2014 Interim Results Presentation. 21 August, 2014

Transcription

1 2014 Interim Results Presentation 21 August, 2014

2 Agenda Company Profile 2014 Interim Results Market Outlook Q&A 1

3 Part 1. Company Profile

4 Company Profile MOBI Development Co., Ltd. is an exempted company incorporated with limited liability in the Cayman Islands on December 16, 2002 and listed on the Hong Kong Stock Exchange (Stock code: HK) on 17 December We are committed to provide front-end Radio Frequency technology products for wireless communication, especially in base station network deployment. 3

5 Wireless Path Core System Microwave Transmission Base Station Coverage Extension Mobile Handset Antenna System Base Station RF Subsystem Coverage Extension Solution (aesthetic antenna) 4

6 Company Business The only Chinese supplier who has comprehensive product series and customer coverage. MOBI Other Chinese Suppliers Comprehensive Product Series Comprehensive Customer Coverage Limited Customer Coverage Limited Product Series Antenna System Operator & Equipment Manufacture VS Operator Other Antenna Supplier (Antenna Only) Base Station RF Subsystem Operator & Equipment Manufacture VS Equipment Manufacture Other RF Supplier (RF Only) Aesthetic Antenna Operator VS Operator Other Aesthetic Antenna Supplier 5

7 Company Structure Overview 100% 100% 100% MOBI Antenna (Shenzhen) MOBI Communication (Ji An) MOBI Technology (Hong Kong) RF subsystem R&D and production Antenna R&D and production Aesthetic antenna R&D and production 100% 100% MOBI Technology (Xi An) Die-casting and CNC processing RF subsystem R&D and production Antenna R&D Terminal antenna R&D and production MOBI New Material and Technology Electroplating (Xi An) Base station antenna production Microwave antenna production RF feeder R&D and production 100% Shenzhen MOBI Communication (Shenzhen) Communication system engineering and technology service 6 International trade and funding 5% MOBI Indonesia (Indonesia) 95% Engineering and technology services for Indonesia market Package solutions for Indonesian market Engineering services for neighboring countries in Southeast Asia

8 Part Interim Results

9 Revenue in 1H2014 Analysis of Revenue by Business Category (RMB million) Analysis of Revenue by Customer Category (RMB million) H H2014 Coverage Extension Solution Base Station RF Subsystem Antenna System H H2014 Others Overseas Direct Sale Internatinal Equipment Manufacturers Chinese Networks Operators Chinese Equipment Manufacturers 8

10 Profits and Expenses in 1H2014 Trends of Gross Margin and Profit Margin Analysis of Expenses (RMB 000) 25.0% 21.1% 21.8% 22.4% 140, ,000 3, % 100,000 33, % Gross Margin 80, Finance Expense 10.0% 5.0% 0.0% 2.1% 2.2% 1H FY 1H % Profit Margin 60,000 40,000 20, ,766 37,699 15,936 1H ,059 31,781 1H2014 Selling Expense Administrative Expense R&D Expense 9

11 Part 3. Market Outlook

12 Market Opportunity Europe The benchmark of communication industry China - 4G construction boom India Another nation-wide 4G construction boom after China 11

13 Chinese 4G Market 1. CAPEX of Chinese Operators Keep Growing (RMB billion) Capital expenditure grows in 2014,representing an increase of approximately 14% as compared to the corresponding period of last year, in which China Mobile increased by approximately 22% China Telecom In 2014, the capital expenditure for China Mobile TD-LTE network construction is expected to increase by approximately 147% YoY. 100 China Unicom 50 China Mobile 0 Source: Operators Financial Reports FY2012 FY2013 FY2014(E) 12

14 Chinese 4G Market 2. China s 4G Market in G Construction Boom 270 thousand TD-LTE stations for Phase II. Over 400 thousand has already been built. Planned to finish 500 thousand by the end of Planned over 40 billion RMB in 4G project in Planned RMB11billion on 4G construction. 68,000 4G stations by the end of June. Reach 100 thousand by the end of Source: 13

