瑞軒科技(AmTRAN Tech.)

2018 Q3 financial result

Dec. 5th ,2018

Company Overview

Company Overview

3

Capital : USD$260 Mil.

Revenue : 2017 USD$562Mil

Headquarter Chung Ho District, New Taipei City, TW

Finance

Plants RAKEN Suzhou, China

Employees TPE office : 320

Raken China: 1300 (as of Nov. ave)

OEM/ODM Display MFG

LCD Monitors / TVs /PDs

Audio Devices/Smart Audio

Service/

Product

Founded Aug 11, 1994 by Alpha Wu

RAKEN Factory Overview

Location : Suzhou, China

Founded : Aug. 2008

Land area : 125,721m2

Headcount : 1,300

Products : LCD TV: 26”-75” (12 Lines)

Monitors: 18”-25”, 28”,32”

Sound Bar: 5.1 - 2.1

机器人

VR

Smart Audio

Capital : USD $90,914,600

Suzhou RAKEN Technology Ltd. Wholly-owned subsidiary of AmTRAN

Production schedule:

May 2008 – TV

Dec 2008 – LCM

Apr 2010 – AMS

July 2012 – BMS

Mar 2013 – Sound Bar

Aug 2017 – 机器人

Oct 2017 – VR

Sep 2018 – Smart Audio

Financial Overview

2018Q3 YTD Consolidated IS

Unit: NTD K

Q1'18-IFRS Q2'18-IFRS Q3'18-IFRS Total

Sales Revenue 2,569,089 3,381,977 3,752,762 9,703,828

Cost of good sold 2,321,932 3,008,952 3,307,896 8,638,780

Gross profit 247,157 373,025 444,866 1,065,048

Operating expenses 340,999 457,753 431,509 1,230,261

Operating income (93,842) (84,728) 13,357 (165,213)

Non-op 102,984 171,590 (40,185) 234,389

EBT 9,142 86,862 (26,828) 69,176

Income (benefit)tax (22,589) 29,252 (265) 6,398

Consolidated Net Income 31,731 57,610 (26,563) 62,778

Margin(%)

Gross Margin 9.62% 11.03% 11.85% 10.98%

Operating Margin -3.65% -2.51% 0.36% -1.70%

EBT Margin 0.36% 2.57% -0.71% 0.71%

Attributable to:

Parent company 20,745 32,247 (21,579) 31,413

Minority Interest 10,986 25,363 (4,984) 31,365

EPS(NT)

After Tax 0.03 0.04 (0.03) 0.04

2018Q3 YTD result - Revenue ：NTD 9.7 Billion - EPS after tax ：NTD 0.04

2018Q3 YTD non-OP gain mainly coming from： 1) rental / interest/Dividend 2) gain from FX hedge 3) gain on valuation of financial instruments

2018Q3 Consolidated IS (Quarterly Comparison)

Unit: NTD K

Q3'18-IFRS Q2'18-IFRS Q3'17-IFRS QoQ YoY

Sales Revenue 3,752,762 3,381,977 4,191,832 11% -10%

Cost of good sold 3,307,896 3,008,952 3,731,364 10% -11%

Gross profit 444,866 373,025 460,468 19% -3%

Operating expenses 431,509 457,753 523,542 -6% -18%

Operating income 13,357 (84,728) (63,074) -116% -121%

Non-op (40,185) 171,590 197,043 -123% -120%

EBT (26,828) 86,862 133,969 -131% -120%

Income (benefit)tax (265) 29,252 25,365 -101% -101%

Consolidated Net Income (26,563) 57,610 108,604 -146% -124%

Margin(%)

Gross Margin 11.85% 11.03% 10.98% 7% 8%

Operating Margin 0.36% -2.51% -1.50% -114% -124%

EBT Margin -0.71% 2.57% 3.20% -128% -122%

Attributable to:

Parent company (21,579) 32,247 99,741

Minority Interest (4,984) 25,363 8,863

EPS(NT)

After Tax (0.03) 0.04 0.12

2018Q3 result - Revenue ：NTD 3.7 Billion - EPS after tax ：NTD -0.03

2018Q3 non-OP loss mainly coming from： 1) loss on valuation of financial instruments

2016/2017 Consolidated IS (Yearly Comparison)

Unit: NTD K

16-IFRS 17-IFRS

Sales Revenue 26,017,680 16,861,702

Cost of good sold 23,409,305 15,589,788

Gross profit 2,608,375 1,271,914

Operating expenses 2,982,489 2,065,750

Operating income (374,114) (793,836)

Non-op-exclude subsidiary 2,458,928 (290,142)

Non-op-subsidiary(HJC/中軒) 82,987 9,938

EBT 2,167,801 (1,074,040)

