CHAINTECH — Interim / Quarterly Report 2022

Dec 16, 2022

Chaintech Technology Corporation

Investment Conference

2022.12.16

Declaration

The Information in this document will
not contain financial forecasts and all
is available on TSE MOPS.

Contents

1. Product Portfolio……………………………………………P.4

2. Statement of Comprehensive Income………………………P.5

3. Consolidated Condensed Balance Sheets…………………P.7

4. Financial Ratio………………………………………………P.9

5. Consolidated Condensed Cash Flow Statements…………P.10

6. Prospect for 2023……………………………………………P.11

1. Product Portfolio

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Operating Revenue from 2022 Q1 to Q3

Operating Revenue of 2021

VGA	M/B	AI- Server	Computer- Peripherals	Other	Total
38.72%	14.19%	19.63%	23.35%	4.10%	100.00%

VGA	M/B	AI-Server	Computer- Peripherals	Other	Total
39.88%	12.38%	21.82%	24.45%	1.47%	100.00%

2. Statement of Comprehensive Income(QoQ)

Unit: KNTD

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Accounting Title 2022 Q3 2022 Q2 QoQ(%)
Operating revenue 1,619,038 100% 1,625,793 100% (6,755) 0%
Operating costs (1,425,381) -88% (1,459,541) -90% 34,160 2%
Gross Profit (loss) from operations 193,657 12% 166,252 10% 27,405 2%
Operating expense
Selling expenses (41,005) -3% (38,421) -2% (2,584) 0%
Administrative expenses (44,312) -3% (41,620) -3% (2,692) 0%
Research and development expenses (10,211) -1% (6,482) 0% (3,729) 0%
Impairment loss determined in
6,571 0% 8,246 1% (1,675) 0%
accordance with IFRS9
Total operating expenses (88,957) -5% (78,277) -5% (10,680) -1%
Net operating income (loss) 104,700 6% 87,975 5% 16,725 1%
Total Non-operating income and
86,308 5% 35,942 2% 50,366 3%
expenses
Profit (loss) from continuing
191,008 12% 123,917 8% 67,091 4%
operations before tax
Total tax expense (income) (29,241) -2% (23,131) -1% (6,110) 0%
Profit (loss) from continuing
161,767 10% 100,786 6% 60,981 4%
operations
Profit (loss), attributable to
owners of parent 144,679 9% 101,387 6% 43,292 3%
non-controlling interests 17,088 1% (601) 0% 17,689 1%
Profit (loss) 161,767 10% 100,786 6% 60,981 4%
Diluted earnings (loss) per share 1.50 1.05
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Source: Consolidated condensed financial report reviewed by public accountants

2. Statement of Comprehensive Income(YoY)

Unit: KNTD

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Accounting Title 2022 Q3 2021 Q3 2022 Q1-Q3 2021 Q1-Q3 Q3 YoY(%) Q1-Q3 YOY(%)
Operating revenue 1,619,038 100% 1,766,067 100% 4,697,112 100% 4,541,547 100% (147,029) -8% 155,565 3%
Operating costs (1,425,381) -88% (1,592,008) -90% (4,198,632) -89% (4,072,295) -90% 166,627 9% (126,337) -3%
Gross Profit (loss) from operations 193,657 12% 174,059 10% 498,480 11% 469,252 10% 19,598 1% 29,228 1%
Operating expense
Selling expenses (41,005) -3% (35,950) -2% (111,787) -2% (109,109) -2% (5,055) 0% (2,678) 0%
Administrative expenses (44,312) -3% (25,748) -1% (116,974) -2% (62,764) -1% (18,564) -1% (54,210) -1%
Research and development expenses (10,211) -1% (5,468) 0% (21,835) 0% (15,840) 0% (4,743) 0% (5,995) 0%
Impairment loss determined in
accordance with IFRS9 6,571 0% (5,514) 0% 11,960 0% (23,541) -1% 12,085 1% 35,501 1%
Total operating expenses (88,957) -5% (72,680) -4% (238,636) -5% (211,254) -5% (16,277) -1% (27,382) -1%
Net operating income (loss) 104,700 6% 101,379 6% 259,844 6% 257,998 6% 3,321 0% 1,846 0%
Total Non-operating income and
86,308 5% (33,201) -2% 151,782 3% (134,667) -3% 119,509 7% 286,449 6%
expenses
Profit (loss) from continuing
operations before tax 191,008 12% 68,178 4% 411,626 9% 123,331 3% 122,830 7% 288,295 6%
Total tax expense (income) (29,241) -2% (21,745) -1% (73,466) -2% (29,680) -1% (7,496) 0% (43,786) -1%
Profit (loss) from continuing
operations 161,767 10% 46,433 3% 338,160 7% 93,651 2% 115,334 7% 244,509 5%
Profit (loss), attributable to
owners of parent 144,679 9% 38,161 2% 315,049 7% 57,129 1% 106,518 6% 257,920 6%
non-controlling interests 17,088 1% 8,272 0% 23,111 0% 36,522 1% 8,816 0% (13,411) 0%
Profit (loss) 161,767 10% 46,433 3% 338,160 7% 93,651 2% 115,334 7% 244,509 5%
Diluted earnings (loss) per share 1.50 0.40 3.26 0.59
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Source: Consolidated condensed financial report reviewed by public accountants

