THINKING - Interim / Quarterly Report 2023

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THINKING Legal Person Briefing Session

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2023.7

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Financial Status

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Markets and Customers

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Strategy for Growth

Index

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Company Introduction

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Competitive Strength

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THINKING ELECTRONICS

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Operation Overview: Sales Revenue Analysis

			Unit: NTD Thousand	Unit: NTD Thousand
Accumulated	2023 Q2	2023 Q1	Diff	%
THINKING	1,816,576	1,718,765	97,811	6%

			Unit: NTD Thousand
Accumulated	2023.1~2023.6	2022.1~2023.6	Diff	%
THINKING	3,535,341	3,698,655	(163,314)	-4%

THINKING ELECTRONICS

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Inventory Trend

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2,500,000
2,000,000
1,500,000
1,000,000
2,275,050 2,199,804 2,107,616 2,018,916 1,977,012 1,926,361 1,893,685 1,869,466 1,792,184 1,728,591 1,627,338
500,000
-
2022/8/31 2022/9/30 2022/10/31 2022/11/30 2022/12/31 2023/1/31 2023/2/28 2023/3/31 2023/4/30 2023/5/31 2023/6/30
NTD/Thousand
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Reduction of 28% in inventory since August 31, 2022.

THINKING ELECTRONICS

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Gross Margin Improvement Strategy

Internal Improvements:

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SMD
OTHER
16%
20%
SCK
15%
SENSO
R
24%
TVR
25%
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Implementing strategic transfers of production bases for mature products among group companies to regions with a competitive advantage in labor and electricity costs, aiming to reduce overall production costs. E.g., SCK+TVR revenue accounts for 40%.
Continuously optimizing the yield of SMD surface-mount products and introducing foreign labor to achieve a reduction in labor costs.
Lowering overall production costs for SENSOR products, which are highly customized, through material system integration, process automation, and relocation to regions with lower labor costs.

External Expansion:

Sustaining growth in the export market and targeting an increase in revenue share from exports to 40% from the current 25%.
Enhancing capacity utilization to effectively reduce depreciation and fixed amortization costs.

THINKING ELECTRONICS

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Financial Status

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Markets and Customers

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Strategy for Growth

Index

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Company Introduction

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Competitive Strength

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THINKING ELECTRONICS

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Corporate Mission

Mission Statement: Contribute to safety and operation efficiency of electronics

We “think” and “are keen” to offer customers “service.”

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T Think
K Keen
S Service
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THINKING ELECTRONICS

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Company Introduction

Established in 1979 7 factories and 4500 employees 2008-2022 Net Revenue:

USD 267.95 USD 267.95

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Using an exchange rate of 1 USD =27.99 NTD

THINKING ELECTRONICS

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Milestone

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THINKING ELECTRONICS

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THINKING All Around the World

Sales Office Taiwan USA Asia China 2 2 3+2 5

Distributor The Americas Europe Asia 12 14 16

THINKING ELECTRONICS

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Factories of THINKING

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Yichang Factory Changzhou Factory Yilan Factory
Kaohsiung 1 [st] Factory
Major Product Major Product Major Product
Major Product
JiangXi Factory
Kaohsiung 2 [nd] Factory
Dongguan Factory
Front-End
Major Product
Major Product
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THINKING ELECTRONICS

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Total Solution for Customers

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Over-Temperature
Protection
NTC Thermistor PTC Thermistor Temperature Sensor
Over-Current
Protection
NTC ICL PTC Thermistor Polymer PTC Thermistor
Over-Voltage
Protection
Varistor Gas Discharge ESD TVS Diode Spark Gap Thyristor Surge
Tube Protection Protector Suppressor
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THINKING ELECTRONICS

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Financial Status

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Markets and Customers

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Strategy for Growth

Index

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Company Introduction

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Competitive Strength

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THINKING ELECTRONICS

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Major Markets

Information and Communication Technology

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Telecom Power Supply
Consumer
Electronics Computer
Home Appliances and Lighting
Home Appliances Lighting
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Automotive and Industrial

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Automotive Industrial
(12%)
Medical and Others
Other
Medical applications
Distributor
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THINKING ELECTRONICS
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Market Positions of THINKING Products

THINKING NTC Thermistor

THINKING THINKING Disc Varistor Ceramic PTC Thermistor

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Note:

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1.Data source: Circuit Protection Components: World Markets, Technologies & Opportunities: 2019-2024, Paumanok Publication
2.Fiscal year 2020 calculation of THINKING NTC thermistor and disc varistor ended in December 31, 2020.

THINKING ELECTRONICS 15

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Financial Status

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Markets and Customers

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Strategy for Growth

Index

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Company Introduction

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Competitive Strength
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THINKING ELECTRONICS

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Core Technology

SMD type product ● ● Laminating & stacking Lead type product ● ● Printing Sensor assembly ● ● Sintering ● Surface finishing ● Material design ● Packaging ● Material processing ● Measurement ● Automation

Material Development Our know-how of key raw material and ceramic recipes make our products competitive in the market. Product Design Our simulation technology ensures our precise product design. Back-end Processing Automated production ensures our stable product quality.

