© 2017 Weikeng Industrial Co., Ltd. · ... (2017 Q1~Q3) 45 39.93 35 China 0 5 10 15 20 25 30 40 50 ... AMD CPU ( EPYC) / GPU / IFX ... Presentation Title Here Wraps if Long

© 2017 Weikeng Industrial Co., Ltd.


Weikeng Confidential

2

Agenda

Welcome

Fama Chou

Spokesman

Company Introduction

3rd Q17 Financial Results

Opportunities, Solutions and

Competitive Advantages

Q & A

Stan Chi

Tom Chen

Kevin Hsieh

Fama Chou

Group Chief Operating Officer

Executive Vice President

Senior Vice President

Spokesman


Weikeng Confidential 3

Safe Harbor Notice

WEIKENG’s statements of its current expectations are forward-looking

statements subject to significant risks and uncertainties and actual results

may differ materially from those contained in the forward-looking statements.

Information as to those factors that could cause actual results varied can be

found in WEIKENG’s Quarterly or Yearly Financial Statements and Report

filed with the Taiwan Stock Exchange Corporation (the “TWSE”) and such

other major information will be posted on the TWSE’s Market Observation

Post System ( MOPS) from time to time.

Except as required by law, we undertake no obligation to update any forward-

looking statement, whether as a result of new information, future events, or

otherwise.

In addition, any financial information contained in this report is prepared in

accordance with the International Financial Reporting Standards (IFRSs).



Weikeng International

(HK/China)

Weikeng Tech

(Sin/SEA) Weikeng Industrial

(Taiwan/ Greater China)

Established in 1977

As of 2017/9/30, 1,057 employees, 27 sales offices, APAC

2016 consolidated sales: NT$ 43.7B

2017 1Q~3Q consolidated sales: NT$ 37.1B (unaudited)

Weikeng Industrial

Company Introduction--Brief Facts

4

Entered in 1994

Wholly-owned subsidiary

20 offices, 619 employees

2016 sales: NT$23.4B

2017 1Q~3Q sales: NT$18.3B

Parent company



2017 1Q~3Q sales: NT$17.6B

Entered in 2000

Wholly-owned subsidiary



2017 1Q~3Q sales: NT$1.04B



2012~2016 CAGR of revenues :10.53%; 2017(1Q~3Q) YoY：18.81%

Diversified, broad-based accounts--top 10 customers 15.74% of revenue(2017 Q1~Q3)

0

5

10

15

20

25

30

35

40

45

50

2012 2013 2014 2015 2016 2017 (1Q-3Q)

Taiwan

China

SEA

43.74

29.31

33.30

39.93 38.84

(NT$ Billions)

5

Company Introduction–Revenues, 2012~2017 3Q

37.11

CAGR=10.53%

YoY=18.81%



6

Company Introduction–Analytics--1Q~3Q,2017

By customer base/HQ By ship-to location

By Application Segment

Consumer, 26%

Communications, 12%

Computing, 30%

Industrial, 32%

47.63% 17.68 B

49.55% 18.40 B

2.82% 1.05 B

Taiwan

China

SEA

17.31% 6.43 B

79.85% 29.65 B

2.84% 1.05 B

Taiwan

China

SEA



Consumer 26%

Smart Speaker, VR, IoT Devices, WiFi/BT module, Smart/feature phone, eReader, Tablet, PND, LED TV, STB, Game Console, Media Player, Home appliance, White Goods, Alarm, Wearable, Home automation, LED lighting, e-Lock, Toy, IP CAM, Projector, Headphone

Industrial 32%

IPC, UPS, ADAS, TPMS, BMS, Motor Control, Charging Stations/Piles, Drone, POS, VF Pump, Security/Surveillance (DVR), E-Tools, Lighting, Welding machine, Aero modeling, eBike, Textile machine, PLC, Metering, Smart Grid, Wind Power, Solar Inverter, Instrumentation, Telecom Power, Fitness, NAS, Automotive, Car infotainment, BCM, Dashboard, RKE, Power Train, Medical

Computing 30%

PC, NB, MB, AIO, Server, 2-in-1 NB, Enterprise Storage

Communications 12%

Broadband Access, Switch / Router, UTM, Wireless LAN, VoIP, Cable Modem, Base station, GPON, EAP, Femtocell, Fiber optics, Gateway