Income (benefit)tax 500,956 (225,744)

Consolidated Net Income 1,666,845 (848,296)

Margin(%)

Gross Margin 10.03% 7.54%

Operating Margin -1.44% -4.71%

EBT Margin 8.33% -6.37%

Attributable to:

Parent company 1,631,095 (887,798)

Minority Interest 35,750 39,502

EPS(NT)

After Tax 2.02 (1.10)

2017 result - Revenue ：NTD 16.6 Billion - EPS after tax ：NTD -1.1

2017 non-OP loss mainly coming from： 1) loss on valuation of financial instruments

2018 Q3 Balance Sheet (Consolidated)

Unit: NTD K

Q3'18 Q2'18 Q3'17 QoQ YoY

Assets 18,185,341 17,448,417 17,930,349 4% 1%

Cash+Short term investment 8,427,913 9,286,673 7,743,374 -9% 9%

Accounts Receivable 3,359,434 2,400,522 2,006,878 40% 67%

Inventories 1,965,530 1,438,125 3,238,233 37% -39%

Current Assets 14,071,727 13,250,510 13,778,806 6% 2%

Liabilities 6,121,977 5,215,514 5,600,141 17% 9%

Current Liabilities 5,525,611 4,606,296 5,077,643 20% 9%

Long-term Liabilities 89,183 91,957 100,420 -3% -11%

Stockholder'Equity 12,063,364 12,232,903 12,330,208 -1% -2%

Ratio(%)

Debt Ratio 34% 30% 31% 4% 3%

Current Ratio 255% 288% 271% -33% -16%

Quick Ratio 214% 252% 198% -38% 16%

High liquidity from high possession of Cash on hand and securities. (cash $5.3B)

Solid financial performance: Debt ratio around 34%; Current ratio around 255%, Quick Ratio 214%

Net worth: 12 Billion Book value : 14.46/per share

2015~2017 Balance Sheet (Consolidated

Q4'15 % Q4'16 % Q4'17 %

Assets 21,977,508 100% 23,825,075 100% 17,481,996 100%

Cash+Short term investment 9,912,521 45% 9,489,886 40% 8,237,034 47%

Accounts Receivable 3,416,027 16% 6,079,617 26% 2,731,182 16%

Inventories 1,666,160 8% 2,640,333 11% 1,878,896 11%

Current Assets 15,964,580 73% 19,472,585 82% 13,296,317 76%

Liabilities 7,100,285 32% 9,108,612 38% 5,327,851 30%

Current Liabilities 5,946,012 27% 8,173,265 34% 4,731,680 27%

Long-term Liabilities 85,256 0% 119,137 1% 96,542 1%

Stockholder'Equity 14,877,223 68% 14,716,463 62% 12,154,145 70%

Ratio(%)

Debt Ratio 32% 38% 30%

Current Ratio 268% 238% 281%

Quick Ratio 235% 197% 237%

High liquidity from high possession of Cash on hand and securities.

Solid financial performance: Debt ratio around 30%; Current ratio above 238%, Quick Ratio above 197%

Net worth: 12.1 Billion

Cash Flow Statement

Net cash out-flow in 2018/1-2018/9: NT 752 Million

Cash and cash equivalents : NT 5.3 Billion

NTD K

2018/1-2018/9

Cash flow from Operation ($470,986)

Cash flow from Investment ($200,708)

Cash flow from Financing ($38,083)

Exchange rate Impact ($42,689)

Total Cash out-flow ($752,466)

Cash and cash equivalents on 1/1/2018 $6,123,990

Cash and cash equivalents on 9/30/2018 $5,371,524

Decrease in cash from operation was due to 1. Slightly increase from working capital 2. Cash out for investment of financial instruments.

Machine/Equipment investment. (Capital expenditure)

2018Q3 YTD Shipment by Product

[New featured TV] in terms of quarterly shipment

LED TV—100%

4K TV—68%

250

500

750

1,000

Q1 Q2 Q3 Q4

593

786 827

33 39 101

Display

Sound Bar

( k Sets)

Annual Shipments

2018Q3 YTD Shipments by Size

32” and 39”/40”, take 29% of total shipment.

48”/49”, 50”/ 55” and 65”/70”/75” accounts for 71% of total shipment

32" 13%

39"/40" 16%

48"/49" 16%

50"/55" 38%

65"/70"/75" 17%

2018Q3 YTD Revenue by Size

32” and 39”/40”, take 28% of total shipment.

48”/49”, 50”/ 55” and 65”/70”/75” accounts for 72% of total shipment

32" 12% 39"/40"

16%

48"/49" 13%

50"/55" 29%

65"/70"/75" 30%

New Product

CES Product- 8K TV

CES Product- Mini LED TV

CES Product- AI built-in TV

Thank You