition of financial assets at fair value through other comprehensive income	-174,139	0
Acquisition ofproperty, plant and equipment	-2,159	-2,228
Proceeds from disposal ofproperty, plant and equipment	0	18
Increase in other non-current assets	-30,526	0
Decrease in other non-current assets	0	5,833
Other investingactivities	0	7
Net cash flows from(used in)investingactivities	-206,824	3,630
Cash flows from (used in) financingactivities
Decrease in short-term loans	37,206	-76,533
Decrease inguarantee deposits received	-58	616
Cash dividendspaid	0	-16,387
Payments to acquire treasuryshares	-150,273	0
Net cash flows from(used in)financingactivities	-113,125	-92,304
Effect of exchange rate changes on cash and cash equivalents	-6,632	-3,176
Net increase(decrease)in cash and cash equivalents	141,958	299,141
Cash and cash equivalents at beginningofperiod	596,533	342,688
Cash and cash equivalents at end ofperiod	738,491	641,829
Cash and cash equivalents reported in the statement of financial position	738,491	641,829
2018/12/13 15

2019 Prospect

• Focus and invest in Blockchain Application Technology& AI System Integration

• Blockchain development Dep

Invest in AI

Focus on AI SERVER SI & Blockchain Application Technology

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A New Department of AI/Blockchain Application

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Investment

• Blockchain development Dep established

in June

• 9/25 B oar d o f Di t t i t rec ors agrees o nves

• USD 500,000 in Cloud Mile

• Invest in in blockchain application technology and AI system integration continuously .

Product Information

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iGame GTX1080Ti Vulcan X OC

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iGame GTX1080Ti Vulcan X OC

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iGame1080 U-8GD5X Top

GPU GP104, 16nm CUDA core 2560 1607/ 1733(bst) MHz core frequency 1645 /1784(bst) MHz Memory feature 8GB / 256-bit GDDR5X Memory frequency 10,010 MHz - - Power onnecC tor 8 pin+8 pin Thermal Design Power TDP 180W DL-DVI-D+ HDMI 2.0b Display Ports 3 x Displayport 1.4 Connecting PCI Express 3.0 Finger API DX 12 / OGL 4.5 other GPU Boost 3.0

iGame1070 U TOP-8GD5

specification GPU code GP104 Transistor 16nm technolo gy CUDA core 1920 1506/1683 MHz Core frequency 1569/1759 MHz Memory frequency 8000MHz Memory spec 8G @ 256bit bus interfacing PCI-E 3.0 DirectX 12.0 DVI-D + 3 x DP+ HDMI 2.0 Video interface TDP 150W

iGame1060 U-6GD5 Top

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25 2018/12/13
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THANK YOU