presented by: gary lau (cfo of the group)

June 2021 Interim Result PresentationPresented by: Gary Lau (CFO of the Group)

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.

Disclaimer

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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.

Interim Result June 2021 Financial Highlight

HK$'000 1H 2021 1H 2020 2020 2019 2018 2017 2016

Revenue 6,849,280 3,290,773 7,761,758 7,556,477 9,122,319 8,555,368 5,827,964

Gross Profit 1,864,084 297,525 795,355 516,314 957,445 915,971 590,747

Gross Profit Margin 27.2% 9.0% 10.2% 6.8% 10.5% 10.7% 10.1%

Profit Attributable to Owners of the Company 932,156 31,723 207,276 10,266 270,843 332,293 150,189

Net Profit Margin 13.6% 1.0% 2.7% 0.1% 3.0% 3.9% 2.6%

Basic Earning per Share (HK$) 2.469 0.085 0.560 0.030 0.660 0.760 0.360

Inventory Turnover Days 46 65 53 94 86 63 73

Receivables Turnover Days 33 77 65 54 41 40 42

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Receivables Turnover Days 33 77 65 54 41 40 42

Payables Turnover Days 48 74 68 70 55 45 49

Net Cash (Debts) to Equity Ratio 65.6% -83.9% -8.0% -82.7% -102.2% 8.5% -21.1%

Dividend 0.840 0.000 0.220 0.000 0.275 0.320 0.179

Dividend Payout Ratio 34.0% 0.0% 39.3% 0.0% 41.7% 42.1% 49.7%

Interim Result June 2021

� Strong sales and profitability performance mainly contributed by huge demand of VGA cards which was far exceeded the supply

� Prices of VGA cards increased throughout 1H2021, product mix shifted toward more expensive product series that had further push the ASP upward

� HK$273.5m or 4% of revenue was contributed by sales of CMP cards

� Recorded an impairment loss of an installment receivable for HK$315.6m

� Share of profit of a JV was HK$61.1m; the JV has temporarily ceased

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� Share of profit of a JV was HK$61.1m; the JV has temporarily ceasedoperation in July 2021 & will take time to resume the business

� Inventories increased by 76% to HK$1.6B & inventory turnover days was 46 days

� Cash on hand increased by 97% to HK$2.2B & borrowings decreased by 26% to HK$0.79B, net cash to equity was at 65.6%

� Net assets value increased by 79% to HK$1.98B

� Performance was consistent with industry peers, Asustek, Gigabtye & MSI were all performed very well

Sales – 5 Yrs & Half Yrs Trend

HKD’m

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HKD’m

Brand & OEM Sales – 5 Yrs & Half Yrs Trend

HKD’m

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1,688 2,669 4,593

HKD’m HKD’m HKD’m

Sales Quantity of VGA Cards

M’Pcs

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Remark: Brand VGA sales quantity in 1H2021 was able to catch up to sales quantity of 2H2020 but OEM VGA sales quantity missed byalmost 30% for 1H2021 vs. 2H2020.

Average Selling Price (ASP) of Brand/OEM VGA Cards

USD

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Remark: OEM ASP excluded CMP cards

Video Gamers Spending in U.S.

Research Report from Statista

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Video Gamers Spending Category in U.S.


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Video Gamers Age Group in U.S.


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Nvidia GPU Revenue & Predictions


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AMD vs. Nvidia Market Shares


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2H2021 Business Outlook

� Business fundamental remains strong as the demand of VGA cards is still expected to be far exceed supply in 2H2021.

� Different factors expecting continue to drive the VGA cards ASP uptrend:� Product mix continue shifting toward more expensive product series (e.g. RTX3070Ti &

RTX3080Ti)� Price increase to compensate cost increment (components & logistics)� Demand is still way over supply which facilitates price increase� Potentially cost increase of GPU since TSMC has recently announced price increase for

10%-20%

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� 2nd half is the traditional high season which usually comes with a strong sales performance on most product lines, such as EMS and PC.

� Crypto demand on CMP cards are raising probably due to crypto coin prices rebound.

� Looking into a more stable GPU supply from Nvidia in the 2nd half of 2021.

2H2021 Business Outlook

� Business fundamental remains strong as the demand of VGA cards is still expected to be far exceed supply in 2H2021.

� Different factors expecting continue to drive the VGA cards ASP uptrend:� Product mix continue shifting toward more expensive product series (e.g. RTX3070Ti &

RTX3080Ti)� Price increase to compensate cost increment (components & logistics)� Demand is still way over supply which facilitates price increase� Potentially cost increase of GPU since TSMC has recently announced price increase for

10%-20%

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� 2nd half is the traditional high season which usually comes with a strong sales performance on most product lines, such as EMS and PC.

� Crypto demand on CMP cards are raising probably due to crypto coin prices rebound.

� Looking into a more stable GPU supply from Nvidia in the 2nd half of 2021.

2022 Business Outlook

� Revenue and profit ability will likely continue driven by demand over supply of VGA cards.

� A stable GPU supply from Nvidia is continued to be a key factor affecting sales revenue and profitability.

� Nvidia warned earlier this year that the great GPU shortage would last throughtout 2021, and now the company expects supply issues to continue well into 2022. Speaking on Nvidia’s Q2 fiscal 2022 earnings call this week, Nvidia CEO Jensen Huang said he expects supply constraints for the majority of next year. (18 Auguest 2021).

� Semiconductor foundries have also announced supply constraint which may last for a much

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� Semiconductor foundries have also announced supply constraint which may last for a muchlonger period of time and take times to build new plants in order to increase capacity.

� Potentially new generation of GPU may introduce to the market in 2022 since a GPU generation used to last for approximately 2 years in our experience, FY2016, FY2018 and FY2020.

� If there is not much change of the industry fundamental, the demand of VGA cards is likely consistently exceed the supply.

� Brand business shall still be the main revenue driving force vs. OEM business since OEM customers are less flexible to response to the component shortage situation but brand business has the product re-design capability to adopt alternative components.

� Continue to expand direct e-commerce business under Zotac brand in Japan, Korea and U.S., and explore the feasibility of direct e-commerce sales in other countries.

Q&AQ&A

Thank YouThank YouThank YouThank You

presented by: gary lau (cfo of the group)

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