3. 2022 Q3 Consolidated Condensed Balance Sheets (YOY)-1

Unit: KNTD

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Compared with
Accounting Title 111.09.30 % 110.12.31 % 110.09.30 % the end of the YOY(%)
last yea(%)
Assets
Current assets
Cash and cash equivalents 605,437 18% 692,998 20% 501,242 17% (87,561) -13% 104,195 21%
Current financial assets at
fair value through profit or 122,336 4% 64,204 2% 67,072 2% 58,132 91% 55,264 82%
loss
Notes and Accounts receivable 600,101 17% 645,541 19% 541,398 18% (45,440) -7% 58,703 11%
Accounts receivable due from
763,520 22% 736,800 22% 774,476 26% 26,720 4% (10,956) -1%
related parties
Current inventories 606,805 18% 512,277 15% 451,365 15% 94,528 18% 155,440 34%
Prepayments 252,638 7% 209,603 6% 105,580 4% 43,035 21% 147,058 139%
Other current assets 37,775 1% 40,704 1% 50,498 2% (2,929) -7% (12,723) -25%
Total current assets 2,988,612 87% 2,902,127 85% 2,491,631 84% 86,485 3% 496,981 20%
Non-current assets
Non-current financial assets
at fair value through other 137,198 4% 200,485 6% 173,645 6% (63,287) -32% (36,447) -21%
comprehensive income
Investments accounted for
- - - - 11,497 0% - - (11,497) -100%
using equity method
Property, plant and equipment 22,348 1% 23,158 1% 17,319 1% (810) -3% 5,029 29%
Right-of-use assets 45,345 1% 37,312 1% 39,568 1% 8,033 22% 5,777 15%
Intangible assets 174,164 5% 168,525 5% 168,385 6% 5,639 3% 5,779 3%
Deferred tax assets 29,829 1% 20,773 1% 19,147 1% 9,056 44% 10,682 56%
Other non-current assets 49,866 1% 48,960 1% 49,441 2% 906 2% 425 1%
Total non-current assets 458,750 13% 499,213 15% 479,002 16% (40,463) -8% (20,252) -4%
Total assets 3,447,362 100% 3,401,340 100% 2,970,633 100% 46,022 1% 476,729 16%
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Source: Consolidated condensed financial report reviewed by public accountants

