CLEVO CO. — Interim / Quarterly Report 2021

Jun 30, 2021

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CLEVO

30[th] June 2021

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Disclaimer

• Part of this Briefing Material is complied based on the financial statement approved by a CPA. The complete contents and data shall be determined according to the financial statement.

• The information provided in the brief may contain prospective statements and actual results may be different from these statements. The information provided in the brief does not express or guarantee ,explicitly or implicitly , its correctness or completeness nor represent our complete statement about the industry or any subsequent development.

• This brief shall not be acquired or used by any third party without our permission.

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CONTENTS PAGE

01 Company Overview 02 2021 Q1 Financial Result 03 NB 04 Buynow 05 Chicony Square 06 Taipei Twin Towers 07 Future Prospects

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01. Company Overview

• Chairman：Hsu, Kun-Tai

• GM：Tsai, Ming-Hsien

• Share capital：NTD 6.697 billion(2021.3.31) (Number of shares after deducting treasury shares: 595,216 thousand shares)

• Date of Incorporation ：October 4, 1983

• Date of Listed ：April 2, 1997

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Overview of CLEVO CO. Established in 1 1983 2 4

Net Assets is 2 NTD 40.2bn.

Commercial Real Estate is 1.9M m[2 ] (including 39 properties)

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5 Market Value of Real Estate is NTD 133.9bn.

Buynow is The Top One IT mall in China.

Date ： 2021.03.31

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Consist of Four Business Operations

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Clevo Co.
TWSE ： 2362
100% 100% 30% 50%
NB Buynow Chicony Square Taipei Twin Towers
ODM/OEM of NB IT Mall Department Store
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02. 2021 Q1 Financial Result

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O erational Results of 2021 Q1 p

Unit :NTD/M 2020 Q4 Amount	2021 Q1 Amount	QoQ YoY % % 2020 Q1 Amount
Operating revenue 5,467	5,604	3 3,428 63
Operating costs 4,471	4,336	(3) 2,480 75
Net operating margin 996	1,268	27 948 34
Operating margin(%) 18%	23%	5% 28% -5%
Operating expenses 799	741	(7) 649 14
Operating profit 197	527	168 300 76
Operating profit(%) 4%	10%	6% 9% 1%
Non-operating income(expenses) (89)	(91)	2 (434) 79
Profit(Loss) before income tax 108	435	303 (135) 422
Income tax (241)	115	(148) 58 98
Net income 349	320	(8) (193) (266)
Net income(%) 6% EPS (NTD/Dollars) 0.58 Weighted average number of ordinary shares outstanding (million shars) 596	6% 0.54 595	0% -6% 12% (0.32) 605

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Consolidated Revenue Overview

72% 23% 5% 0% 2020Q1 81% 16% 3% 0% 2020Q4 84% 15% 1% 0% 2021 Q1	72% 23% 5% 0% 2020Q1 81% 16% 3% 0% 2020Q4 84% 15% 1% 0% 2021 Q1	72% 23% 5% 0% 2020Q1 81% 16% 3% 0% 2020Q4 84% 15% 1% 0% 2021 Q1	72% 23% 5% 0% 2020Q1 81% 16% 3% 0% 2020Q4 84% 15% 1% 0% 2021 Q1	72% 23% 5% 0% 2020Q1 81% 16% 3% 0% 2020Q4 84% 15% 1% 0% 2021 Q1
Unit : NTD/M Unit : Thousand
Item 2020 Q1 2020Q4	2021Q1	QoQ YoY Currency 2020 Q1 2020Q4	2021Q1	QoQ YoY
NB 2,486 4,425	4,706	6% 89% -5% 7% USD 82,520 154,001 CNY 180,777 202,298	167,142 192,121	9% 103% -5% 6%
Rental 781 874	832
Assets 155 146	62	-58% -60% CNY 35,966 34,123	14,407	-58% -60%
Other 6 22	4	-82% -33% CNY 1,391 5,127	750	-85% -46%
Total 3,428 5,467	5,604	3% 63%

