ELASER — Interim / Quarterly Report 2019

May 15, 2019

eLASER

==> picture [116 x 55] intentionally omitted <==

Elite Advanced Laser Corporation Investor Conference 2019/05/15

eLASER

Safe Harbor Notice

Elite Advanced Laser Corporation’s statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements.

Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

eLASER

Contents

• Major Products and Applications

• Financial Report ： 2019 First Quarter Financial Statement

• Future Outlook

• Q & A

eLASER

Major Products and Applications

LD for information	Pick-up head, 3D sensing, Automotive head light
	Automotive head-up display, Pico projector, Highpower industrial Laser
LD for communication	Fiber-to-the-home（FTTH）, Data center
	Base station, Long-haul communication
Power semiconductor	Power MOSFET
	IGBT
	Power Management ICs

We provide ODM/OEM service of assembly and testing

eLASER

Affiliated Company

==> picture [418 x 188] intentionally omitted <==

----- Start of picture text -----

eLaser
3450
Shareholding ratio Shareholding ratio
51.00% 66.77%
GEM-KY
ET
6525
Shareholding ratio
0.02%
----- End of picture text -----

eLASER

Consolidated Revenue

==> picture [354 x 241] intentionally omitted <==

==> picture [374 x 241] intentionally omitted <==

Unit: KTWD

Segment	Company	2017	2017	2018	2018	2018	2018	2018	2018	2019
		Total		1Q	2Q	3Q	4Q	Total		1Q
Fiber-Optic Communication and Information	eLaser	4,174,820	3,869,351	969,756	1,035,842	743,434	681,187	3,430,219	3,321,859	659,701
	Other		305,470						108,360
Semiconductor	GEM	3,094,368	3,094,368	761,900	881,223	903,103	865,798	3,412,024	3,412,024	795,199
Total		7,269,188	7,269,188	1,731,656	1,917,064	1,646,537	1,546,986	6,842,243	6,842,243	1,454,900

Other includes ET revenue and revenue write off

eLASER

Consolidated Revenue

Unit: KTWD

==> picture [350 x 257] intentionally omitted <==

Segment	Company	2019	2019	2019	2019	2019
		Jan	Feb	Mar	Apr	Total
Fiber-Optic Communication and Information	eLaser	238,877	194,640	226,185	216,982	876,683
	Other
Semiconductor	GEM	266,029	224,007	305,163	271,256	1,066,455
Total		504,906	418,647	531,348	488,238	1,943,138

Other includes ET revenue and revenue write off

eLASER

Consolidated Statement of Comprehensive Income

Unit: KTWD

	2017	2018	2019
	Total	Total	1Q
Revenue	7,269,188	6,842,243	1,454,900
Gross Profit	2,046,309	1,744,042	274,685
GP%	28.2%	25.5%	18.9%
Operating Expenses	531,458	601,491	145,239
Operating Profit	1,514,851	1,142,551	129,446
OP%	20.8%	16.7%	8.9%
Non-Operating Profit	(111,209)	235,220	13,568
Profit Before Tax	1,403,642	1,377,771	143,014
Tax expense	311,421	392,336	52,498
Net Profit	1,092,221	985,435	90,516
Non-Controlling Interests	342,314	390,282	63,210
Owners of Parent	749,907	595,153	27,306
Earnings per Share	5.66	4.09	0.19

eLASER

Individual Statement of Comprehensive Income

==> picture [228 x 474] intentionally omitted <==

Unit: KTWD

	2017	2018
Revenue	3,869,351	3,321,859
Gross Profit	857,518	663,549
GP%	22.2%	20.0%
Operating Expenses	269,552	287,309
Operating Profit	587,966	376,240
OP%	15.2%	11.3%
Non-Operating Profit	320,514	419,665
Profit Before Tax	908,480	795,905
Tax expense	158,573	200,752
Net Profit	749,907	595,153
Earnings per Share	5.66	4.09

