HANPIN — Investor Presentation 2021

Feb 26, 2021

Hanpin Electron Co., Ltd. 2021 Investor Conference

February 26, 2021

Disclaimer

• The content from the presentation and the simultaneously relevant information are from internal and external information of Hanpin.

• The forward-looking statements in this release reflect the current belief of Hanpin as of the date of this release. Hanpin undertakes no obligation to update these forwardlooking statements for events or circumstances that occur subsequent to such date.

• Hanpin did not announce financial forecast. Our actual results of financial condition, business prospects or Q&A may differ from those expressed or implied in these forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, exchange rate fluctuations, supply chain issues and other risks and factors beyond our control.

==> picture [150 x 30] intentionally omitted <==

2

AGENDA

 Company Overview

 Industry Overview

• Forward-Looking

 Operating Results

 Q&A

3

Company Overview Industry Trends Forward-Looking Operating Results Basic Information Chairman and Shen-Keng, Liu General Manager Total Paid-up NTD799 Million Capital Date of 1965 Establishment R&D Date of Listing 2001/09/17 Website http://www.hanpin.com.tw/ Address NO.256 SEC.3,CHUNG CHENG ROAD, JEN TEH DISTRICT,TAINAN CITY, TAIWAN

4

==> picture [721 x 541] intentionally omitted <==

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

Company Overview Industry Trends Forward-Looking Operating Results
Group Structure
Hanpin Electron
Co., Ltd.
65.29% 100% 100%
Hanpin Pro Audio Co., Hanpin BVI Int'l Co., Hanchih Development
Ltd. Ltd. Co., Ltd.
100% 100%
Hanpin Electronics Hanchih Electronics
(Shenzhen) Co., Ltd. (Hong kong) Co., Ltd.
100%
Hanchih Electronics
(Shenzhen) Co., Ltd.
5
----- End of picture text -----

Operating Results

Industry Trends

Forward-Looking

Company Overview

Headquarter and Manufacturing Base

==> picture [686 x 454] intentionally omitted <==

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

Establishment：1994 and 2004
Employee number of 2 factories： Headquarter：
about 900 employees Manufacturing Base： Tainan Hanpin
Site area of 2 factories： SZ Hanpin and Hanchih
about 29,500 M [2]
Total floor area of 2 factories：
Establishment ：1965
about 40,800 M [2]
Employee number ：
Group function: Manufacturing base（injection molding and
about 150 employees
painting、PCB、assemble and produce )
Site area: about30,000 M [2]
 Group function: Headquarter
(R&D、Marketing & Sales、
Purchase、Finance、IT)
6
----- End of picture text -----

Forward-Looking

Company Overview

Industry Trends

==> picture [113 x 14] intentionally omitted <==

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

Operating Results
----- End of picture text -----

The Process of Reengineering

==> picture [705 x 445] intentionally omitted <==

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

Mass Production Mode Product Upgrade Mode Integration
OEM ODM Value-added
●Process Control ●Consumer Product Transform ●Providing Valued-added
into Professional Product for All Customers
●Cost Control ● Continuously improve the
●Expending Markets with
Industry R&D Techniques
●Audio/Home appliances ● Integration Service
Successfully Entered into the
Field of Processional DJ
Products in 2000
Now
7 1965 1997 2009
----- End of picture text -----

Operating Results

Company Overview

Industry Trends

Forward-Looking

Main Product-Professional DJ Product

• 1.DJ Mixer

Digital Signal Processor Multi-track Mixing Operation

2.DJ Turntable Direct Drive Motor 3.DJ Controller Cooperating with Notebook and Software Standalone Operation

