THINKING — Interim / Quarterly Report 2023

Jun 14, 2024

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THINKING

Investor Conference

Corporate Introduction

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45 years

of experience in protective component industry

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.
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7 manufacturing sites with continuous expansion

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4200 employees

in THINKING Electronic Group

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10 product categories for overall circuit protection

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26 countries

of sales support for global service

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Company Introduction

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2008-2023 Consolidated Net Revenue
9,000 7,500 7,463
7,077
8,000
5,920
7,000 5,408
6,000
4,123
5,000
3,211
4,000
3,000
2,000
1,000 +28% +31% +9% +27% -0.5% -5%
-
2008 2012 2016 2020 2021 2022 2023
Using an exchange rate of 1 USD = 30.77 NTD
NTD (Million)
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Milestone

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2023 Accomplishments

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RENEWABLE ENERGY TRANSITION THE NEW KAOHSIUNG FACTORY RAPID VDE CERTIFICATION OBTAINMENT
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New solar energy Sustainable, Leading in meeting the capacity installation automated, and digitalized latest IEC standards * 200.5 kWp 90% of the production processes DIN EN IEC /EN IEC achieve automation in Kaohsiung 61051-1 970.9 kWp 44% of the production processes 61051-2* in Changzhou are digitalized, including 100% of the inspection equipment * As an average of the major production line

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THINKING Factories

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Yichang Factory
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Changzhou Factory
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Front-End
Jiangxi Factory
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Dongguan Factory
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Yilan Factory
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Kaohsiung Factory
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Kaohsiung 2nd Factory
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THINKING Products

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Quarterly Consolidated Income Statement

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： Operation Overview Quarterly Consolidated Income Statement NT$ Thousand

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Quarterly Balance Sheet

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NT$ Thousand

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Analysis of Operating Expenses ： Operation Overview Analysis of Operating Expenses

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MARKETS

Major Markets

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43 %
18 %
16 %
11 %
12 %
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Information and
Communication Technology
Power Consumer
Telecom
Supply Electronics
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Industrial
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Home Appliances and Lighting

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Medical and Others
Other
Medical Distributor
Applications
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Automotive
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Home Appliances Lighting
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MANAGEMENT SYSTEMS

Certification of Management System

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Agency Approval of Product

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Note: is for UL + cUL

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THINKING ESG

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E NVIRONMENTAL
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3084.4 kWp cumulative solar panel capacity installed at THINKING sites 7 % reduction in GHG emissions THINKING Yichang Factory FY2021 to FY2022

• Green product

• Green production

• Green supply chain

• Increase the use of renewable energy

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S OCIAL

• Support the promotional events of reading and e-bookstore projects of Kaohsiung City

• Employees participate in beach clean-up and tree-planting initiatives to contribute to ecosystem restoration

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Adhering to the RBA code of conduct, we uphold labor rights , ensure health and safety , protect the environment , conduct business with high ethical standards , and establish our management systems

G OVERNANCE

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COMPETITIVE STRENGTH

Core Technology

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Material Development

SMD type product ●

Lead type product ●

Sensor assembly ●

• Laminating & stacking ● Printing ● Sintering ● Surface finishing

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Our know-how of key raw material and ceramic recipes make our products competitive in the market

Product Design

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Our simulation technology ensures our precise product design

Back-end Processing

Material design ●

Material processing ●

• Packaging

• Measurement

• Automation

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Automated production ensures our stable product quality

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UL and TUV Certified Laboratories

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Laboratories of THINKING passed the CTDP (Client Test Data Program) of UL and witness testing qualification of TUV, and they provide the following advantages.

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• ⚫ International laboratory management is based on ISO 17025

• ⚫ Testing equipment and technicians are aligned with those of approval agencies , offering reliable test results

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• ⚫ In-house testing of THINKING products shortens certification process and accelerates customer's new product launch

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Technical Support

THINKING AE discusses technical problems and shares application experience with customers

COMPREHENSIVE TECHNICAL SUPPORT

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AE discusses circuit design with customers

application examples

• AE selects products based on customer’s specific needs

• Online product selection tools provide efficiency and flexibility

Backed by our labs, AE assists in developing testing plans and evaluates the results with customers

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Vision

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Contribution to Human Life in

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THINKING Products for Electric Vehicle

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Continuous Expansion

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Zhongshan Factory Vietnam Factory	Zhongshan Factory Vietnam Factory	Zhongshan Factory Vietnam Factory	Zhongshan Factory	Zhongshan Factory	Zhongshan Factory
Expansion Plan	Location	Area		Major Product	Estimated Time of Mass Production
Vietnam Factory	Hai Phong, Vietnam	N/A		⚫SMD components ⚫Temperature sensors	Q3 of 2025
Zhongshan Factory	Guangdong, China	151,300m2		⚫Protective components ⚫Temperature sensors	Q4 of 2025

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

THINKING

Contribute to safety and operation efficiency of electronics