15 Company Structure Overview 3. China s 4G market in 2015 (estimated) Continuous 4G Construction 2G 3G 4G Spectrum GSM: 900MHz /1800MHz; CDMA: 800MHz CDMA2000/ WCDMA: 2100MHz; TD-SCDMA: MHz / MHz / MHz TDD-LTE: MHz / MHz; FDD-LTE: Spectrum planning is still unknown Main Builder 830 thousand stations 450 thousand stations 400 thousand stations Source: 14

16 Maximize 4G Business Opportunity in China 1. Operators Purchase Model We can always get business opportunities, no matter who has a greater say in the business, operators or equipment manufacturers. Subcontract purchase model Turn-key purchase model (China Mobile TD-LTE and most of the overseas purchase ) Antenna Supplier Operator Equipment Manufacture Antenna Supplier RF Supplier Equipment Manufacture RF Supplier Antenna System and Base Station RF Subsystem are two indispensable products in base station constructions. Only who has both of two products, could maximize the opportunities of base station constructions. 15

17 Maximize 4G Business Opportunity in China MOBI is the only RF subsystem supplier that could maximize China s 4G wireless business opportunity 2. Development of Chinese Communication & MOBI MOBI s Technology Development 2G 3G 4G Chinese Base Station Construction 2G 3G 4G Year Accelerating innovation in technology Stepping ahead in technology of Chinese communication market 16

18 Maximize 4G Business Opportunity in China MOBI is the only RF subsystem supplier that could maximize China s 4G wireless business opportunity 3. China s 4G products MIMO antennas (demand tendency) Operator's dilemma: a serious shortage of base station sites Our strategy:2g/3g/4g MIMO antenna technology Current status: Sales advantage in 3G/4G MIMO antennas Operator s dilemma: poor coverage and serious interference Our strategy: Good performance product High technology reliability technology Current status: Developing, Manufacturing and selling anti-interference antennas and RF products in response to operators needs 17

19 Antenna Supplier of Multi-national Operators MOBI is one of the few RF technology suppliers who entered multi-national operators supplier short lists 1. Market of multi-national operator CAPEX of some multi-national operators (1H2014) (Euro billion) Business Coverage Vodafone Over 40 countries and regions Capital Expenditure France Telecom Over 50 countries and regions Deutsche Telekom Over 50 countries and regions Telenor 12 countries and regions 0.0 Vodafone France Telecom Deutsche Telekom Telenor Source: Operator s Financial Reports 18

20 Antenna Supplier of Multi-national Operators MOBI is one of the few RF technology suppliers who entered multi-national operators supplier short lists 2.High Qualification Standard in Entering the Short Lists Recommended by International Equipment Manufacturers CTO decides the short lists of suppliers Independent R&D MIMO Reliability in Products High Requirement Multi-national Operators Based on cost pressure, operators start to focus on the technology development of Chinese antenna suppliers. High Level Antenna Supplier 19

21 Antenna Supplier of Multi-national Operators 3. High Profit in Products MOBI is one of the few RF technology suppliers who entered multi-national operators supplier short lists HIGH MARGIN 20

22 Our Three-Year Strategy Strengthen Market Share in China and Asia Pacific Keep expanding multi-national operators market Develop MIMO technology Optimize Technology Enlarge Product Series Chinese Market European Market Asian Market 21

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24 Disclaimer This report is drafted and audited by MOBI Development Co., Ltd. ("Company"). The information contained in this report shall only be disclosed under the permission of relevant laws, regulations and rules and for the sole purpose of providing information and shall not constitute any advertisement. The material, comment and forecast (if any) contained in this report merely reflects Company's situation or opinion at the date of initial disclosure of this report. Company may revise the information contained in this report and suggest investors to independently pay attention to related updates or amendments. This report may contain some forward-looking statements. Such statements are the description, analyzing or prospect of Company employees with respect to Company or relating industries. Company makes no promise or guaranty that the contents of such statements will be consistent with Company or relating industries' future performance. 23