OK BIOTECH — Investor Presentation 2021

Dec 28, 2021

Stock Code：4155

OK Biotech Co., Ltd

Operational Overview

December 30, 2021

Disclaimers

The presentation contains “ forward-looking statements” may include the expectations, or predictions on future results of our company’s and its affiliates’ operations based on the information available at the time the statements were made. Such statements may differ from the actual results for a variety of reasons, including known and unknown risk and uncertainties. The contents are only published for the purpose of information circulation, not for investment advice. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein.

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Agenda

1. Our product sales and revenue
   4.Major Customers
   2.New products
   5.Outlook for 2021 Q4& 2022
   3.Top 5 Customers Overview
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Notes:

1. Our product sales and revenue

Unit：Expressed in Thousands of NTD；Thousand boxes；Thousand meters
| Year | 2021 Q3 | | 2020 Q3 | | Growth rate | | 2020 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Products | Qty | Revenue | Qty | Revenue | Qty | Revenue | Qty | Revenue |
| Strips | 12,071 | 345,420 | 9,511 | 331,756 | 26.91% | 4.12% | 13,570 | 461,356 |
| Meters | 1,577 | 360,622 | 1,727 | 308,877 | -8.66% | 16.75% | 2,295 | 407,726 |
| Others | － | 23,812 | － | 31,961 | － | -25.50% | － | 39,663 |
| Total | － | 729,854 | － | 672,594 | － | 8.51% | － | 908,745 |
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Notes:

2.New products

Sound Amplifier
Existing model are available on the market.
Modified model is ready to hit the market.
Wireless model (with Bluetooth)
New product line of Subsidiaries
PU-YUAN Biotech—Nebulizer
(1) Over-the-counter (home use)
(2) health professional use (single-use Disposable devices) which are intended to collocate with RESPIRATORY THERAPY
AEON DIAGNOSTIC TECHNOLOGY CORPORATION—Metal Electrode
Step into Middle East market successfully, it is estimated to report break-even earning at Q3 in 2022.
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3.Top 5 Customers Overview

Unit：Expressed in Thousands of NTD
| 2021 Q3 | | 2020 Q3 | | 2020 | |
| --- | --- | --- | --- | --- | --- |
| N. America | 209,225 | N. Africa | 246,380 | N. Africa | 404,771 |
| Europe | 149,197 | N. America | 163,312 | N. America | 254,757 |
| Brazil | 138,037 | Europe | 98,766 | Europe | 133,374 |
| Russia | 39,076 | Brazil | 75,604 | Middle East | 112,623 |
| Middle East | 33,378 | Middle East | 75,025 | Brazil | 105,929 |
| Other Customers | 336,633 | Other Customers | 372,933 | Other Customers | 472,959 |
| Total | 905,546 | Total | 1,032,020 | Total | 1,484,413 |
| Top 5 Proportions | 63% | Top 5 Proportions | 64% | Top 5 Proportions | 68% |
| Others Proportions | 37% | Others Proportions | 36% | Others Proportions | 32% |
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4.Major Customer in N. America

Unit：Expressed in Thousands of NTD
| | 2021 Q3 | 2020 Q3 | 2020 |
| --- | --- | --- | --- |
| N. America | 209,225 | 163,312 | 254,757 |
The shipments dropped slightly due to the port congestion and lack of containers in July and August this year. Shipments have returned to normal since September.
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4.Major Customer in Europe

Unit：Expressed in Thousands of NTD
| | 2021 Q3 | 2020 Q3 | 2020 |
| --- | --- | --- | --- |
| Europe | 149,197 | 98,766 | 133,374 |
The customer’s market share steadily increase in the market , and the sales have significantly went up by 51% in Q3 compared to the same period in 2020.
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4.Major Customer in Brazil

Unit：Expressed in Thousands of NTD
| | 2021 Q3 | 2020 Q3 | 2020 |
| --- | --- | --- | --- |
| Brazil | 138,037 | 75,604 | 105,929 |
The orders are stably increase.
Market expansion：More focus on government procurement and participation in public hospital tenders.
Local factory setup ：Delay due to Covid-19 Pandemic
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4.Major Customer in N. Africa

Unit：Expressed in Thousands of NTD
| | 2021 Q3 | 2020 Q3 | 2020 |
| --- | --- | --- | --- |
| N. Africa | 12,631 | 246,380 | 404,771 |
The orders of customer in North Africa have also returned to normal since September.
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5.Outlook for 2021 Q4& 2022

The company‘s revenue for the first three quarters of 2021 decreased by $126,474 thousand of NTD compared with that of last year. The orders dropped steeply from Q1 to Q3 was resulted from the customer in North Africa facing the challenge of national health policy reform, as well as the delay shipping to customer in north American affected by the lack of containers globally. Q3 in 2021 should be the most difficult period.
Thankfully, the order of customers in other regions are still growing steadily. Since Q4, the orders and shipments of customer in North Africa and North America have returned to normal by degrees. Engage in new product development and competitiveness improvement plans, we have strong faith that the best is yet to come.
Looking into 2022, the orders of Q1 has been confirmed by customer in North Africa. The sales of customers in Europe and in north America also gradually increase. The market share in Brazil are expanding due to the proactive approach last 2 years. We are optimistic with performance of following years. We will persistently focus on the industry to achieve the commitment of creating the maximum benefits for the company and shareholders.

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Q & A
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Thank you for your
guidance and listening !
2021/12/30
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