G.M.I — Investor Presentation 2019

Nov 27, 2019

GLOBAL MOBILE INTELLIGENCE(3312)

3Q19 Result Briefing

Notes:

Disclaimer

Except for historical information contained herein, the matters set forth in this presentation are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, including the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks.

Notes:

Company Introduction
Company Profile
1
04
Financial
Financial Result
2
07
Operational
Outlook
3
13
Q & A
Q&A
4
17

Notes:

Company Introduction
Company profile

Headquarter: Taipei
Capital 1.18 billion
Since 1995

12 locations in China,
Hong Kong, Taiwan

IPO in 2010 #3312

180 employees

Notes:

Locations

Notes:

Company Introduction
Company Profile
1
04
Financial
Financial Result
2
07
Operational
Outlook
3
13
Q & A
Q&A
4
17

Notes:

Financial-Consolidated Revenue

(In NT$ thousands unless otherwise noted)

QoQ
18.38%
YoY
28.02%

YoY
28.58%

Notes:

Financial-Gross Margin

QoQ
-0.51pt
YoY
+0.17pt
YoY
+0.28pt

Chart

Category
3Q18	0.0446633503020696
2Q19	0.0526174450958536
3Q19	0.0475220362948032

Notes:

Financial- Consolidated Earnings Per Share

(In NT$ thousands unless otherwise noted)

QoQ
-0.06
YoY
-0.03
YoY
+0.07

Chart

| Category |
|---|

Chart

| Category |
|---|

Notes:

Financial- Consolidated Income Statement- Quarterly

| (In NT$ thousands unless otherwise noted) | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 3Q19 | | 2Q19 | | 3Q18 | | QoQ | | YoY |
| Net Sales | | 3,478,239 | | 2,938,075 | | 2,705,171 | | 18.38% | | 28.58% |
| Operating costs | | 3,312,946 | | 2,783,481 | | 2,584,349 | | | | |
| Gross Profit | | 165,293 | | 154,594 | | 120,822 | | 6.92% | | 36.81% |
| Selling expenses | | 59,821 | | 55,777 | | 26,453 | | | | |
| Administrative expenses | | 32,039 | | 27,352 | | 48,750 | | | | |
| R&D expenses | | 4,504 | | 5,170 | | 4,413 | | | | |
| Expected credit gain | | 919 | | 1,978 | | (4,398) | | | | |
| Operating expenses | | 97,283 | | 90,277 | | 75,218 | | | | |
| Operating income | | 68,010 | | 64,317 | | 45,604 | | 5.74% | | 49.13% |
| Net non-operating income | | (3,787) | | (1,125) | | 2,214 | | | | |
| Net income before income tax | | 64,223 | | 63,192 | | 47,818 | | | | |
| Income tax expense (income) | | 17,717 | | 13,668 | | 12,544 | | | | |
| Net profit | | 46,506 | | 49,524 | | 35,274 | | (6.09%) | | 31.84% |
| EPS | | 0.39 | | 0.45 | | 0.32 | | | | |
| | | | | | | | | | | |

Notes:

Financial-Consolidated Income Statement - Yearly

| (In NT$ thousands unless otherwise noted) | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | Q1~Q3/19 | | Q1~Q3/ 18 | | YoY |
| Net Sales | | 8,898,413 | | 6,950,940 | | 28.02% |
| Operating costs | | 8,466,002 | | 6,625,039 | | |
| Gross Profit | | 432,411 | | 325,901 | | 32.68% |
| Selling expenses | | 169,793 | | 123,069 | | |
| Administrative expenses | | 89,213 | | 94,837 | | |
| R&D expenses | | 14,545 | | 14,523 | | |
| Expected credit gain | | (3,439) | | ( 18,598) | | |
| Operating expenses | | 270,112 | | 213,831 | | |
| Operating income | | 162,299 | | 112,070 | | 44.82% |
| Net non-operating income and expenses | | (4,981) | | (2,758) | | |
| Net income before income tax | | 157,318 | | 109,312 | | |
| Income tax expense(benefit) | | 36,010 | | (4,637) | | |
| Net Income | | 121,308 | | 113,949 | | 6.46% |
| EPS | | 1.03 | | 1.06 | | |

Notes:

Financial-Consolidated Balance Sheet

| (In NT$ thousand unless otherwise noted) | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | 2019 3Q | | 2019 2Q | | 2018 3Q | | QoQ | | YoY |
| Cash and cash equivalents | 653,962 | | 475,580 | | 368,534 | | 37.51% | | 77.45% |
| Account receivable | 2,956,574 | | 2,455,226 | | 2,351,738 | | 20.42% | | 25.72% |
| Inventories | 659,255 | | 699,805 | | 635,035 | | | | |
| Other current assets | 323,474 | | 295,980 | | 317,482 | | | | |
| Other non-current assets | 64,584 | | 68,284 | | 38,746 | | | | |
| Total Assets | 4,657,849 | | 3,994,875 | | 3,711,535 | | | | |
| Short term loans | 854,398 | | 594,629 | | 772,830 | | 43.69% | | 10.55% |
| Account payable | 2,046,025 | | 1,750,201 | | 1,480,752 | | 16.90% | | 38.17% |
| Other current liabilities | 346,315 | | 279,971 | | 119,656 | | | | |
| Total non-current liabilities | 14,102 | | 16,024 | | 32,292 | | | | |
| Total Liabilities | 3,260,840 | | 2,640,825 | | 2,405,530 | | | | |
| Total Equity | 1,397,009 | | 1,354,050 | | 1,306,005 | | | | |

Notes:

Company Introduction
Company Profile
1
04
Financial
Financial Result
2
07
Operational
Outlook
3
13
Q & A
Q&A
4
17

Notes:

Outlook│Growth drivers

New product distribution
True Wireless Earphones

Represent 5~7% of 3Q19 revenue
4Q19 revenue better than previous quarters in 2019
MEMS MIC start shipping
New projects
In-Ear Test P-Sensor
Gravity Test G-Sensor
Ceramic Antenna Chip-Antenna

                      OPNOUS

ToF (Time of Flight) Sensor
Actnano
Coating Solution
Suzhou Huiwen Nano S&T gas sensor
TVOC, 甲醛, 甲烷, 一氧化碳, 硫化氫, 氨氣, 酒精

Notes:

Outlook│Growth drivers

Spectrum auction market

Expect WIFI business started to generate revenue since end of 3Q19
4Q19 Revenue better than 3Q19
GPON shipment on track

Overseas OTT BOX Market

GMI distribute key wireless chips
Represent 10~13% of 3Q19 revenue.
New product launches in 4Q19

Notes:

Outlook│Growth drivers

GMI being selected as China Mobile’s chip supplier (announced on August 19, 2019)

Source: https://b2b.10086.cn/b2b/main/viewNoticeContent.html?noticeBean.id=593681&from=singlemessage&isappinstalled=0

Notes:

Outlook│Growth drivers

Bluetooth

Smart speaker peripherals
Wearables - health
Electric Meter Market
E-cigarette: Est. 3bn units in 2019
Gamepad
Smart lock

Notes:

ＴＨＡＮＫ ＹＯＵ！

Q & A

Notes: