MERRY — Investor Presentation 2021

Nov 4, 2021

Presented by : Allen Huang, CEO Date: Oct. 29, 2021

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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.

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Statement of Comprehensive Income

(NT$ Thousand)

Items 2020Q3 2021Q2	2021Q3	QoQ YoY
Net Revenue 10,136,154 8,168,668	8,463,889	3.61% -16.50%
Gross Profit 12.37% 9.59%	15.95%	6.36pp 3.58pp
Operating Expenses -860,931 -834,385	-856,970	2.71% -0.46%
Operating Margin 3.88% -0.62%	5.83%	6.45pp 1.95pp
Non-Operating Income 58,025 224,114	139,882	-37.58% 141.07%
Net Income 391,995 149,041	493,364	231.03% 25.86%
Net Profit Margin 3.87% 1.82%	5.83%	4.01pp 1.96pp
EPS(NT$) 1.90 0.54	2.20	1.66 0.30

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Product Mix by Quarterly

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Speaker
25%
Headset
69%
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Headset Revenue Breakdown

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(%)

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Headset QoQ : 19% YoY : -17%

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Speaker Revenue Breakdown

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(%)

Speaker QoQ : -18% YoY : -14%

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Balance Sheet & Key Indices(CQ)

	20200930		20210630			20210930
(NT$ Thousand)	Amount	%	Amount	%		Amount	%
Cash and Cash Equivalents 4,191,857 13% 5,651,209 18%						6,266,608 18%
Account Receivable 9,008,137 29% 7,504,777 23%						7,859,493 23%
Inventories 4,160,838 13% 4,322,389 13%						6,091,992 18%
Other Current Assets 2,887,192 9% 2,403,072 8%						1,984,156 6%
Investments 4,104,327 13% 4,600,853 14%						4,635,839 14%
Property, plant and equipment 3,112,037 10% 3,987,448 12%						3,894,606 11%
Other Non-current Assets 3,858,545 12% 3,551,104 12%						3,254,601 10%
Total Assets 31,322,933 100% 32,020,852 100%						33,987,295 100%
Current Liabilities 15,966,811 51% 18,473,376 58%						16,697,277 49%
Non-current Liabilities 3,877,873 12% 2,446,144 7%						5,824,638 17%
Total Liabilities 19,844,684 63% 20,919,520 65%						22,521,915 66%
Total Shareholders’ Equity 11,478,249 37% 11,101,332 35%						11,465,380 34%
Key Indices A/R Turnover (CQ) 82 84 Inventory Turnover Days (CQ) 43 53 Current Ratio (x) 1.3 1.1 ROE 3.47% 1.34%						85 79 1.3 4.37%

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Cash Flow

(NT$ Thousand)	**2020Q3 **	**2021Q2 **		**2021Q3 **
Beginning Balance 6,242,503 5,321,982				5,651,209
Cash from operatingactivities -885,418 -852,595				1,009,409
Capital Expenditures -888,561 -175,129				-416,937
Short-term Loans 1,929,793 1,734,760				-2,975,064
Long-term Loans 327,813 -21,870				406,998
Issuance of corporate bonds - -				3,015,000
Distribution of cash dividends -1,608,376 -				-1,068,244
Investments and Others -925,897 -355,939				644,237
Ending Balance 4,191,857 5,651,209				6,266,608
Free Cash Flow -1,773,979 -1,027,724				592,472

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

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Recap of Recent Major Event

1. Raising funds in an amount of NT$432million through the issue of 6 million new shares (payment certicated) was listed on 10/27.

2. Participating in the private placement of common shares of SYNergy ScienTech Corp. in an amount of NTD188.34M representing 7.3milliion shares.

3. Becoming one of the member of RE100 ; Merry is the 13[th] Taiwanese corporate and the 1[st] electroacoustic company joining in RE100.

4. Being top 50 of 2021 CW Excellence in Corporate Social Responsibility.

4Q2021 Outlook

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Q & A

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Vision
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“Delivering Fidelity Sound to Enrich Human’s Life”

• Mr. Leo Liao, the Founder and Chairman

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CONFIDENTIAL @ MERRY All Right Reserved

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