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Operating Profit Overview

Unit : NTD/M

	'20 Q1	'20 Q4	'21 Q1	QoQ	YoY
NB	39	166	305	84%	682%
Rental	298	267	264	-1%	-11%
Assets	-17	-217	-16	93%	6%
Other	-20	-19	-26	-39%	-32%
Total	300	197	527	167%	76%

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- Non operating Income and Expenses

Non-operating Income and Expenses	Non-operating Income and Expenses
Unit: NTD/M
Item 2020 Q1 2020Q4	2021Q1
Share of profit/(loss) of associates and joint ventures accounted for under equity method (113) 104	34
Gains(Losses) on fair value adjustment, investment property 0 47	0
Gains (losses) on disposals of property, plant, and equipment 0 (55)	0
Interest income (expense) (233) (192)	(154)
Investment Gians (Losses) (118) (28)	83
Foreign exchange (Losses) gains 2 (66)	(77)
Other income 28 101	23
Total (434) (89)	(91)

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03.NB

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– NB Focus on Clone Market

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• Market：Clone NB

• Product：Highly customized (mid to high-end & gaming)

• Production：Highly flexible (high mix, low volume)

• Customer：Local king (around 100 customers)

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(Quality & Quick)

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Benefited from strong demand for the remote market, the growth of sales units in America and Asia Pacific exceeded 300% in 2021 Q1.

Volume and Proportion of Sales units in each Region

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YoY:96%
Europe
Europe
America 42,172
YoY:178% 117,058
10,348 19% China
China 27%
5% 168,506
85,904
38%
38% 2021 Q1
2020 Q1
Asia Pacific
America 440K
13,774 223K
YoY:336% 48,227
6%
11%
Japan&Korea
Japan&Korea Asia Pacific
50,746
71,256 55,698
YoY:304% 11%
32% 13%
YoY:-29%
Clevo NB Business
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Data From ： Clevo NB Business

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NB business revenue grows steadily, revenue YoY+89%, sales units YoY+97% in 2021 Q1.

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Revenue
(NTD/M)
Sales Revenue Sales Units
5,000 500
4,000 400
3,000 300
2,000 200
1,000 100
0
2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1
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Sales Units (thousand)

Data From ： Clevo NB Business

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The proportion of Blue Ocean exceeded 60% and Operating Profit increased to 6.5% in 2021 Q1.

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Blue Ocean % Operating Profit%
70% 7.0%
6.0%
60%60%
5.0%
50%
4.0%
3.0%
40%
2.0%
30%
1.0%
20% 0.0%
2017 2018 2019 2020 2021 Q1
EPS 0.28 0.75 0.66 1.35 0.51
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Data From ： Clevo NB Business

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04.Buynow

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BUYNOW – Compound IT Malls Operator

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1983 1998 2021 Clevo First Buynow store 18 IT malls founded opened in Shanghai 11 Rental Properties

Overview

• Buynow, a 100% owned Subsidiary of Clevo, has become the top IT mall in China, and it has been awarded “ China Well-known Trademark" in 2007.

• Buynow has opened large-scale composite IT malls in 18 central cities across China, and has earned recognition from tenants and customer through providing professional space planning for IT mall, convenient shopping environment, and high value added service.

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Performance of IT Mall in 2019~2021Q1

Unit: CNY/K

Revenue

Net Income

		Revenue	Revenue	Revenue	Revenue
4S 14S 200,000 400,000 600,000
		2019	2020	2020Q1	2021Q1
	4S	61,918	42,632	10,292	10,654
	14S	518,534	456,176	120,060	118,417

	Net Income	Net Income	Net Income	Net Income
236000
-14,000 36,000 86,000 136,000 186,000 ,
	2019	2020	2020Q1	2021Q1
4S	(10,864)	(13,458)	(5,751)	(4,400)
14S	224,006	217,022	64,021	61,888
14S EPS (NTD/元) 14S EPS (NTD/Dollar)	1.64	1.56	0.46	0.45

Average occupancy rate of 14S ： 95%

Plan to sell the 4 stores with unsatisfactory operating performance, Concentrate resources to increase revenue and reduce expenditure to boost 14 profitable stores.

