THINKING — Interim / Quarterly Report 2020

Apr 16, 2021

Stock Number: 2428

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

LEGAL PERSON BRIEFING SESSION 2020 Q4

2021.04.16

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.

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Company Introduction

A 42 year old protective component manufacturer

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Owns 7 factories and 4000 employees

THINKING Factories

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
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Changzhou Dongguan
Factory Factory
Jingdezhen Yichang
Factory Factory
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Expansion Plan in Taiwan: Kaohsiung 3[rd] Factory

Estimated Completion: 2023

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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

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Over-Voltage Protection Over-Current Protection Over-Temperature Protection
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

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Operation Overview: Yearly Consolidated Income Statement

Unit: Thousand NTD

Item	2019 Q4	2020 Q3	2020 Q4	QoQ	YoY
Net sales	1,522,209	1,619,691	1,706,280	5.3%	12.1%
Gross profit	635,191	781,079	817,983	4.7%	28.8%
Gross profit margin	41.7%	48.2%	47.9%	-0.3%	6.2%
Operating expenses	238,442	201,829	274,611	36.1%	15.2%
Operating net profit	396,749	579,250	543,372	-6.2%	37.0%
Operating profit ratio	26.1%	35.8%	31.8%	-3.9%	5.8%
Non-operating income and expenses	-9,616	10,812	-3,210	-129.7%	-66.6%
Net income	286,288	418,950	428,059	2.2%	49.5%
Earning per share (NTD)	2.25	3.27	3.34	0.07	1.09
Net profit margin	18.8%	25.9%	25.1%	-0.8%	6.3%

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Operation Overview: Consolidated Balance Sheets

Unit: Thousand NTD

Item	2019.12.31	2020.9.30	2020.12.31	%	QoQ	YoY
Cash and cash equivalent	1,774,594	1,944,631	2,505,348	23%	28.8%	41.2%
Account receivable	2,046,553	2,189,769	2,432,303	22%	11.1%	18.8%
Inventories	822,298	1,042,569	1,266,112	11%	21.4%	54.0%
Current assets	6,067,809	7,327,076	8,084,389	73%	10.3%	33.2%
Fixed assets	2,090,206	2,168,369	2,227,877	20%	2.7%	6.6%
Non-current assets	2,682,706	2,784,409	2,946,271	27%	5.8%	9.8%
Total assets	8,750,515	10,111,485	11,030,660	100%	9.1%	26.1%
Account payable	533,753	582,192	645,786	6%	10.9%	21.0%
Other account payable	427,390	399,853	550,843	5%	37.8%	28.9%
Current liabilities	1,254,736	2,111,246	2,051,426	19%	-2.8%	63.5%
Non-current liabilities	980,796	1,098,269	1,534,447	14%	39.7%	56.4%
Total liabilities	2,235,532	3,209,515	3,585,873	33%	11.7%	60.4%
Total equity	6,514,983	6,901,970	7,444,787	67%	7.9%	14.3%

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Operation Overview: Analysis of Financial Ratios

	Item	2019.12.31	2020.9.30	2020.12.31	QoQ	YoY
	Debt Ratio	25.54%	31.74%	32.50%	0.76%	6.96%
	Current Ratio	483.59%	347.04%	394.08%	47.04%	-89.51%
Account receivable	Turnover ratio (times)	2.90	2.65	2.64	-0.01	- 0.25
	Average collection days	126.05	137.60	138.07	0.47	12.02
Inventories	Turnover ratio (times)	3.96	3.31	2.78	-0.53	- 1.18
	Average inventory turnover days	92.26	110.15	131.24	21.09	38.98
Account payable	Turnover ratio (times)	5.93	5.54	4.92	-0.61	- 1.01
	Average payables turnover days	61.52	65.91	74.13	8.22	12.61

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of THINKING Group

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Emission Reduction
Smart Manufacturing
Autonomous Driving Industrial IoT
Smart Transportation Artificial Intelligence
Industry 4.0
Renewable Energy
Electric Vehicle Industrial
High Speed
Home Care
Transmission
Telehealth
Ultra-Low Latency
Smart Hospital
Massive Throughput
Public Health
Internet of Everything Surveillance
(IoE)
5G Communications Medical & Health Care
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THINKING Products for EV and xEV

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of THINKING Group

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Emission Reduction
Smart Manufacturing
Autonomous Driving Industrial IoT
Smart Transportation Artificial Intelligence
Industry 4.0
Renewable Energy
Electric Vehicle Industrial
High Speed
Home Care
Transmission
Telehealth
Ultra-Low Latency
Smart Hospital
Massive Throughput
Public Health
Internet of Everything Surveillance
(IoE)
5G Communications Medical & Health Care
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THINKING Products for 5G Communications and SPD Module

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of THINKING Group

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Emission Reduction
Smart Manufacturing
Autonomous Driving Industrial IoT
Smart Transportation Artificial Intelligence
Industry 4.0
Renewable Energy
Electric Vehicle Industrial
High Speed Home Care
Transmission
Telehealth
Ultra-Low Latency
Smart Hospital
Massive Throughput
Public Health
Internet of Everything Surveillance
(IoE)
5G Communications Medical & Health Care
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of THINKING Group

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Emission Reduction
Smart Manufacturing
Autonomous Driving Industrial IoT
Smart Transportation Artificial Intelligence
Industry 4.0
Renewable Energy
Electric Vehicle Industrial
High Speed Home Care
Transmission
Telehealth
Ultra-Low Latency
Smart Hospital
Massive Throughput
Public Health
Internet of Everything Surveillance
(IoE)
5G Communications Medical & Health Care
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of THINKING Group

Emission Reduction Autonomous Driving Smart Transportation Renewable Energy Electric Vehicle High Speed Transmission Ultra-Low Latency Massive Throughput Internet of Everything (IoE) 5G Communications

Smart Manufacturing Industrial IoT Artificial Intelligence Industry 4.0 Industrial Home Care Telehealth Smart Hospital Public Health Surveillance Medical & Health Care

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Q&A
THANK YOU！

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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

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