2014 Annual Results Presentation 26 March, 2015

Transcription

1 2014 Annual Results Presentation 26 March, 2015

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

3 Part 1. Company Profile

4 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 Basic station production Microwave antenna production RF feeder R&D and production International trade and funding 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) 100% Shenzhen MOBI Communication (Shenzhen) Communication system engineering and technology service 3 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

5 R&D and Manufacture Bases Headquarter in Shenzhen R&D and Manufacture Center in Guangming (Shenzhen) MOBI Xi An MOBI Ji An 4

6 Company Business Structure of Mobile Communication Base Station Antenna System Coverage Extension Solution Base Station RF Subsystem 5

7 Part Annual Results

8 Results Overview in 2014 (RMB million) 2000 Revenue Increase 85.6% 23.0% Gross Profit Margin 22.8% , % 22.0% 22.8% % 21.8% % (RMB million) 120 Net Profit 97.58million 8.0% Net Profit Margin 5.9% % 4.0% 5.9% % 0.0% 2.1%

9 Results Analysis in by Business Category Analysis of Revenue by Business Category (RMB million) Antenna System 104.0% Coverage Extension Solution 129.0% 40.7% 8.6% 50.7% / =YOY change Base Station RF Subsystem 68.2% , FY 2014FY Base Station RF Subsystem Antenna System Coverage Extension Solution 8

10 Results Analysis in by Customer Category Chinese Network Operators 97.9% Overseas Direct Sale 13.7% 17.2% 21.7% 5.0% 2.0% Analysis of Revenue by Customer Category 54.1% Others 135.7% ,648 (RMB million) International Equipment Manufacturers 76.7% Chinese Equipment Manufacturers 95.6% FY 2014FY Chinese Equipment Manufacturers International Equipment Manufacturers / =YOY change Chinese Networks Operators Overseas Direct Sale 9 Others

11 Expenses in % 20.00% 15.00% 10.00% 5.00% 0.00% Analysis of Expenses 0.03% 4.88% 0.61% 4.82% 5.05% 4.68% 10.03% 6.35% Administrative Expense Increased by approximately 17.56%, providing approximately 6.35% of revenue (2013:10.03%). The growth of administrative expenses is much lower than the growth of revenue, which shows the scale effect. Selling Expense Increased by approximately 71.72%, providing approximately 4.68% of revenue, which is lower than approximately 5.05% in R&D Expense Increased by approximately 83.47%, mainly due to increase of expenses on new products and NPI lines, providing approximately 4.82%, which is a bit lower than Financial Expense Mainly due to the increased bank loans for satisfying the capital needs of the company s business expansion. 10

12 Part 3. Market Outlook

13 1.1 Chinese Market Great Events Event1 TD-LTE License 4 December, 2013: Ministry of Industry and Information Technology of the P.R.China granted the TD-LTE License to China Mobile, China Unicom and China Telecom. Event2 Tower Company 18 July, 2014: China s Communication Service Co., LTD. (China Tower Co., LTD.) was officially established in Beijing. Event3 LTE FDD License 27 February, Ministry of Industry and Information Technology of the P.R.China granted the LTE FDD License to China Unicom and China Telecom. Event4 Pre5G Technology March, 2015: Pre5G Base Station was released in 2015 Barcelona Mobile World Congress. Event5 M&A The M&A of overseas operators was quite often. 12

14 1.1 Chinese Market CAPEX of Chinese Operators Keep Growing (RMB billion) Capital expenditure grows noticeably in 2015, representing an increase of approximately 8.6% as compared to the corresponding period of last year, in which China Telecom increased by approximately 40% and China Unicom increased by approximately18% FY2013 FY2014 FY2015(E) China Telecom China Unicom China Mobile Source: Operator s annual reports and 13

