THINKING — Interim / Quarterly Report 2021

Aug 24, 2021

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

LEGAL PERSON BRIEFING SESSION Q2 2021

2021/8/24

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 materially from those contained in any forward-looking statements. 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

A 42 year old protective component manufacturer

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Owns 7 factories and 4000 employees

THINKING Factories

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Taiwan
Kaohsiung 2 [nd ]
Factory
Kaohsiung 1 [st]
Factory
Kaohsiung 3 [rd] Factory
(under construction)
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Yilan Factory

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China
Changzhou Dongguan
Factory Factory
Jingdezhen Yichang
Factory Factory
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Locations of THINKING Group

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TAIWAN
China
YENYO
Yichang
Factory
Changzhou
Factory
Jingdezhen
Factory
THINKING
Taiwan
Dongguan
Factory
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THINKING Products

Over-Voltage Protection

Over-Current Protection Over-Temperature Protection

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General Primary
NTC ICL NTC
Protection Protection
Thermistor
ESD
TVS Diode
Protection Ceramic PTC Ceramic PTC
Thermistor Thermistor
Spark Gap Thyristor Surge
Protector Suppressor Polymer PTC Temperature
Thermistor Sensor
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Global Presence of THINKING

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Major Markets in 2020

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Information
and
46%
Communication
Consumer
Technology Telecom Power Supply Computer Electronics
Home Appliances
20%
and
Lighting
Home Appliances Lighting
Automotive
and 15%
Industrial
Automotive Industrial
Medical
and 19%
Others Other
Medical Distributor
applications
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Operation Overview: Revenue and EPS of Recent Years

Consolidated Revenue (Unit: thousand NTD) EPS: Fiscal Year (Unit: NTD) EPS: First Half of Fiscal Year (Unit: NTD)

Q2 2021 Operation Overview: Yearly Consolidated Income Statement

				Unit:	Thousand NTD
Item	Q2 2020	Q1 2021	Q2 2021	QoQ	YoY
Net sales	1,498,545	1,758,867	1,960,452	11.5%	30.8%
Gross profit	691,122	779,741	886,976	13.8%	28.3%
Gross profit margin	46.1%	44.3%	45.2%	0.9%	-0.9%
Operating expenses	212,416	251,836	261,120	3.7%	22.9%
Operating net profit	478,706	527,905	625,856	18.6%	30.7%
Operating profit ratio	31.9%	30.0%	31.9%	1.9%	0.0%
Non-operating income and expenses	-9,332	24,016	-25,008	-204.1%	168.0%
New income after taxes	336,775	407,346	439,061	7.8%	30.4%
Earning per share (NTD)	2.64	3.18	3.39	0.21	0.75

Q2 2021 Operation Overview: Consolidated Balance Sheets

Unit: Thousand NTD

Item	2020.6.30	2020.12.31	2021.6.30	%	QoQ	YoY
Cash and cash equivalent	2,023,511	2,505,348	2,442,838	20%	-2.5%	20.7%
Account receivable	2,012,899	2,432,303	2,554,015	21%	5.0%	26.9%
Inventories	952,932	1,266,112	1,578,602	13%	24.7%	65.7%
Current assets	6,654,172	8,084,389	8,834,971	72%	9.3%	32.8%
Fixed assets	2,055,824	2,227,877	2,359,301	19%	5.9%	14.8%
Non-current assets	2,693,727	2,946,271	3,439,553	28%	16.7%	27.7%
Total assets	9,347,899	11,030,660	12,274,524	100%	11.3%	31.3%
Account payable	530,038	645,786	729,055	6%	12.9%	37.5%
Other account payable	425,103	550,843	551,878	4%	0.2%	29.8%
Current liabilities	1,912,108	2,051,426	2,223,109	18%	8.4%	16.3%
Non-current liabilities	1,051,756	1,534,447	1,815,928	15%	18.3%	72.7%
Total liabilities	2,963,864	3,585,873	4,039,037	33%	12.6%	36.3%
Total equity	6,384,035	7,444,787	8,235,487	67%	10.6%	29.0%

Q2 2021 Operation Overview: Analysis of Financial Ratios

Item	Item	2020.6.30	2020.12.31	2021.6.30	QoQ	YoY
Debt Ratio		31.70%	32.50%	32.90%	0.40%	1.20%
Current Ratio		348.00%	394.08%	397.41%	3.33%	49.41%
Account receivable	Turnover ratio (times)	2.56	2.64	2.98	0.34	0.43
	Average collection days	142.78	138.07	122.33	-15.74	-20.45
Inventories	Turnover ratio (times)	3.33	2.78	2.89	0.11	-0.45
	Average inventory turnover days	109.55	131.24	126.46	-4.78	16.91
Account payable	Turnover ratio (times)	5.56	4.92	5.97	1.05	0.41
	Average payables turnover days	65.64	74.13	61.12	-13.01	-4.52

Current and Future Operation Direction

Cash dividend for 2020 is NT$5.5 per share. The ex-dividend date is September 2, 2021, and cash dividend will be paid on September 17, 2021.

Developing and future application markets of THINKING are Electric Vehicle, 5G Communications, Industrial Applications, and Medical & Health Care

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Q&A

THANK YOU ！

Thank You for Your Listening!

Website: www.thinking.com.tw Email: thinking@thinking.com.tw Address: 12F, No. 93, Dashun 1[st] Rd., Zuoying Dist., Kaohsiung City 81357, Taiwan Tel:(07)5577660 Fax:(07)5570560