THINKING — Interim / Quarterly Report 2020

Dec 18, 2020

==> picture [721 x 271] intentionally omitted <==

==> picture [721 x 69] intentionally omitted <==

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

LEGAL PERSON BRIEFING SESSION 2020 Q3

==> picture [721 x 68] intentionally omitted <==

Disclaimer

This presentation is prepared according to information available at the time the presentation was made. Financial or other related information may contain forward-looking statements about the company and its subsidiaries. The information is subject to significant risks and uncertainties, and actual results may differ ma er a t i ll y rom f th ose con a ne t i d i n any orwar f d - oo l ki ng s a emen s. t t t The presentation is exclusively for the purpose of providing information, and not for the purpose of investment advice. The company does not undertake obligations of accuracy and completeness of the information and any losses caused by using the information of the presentation.

Company Introduction

Established in 1979 as a protective component manufacturer Owns 7 factories and 3800 employees. 2019 Revenue: NTD 5814 million

==> picture [654 x 251] intentionally omitted <==

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

THINKING Factories
East South
China China
Taiwan
Kaohsiung 2 [nd] Factory Changzhou Factory Dongguan Factory
Central
China
Kaohsiung 1 [st] Factory Yilan Factory Jingdezhen Factory Yichang Factory
----- End of picture text -----

THINKING Products

==> picture [721 x 435] intentionally omitted <==

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

Over-Voltage
Protection
General Primary ESD Spark Gap
TVS Diode
Protection Protection Protection Protector
Over-Current
Protection
Ceramic PTC Polymer PTC
NTC ICL
Thermistor Thermistor
Over-Temperature
Protection
NTC Ceramic PTC Temperature
Thermistor Thermistor Sensor
4
----- End of picture text -----

Milestone

==> picture [721 x 449] intentionally omitted <==

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

||||||
|---|---|---|---|---|
|Preparation of establishing|
|2019|
|Kaohsiung 3|[rd]|Factory began|
|2018|Spark Gap Protector business began|
|Kaohsiung 2|[nd]|Factory was established|2016|TVS Diode business began|
|Jingdezhen Factory was established|2014|
|2010|Gas Discharge Tube business began|
|2008|ESD Protector business began|
|Yichang Factory was established|2007|
|2002|Polymer PTC Thermistor business began|
|THINKING went public|2000|
|Yilan Factory was established|1997|Varistor and Ceramic PTC Thermistor businesses began|
|Changzhou & Dongguan Factories|
|1996|
|were established|
|1989|NTC Thermistor business began|
|Kaohsiung Factory was established|1979|THINKING was founded with wire harness business|
|5|

----- End of picture text -----

Major Markets-2019Y

==> picture [721 x 447] intentionally omitted <==

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

Information
and
46%
Communication
Consumer
Technology
Power Supply Computer Electronics Telecom
Home Appliances
and 21%
Li h i
g t ng
Home Appliances Lighting
Automotive
and 17%
Industrial
Industrial Automotive
Medical
and 16%
Others
Other
Medical Distributor
applications
6
----- End of picture text -----

Operation Overview: Yearly Consolidated Income Statement

				Unit:	Thousand NTD
Item	2019Q3	2020Q2	2020Q3	QoQ	YoY
Net sales	1,462,770	1,498,545	1,619,691	8.1%	10.7%
Gross profit	626,480	691,122	781,079	13.0%	24.7%
Gross profit margin	42.8%	46.1%	48.2%	2.1%	5.4%
Operating expenses	220,927	212,416	201,829	-5.0%	-8.6%
Operating net profit	405,553	478,706	579,250	21.0%	42.8%
Operating profit ratio	27.7%	31.9%	35.8%	3.8%	8.0%
Non-operating income and expenses	21,943	-9,332	10,812	-215.9%	-50.7%
Net income	323,677	336,775	418,950	24.4%	29.4%
Earning per share (NTD)	2.56	2.64	3.27	0.63	0.71
	7

Operation Overview: Consolidated Balance Sheets

					Unit: Thousand NTD	Unit: Thousand NTD
Item	2019.9.30	2020.6.30	2020.9.30	%	QoQ	YoY
Cash and cash equivalent	1,432,896	2,023,511	1,944,631	19%	-3.9%	35.7%
Account receivable	1,916,917	2,012,899	2,189,769	22%	8.8%	14.2%
Inventories	853,809	952,932	1,042,569	10%	9.4%	22.1%
Current assets	5,723,733	6,654,172	7,327,076	72%	10.1%	28.0%
Fi d t xe asse s	2 086 036 , ,	2 055 824 , ,	2 168 369 , ,	21%	5 5% .	3 9% .
Non-current assets	2,651,768	2,693,727	2,784,409	28%	3.4%	5.0%
Total assets	8,375,501	9,347,899	10,111,485	100%	8.2%	20.7%
Account payable	490,808	530,038	582,192	6%	9.8%	18.6%
Other account payable	381,408	425,103	399,853	4%	-5.9%	4.8%
Current liabilities	1,093,525	1,912,108	2,111,246	21%	10.4%	93.1%
Non-current liabilities	976,015	1,051,756	1,098,269	11%	4.4%	12.5%
Total liabilities	2,069,540	2,963,864	3,209,515	32%	8.3%	55.1%
Total equity	6,305,961	6,384,035	6,901,970	68%	8.1%	9.5%
	8

Operation Overview: Analysis of Financial Ratios

	Item	Item	2019.9.30	2020.6.30	2020.9.30	QoQ	YoY
	Debt Ratio		24.70%	31.70%	31.74%	0.04%	7.04%
	Current Ratio		523.42%	348.00%	347.04%	-0.96%	-176.38%
	Account	Turnover ratio (times)	2.95	2.56	2.65	0.10	-0.29
	receivable
		Average collection days	123.93	142.78	137.60	-5.18	13.67
	Inventories	Turnover ratio (times)	3.86	3.33	3.31	-0.02	-0.55
		Average inventory turnover days	94.59	109.55	110.15	0.60	15.56
	Account payable	Turnover ratio (times)	6.11	5.56	5.54	-0.02	-0.58
		Average payables turnover days	59.69	65.64	65.91	0.27	6.22

Operation Overview: Revenue and EPS of Recent Years

==> picture [721 x 271] intentionally omitted <==

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

10
----- End of picture text -----

Q&A Thank You ！

THANK YOU!

12F, No.93, Dashun 1st Rd., Zuoying Dist., Kaohsiung City, Taiwan Tel: (07)5577660 Fax: (07)5570560 Email: thinking@thinking.com.tw Official Website: www.thinking.com.tw