8

Forward-Looking Operating Results

Company Overview

Industry Trends

Main Product-Consumer Turntable

1.Belt Drive Turntable

2.Direct Drive Turntable 3.Turntable with Specific Function

9

==> picture [130 x 16] intentionally omitted <==

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

Company Overview
----- End of picture text -----

==> picture [691 x 524] intentionally omitted <==

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

Company Overview Industry Trends Forward-Looking Operating Results
Position in DJ Products
DJ Turntable DJ Mixer DJ Digital Player
DJ Control DJ Software Speaker
Lighting
Headphones
10 DJ System
Hanpin Main Product Area
----- End of picture text -----

Operating Results

Forward-Looking

Company Overview

Industry Trends

Industry Overview Software The Use of DJ Software

Hardware Wireless Transmission Application

Integration All-In-One DJ System

11

==> picture [721 x 541] intentionally omitted <==

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

Company Overview Industry Trends Forward-Looking Operating Results
Forward Looking
Continuous Improvement in R&D and Process
Enterprise Sustainable Operation with
Environmental Protection and Energy Conservation
Adjusting Production Strategy to Fulfil Customers’ Demand
Continually searching for Strategic Alliance to Extend
Operational Territory
12
----- End of picture text -----

Industry Trends

Forward-Looking

Company Overview

Operating Results

==> picture [215 x 376] intentionally omitted <==

Operating Results

==> picture [150 x 30] intentionally omitted <==

13

Forward-Looking

Company Overview

Industry Trends

Operating Results

Consolidated Concise Statement of Comprehensive Income

==> picture [666 x 377] intentionally omitted <==

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

Unit：NT$ thousand
2018 2019 2020
Items Amount % Amount % Amount %
Operating Revenue 2,632,421 100 2,537,770 100 1,937,736 100
Gross Profit 614,312 23 600,703 24 433,190 22
Operating Income 294,255 11 279,450 11 176,975 9
Non-operating Income
110,686 4 86,059 3 57,283 3
and Expense
Pre-Tax Income 404,941 15 365,509 14 234,258 12
Net Income 294,675 11 282,743 11 182,405 9
EPS 3.65 3.50 2.27
----- End of picture text -----

==> picture [150 x 30] intentionally omitted <==

14

Forward-Looking

Company Overview

Industry Trends

Operating Results

Consolidated Revenue and Gross Profit Margin

==> picture [687 x 419] intentionally omitted <==

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

3,000 25%
2,632 2,538
Revenue
(Unit：NT$ million) 24% Gross Profit Margin (%)
1,938
2,000
23%
Consolidated Revenue
Gross Profit Margin
22%
1,000
-0 20%
2018 2019 2020
15
Year
----- End of picture text -----

Company Overview

Industry Trends Forward-Looking Operating Results

Consolidated Concise Balance Sheet

==> picture [671 x 370] intentionally omitted <==

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

Unit：NT$ thousand
2018 2019 2020
Item Amount % Amount % Amount %
Current Assets 2,342,372 77 2,314,513 75 2,598,704 78
Property 、Plant and
436,686 15 422,741 14 400,278 12
Equipment
Other Assets 244,875 8 337,081 11 346,609 10
Total Assets 3,023,933 100 3,074,335 100 3,345,591 100
Current Liabilities 714,899 23 701,881 23 972,971 29
Non-current Liabilities 266,139 9 276,174 9 288,812 9
Total Liabilities 981,038 32 978,055 32 1,261,783 38
Total Equity 2,042,895 68 2,096,280 68 2,083,808 62
----- End of picture text -----

==> picture [150 x 30] intentionally omitted <==

16

Operating Results

Forward-Looking

Company Overview

==> picture [98 x 14] intentionally omitted <==

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

Industry Trends
----- End of picture text -----

==> picture [685 x 480] intentionally omitted <==

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

Financial Structure and Solvency
Debt Ratio(Unit：%) Current Ratio
50% 4.00
3.30
3.28
45% 3.00
2.67
Current Ratio
Debt Ratio
40% 2.00
38%
35% 1.00
32%
32%
30% 0.00
2018 2019 2020
17
Year
----- End of picture text -----

The End of the Presentation

Thank you

1818