THINKING ELECTRONICS

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Agency Approval of Product

NTC Thermistor Varistor PTC Thermistor Polymer PTC Thermistor Gas Discharge Tube NTC Temperature Sensor TVS Diode

Note: is for UL + cUL

THINKING ELECTRONICS

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UL and TUV Certified Laboratories

Laboratories of THINKING passed the CTDP (Client Test Data Program) of UL and witness testing qualification of TUV.

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THINKING ELECTRONICS

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Technical Support

THINKING AE team provides comprehensive technical support.

Technical Consultation: Discussion of technical problems with customers

Product Selection Suggestion: Selecting products in accordance with customer’s needs

Circuit Design Assistance: Discussion of circuit design for problems that customers encounter Application Example: Application experience sharing with customers

THINKING ELECTRONICS

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Financial Status

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Markets and Customers

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Strategy for Growth
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Index

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Company Introduction

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Competitive Strength

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THINKING ELECTRONICS

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Focus Markets

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THINKING ELECTRONICS

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Growth Strategy – Application Focus

2022 Sales by Applications

2025 Sales by Applications

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Energy Storage EV Car
& Solar System
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THINKING ELECTRONICS

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EV Applications

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THINKING ELECTRONICS

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Growth Strategy – Products Development

2022 Sales by Products

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2025 Sales by Products

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THINKING ELECTRONICS

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Growth Strategy – Products Development

 Comparison of PPTC and CPTC

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For PPTC, its faster response time and lower power consumption meet the market trend of energy saving. It also helps customers reduce cost and increase their design flexibility. Therefore, THINKING plans to promote PPTC more.

THINKING ELECTRONICS

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Growth Strategy – Products Development

THINKING PPTC offers over-current protection, and it is recommended for the following applications.

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PCB

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Portable Electronics

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Notebook Computer

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DC Power Module

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USB Port

Light Bulb

Set Top Box

THINKING ELECTRONICS

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Growth Strategy – Products Development

 Comparison of TVS Diode and Other Over-voltage Protection Components

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TVS diode provides better over-voltage protection because of its accurate varistor tolerance and low residual voltage. Its low capacitance also makes it a recommended ESD suppressor. Consequently, THINKING promotes TVS diodes for over-voltage protection.

THINKING ELECTRONICS

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Growth Strategy – Products Development

THINKING TVS diode offers either over-voltage protection or ESD protection, and it is recommended for the following applications.

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Automotive Electronics

5G Base Station

Notebook Computer

Set Top Box

Mobile Phone

THINKING ELECTRONICS

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Growth Strategy – Regional Market

2022 Regional Market

2025 Regional Market

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THINKING ELECTRONICS

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Update Schedule for Vietnam Factory

Stage 1

Stage 2

Stage 3

Stage 4

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2022: 2023-2024 : 2025(Q1-Q2):
Acquire land Factory construction Employees 2025(Q3) :
ownership of & Equipment recruitment, Job Factory MP
Hai Phong factory. arrangement training..etc
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THINKING ELECTRONICS

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Continuous Expansion Plan

Zhongshan Factory

Kaohsiung Factory

Southern CN: IT & Home appliance, 2024

TW: Automotive: 2023 H2

THINKING ELECTRONICS

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THANK YOU!

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THINKING

THINKING ELECTRONICS

AI assistant

THINKING — Interim / Quarterly Report 2023

52076_rns_2023-07-31_a3752562-22dd-4e15-891e-d243786d3d8a.pdf

THINKING Legal Person Briefing Session

Financial Status

Index

Company Introduction

Operation Overview: Sales Revenue Analysis

Inventory Trend

Reduction of 28% in inventory since August 31, 2022.

Gross Margin Improvement Strategy

Internal Improvements:

External Expansion:

Financial Status

Index

Corporate Mission

Company Introduction

Milestone

THINKING All Around the World

Factories of THINKING

Total Solution for Customers

Financial Status

Index

Company Introduction

Major Markets

Information and Communication Technology

Automotive and Industrial

Market Positions of THINKING Products

Note:

Financial Status

Index

Core Technology

Agency Approval of Product

UL and TUV Certified Laboratories

Technical Support

Financial Status

Index

Focus Markets

Growth Strategy – Application Focus

2022 Sales by Applications

2025 Sales by Applications

EV Applications

Growth Strategy – Products Development

Growth Strategy – Products Development

 Comparison of PPTC and CPTC

Growth Strategy – Products Development

Growth Strategy – Products Development

 Comparison of TVS Diode and Other Over-voltage Protection Components

Growth Strategy – Products Development

Growth Strategy – Regional Market

Update Schedule for Vietnam Factory

Stage 1

Stage 2

Stage 3

Stage 4

Continuous Expansion Plan

THANK YOU!

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THINKING Interim / Quarterly Report 2023