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.

THINKING Introduction

Date of Establishment: 1979/7/16
President: Su-ai Chen
Paid-in Capital: Around NTD 1.28 billion
Headquarter: Kaohsiung, Taiwan
THINKING Factory Scale:
| | Employee Size | Factory Area (square meter) |
| --- | --- | --- |
| Kaohsiung, Taiwan | 400 | 11,400 |
| Yilan, Taiwan | 100 | 6,000 |
| Changzhou, China | 1,500 | 92,600 |
| Dongguan, China | 1,100 | 14,000 |
| Yichang, China | 600 | 14,600 |
| Jingdezhen, China | 200 | 15,000 |
| | 3,900 | 153,600 |

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THINKING Introduction:? THINKING Group

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THINKING Introduction: ?THINKING Factory
Yichang Factory

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Establishment Year:
2007
Changzhou Factory

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Establishment Year:
1996

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Jingdezhen Factory

Establishment Year:
2014
Dongguan Factory

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Establishment Year:
1996
Kaohsiung 1st Factory
Kaohsiung 2nd Factory

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Establishment Year:
1979
Establishment Year:
2016

Yilan Factory

未命名
Establishment Year:
2016

Management Principle: ?Business vitalization, stakeholder’s satisfaction, diligence & integrity, business continuity

THINKING offers customer-oriented services for customer satisfaction
THINKING values stakeholders and offers good reward to stakeholders
A respect and encouraging work environment is built for employee development
THINKING endeavors to protect the environment for corporate social responsibility

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THINKING Introduction: ?Global Sales Network

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Notes:

2006.01.31 變更factory的顏色,將地名改為中文
新增Israel (以色列) 、Italy(義大利) 、Switzerland

THINKING Introduction: ?Broad Line Protective Component Manufacturer

◆EV charging station
◆Aircon, cell phone
◆Blood glucose meter, blood pressure monitor
◆Industrial pump
Over-voltage
Protection

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Varistor

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Gas Discharge Tube

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TVS Diode

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ESD Protection

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Spark Gap Protector
Product
Application
Over-current
Protection

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◆Automotive aircon
◆EV charging plug
◆Dish washer
◆Security system
Product
Application
NTC Thermistor
PTC Thermistor
Polymer PTC Thermistor
Over-temperature
Protection

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◆Coffee machine
◆Refrigerator
◆Washing machine
◆Car lamp
Product
Application
Temperature Sensor
NTC Thermistor
PTC Thermistor

THINKING Introduction: ?Agency Approval of Product

UL logo1

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bm-tuv

top_title

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NTC Thermistor

Varistor

Ceramic PTC Thermistor

Polymer PTC Thermistor

Gas Discharge Tube

NTC Sensor

TVS Diode

UL logo1
Note: is for UL + cUL

THINKING Introduction: ?UL and TUV Certified Laboratory

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

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DSCN8816

DSCN8817

DSCN8819

DSCN8827

THINKING Introduction: ?THINKING Factories Meet Requirements of Environmental Protection

THINKIG endeavors to reduce harmful gas emission during production
process for environmental protection.
ISO 14001-2015

ISO 14064-1:2006
(Greenhouse Gas)
PAS 2050:2008
(Product Carbon Footprint Verification Statement /
Verified Product: TSM0402)

Verified factories are located in Kaohsiung (Taiwan), Changzhou (China), and Dongguang (China)
THINKING meets OHSAS 18001-2007 Health and Safety Management
System in 2004.

Industry Advantage:?Advantage of THINKING Group

Material Development	Production Process Technique	Product Design	Manufacturing Technique

●Self-developed paste and paint ●Self-developed powder	●Ceramic stacking technique ●Coating technique ● Sintering technique	●SMD type product design ●Lead type product design ●Sensor assembly ●SPD design	● Automatic production

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Operation Overview:?Sales by Products
2017 Sales by Products

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2018 Sales by Products

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Operation Overview: ? Yearly Consolidated Income Statement and ?Analysis of Operation Result
| Unit: Thousand NTD | | | | | |
| --- | --- | --- | --- | --- | --- |
| Item | 2018Q1 | 2018Q4 | 2019Q1 | QoQ | YoY |
| Net sales | 1,360,747 | 1,486,669 | 1,404,060 | -5.6% | 3.2% |
| Gross profit | 496,337 | 501,708 | 549,327 | 9.5% | 10.7% |
| Gross profit margin | 36.5% | 33.7% | 39.1% | 5.4% | 2.6% |
| Operating expenses | 210,765 | 225,371 | 208,962 | -6.5% | -0.9% |
| Operating net profit | 285,572 | 276,337 | 340,365 | 3.3% | 19.2% |
| Operating profit ratio | 21.0% | 23.0% | 24.2% | 5.7% | 3.3% |
| Non-operating income and expenses | -48,496 | 36,892 | -1,820 | -104.9% | -96.2% |
| Net income | 97,072 | 237,370 | 253,454 | 6.8% | 161.1% |
| Earning per share (NTD) | 0.76 | 1.81 | 1.95 | 0.14 | 1.19 |

Notes:

