MERRY — Interim / Quarterly Report 2020

Nov 13, 2020

TWSE 2439

Merry Electronics 2020 Third Quarter Earnings Result Conference

Presented by: Allen Huang Date: Oct. 30, 2020

0

Safe Harbor Notice

Except for historical information contained herein, the matters set forth in this presentation are forward looking statements subject to significant risks and uncertainties that could cause actual results to differ materially, including the impact of competitive products and pricing strategies, whether the design is accepted by our customers timely, the prompt introduction of new technologies, the capability for mass production of new products, the risk of excess capacity, the availability of production capacity, the financial stability in terminal markets or other risks, and so on.

1

Consolidated Statements of Comprehensive Income

(audited)

					(NT$ Thousand)
Item	Q32019	Q22020	Q32020	QoQ	YoY
Net Revenue	10,101,028	6,445,201	10,136,154	57.27%	0.35%
Gross Profit	14.06%	15.53%	12.37%	-3.16pp	-1.69pp
Operating Expenses	-700,060	-721,120	-860,931	19.39%	22.98%
Operating Margin	7.13%	4.34%	3.88%	-0.46pp	-3.25pp
Non-Operating Income	433,673	160,027	58,025	-63.74%	-86.62%
Net Income	885,774	298,847	391,995	31.78%	-55.54%
Net Profit Margin	8.77%	4.63%	3.87%	-0.74pp	-4.88pp
EPS(NT$)	4.34	1.47	1.90	0.43	-2.44

*. Diluted weighted average outstanding shares were 206,877K units in Q32020.

2

Balance Sheets & Key Indices(CQ)

	20190930		20200630		20200930
(NT$ Thousand)	金額	%	金額	%	金額	%
Cash and Cash Equivalents	5,312,446	19%	6,242,503	25%	4,191,857	13%
AccountReceivable	9,500,828	34%	5,134,937	20%	9,008,137	29%
Inventories	2,245,566	8%	2,645,490	11%	4,160,838	13%
OtherCurrentAssets	949,676	3%	993,808	4%	2,887,192	9%
Investments	3,764,627	13%	3,968,689	16%	4,104,327	13%
Property, plant and equipment	2,021,157	7%	2,407,905	10%	3,112,036	10%
Other Non-currentAssets	4,301,570	15%	3,671,533	15%	3,858,546	12%
Total Assets	28,095,870	100%	25,064,865	100%	31,322,933	100%
CurrentLiabilities	11,941,380	43%	9,986,211	40%	15,966,811	51%
Non-currentLiabilities	3,871,931	14%	3,937,205	16%	3,877,873	12%
Total Liabilities	15,813,311	56%	13,923,416	56%	19,844,684	63%
Total Shareholders’ Equity	12,282,559	44%	11,141,449	44%	11,478,249	37%
Key Indices
A/R Turnover (CQ)	84.3		64.2		63.5
Inventory Turnover Days (CQ)	23.0		40.2		34.9
Current Ratio (x)	1.5		1.5		1.3

3

Cash Flow

(新台幣仟元)	Q32019	Q22020	Q32020
Beginning Balance 4,178,222 7,137,339 6,242,503
Cash from operatingactivities 1,221,571 -577,838 -885,418
Capital Expenditures -109,045 -184,685 -888,561
Short-term Loans 1,783,284 -376,358 1,929,793
Long-term Loans - -84,130 327,813
Non-controllingInterests - 350,860 0
Cash Dividends -1,751,419 0 -1,608,376
Investments and Others -10,167 -22,685 -925,897
Ending Balance 5,312,446 6,242,503 4,191,857
Free Cash Flow 1,112,526 -762,523 -1,773,979

*. Free cash flow = Cash from operating activities - Capital expenditures

4

Q32020 Proportion of the Product Revenue

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Headset
Speaker
68%
25%
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Others 3%

5

Q3 Proportion of the Products Revenue (%)

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Headset
80% 68% 72%
57%
60%
QoQ: 70%
40%
YoY: 26%
20%
0%
3Q2019 2Q2020 3Q2020
■ Audio
■ TWS
3Q2019 2Q2020 3Q2020
■ Gaming
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6

Q3 Proportion of the Products Revenue (%)

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Speaker
55%
41%
40% QoQ: 39%
29%
25% YoY: -39%
25%
10%
■ Non-PC/NB 3Q2019 2Q2020 3Q2020
■ PC/NB
■ SPK System 3Q2019 2Q2020 3Q2020
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7

2020 Q4 Outlook

8

Q & A

9

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