eLASER

Consolidated Balance Sheet

Unit: KTWD

	2017	2018	2019
	4Q	4Q	1Q
Cash and Cash Equivalents	2,531,018	2,732,183	2,794,334
Contract Assets		156,554	207,068
Accounts Receivable	1,419,177	1,227,366	1,167,767
Inventories	427,212	292,353	264,191
Total Current Assets	4,648,422	4,734,576	4,754,687
Property,Plant and Equipment	2,331,604	2,981,724	3,010,561
Right-of-use Assets			158,126
Total Non-Current Assets	3,008,270	3,647,432	3,738,752
Total Assets	7,656,692	8,382,008	8,493,439
Accounts Payable	782,995	883,421	783,332
Total Current Liabilities	1,821,412	1,992,027	1,908,440
Total Non-Current Liabilities	353,019	557,331	626,851
Total Liabilities	2,174,431	2,549,358	2,535,291
OrdinaryShare	1,324,376	1,456,814	1,456,814
Stock Dividend to be Distributed
Capital Surplus	447,448	442,843	442,843
Retained Earnings	2,080,441	2,126,179	2,153,485
Other EquityInterest	(29,767)	(33,974)	(18,077)
Owners of Parent	3,822,498	3,991,862	4,035,065
Non-ControllingInterests	1,659,763	1,840,788	1,923,083
Total Equity	5,482,261	5,832,650	5,958,148
Liabilities / Assets Ratio	0.28	0.30	0.30
Current Ratio	2.55	2.38	2.49
Book Valueper Share	28.86	27.40	27.70

eLASER

Individual Balance Sheet

==> picture [228 x 474] intentionally omitted <==

Unit: KTWD

	2017	2018
	4Q	4Q
Cash and Cash Equivalents	437,580	576,807
Contract Assets
Accounts Receivable	727,832	496,370
Inventories	300,493	183,202
Total Current Assets	1,510,357	1,386,413
Investments	1,751,088	2,038,597
Property, Plant and Equipment	1,339,279	1,741,249
Total Non-Current Assets	3,491,742	3,968,028
Total Assets	5,002,099	5,354,441
Accounts Payable	370,865	366,274
Total Current Liabilities	838,943	819,448
Total Non-Current Liabilities	340,658	543,131
Total Liabilities	1,179,601	1,362,579
Ordinary Share	1,324,376	1,456,814
Capital Surplus	447,448	442,843
Retained Earnings	2,080,441	2,126,179
Other Equity Interest	(29,767)	(33,974)
Total Equity	3,822,498	3,991,862
Liabilities / Assets Ratio	0.24	0.25
Current Ratio	1.80	1.69
Book Value per Share	28.86	27.40

eLASER

Consolidated Statement of Cash Flows

Unit: KTWD

	2017	2018	2019
	Total	Total	1Q
Net Cash Flows from (Used in) Operating Activities	1,348,056	1,740,517	178,073
Net Cash Flows from (Used in) Investing Activities	(703,843)	(1,103,396)	(118,470)
Net Cash Flows from (Used in) Financing Activities	(865,059)	(489,661)	(16,499)
Effect of Exchange Rate Changes	(134,358)	53,705	19,047
Net Increase (Decrease) in Cash and Cash Equivalents	(355,204)	201,165	62,151
Cash and Cash Equivalents at Beginning of Period	2,886,222	2,531,018	2,732,183
Cash and Cash Equivalents at End of Period	2,531,018	2,732,183	2,794,334

eLASER

Individual Statement of Cash Flows

Unit: KTWD

	2017	2018
	Total	Total
Net Cash Flows from (Used in) Operating Activities	423,081	790,496
Net Cash Flows from (Used in) Investing Activities	(283,681)	(337,313)
Net Cash Flows from (Used in) Financing Activities	(669,711)	(325,626)
Effect of Exchange Rate Changes	(32,728)	11,670
Net Increase (Decrease) in Cash and Cash Equivalents	(563,039)	139,227
Cash and Cash Equivalents at Beginning of Period	1,000,619	437,580
Cash and Cash Equivalents at End of Period	437,580	576,807

eLASER

Future Outlook

 Risk in Trade-War and exchange rate fluctuations

 ： Optical communication

• 2.5G GPON ： Demand steady but low profit margin

• Data Center ： High inventory and demand slow

• Silicon photonics penetrate fast

• Base Station ： 4G demand stable and 5G demand double in 2020

• EML ： Demand stable but piece parts supply limited

• ：

• Optical information

• 3D Sensing ： Estimated recovery from Q3

• Green laser ： H1 demand slow and get back from May

• Cloud computing and 5G wifi are the keys of future development

• Strong growth prospects in consumer laser market

• Application on automotives are emerging

eLASER

==> picture [228 x 474] intentionally omitted <==

Q & A

eLASER

==> picture [228 x 474] intentionally omitted <==

Thank You