Operation Overview:
Financial Structure

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| Item | QoQ | YoY |
| --- | --- | --- |
| Current Assets | 4.2% | 8.8% |
| Non-current Assets | 5.7% | 16.7% |
| Current Liabilities | -2.4% | 8.1% |
| Non-current Liabilities | 9.4% | 22.6% |
| Total Equity | 5.6% | 10.4% |

Notes:

Operation Overview:
Consolidated Balance Sheets
| Unit: Thousand NTD | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Item | 2018.3.31 | 2018.12.31 | 2019.3.31 | % | QoQ | YoY |
| Cash and cash equivalent | 2,064,206 | 1,832,903 | 1,887,674 | 22% | 3.0% | -8.6% |
| Account receivable | 1,917,176 | 2,074,260 | 1,969,186 | 33% | -5.1% | 2.7% |
| Inventories | 1,025,946 | 963,510 | 933,911 | 11% | -3.1% | -9.0% |
| Current assets | 5,458,836 | 5,699,845 | 5,941,783 | 69% | 4.2% | 8.8% |
| Fixed assets | 1,799,972 | 2,023,901 | 2,070,433 | 24% | 2.3% | 15.0% |
| Non-current assets | 2,305,828 | 2,546,102 | 2,690,839 | 31% | 5.7% | 16.7% |
| Total assets | 7,764,664 | 8,245,947 | 8,632,622 | 100% | 4.7% | 11.2% |
| Account payable | 532,269 | 635,670 | 637,352 | 9% | 0.3% | 19.7% |
| Other account payable | 382,651 | 479,707 | 391,940 | 6% | -18.3% | 2.4% |
| Current liabilities | 1,215,094 | 1,344,842 | 1,313,230 | 15% | -2.4% | 8.1% |
| Non-current liabilities | 751,073 | 841,347 | 920,635 | 11% | 9.4% | 22.6% |
| Total liabilities | 1,966,167 | 2,186,189 | 2,233,865 | 26% | 2.2% | 13.6% |
| Total equity | 5,798,497 | 6,059,758 | 6,398,757 | 100% | 5.6% | 10.4% |

Notes:

Operation Overview: ?Analysis of Financial Ratios

Item		2018Q1	2018Q4	2019Q1	QoQ	YoY
Debt Ratio		25.32%	26.51%	25.87%	-0.64%	0.55%
Current Ratio		449.25%	423.83%	452.45%	28.62%	3.20%
Account receivable	Turnover ratio (times)	2.75	2.93	2.77	-0.16	0.02
	Average collection days	132.72	124.57	131.76	7.19	-0.96
Inventories	Turnover ratio (times)	3.45	3.89	3.60	-0.29	0.15
	Average inventory turnover days	105.79	93.83	101.38	7.55	-4.41
Account payable	Turnover ratio (times)	5.99	6.01	5.37	-0.64	-0.62
	Average payables turnover days	60.93	60.73	67.97	7.24	7.04

Operation Overview:?Revenue and EPS of Recent Years

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Future Market of THINKING

Telecommunication
Automotive

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Industrial
Medical

THINKING Products for ?Automotive Applications

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Share of Automotive Application in ?Total Revenue of THINKING

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THANK YOU!
12F, No.93, Dashun 1st Rd., Zuoying Dist., Kaohsiung City, Taiwan
Tel: (07)5577660
Fax: (07)5570560
Email: [email protected]
Official Website: www.thinking.com.tw

AI assistant

THINKING Investor Presentation 2019

Disclaimer

THINKING Introduction

THINKING Introduction:? THINKING Group

Management Principle: ?Business vitalization, stakeholder’s satisfaction, diligence & integrity, business continuity

THINKING Introduction: ?Global Sales Network

Notes:

THINKING Introduction: ?Broad Line Protective Component Manufacturer

THINKING Introduction: ?Agency Approval of Product

THINKING Introduction: ?UL and TUV Certified Laboratory

THINKING Introduction: ?THINKING Factories Meet Requirements of Environmental Protection

Industry Advantage:?Advantage of THINKING Group

Notes:

Notes:

Notes:

Operation Overview: ?Analysis of Financial Ratios

Operation Overview:?Revenue and EPS of Recent Years

Future Market of THINKING

THINKING Products for ?Automotive Applications

Share of Automotive Application in ?Total Revenue of THINKING

AI assistant

THINKING — Investor Presentation 2019

Disclaimer

THINKING Introduction

THINKING Introduction:? THINKING Group

Management Principle: ?Business vitalization, stakeholder’s satisfaction, diligence & integrity, business continuity

THINKING Introduction: ?Global Sales Network

Notes:

THINKING Introduction: ?Broad Line Protective Component Manufacturer

THINKING Introduction: ?Agency Approval of Product

THINKING Introduction: ?UL and TUV Certified Laboratory

THINKING Introduction: ?THINKING Factories Meet Requirements of Environmental Protection

Industry Advantage:?Advantage of THINKING Group

Notes:

Notes:

Notes:

Operation Overview: ?Analysis of Financial Ratios

Operation Overview:?Revenue and EPS of Recent Years

Future Market of THINKING

THINKING Products for ?Automotive Applications

Share of Automotive Application in ?Total Revenue of THINKING

More from THINKING

THINKING Investor Presentation 2019