FY2025Q1 Business and Financial Results

THine Electronics, Inc. (TSE: 6769)FY2025Q1 Business Results and Opportunities

May 7, 2025

Mid-term Strategy from 2025 to 2027

TODAY’S AGENDA

Corporate outline

Business results in FY2025Q1

The new mid-term strategy, “Innovate100”

Mid-term Strategy from 2022 to 2024

Topics of THine Group’s technology and solutions

Corporate outline

Provider of unique value to the world,

de facto standard technology of high-speed interface, etc.

• Company Name THine Electronics, Inc.

  (listed on Tokyo Stock Exchange, code: 6769)

  Tetsuya Iizuka

  Yoichiro Minami

• Founder & CEO Tetsuya Iizuka, Ph.D

• President & COO Yoichiro Minami

• Capital 1,175 million yen

• Founded May, 1991

• Incorporated June, 1992

• Business Area Planning, Designing and Sales of Mixed Signal LSI,

  Providing AI & IoT devices/Solutions,

  Planning, Designing and Sales of AI/Data Server

• Employees 129, consolidated as of March 31, 2025

THine team

China

賽恩電子香港股份有限公司

THine Electronics Hong Kong, Co., Ltd.

Established in Nov.2012

前海赛恩电子(深圳)有限公司

Korea

THine Electronics Korea, Inc. Seoul, Korea

Established in Mar. 2010

United States

THine Solutions, Inc. Santa Clara, CA USA Established in Feb. 2018

Tokyo – Headquarters –

Tokyo, Japan

Start-up in May 1991

Cathay Tri-Tech, Inc.

THine Electronics Shenzhen, Co., Ltd.

Established in May 2013

Yokohama, Japan

The company name will be changed to “THine MobileTeK, Inc.” in July 2025

上海分公司

Shanghai-Branch

Established in Oct.2013

Taiwan

哉英電子股份有限公司

THine Electronics Taiwan, Inc.

Taipei, Taiwan Established in Sep. 2000

Acquired in Dec., 2018

THine HyperData, Inc.

Yokohama, Japan

Establish in June 2024

Business Area

Product and solution

Application market

LSI

Biz.

V-by-One® HS plus V-by-One® HS LVDS

Serial Transceiver IOHA:B

Optical Chipset (VCSEL driver, TIA)

Image Signal Processor Camera Development Kit

• Camera solution: automotive cameras, security cameras, AR/VR, recognition camera, medical cameras, etc.

• Display solution: high-resolution displays such as 8K / 4K, gaming monitors with high refresh rate

• Drive recorders, automotive CID, exp. for EVs

• Mobile, PC, and single board computers

• OA (multi-function printers), amusement

• Industrial equipment such as inspection equipment for semiconductors and LCD displays

• AI optical computing for optical interconnect in networks of data centers

AI & IoT Biz.

• Drive recorders with wireless modules

• AED monitoring modules

• IP transceivers

• Remote monitoring module for vending machines and elevators

• GPS tracker

• AI thermography with facial recognition

• IoT monitoring system

・AI servers and data servers for companies and AI research institutes though ODM/OEM

<Wireless modules>

5G/LTE/NB-IoT

＜AI&IoT devices and solution＞

IoT Gateway / Router AI & IoT Solution

＜AI Server＞

AI Server with NVIDIA H100 GPU

＜Data Server＞ General Server Smart NIC/Switch

Financial performance in FY2025Q1 (3M)

Consolidated financial results

（yen in million）

Revenues by region

1,000

800

600

400

(unit: yen in million)

yen in million 600

Decreased By 13％

Revenues Gross Profit

Operating income EBITDA

Decreased by 39％

FY2024Q1

FY2025Q1

FY2024Q1

FY2025Q1

6%

Decreased

by 23％

18%

6%

3%

11%

20%

4%

5%

67%

60%





400

200

0

△ 200

LSI Biz AIOT Biz

200

0

FY2024Q1 FY2025Q1

LSI Biz in China and US became on a recovery trend while OA markets in Japan was still in the situation of inventory adjustment, resulted in revenue decrease by 13%.

AIOT Biz for wireless communication modules to AED (Automated External Defibrillator), elevators, etc. was in a stable situation, while some customers of vending machines, etc. decreased shipping units because of inventory adjustment. Compared to 2024Q1 with some spot

Japan

Korea

Taiwan

China

US

orders, 2025Q1 resulted in revenue decrease by 39%.

