CLEVO CO. — Interim / Quarterly Report 2020

Mar 29, 2021

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CLEVO

29[th] March 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 2020 Q4 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 (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 39.9bn.

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

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5 Market Value of Real Estate is NTD 133.3bn.

Buynow is The Top One IT mall in China.

Date ： 2020.09.30

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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. 2020 Q4 Financial Result

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O erational Results of 2020 Q4 p

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Unit :NTD/M 2020 Q1 2020 Q2 2020 Q3 2020 Q4 QoQ 2019 Q4 YoY
Amount Amount Amount Amount % Amount %
Operating revenue 3,428 5,567 5,777 5,467 (5) 5,297 3
Operating costs 2,480 4,315 4,617 4,471 (3) 4,135 8
Net operating margin 948 1,252 1,160 996 (14) 1,163 (14)
Operating margin(%) 28% 22% 20% 18% 22%
Operating expenses 649 635 798 798 0 933 (14)
Operating profit 300 617 362 197 (46) 230 (14)
Operating profit(%) 9% 11% 7% 4% 4%
Non-operating
(434) (206) (51) (89) 75 (261) 66
income(expenses)
Profit(Loss) before
(135) 411 311 109 (65) (31) 455
income tax
Income tax 58 112 100 (241) (341) 126 (291)
Net income (193) 299 212 349 65 (157) 322
Net income(%) -6% 5% 4% 6% -3%
EPS (NTD/Dollars) (0.32) 0.50 0.36 0.58 (0.25)
Weighted average
number of ordinary
605 596 596 596 605
shares outstanding
(million shars)
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O erational Results of 2020 p

Unit: NTD/M	% 2020 Amount	YoY % % 2019 Amount
Operating revenue	20,239 100	21,901 100 (8)
Operating costs	15,883 79	16,850 77 (6)
Net operating margin	4,356 21	5,051 23 (14)
operating expenses	2,880 14	4,167 19 (31)
Operating profit	1,476 7	884 4 67
Non-operating income (expenses)	(780) (4)	875 4 (189)
Profit(Loss) before income tax	696 3	1,760 8 (60)
Income tax expense	29 0	686 3 (96)
Net income	667 3	1,074 5 (38)
EPS (NTD/Dollar) Weighted average number of ordinary shares outstanding (million shares)	1.12 598	1.75 611

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Consolidated Revenue Overview 1

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Unit:Thousand Currency 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ Unit :NTD/M Item 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ 72% 23%5% 0% Q1 85% 13% 2% 0% Q2 80% 13%7% 0% Q3 81% 16%3% 0% Q4	Unit:Thousand Currency 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ Unit :NTD/M Item 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ 72% 23%5% 0% Q1 85% 13% 2% 0% Q2 80% 13%7% 0% Q3 81% 16%3% 0% Q4	Unit:Thousand Currency 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ Unit :NTD/M Item 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ 72% 23%5% 0% Q1 85% 13% 2% 0% Q2 80% 13%7% 0% Q3 81% 16%3% 0% Q4	Unit:Thousand Currency 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ Unit :NTD/M Item 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ 72% 23%5% 0% Q1 85% 13% 2% 0% Q2 80% 13%7% 0% Q3 81% 16%3% 0% Q4	Unit:Thousand Currency 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ Unit :NTD/M Item 2020 Q1 2020 Q2 2020Q3 2020Q4 QoQ 72% 23%5% 0% Q1 85% 13% 2% 0% Q2 80% 13%7% 0% Q3 81% 16%3% 0% Q4
	2020Q4		2020Q4	QoQ
NB 2,486 4,710 4,592	4,425	USD 82,520 157,659 156,088 -4%	154,001	-1%
Rental 781 729 746	874	CNY 180,777 172,828 175,817 17%	202,298	15%
Assets 155 117 419 Other 6 11 20	146 22	CNY 35,966 27,784 98,998 CNY 1,391 2,643 4,677 -65% 10%	34,123	-66%
			5,127	10%
Total 3,428 5,567 5,777	5,467	-5%

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Consolidated Revenue Overview 2

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80% 16% 4% 0% 2020 70% 16% 12% 2% 2019	80% 16% 4% 0% 2020 70% 16% 12% 2% 2019	80% 16% 4% 0% 2020 70% 16% 12% 2% 2019	80% 16% 4% 0% 2020 70% 16% 12% 2% 2019	80% 16% 4% 0% 2020 70% 16% 12% 2% 2019
Unit : Thousand Unit: NTD/M
Item	2020	Currency USD 2019 YoY 15,377 5%	2020 550,268	2019 YoY 497,590 11%
NB	16,213
Rental	3,129	CNY 3,562 -12%	731,719	793,809 -8%
Assets	838	CNY 2,596 -68%	196,871	574,134 -66%
Other	59	CNY 366 -84%	13,838	80,695 -83%
Total	20,239	21,901 -8%

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Operating Profit Overview

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Unit : NTD/M
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									Unit : NTD/
	'20 Q1	'20 Q2	'20 Q3	'20 Q4	QoQ		'20	'19	YoY
NB	39	382	223	166	-26%		810	403	101%
Rental	298	265	181	267	48%		1,011	1,075	-6%
Assets	-17	-9	-29	-217	-648%		-272	-262	-4%
Other	-20	-21	-13	-19	-46%		-73	-332	78%
Total	300	617	362	197	-46%		1,476	884	67%

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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 2020 Q2 2020Q3 2020Q4	2020 2019
Share of profit/(loss) of associates and joint ventures accounted for under equity method (113) (38) 89 104	42 167
Gains(Losses) on fair value adjustment, investment property 0 (17) (86) 47	(56) 767
Gains (losses) on disposals of property, plant, and equipment 0 (4) 0 (55)	(59) 304
Interest income (expense) (233) (207) (209) (192)	(841) (904)
Investment Gians (Losses) (118) 289 65 (28)	208 714
Foreign exchange (Losses) gains 2 (248) 68 (66)	(244) (360)
Other income 28 19 22 101	170 187
Total (434) (206) (51) (89)	(780) 875

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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 Europe and Asia Pacific exceeded 70%.