Applications

Segment

Company Introduction–Revenue by Applications segment



8

Company Introduction–Line card

http://www.weikeng.com.tw/product.php?argv=info/49

http://www.weikeng.com.cn/productinfo.aspx?id=410




http://www.weikeng.com.tw/linecard/brief?id=3642



9

Bangkok

Penang

Singapore

Taipei

Hsinchu

Taichung

Kaohsiung

Taiwan

ASEAN

China

Shenyang

Beijing

Qingdao

Nanjing

Shanghai

Xian

Chongqing

Chengdu

Fuzhou

Guangzhou

Xiamen

Hong Kong

Wuhan

Dongguan

Shenzhen

Hangzhou

Jinan

Suzhou

Taizhou

China

Thailand

Malaysia

Singapore

Taiwan

Zhengzhou

Hong Kong

Company Introduction–Locations



Consolidated Statements of Comprehensive Income

Selected Items from Consolidated

Statements of Comprehensive Income

(In NT$ Millions)

3Q

2017 (Unaudited)

1Q~3Q

2017

2Q

2017

3Q

2016

3Q17

Over

2Q17

3Q17

Over

3Q16

1Q~3Q17

Over

1Q~3Q16

Net Revenue 14,460 37,127 11,765 11,669 22.90% 23.90% 18.81%

Gross Margin 770

5.33%

2,012

5.42%

638

5.42%

588

5.04%

20.73%

-0.09ppts

30.89%

+0.29ppts

14.30%

-0.21ppts

Operating Expenses 441** 1,372 494 464 -10.66% -5.08% 4.44%

Net Operating Income 329

2.27%

640

1.73%

144

1.23%

124

1.06%

128.19%

+1.04ppts

165.98%

+1.21ppts

43.25%

+0.30ppts

Non-Operating Items, net (13) (61) (15) (19) -8.48% -27.49% -26.59%

Foreign currency exchange gain

(losses),net 46 111 43 25 5.52% 81.95% 219.43%

Financial costs (66) (184) (61) (44) 9.27% 50.81% 49.56%

Profit before Tax 316

2.18%

579

1.56%

129

1.10%

105

0.90%

143.65%

+1.08ppts

199.97%

+1.28ppts

59.26%

+0.40ppts

Profit 244 443 98 86 149.40% 185.59% 48.52%

Basic EPS(NT Dollar) 0.75 1.37 0.30 0.30 150% 150% 30.47%

Average Exchange Rate (USD/NTD) 30.27 30.54 30.25 31.73 0.066% -4.60% -5.80%

** AR collection of LeTV CNY 49.16 million (about NTD 223 million) and reversed the allowance for doubtful accounts CNY17.72 million( about NTD 79.15 million)



Balance Sheets and Key Indices

Selected Items from Balance Sheets

(In NT$ Millions)

Sep 30, 2017(unaudited) Jun 30, 2017 Sep 30, 2016

$ % $ % $ %

Cash and Cash Equivalents 2,072 9 2,445 11 2,183 12

Notes and Accounts Receivable, net 8,365 37 7,687 36 7,065 40

Inventories, net 10,976 49 10,137 47 7,640 42

Total Assets 22,617 100 21,416 100 17,980 100

Short-term Borrowings 9,601 42 8,891 41 7,959 44

Notes and Accounts Payable 6,539 29 5,969 28 3,839 21

Total Liabilities 17,374 77 16,427 77 12,840 71

Total Equity 5,243 23 4,989 23 5,140 29

Key Indices

A/R Turnover (Days) 54 64 59

Inventory Turnover (Days) 73 78 65

A/P Outstanding (Days) 40 44 33

Current Ratio (X) 1.31 1.32 1.42

ROWC(%) 6.67 5.25 5.49

ROE(%) 11.24 7.75 8.04



Opportunities, Solutions and Competitive

Advantages

Server / Datacenter

White Box / SI / OEM / ODM: AMD CPU( EPYC) / GPU / IFX / Lattice / WDC

AI / Mining machine : AMD CPU, GPU, Memory, Chipset

Automotive / Electric Vehicle (EV) ：NXP / Infineon / Vishay / Microchip /

Cypress

ADAS, TMPS, Motor control, BMS, EPS, LED，OBC, EV Charging station /

piles, Radar, Infotainment

Type C：NXP / Cypress

IoT：Cypress (Broadcom / Spansion ) / NXP / Microchip

Passive product lines

Vishay / Molex



Opportunities, Solutions and Competitive

Advantages, Continued

Long–term solid relationship with key suppliers：AMD / Cypress / Infineon / Microchip /

NXP / Lattice / Vishay

70% of ICs revenue from demand creation activities, backed by high technical staff to

sales ratio

Taiwan：2 to 3

China：1 to 2

China operation very competitive

High demand creation

High penetration into mass market ( 28% of ICs revenue)

ASEAN Growth ( Territory expansion, New product lines)





Thank You

http://www.weikeng.com.tw/investor/conference.php?lan=en

© 2017 Weikeng Industrial Co., Ltd. · ... (2017 Q1~Q3) 45 39.93 35 China 0 5 10 15 20 25 30 40 50 ... AMD CPU ( EPYC) / GPU / IFX ... Presentation Title Here Wraps if Long

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