15 1.1 Chinese Market China Mobile Add 300k stations The planned capital expenditure of China Mobile in 2015 was RMB 199.7billion, among which RMB 72.2billion was used for 4G Internet Investment ; China Mobile planned to own 1000k 4G base stations by the end of 2015, while there are 720k by the end of last year. China Unicom Add 360k stations The construction of broadband network base stations by China Unicom in 2014 was 158k, and the total amount was 565k ; CAPEX in 2015 will be controlled within RMB 100billion, and base stations will amount to 920k. China Telecom Add 280k stations In 2015, CAPEX will amount to RMB 107.8billion, among which RMB 61billion will be used for 4G network construction investment. ; The construction target of 4G base station is 460k. Tower Co., LTD Since 1 January 2015, the Tower Co., LTD. has entirely undertook the new construction work of tower communication facilities of three Chinese Operators. Source: 14

16 1.2 Overseas Market Orange (France) will invest Euro 15billion to upgrade its network in the near 4 years. Algeria LTE Phase II Turkcell in Turkey plans to set up the quickest 3G network in the worldwide. MegaFon starts to upgrade its network throughout Russia in The three operators in Japan promised the investment of 3.5GHz base stations would amount to USD 3.6billion in the near 5 years. Thailand will put the 4G Spectrum out to tender on August Ethiopia Telecommunicate Corporation will upgrade its network in India starts to develop 4G Network. Umobile in Malaysia will invest around RMB 3billion to set up 3G and 4G base stations. Seatel plans to invest USD 4billion to set up the quickest 4G Network in Cambodia; Smart Axiata has released its 4G Service since January GSA: LTE commercial networks have amounted to 360 across 124 countries in the world. Source: 15

17 1.2 Overseas Market CAPEX of some multi-national operators in 2014 Business Coverage (Euro Billion) Vodafone France Deutsche Telecom Telecom 6.9 Telenor Capital Expenditure Vodafone More than 40 countries and areas France Telecom More than 50 countries and areas Deutsche Telecom More than 50 countries and areas Telenor 12 countries and areas 16

18 2. Market Opportunities for MOBI Leading technologies TD-LTE Phase III good test results MIMO Technologies Special RF Products Active Antenna 5G Products Aims Maximize 4G business opportunity in China Keep exploring multinational operators market Advantages Comprehensive Product Series Comprehensive Customer Coverage Antenna System Base station RF Subsystem Camouflage Antenna Chinese Operators Equipment Manufacturers Overseas Operators Antenna Market RF Market Camouflage Antenna Market Multi-national Operators Market T O G E T M O R E 17

19 3.1 Tendency of Profit by Product Structure (RMB million) FY G/4G Antenna Products Other Antenna Products MIMO Antenna Products Active/Special Antennas 2G Antenna Products Analysis of Revenue of Antenna System FY Active/Special Antennas 4.6% 9.1% 3.6% 2G Antenna Products % 24.0% 8.2% 80.8% / =YOY change Other Antenna Products 223.5% MIMO Antenna Products 24.0% 3G/4G Antenna Products 125.8%

20 3.2 Tendency of Profit by Customer Structure (RMB million) Increase of 13.7% Analysis of Overseas Direct Sale FY 2014FY Why It Is Difficult to Enter Overseas Customer Market? High qualification standards High reliability standards Require numerous series of products Less suppliers to reduce management costs Why Overseas Products have High Profit Margin? High labor costs MIMO products with high technical difficulty 19

21 4. Technology Evolution --- Pre5G(Massive MIMO) Technology Features 4G Terminals can enjoy the experience of Pre5G in advance, due to the substantial increase in spectral efficiency by using Massive MIMO technology. To help operators maximize the usage of existing base stations, and the spectrum efficiency can be five times more than a traditional base station. Integrated baseband, RF, antenna to completely eliminate relying on machine room, and significantly reduce operators TCO when building networks. Expected to achieve a small-scale commercial Pre5G in 2015 with completion of joint tests with world-renowned operators such as China Mobile. Source: 20

22 5. Our Three-year Strategy Strengthen market share in China and Asia Pacific market Keep expanding multi-national operators market Develop MIMO productions and 5G technologies 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