Volume and Proportion of Sales units in each Region

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YoY:-30%
Europe
Europe
224,655
America YoY:70% 381,286 China
16%
97,505 25% 505,145
7% 33%
America
2019 China 2020
Asia Pacific 94,559
718,182
126,095 1,405K 6% 1,518K
51%
9%
YoY:-3%
Asia Pacific
Japan&Korea
Japan&Korea
223,054
238,438
314,207
YoY:77% 1 5%
17%
21%
YoY:32%
NB Business
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Data From ： Clevo NB Business

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NB business revenue grows steadily, revenue YoY+5%, sales units YoY+8%.

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Revenue Sales Units
(NTD/M) (thousand)
Sales Revunue Sales Units
5,000 500
4,000 400
3,000 300
2,000 200
1,000 100
0
2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4
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Data From ： Clevo NB Business

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The proportion of Blue Ocean exceeded 50% and Operating Profit increased to 5%.

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Blue Ocean % Operating Proift%
70%
5.0%
60%
50%
2.5%
40%
30%
20% 0.0%
2017 2018 2019 2020
EPS 0.28 0.75 0.66 1.35
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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 2020 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 2018~2020

Unit: CNY/K

Revenue

		Revenue	Revenue	Revenue
4S 14S 200,000 400,000 600,000 800,000
		2018	2019	2020
	4S	78,528	61,918	42,632
	14S	551,591	518,534	456,176

Net Income

	Net Income	Net Income	Net Income
236000	2018 2019 2020 (3,933) (10,864) (13,458) 243,217 224,006 217,022 1.77 1.64 1.56
-14,000 36,000 86,000 136,000 186,000 ,
	2018	2019	2020
4S	(3,933)	(10,864)	(13,458)
14S	243,217	224,006	217,022
14S EPS (NTD/Dollar)	1.77	1.64	1.56

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%
Luoyang Quanzhou Dezhou Shantou Anshan Jinzhou Luoyang II
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CNY/M	2016(A)	2017(A)	2018(A)	2019(A)	2020(A)
Revenue	138	494	201	574	197

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Buildings Held for Sale
CNY 572M
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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$57.1 bn. Total GFA：677,900m[2]

Chengdu

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
Wuhan Ⅰopened Chengdu opened Opened
in September 2003 in October 2010 in November 2017
Wuhan Ⅱopened Hyatt Hotel opened Closed
in September 2018 in July 2016 in December 2019
2020：EBITDA CNY 279M 2020：EBITDA CNY 157M
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Shantou
Opened
in June 2019
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Performance of Chicony Square

					Unit：CNY/K
	Store	2020Q1 2020Q2 2020 Q3	2020 Q4	QoQ	2020 2019 YoY
	Wuhan	221,095 393,415 614,178	1,070,541	74%	2,299,229 3,095,562 -26%
	Chengdu	213,406 327,738 402,285	584,798	45%	1,528,227 1,704,057 -10%
Sales	Xian	5,910 3,105 3,847	4,092	6%	16,954 369,138 -95%
Revenue	Shantou	60,742 75,166 88,205	106,038	20%	330,152 198,833 66%
	Hotel	11,006 19,102 41,765	34,485	-17%	106,358 147,267 -28%
	Other	16,960 4,692 15,407	16,841	9%	53,899 74,273 -27%
	Total	529,119 823,219 1,165,688	1,816,795	56%	4,334,820 5,589,129 -22%
	Store	2020Q1 2020Q2 2020 Q3	2020 Q4	QoQ	2020 2019 YoY
	Wuhan	3,419 34,574 71,809	87,459	22%	197,261 289,000 -32%
	Chengdu	163 20,970 47,888	47,361	-1%	116,383 120,774 -4%
Net	Xian	(29,427) (29,488) (24,752)	(24,919)	-1%	(108,586) (162,154) 33%
Income	Shantou	(14,937) (13,464) (13,164)	(15,119)	-15%	(56,683) (26,838) -111%
	Hotel	(32,689) (19,256) 2,530	2,094	-17%	(47,321) (64,378) 26%
	Other	(12,277) (21,246) (11,082)	(13,075)	-18%	(57,681) (29,976) -92%
	Total	(85,748) (27,910) 73,229	83,801	14%	43,372 126,429 -66%

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Group Commercial Real Estate

Rental Operating Chicony Properties Properties Square = + +

NTD 133.3bn

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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 Taipei Twin Towers
activation
IT Mall Square
&
China 3S 30%
Cash inflow
No.1 Flourishing
CLEVO BPS@NTD 67 Dollars
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