3. 2022 Q3 Consolidated Condensed Balance Sheets (YOY)-2

Unit: KNTD

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Compared with
Accounting Title 111.09.30 % 110.12.31 % 110.09.30 % the end of the YOY(%)
last year(%)
Liabilities
Current liabilities
Current borrowings 133,490 4% 226,840 7% 352,089 12% (93,350) -41% (218,599) -62%
Current contract liabilities 112,214 3% 111,677 3% 52,089 2% 537 0% 60,125 115%
Notes and accounts payable 673,139 20% 773,498 23% 444,453 15% (100,359) -13% 228,686 51%
Other payables 107,565 3% 119,526 4% 66,032 2% (11,961) -10% 41,533 63%
Current tax liabilities 67,246 2% 54,318 2% 38,159 1% 12,928 24% 29,087 76%
Current lease liabilities 46,238 1% 37,885 1% 39,995 1% 8,353 22% 6,243 16%
Other current liabilities 211 0% 15,457 0% 6,907 0% (15,246) -99% (6,696) -97%
Non-current liabilities 8,780 0% 5,078 0% 16,900 1% 3,702 73% (8,120) -48%
Total liabilities 1,148,883 33% 1,344,279 40% 1,016,624 34% (195,396) -15% 132,259 13%
Equity 0%
Total share capital 1,014,988 29% 1,014,988 30% 1,014,988 34% - - - -
Total capital surplus 100 0% 100 0% 100 0% - - - -
Legal reserve 159,534 5% 147,312 4% 147,312 5% 12,222 8% 12,222 8%
Special reserve 29,249 1% 39,701 1% 39,701 1% (10,452) -26% (10,452) -26%
undistributed earnings 727,969 21% 665,414 20% 665,415 22% 62,555 9% 62,554 9%
Current profit and loss 315,049 9% 122,224 4% 57,129 2% 192,825 158% 257,920 451%
Total other equity interest (75,701) -2% (29,249) -1% (61,045) -2% (46,452) 159% (14,656) 24%
Treasury shares (151,746) -4% (151,746) -4% (151,746) -5% - - - -
Total equity attributable to
2,019,442 59% 1,808,744 53% 1,711,854 58%
owners of parent 210,698 12% [ 307,588 ] 18%
Nom-controlling interests 279,037 8% 248,317 7% 242,155 8% 30,720 12% [ 36,882 ] 15%
Total equity 2,298,479 67% 2,057,061 60% 1,954,009 66% 241,418 12% 344,470 18%
Total liabilities and equity 3,447,362 100% 3,401,340 100% 2,970,633 100% 46,022 -30% 476,729 -314%
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Source: Consolidated condensed financial report reviewed by public accountants

4. 2022 Q3 Financial Ratio

ˋ	2022 Q1-Q3	2021
Debt ratio	33.33%	39.52%
Current ratio	267.96%	220.57%
Quick ratio	164.00%	165.71%
AR turnover	4.84	4.76
Days sales in AR	75.39 days	76.68days
Inventory turnover	9.87	14.58
Average days in sales	36.98 days	25.03days

5. 2022 Q3 Consolidated Condensed Statements of Cash Flows

Unit: KNTD

Accounting Title	2022 Q1-Q3	2021 Q1-Q3
Cash flows from operating activities	83,123	295,035
Cash flows from investing activities	(16,825)	11,865
Cash flows from financing activities	(166,323)	(100,884)
Effect of exchange rate changes on cash and cash equivalents	12,464	(34,861)
Net increase (decrease) in cash and cash equivalents	(87,561)	171,155
Cash and cash equivalents at beginning of period	692,998	330,087
Cash and cash equivalents at end of period	605,437	501,242

Source: Consolidated condensed financial report reviewed by public accountants

6. Prospect for 2023

• Graphics cards will accelerate destocking in the first half of 2023, but Chaintech’s inventory is still within reasonable scope for its stable orders.

• • AI-Server market will grow continuously.

• Supported by national policies, the demand for universities and scientific research institutions has steadily increased.

• – The ban on NV AI GPU sales in China has not yet had a major impact, and we will pay attention to follow-up policies.

• • R & D center was established, focusing on the research and development of high-end motherboards.

Focusing on the demand for AI-Server SI & Application Revenue Proportion of Sitonholy (Tianjin) by industry in 2022 VS 2021

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2022 Enterprise Client Case 1 Edge Server Application

AML, Anti-Money KYC, Laundering Know Your Covid-19 Customer

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2022 Enterprise Client Case 2 AI-Server for FPS

Founded in 2017 August

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Core Technology of IR&D Reinforcement Learning Deep Learning Cloud Computing

AI Virtual Player Master all playing methods One Month Training Period

2022 Colleges and Universities Case 1 Construction of AI Lab of Xidian University

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2022 Colleges and Universities Case 2
Construction of the Computing Platform of the
School of Information Science and Engineering,
Shandong University

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Product Information

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SITONHOLY Hardware products

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SITONHOLY Software product

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THANK YOU