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Sales of Properties

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Sold out in Sold out in Sold out in
Mar. 2019 Nov. 2018 Jun. 2020
100%
90%
80%
'23(F)
70%
'22(F)
60%
'21(F)
50%
'20(A)
40%
'19(A)
30%
'18(A)
20% '17(A)
10%
0%
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Luoyang Quanzhou Dezhou Shantou Anshan

Jinzhou Luoyang II

CNY/M	2016(A)	2017(A)	2018(A)	2019(A)	2020(A)	2021Q1(A)
Revenue	138	494	201	574	197	15

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05.Chicony Square

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CHICONY SQUARE Clevo holds 30% share

Chicony Square mainly operates 4 department stores and 1 international high-end hotel. The real estate MV of the four buildings (including Chengdu Grand Hyatt) is approximately NT$57.2 bn.

Total GFA：677,900m[2]

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Chengdu
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Shopping Mall GFA：393,225m[2] Hotel GFA：69,549m[2] 4,114 parking spaces

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4,114 parking spaces (For Rent or Sale)
Wuhan Xian Shantou
Wuhan Ⅰopened Chengdu opened Opened
in September 2003 in October 2010 in November 2017
Opened
Wuhan Ⅱopened Hyatt Hotel opened Closed in June 2019
in September 2018 in July 2016 in December 2019
2021 Q1： 2021 Q1：
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2021 Q1： EBITDA CNY 93M

2021 Q1： EBITDA CNY 46M

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Performance of Chicony Square

				Unit：CNY/K
	Store	2021 Q1	2020 Q1 YoY	2020 Q4 QoQ
	Wuhan	748,738	221,095 239%	1,070,541 -30%
	Chengdu	439,274	213,406 106%	584,798 -25%
Sales	Xian	3,753	5,910 -37%	4,092 -8%
Revenue	Shantou	104,013	60,742 71%	106,038 -2%
	Hotel	18,992	11,006 73%	34,485 -45%
	Other	18,641	16,960 10%	16,841 11%
	Total	1,333,412	529,119 152%	1,816,795 -27%
	Store	2021 Q1	2020 Q1 YoY	2020 Q4 QoQ
	Wuhan	62,298	3,419 1722%	87,459 -29%
	Chengdu	31,940	163 19487%	47,361 -33%
Net	Xian	(25,716)	(29,427) 13%	(24,919) -3%
Income	Shantou	(16,215)	(14,937) -9%	(15,119) -7%
	Hotel	(17,231)	(32,689) 47%	2,094 -923%
	Other	(5,844)	(12,277) 52%	(13,075) 55%
	Total	29,232	(85,748) 134%	83,801 -65%

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Group Commercial Real Estate

Rental Operating Chicony Properties Properties Square = + +

NTD 133.9bn

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Headquarters 11 Rental Properties 3 Department Stores & + + 39 Factory 2 under construction 1Hyatt Hotel Properties + + + 18 IT malls 1 For sale 1 For rent or sale

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06. TAIPEI TWIN TOWERS

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Taipei Twin Towers

• Contract date :2019.12.17

• Estimated date of Building permit：2021.08.26

• Estimated date of beginning construction :2022.01.30

• C1 Construction period :1,339 Days Estimated date of completion:2025.12.01

• D1 Construction period :1,718 Days Estimated date of completion:2026.12.14

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New Gateway to Taiwan Taipei Twin Towers New Start of Taipei

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07. Future Prospects

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Future Prospects

Profit Generation Potential Value

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NB
Clone No.1
Assets
Buynow Chicony
activation
IT Mall Square
&
China 3S 30%
Cash inflow
No.1 Flourishing
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Taipei Twin Towers
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CLEVO BPS@NTD 67.5 Dollars
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Date ： 2021.03.31

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