Agenda. 01 Company Overview. 02 Financial Highlights. 03 Customers & Channels. 04 ZOTAC Business. Outlook 2018 / 2019

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2 Disclaimer These materials and the subsequent discussion are not an offer for sale of any securities of PC Partner Group Limited (the Company ). The distribution of these materials in certain jurisdictions may be restricted by law and therefore persons into whose possession these come should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdiction. Certain financial information contained herein has not been audited, comforted, confirmed or otherwise covered by a report by independent accountants. In addition, past performance of the Company cannot be relied on as a guide to future performance. These materials and the subsequent discussion contain statements about future events, projections, forecasts and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company makes no representation on the accuracy and completeness of any of the forward-looking statements, and, except as may be required by applicable law, assumes no obligations to supplement, amend, update or revise any such statements or any opinion expressed to reflect actual results, changes in assumptions or in the Company s expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk. 2

3 Agenda 01 Company Overview 02 Financial Highlights 03 Customers & Channels 04 ZOTAC Business 05 Outlook 2018 /

4 Company Overview

5 Business Overview Established in 1997, PC Partner is a leading manufacturer of computer electronics which designs, develops and manufactures video graphics cards, motherboards and computers. The Group provides one-stop electronic manufacturing services (EMS) to reputable brands worldwide, and manufactures and trades other PC related products and components under its own ZOTAC, Inno3D and Manli brands. PC Partner is one of the largest manufacturers in the video graphics cards industry. Product and Services Video Graphics Cards EMS Computer Related Products & Comp. 5

6 Milestone Developing Internet on Things (IOT) business Before Launched ZOTAC Gaming Desktop Computers Position ZOTAC as a Gaming Brand 2016 Developing new VR machines (VR Gaming & Backpack machines) Listed on the main board of The Stock Exchange of Hong Kong Fully acquired ASK and Manli group Designed and sold its own mini-pc series under the ZOTAC brand Acquired 60% of ASK and Manli groups and their Inno3D and Manli brands Started distributing its own ZOTAC brand video graphics cards Started manufacturing video graphics cards based on NVIDIA GPUs Became an EMS provider for a world-leading flash memory card supplier Engaged by ATI (now AMD) as contract manufacturer Became an EMS provider for a world-leading ATM & POS system supplier The PC Partner Group was founded in Hong Kong Computer division as a part of Vtech Group 6

7 Global Coverage -Selling products to over 70 countries globally - HQ in HK with regional offices in China, Korea, Japan, Taiwan, Germany, USA 7

8 Latest Shareholding Structure Ho Wong Mee Tak Mary, NED* Wong Shik Ho Tony, Chairman/ CEO, ED* Wong Fong Pak, ED* Leung Wah Kan, COO, ED* Ho Nai Nap, ED* Man Wai Hung, ED* Others 14.76% 14.65% 7.44% 6.47% 5.50% 1.35% 49.83% 100% * ED Executive Director NED Non Executive Director 8

9 Major Strategic Technology Partners - Partnership for over 20 years with AMD and over 10 years with NVIDIA 9

10 Strong Management Team with Rich Industry Experience Mr. WONG Shik Ho Tony Chairman & Chief Executive Officer Responsible for the overall strategic management and corporate development of the Group Manage the Group s overall sales activities Mr. WONG Fong Pak Executive Director & Executive Vice President Responsible for managing the materials management function Manage business EMS division Mr. LEUNG Wah Kan Executive Director & Chief Operation Officer Responsible for management of the Group s manufacturing operations in China Manage the Group s product design and development engineering activities Mr. LAU Ka Lai Gary Chief Financial Officer Responsible for the Group s overall financial, information technology, and legal matters Manage ZOTAC s American regional business Mr. HO Nai Nap Executive Director Responsible for management of ASK Group Manage ZOTAC s EMEAI regional business Mr. Man Wai Hung Executive Director Responsible for management of Manli Group Significant Industry Experience and Strong Client Relationships of the Group s Managements Enable PC Partner to Efficiently Deliver Reliable Products to Satisfy the Time-to-market Requirements 10

11 Financial Highlights

12 Financial Summary HK$'000 1H H Revenue 5,538,381 2,498,498 8,555,368 5,827,964 4,754,149 4,895,192 4,803,097 Gross Profit 717, , , , , , ,421 Gross Profit Margin 12.90% 8.30% 10.70% 10.12% 8.73% 9.79% 9.96% Profit Attributable to Owners of the Company 340,038 43, , ,189 (18,460) 51,349 73,251 Net Profit Margin 6.10% 1.47% 3.88% 2.57% -0.39% 1.05% 1.53% Basic Earning per Share (HK$)

13 Revenue / GP%&NOP% / KPI (HK$ M) Revenue (1H & 2H) (HK$ M) Revenue by Brand/OEM (1H & 2H) (%) GP% & NOP% (1H & 2H) (Days) Cash Conversion Cycle & Inventory Turnover Days 13

14 Revenue / VGA Qty / ASP (HK$ M) Revenue by Product Segments (1H & 2H) (HK$ M) Revenue by Geographical Regions (1H & 2H) (M Pcs) VGA Sales Quantity (1H & 2H) (US$) Brand & OEM ASP (1H & 2H) 14

15 15 WE ARE ZOTAC We are the creators of the Original Mini PC. We are the only pure NVIDIA Authorized Board Partner globally with our own manufacturing facilities. We strive to create the latest technological products including Graphics Cards, Mini PCs, SSDs, & innovative Accessories. With function & design at our core, we believe in manufacturing quality PC-related products that epitomize form, utility, and style. Our dedication to rigorous standards & the relentless pursuit of excellence is the backbone to our continued success.

16 ZOTAC Sales 16 US$ 000

17 ZOTAC CUP 17 Weekly and monthly ZOTAC CUP tournaments Worldwide tournaments available in Europe, North America, Latin, America, & Southeast Asia. Cash prizing for participating winners. Over 15,000 individual gamers registering per year. Dedicated website for fans with regularly updated tournament news. Live streams are hosted by popular casters and influencers. Monthly updates along with ZOTAC newsletter.

18 Outlook on 2H 2018 Likely miss the full year target for 30% growth from 2017 A weak Q3 but should rebound by Q4 due to new products contribution in 2H H 2018 profit margin is likely to be lower than 1H 2018 Q3 is expected to be a bad quarter since existing VGA products are moving slow; new products contribution will not be significant due to limited supply in Sep 2018 Q4 is expected to be a better quarter due to more availability of new graphics cards to the market; old/existing products should be moving better since some people should go back to buy the old products although there will be very much people buying the new generation of the graphics cards More discount than expected to clear the old/existing inventory in Q3 2018, which drives the gross profit margin down for the quarter, but a higher margin contribution on new products for Q4 is expected to offset the margin decline partially 18

19 Risk & Challenges on 2H 2018 Trade war between USA and China in case USA imposes 25% of tariff on goods import to USA New GPUs availability and production yield rate on new products in Q4 Old products clearenace in 2H

20 Outlook on FY2019 There will be a continue new products launch for Q1/Q2 2019, graphics business used to be doing good when Nvidia launches new products Believe the usage of video graphics cards will continue to expand on top of gaming Expecting a higher revenue contribute on full system gaming PCs under the ZOTAC brand 20

21 Thank You