Financial performance in FY2025Q1 (3M) LSI Business by application markets

Revenues of LSI business by application

600

500

400

300

(unit: yen in million)

Industrial: decreased by 15%

(70% of total)

Automotive:

decreased by 3%

Consumer: Steadily expanding the new standard of THine’s interface decreased by 12% technology “V-by-One® HS plus” for high-resolution 4K/8K

(13% of total) television and display markets shows healthy growth.

(17% of total)

OA markets are on recovery trend but and amusement markets are still affected by adjusting inventory level: +30% increase in OA, △54% decrease in amusement, and △14% in other industrial.

Continue to sell new products for EV markets. Shipment to

overseas markets increased: +10% increase in China and

+28% in US.

200

100

0

FY2024Q1 FY2025Q1

(unit: yen in million)

12%

16%

13%

Decreased by 13％

17%

72%

70%

1,500

1,000

500

QTR Sales in LSI business

FY2024 FY2025

2025Q2 and after are forecasted

0

Industrial

Automotive

Consumer

1Q 2Q 3Q 4Q

Financial performance in FY2025Q1 (3M) AIOT Business by segment

Revenues of AIOT business segments

400

300

200

(unit: yen in million)

IoT products: decreased by 59%

(63% of total)

Solution:

AI and more: Focusing on newly launching solutions and products of server decreased by 58% business by THine HyperData inc., established in 2024.

increased by 372%

Business in monitoring systems for AED and elevators, etc. was stable while those in vending machines decreased by customers’ inventory adjustment, etc.

Developing new solution such as OEM routers for surveillance

cameras, gate access controllers made successful shipments.

100

0

3%

5%

Decreased by 39％

2%

35%

85%

63%

FY2024Q1 FY2025Q1

IoT products

Solution

AI and more

(unit: yen in million)

1,500

1,000

500

0

QTR Sales in AIOT business

1Q 2Q 3Q 4Q

FY2024 FY2025

2025Q2 and after are forecasted

Financial performance in FY2025Q1 (3M) SGA compared to FY2024Q1 (3M)

Reasons of changes in operating income Revenues and gross profit decreased by 23% and 12% respectively with the improved gross profit rate from

51% to 59%

Made intensive investment in research and development (R&D) with JPY296M, increased by 5%: developing new products of V-by-One® HS for displays and cameras for EV markets, new power management products, the world-first optical chipsets for AI optical computing, modules for edge AI computing, gateway products with voice communication, smart IoT router products, etc.

* Also continued government-contracted R&D project using 300GHz communication mostly at the cost of Japanese government, MIAC

(unit: yen in million)

△11

Operating loss in FY2024Q1

Decrease in gross profit

Increase in R&D investment

Increase in

other SG&A

Operating loss in FY2025Q1

Financial performance in FY2025Q1 (3M) R&D investment

Intensive investment in R&D

R&D investment plan in FY2025: totally JPY1,365M (increased by 18%)

R&D in FY2025

(Planned)

AIOT Biz

R&D in FY2025Q1 (3M)

(actual)

JPY296M

compared to the plan: 22% compared to FY2024 118%

AIOT Biz 2%

LSI Biz 98%

4%

LSI Biz 96%

Focused development to achieve the goals of

the mid-term strategy, “Innovate100”

New V-by-One®HS products for display panels and cameras of EVs New power management products

The world-first optical IC technology for AI optical computing

Modules for edge AI computing

Voice-communication-support gateway products Smart IoT router products

Smart module solutions with neural processing units for AI processing

High-speed wireless communication technology applicable to 1000Gbps data transmission (Beyond 5G), etc.

Financial performance in FY2025Q1

Outline of Balance Sheet as of the end of March, 2025

（unit: yen in million)

US-dollar-based cash as of the end of FY2024 is approximately US$12M. Outline of Cash Flow Statements

（unit: yen in million）

decrease in net loss before tax, account

receivables, etc.

sales of investment securities, etc. payment of dividend for FY2024, etc. Exchange rate

JPY158 as of the end of FY2024

JPY149 as of the end of FY2025Q1

To increase the corporate value of THine

• Making our best effort to achieve the revenues of JPY10Billion in the mid-term strategy “Innovate100”

  Innovate100

  （2025ー2027）

  5G&Beyond-NE

  （2022ー2024）

  FY2027 Revenues of JPY10Bn or more

  Assuming in the case of achieving the goal ROIC (return on invested capital) exceeds 10%

  （JPY in million)

  Revenues Gross profit

  LSI Biz JPY5Bn

  AIOT Biz JPY5Bn

  ※including Server Biz

  10,000

  8,000

  6,000

  Assumed THine’s performance under the mid-term strategy “Innovate100”

  4,000

  2,000

  0

  FY2024 FY2025 FY2026 FY2027

  Outline of the next mid-term strategy, “Innovate100”

  • Basic strategy

    THine Group will contribute to accelerating implementation of AI use cases through its three business portfolio of LSI, AIOT, and Server, proposing low power solution for data center markets that shall increase power consumption enormously.

