Twinhead — Interim / Quarterly Report 2021

Nov 18, 2021

Twinhead International Corp. Investor Conference

Date:November 19, 2021

2019 Durabook - All right reserved

Disclaimer

The information presented and referred herein are based upon the information obtained internally and externally from our company. In light of the forward-looking operational results, financial condition and business results, they might be different from those information expressly or impliedly presented herein due to various factors, including but not limited to market risks, supply chains, market demand and our upcoming high-quality products.

We undertake no obligation to publicly update or revise any statements regarding those information presented and referred herein in the event of any further changes or updates to the information presented herein.

Agenda

1 Company Overview

Basic Information(1) 公司基本資料(一)

Basic 公司基本資料 Information(2) (一)

HQ	Taiwan(Neihu,Taipei)
Manufacturing Location	Taiwan(Kaoshiang)
Employee	179
Main Product	Rugged NB & Tablet

Group Organization Chart 公司基本資料(一)

2 Business Profile

Core Business Introduction 公司基本資料(一)

Core Business

Design/Manufacturing/Sales of Rugged Mobile Devices

Business Model

• Brand Durabook 75%
• ODM/Others 25%

Major Application Market

• Defense Public Safety(Police Fire Fighter Ambulance)
• Industries in Hazardous/Explosive Environment (Utility Oil/Gas Food Processing)
• Sales Model
• Projects, Run-rate
• Channel Structure
• System Integrator
• Distributor/Re-seller

Durabook 公司基本資料 Key Initiatives (一)

Expedite localization in major markets(Sales, Marketing, Services)

• Expand channel coverage in secondary markets
• Increase Brand Awareness
• Increase value added of products

Revenue Ratio by Product 公司基本資料(一)

Revenue Ratio by Region 公司基本資料(一)

3 Financial Report

Consolidated Revenue 公司基本資料(一)

2019 Durabook - All right reserved

Consolidated Statements 公司基本資料 of Comprehensive Income(1 (一) )

					Unit:NTD K
	2020	2021		QoQ	YoY
	Q3	Q2	Q3	%	%
Operating revenue	246,420	235,862	243,212	3.1%	-1.3%
Gross profit	78,686	73,182	68,726	-6.1%	-12.7%
GP ratio(%)	31.93	31.03	28.26
Operating expenses	57,948	60,238	61,691	2.4%	6.5%
Expenses ratio(%)	23.52	25.54	25.37
Operating income	20,738	12,944	7,035	-45.7%	-66.1%
Non-operating income and expenses	4,823	(4,030)	2,952	173.3%	-38.8%
Net income before tax	25,561	8,914	9,987	12.0%	-60.9%
Net income	25,448	8,854	9,831	11.0%	-61.4%
Other comprehensive income(loss), net	(2,753)	3,468	277	-92.0%	110.1%
Total comprehensive income(loss)	22,695	12,322	10,108	-18.0%	-55.5%
Net income(loss) attributable to:
Owners of parent	26,544	9,848	10,869	10.4%	-59.1%
Non-controlling interests	(1,096)	(994)	(1,038)	-4.4%	5.3%
Comprehensive income(loss) attributable to:
Owners of parent	23,563	12,955	11,141	-14.0%	-52.7%
Non-controlling interests	(868)	(633)	(1,033)	-63.2%	-19.0%
EPS(NTD)	1.07	0.40	0.44	10.0%	-58.9%

Consolidated Statements 公司基本資料 of Comprehensive (一) Income(2)

				Unit:NTD K
	2020	2021	YoY
	Q1-3	Q1-3	Amount	%
Operating revenue	605,235	664,343	59,108	9.77%
Gross profit	183,849	196,935	13,086	7.12%
GP ratio(%)	30.38	29.64
Operating expenses	183,358	184,116	758	0.41%
Expenses ratio(%)	30.30	27.71
Operating income	491	12,819	12,328	2510.79%
Non-operating income and expenses	4,212	5,143	931	22.10%
Net income before tax	4,703	17,962	13,259	281.93%
Net income	4,552	17,746	13,194	289.85%
Other comprehensive income(loss), net	(1,433)	5,969	7,402	516.54%
Total comprehensive income(loss)	3,119	23,715	20,596	660.34%
Net income(loss) attributable to:
Owners of parent	9,463	21,009	11,546	122.01%
Non-controlling interests	(4,911)	(3,263)	1,648	33.56%
to: Comprehensive income(loss) attributable
Owners of parent	9,407	26,649	17,242	183.29%
Non-controlling interests	(6,288)	(2,934)	3,354	53.34%
EPS(NTD)	0.38	0.85	0.47	123.68%

Consolidated Balance Sheets

		2020	2021		2020		2021
	9/30	12/31	9/30		9/30	12/31	9/30
Assets				Liabilities
Current assets				Current liabilities
Cash and cash equivalents	224,076	252,568	257,284	Short-term borrowings	620,000	620,000	620,000
Accounts receivable, net	59,172	63,426	44,922	Notes payable	225	187	211
Other receivables	15	-	1,224	Accounts payable	126,080	129,859	124,841
Inventories	226,140	207,428	249,214	Other payables	47,436	57,729	50,802
Other current assets	14,411	14,707	13,584	Provisions-current	5,600	6,071	7,891
Total current assets	523,814	538,129	566,228	Current lease liabilities	16,380	16,448	16,685
				Other current liabilities	40,682	34,187	25,839
				Total current liabilities	856,403	864,481	846,269
				Non-current liabilities
				Long-term borrowings	7,025	-	6,724
				Provisions-non-current	5,284	5,552	5,604
				Non-current lease liabilities	38,341	34,017	21,501
Non-current assets				Guarantee deposits received	6,727	6,803	6,639
Non-current financial assets at fair value	6,964	6,481	3,191	Other non-current liabilities	1,685	1,370	1,688
through other comprehensive income				Total non-current liabilities	59,062	47,742	42,156
Property, plant and equipment	288,147	285,778	280,233	Total liabilities	915,465	912,223	888,425
Right-of-use assets	64,073	60,026	47,216	Equity
Investment property, net	197,395	197,849	194,952	Share capital	1,959,324	1,959,324	248,004
Deferred tax assets	43,567	43,339	43,108	Accumulated earnings (deficits)	(1,723,244)	(1,711,320)	21,009
Refundable deposits	7,132	7,110	7,081	Other equities	24,942	22,213	27,853
Other non-current assets	32,363	29,939	26,559	Non-controlling interests	(13,032)	(13,789)	(16,723)
Total non-current assets	639,641	630,522	602,340	Total equity	247,990	256,428	280,143
Total assets		1,163,455 1,168,651 1,168,568		Total liabilities and equity	1,163,455		1,168,651 1,168,568

4 Q&A