    THine Group will proactively cultivate collaboration opportunities with partners, including M&A deals.

  • Typical action items

    • Launching solution business with AI processors

    • Widely applying THine’s LSI solution that can aggregate IoT wiring drastically

    • Launching EdgeAI solution business, supporting industrial IoT use cases

    • Developing new DSP-less optical chipsets that extraordinary reduce power consumption and latency

    • Providing wireless communication solution for smart meters that can be data source for AI-based sensing

    • Applying wireless communication solution to automotive and industrial equipment that communicate with cloud

    • Starting business for telecommunications carriers

    • Widely applying server business, including AI servers

  • Enhancing synergy among THine Group’s 3 business of LSI, AIOT solution, and Servers

On July 1st, 2025, Cathay Tri-Tech., Inc., THine Group’s AIOT solution company, will change its company name to

“THine MobileTek., Inc.”, enhancing THine Group’s synergy effects.

Forecast in FY2025

From this FY2025 THine Group has started its new mid-term strategy, “Innovate100,” aiming its goal of revenues in FY2027 with 10 billion yen or more.

（yen in million）

Forecast in FY2025 by region and segment

（unit: yen in million）

5%

yen in million

Increase

by 32％

Revenues Gross profit

Operating income Increase EBITDA

by 50％

4,000

3,500

LSI Biz AIOT Biz

6,000

5,000

4,000

3,000

2,000

Increase by 38％

8%

19%

3% 2%

68%

17%

2%

2%

73%

3,000

2,500

2,000

1,500

1,000

500

0

△ 500

     FY2024            FY2025            FY2024            FY2025      

1,000

0

FY2024 FY2025

Japan

Korea

Taiwan

China

US

• LSI Biz’ forecast increases by 32%. Its OA markets are on a recovery trends and overseas markets such as China and US are on a growing trend.

• AIOT Biz’ forecast increases by 50%, making intensive efforts on launching business for smart-meters, in addition to existing drive recorders, wireless communication modules to vending machine, elevators, AED, etc.

  Shareholder return policy

• THine Group makes efforts to achieve the new mid-term strategy, “Innovate100” and to return profits to shareholders based on assuming THine’s future growth. Dividend for FY2024 is 15JPN per share as forecasted and the forecast of dividend for FY2025 is at the same level as FY2024.

  100.00%

  ＜Trends of dividend since 2014＞

  Increased ordinary dividend to 15JPY (2022)

  Despite the loss, keeping ordinary dividend of 15JPY (2023)

  Forecast of

  ordinary dividend of 15JPY (2025)

  JPY

  16.00

  90.00%

  80.00%

  70.00%

  60.00%

  50.00%

  40.00%

  30.00%

  20.00%

  10.00%

  0.00%

  9JPY ordinary dividend from FY2014~2020. Although THine resulted in total loss in FY’15, FY’16, and FY’20, also made stable dividend.

  Adding 30th Anniversary Commemorative dividend of 3JPY (2021)

  14.00

  12.00

  10.00

  8.00

  6.00

  4.00

  2.00

  0.00

  FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

  dividend per share
  dipidend payout ratio
  Enhancing user experience – simplifying cable wiring solution for in-vehicle touch panels for EVs

  Start volume production shipping of new V-by-One®HS products for EVs and industrial equipment

• Enabling to transmit and receive fullHD60fps images, controlling signals, and voice signals only with 1 chip

• Capable to handle approximately +28% more data volume, compared to similar-class products in automotive industry

  THCV334-Q

  Image receiving board

  Application Processor

  Touch panel display unit (voice communication support)

  Supporting higher display resolution up to +28%

the world-fastest class SerDes support OpenLDI(LVDS)

Image transmitting board

(e.g. host processor board at ECU） THCV333-Q

Image data (LVDS)

Coax

STP

Cable

Sound data controlling signals

1. Automotive in-vehicle touch panel display

   • Information display

   • Rear seat entertainment

   • Navigation

   • Display Audio

2. Industrial embedded touch panel display

   • HMI/programmable display

   • Vending machines with touch panel

   • Elevator interior panel

   • Traffic monitors

Enhancing user experience – solution for multi-displays

New V-by-One®HS products for multi-panel solutions for EV’s and Industrial equipments

• Images from left/right-side mirrors can be displayed on left/right-side window displays, simplifying automotive systems.

• Achieves well-performing tach-panel responses, transmitting together with sound data through the same cables.

  Contribution to envolving medical cameras

  V-by-One®HS product supports 4K medical cameras

• Contributing to achieve 4K high-resolution endoscope cameras

• The world smallest V-by-One® HS product enables to transmit images from 4K cameras to operating equipment for several meters through just one cable

• THine’s image signal processor applicable simultaneously

• Contributing for users to apply AI-based machine learning with 4K images for higher detection rates for early-

  stage cancers

  Operating host board of an endoscope

  Camera part of an endoscope

  Transmitter LSI

  THCV243

  Receiver LSI

  THCV242A

  Image signal processor THP7312

  Ultra-small 2x3mm

  long-distance data transmission by

  V-by-One®HS

  Application Processor

  Image

  Sensor

  Contribution to simplifying sensing & control systems

  Launching the industry-first unique serial transceiver that enables to achieve IoT platform

  IoT Platform Applied to Customer A

  Adding a camera sensor and an acceleration sensor

  No need to

  re-design PCB

• Flexible I/O pattern of sensors and controlling signals up to 4.3-billion different configuration degrees of freedom

  Host PCB

  Function PCB for sensors, touch panels, etc.

  IoT Platform with THine

  IoT Platform Applied to Customer B

  Changing input pins of the camera sensor, removing the acceleration sensor, and adding pressure sensor, temperature sensor, and touch-panel sensor

  Contribution to use cases with contactless communication

  Collaboration with STMicroelectronics’s near field communication technology

  • To support for new use cases in high-speed contact connectivity, combining THine’s high-speed interface technology and ST’s 60GHz RF millimeter-wave

  • THine’s V-by-One® and other interface technologies, together with ST’s ST60A2 contactless 60GHz transceiver, enables high-speed data transmitting solutions of board-to-board contactless connections.

    Seamless device-to-device data transfer without cables and connectors

    (e.g., docking stations for PCs, game consoles)

    THCV334

    Display panel
    	Touch panel

    Detachable Touch Panel Display Module

    Solution for detachable touch panel display (Mechanical connectors replacement for large signage modules, water-proof and dust-proof, and vibration-resistant devices can also be realized.)

    Image engine System on Chip	THCV333

    Using STs' ST60A2

    contactless communications

    for 60GHz-band millimeter-wavCeopyright © 2025 THine Electronics, Inc. All Rights Reserved. 23

    Contribution to reducing power consumption in AI data centers

    The world-first DSP-less optical chipset (ultra-low power and ultra-low latency) supporting VCSEL

• The world-first optical DSP-less technology, “ZERO EYE SKEWTM” for 2TB/s PCI Express 7.0,

  saving power consumption by 80%, lowering latency by 90%

  ZERO EYE SKEWTM demonstration at OFC

• Exhibited in OFC2025 with significant responses from various attendees, communicating with potential partners, customers, system venders and operators of AI optical computing in data centers

  Performance with ZERO EYE SKEWTM Performance without ZERO EYE SKEWTM

  *By applying ZERO EYE SKEWTM technology, it has been shown that skew in the eye pattern opening is adjusted appropriately, maintaining excellent signal quality. (Both

  are eye patterns after applying 5-tap feed forward equalizer (FFE).)

  * “ZERO EYE SKEW” is THine Electronics, Inc’s trade mark or registered trade mark.

  Copyright © 2025 THine Electronics, Inc. All Rights Reserved. 24

  Innovating solution of beyond 5G and 8K, obtaining beyond growth advantages

  R&D toward 1000Gbps ultra-high-speed data transmission

• Successfully developed the World-First Mixed-Signal Baseband Demodulator Technology

  Wide application

  • remote medical diagnosis,

  • eSports,

  • 8K TV, etc.

  Copyright © 2025 THine Electronics, Inc. All Rights Reserved. 25

  EdgeAI-Link® one stop solution, enabling to link with cloud AI solution

  • Accelerate customers’ time-to-market of edge A solution, reducing total developing costs

  • Supporting 3.5 ~ 12 TOPS (Tera Operations Per Second), preparing for faster-TOPS lineups

  • Various available solution: full custom, SoC board solution, and EdgeAI Computers

  • Applications: facial recognition, store marketing, crime prevention, drive recorders, etc.

    Full Custom Solution

    SoC Board Solution

    EdgeAI Computer

    Module ＋ SerDes

    Customized solution for customers’ request

    Complete finished products

    EdgeAI-Link® one stop solution

  • AI signage solution for sales promotion in retail stores

    Images of operation of AI signage solution for sales promotion in retail stores (an example of supporting customer attribute recognition in convenience stores)

    Contribution to various IoT use cases

    LTE/BLE Gateway CTG-B01/B02

    • Product Overview

CTG-B01/CTG-B02 is a BLE/LTE gateway that can collect data from various BLE sensor devices and transmit the data via LTE lines. Two types are available depending on the type of LTE line: CTG-B01 for Cat.M and NB-IoT, and CTG-B02 for Cat.1bis.

Customized applications compatible with various BLE sensors can be developed using the development environment provided by BlueX Micro. GNSS receiver function and LTE connection function via external antenna are also available as factory production options.

Upper side

Ⓑ

②

③

① ➃

⑤

Left side

⑥

⑦

Top Right side

Contribution to various IoT use cases

SIM6600-eM2 supporting SIMO Cloud SIM

Features of SIMO Cloud SIM

Wireless communication Module

SIM6600-eM2

SIM6600-eM2 is a smart module with Android system and

supports LTE Cat.7.

It adopts MTK's 4-core 64-bit ARM Cortex-A53 processor with clock speed up to 2.0GHz and IMG GE8300 GPU.

It supports wireless communication modes such as LTE-TDD/LTE-FDD/HSPA+, and achieves communication speeds of up to 300Mbps downlink and 150Mbps uplink.

Benefits of applied products

It can connect to all carrier networks in Japan, so if a disaster causes a network outage, it will automatically switch to another carrier.

• No need to insert a SIM, greatly reducing kitting work

  Mobile Carriers

  Uploaded to cloud

  Dynamically pushed

  SDK

• Automatically selects the optimal line, ensuring constant online operation

• Supports global carrier lines, can be used overseas

• Can be used with a wide variety of products

• Reasonable pricing plans

  Examples of products supporting SIMO Cloud SIM

  Industrial Router WiFi4/VPN

  Dongle: Built-in antenna type

  also available

  MiniPC Windows11/ Linux Ubuntu

  • Major features

• Standard M.2 interface

• Embedded eSIM (2.6mm x 2.4mm)

• MTK 4-core 64-bit ARM Cortex-A53 processor

• High throughput data communication

• Supports LTE and UMTS networks for global coverage

• Rich software functions: Virtual SIM, FOTA, etc.

  Toughness Tablet

  IP camera

  Copyr

  With PoE

  CPE

  WiFi6

  Contribution to various IoT use cases

  Video call terminal CTV-003

  Simple use Easy to set up

  Easy to installation

  Communication method	LTE (VoLTE)
  Display	８-inch WXGA
  Touch panel	Electrostatic multi-touch panel
  Remote control	Specified low power radio
  Size	235(Ｗ）x 195(H) x 65(Ｄ）ｍｍ
  Power source	AC100～240V
  Weight	0.9 kg
  Operating temperature	0℃～40℃

  • Specification of the main terminal with stand

• Features (supporting LTE)

  Video call terminal, suitable for use cases in medical, welfare,

  and nursing case

  • Easy calling at anytime from anywhere

    • LTE line supports calling at anytime from anywhere even from remote place, outside of office or home

  • Simple use allows even children or elderly people to operate easily

    • One touch operation on the touch panel

    • One push of a button of a remote controller

  • Comfortable communication with looking at speakers’ face

• Simple remote controller, using specified low power radio, less susceptible to walls and obstructions than infrared communication

• Battery-powered

  user can talk for a certain time even in a sudden power outage

• Re-dialing/auto answer function, equipped with functions designed for use in the medical and welfare fields, such as an “auto answer function” that automatically starts a video call and a “redialing function” that repeatedly dials until communication with the other party is established.

Copyright © 2025 THine Electronics, Inc. All Rights Reserved. 30

* Can also be used as a regular telephone.