2013 Annual Results Presentation

18 March, 2014

Agenda

Company Overview

Results and Analysis

Market Outlook

Q&A

1

Part 1. Company Overview

MOBI Technology

(Hong Kong)

MOBI Antenna

（Shenzhen）

MOBI Technology

(Xi’An)

100% 100%

100%

100%

MOBI Indonesia

(Indonesia)

MOBI New Material and

Technology

(Xi’An)

100%

95% 5%

RF subsystem R&D and production

Antenna R&D and production

Aesthetic antenna R&D and production

Shenzhen MOBI

Communication

(Shenzhen)

100%

Basic station production

Microwave antenna production

RF feeder R&D and production

International trade and funding

Die-casting and CNC processing

RF subsystem R&D and production

Antenna R&D

Terminal antenna R&D and production

Electroplating Communication system engineering

and technology service

Engineering and technology services for

Indonesia market

Package solutions for Indonesian market

Engineering services for neighboring

countries in Southeast Asia

3

Company Structure Overview

MOBI Communication

(Ji An)

4

Core System

Microwave

Transmission

Base Station Coverage

Extension

Mobile

Handset

Fixed-line Telephone Switching Center Microwave Transmission

Cable

RF Path

We are committed to provide front-end products for mobile communication.

Our business includes all series of products for base station equipment construction and related coverage

extension solutions.

We are extremely professional in base station RF technology and antenna R&D.

电缆

5

Company Business

Antenna System

Base Station Subsystem

Bias Tee

Tower Mounted Amplifier

Structure of Mobile

Communication Base Station

6

Company Business (Cont.)

Indoor/Outdoor Coverage Extension Solution Aesthetic Antenna

Part 2. Results and Analysis

8

0

200

400

600

800

1000

2012 2013

688

888

Revenue Increase

29.1% (RMB million）

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2012 2013

16.8% 21.8%

Gross Profit

21.8%

-40

-30

-20

-10

0

10

20

2012 2013

-39.5

19.1

Net Profit Turn Around

(RMB million）

19Million

0

20

40

60

2012 2013

19.8

55.4

Operating Cash Flow increase 180%

(RMB million）

55Million

Results Overview in 2013

9

North America: 1. Achieved steady growth;

2. Passed all tests for newly-

researched products.

Latin America: 1. Aesthetic antenna project in

Chile entered delivery phase;

2. Passed LTE Antenna tests

conducted by a Mexican

operator.

Europe: Strategic breakthrough 1. Broke into the short list of an major

European operator and would receive

an order in FDD construction;

2. Broke into a Russian operator’s short

list in early 2014 and got the purchase

order of TD-LTE construction.

Africa: 1. Unstable political situation caused

less demand in North Africa ;

2. South Africa showed great potential

in network construction; demand

recorded a stable growth.

China: Another round of

large-scale network

deployment, MOBI got

leading market share 1. CM’s TD-SCDMA6.2 realized

peak delivery;

2. MIIT officially issued 4G

licenses to top three

operators; CM and CT pushed

its LTE construction;

3. CM tendered its100,000 2G

base stations.

Asia & Pacific: 1. 3G and LTE network

construction in India;

2. Continued bulk sales in

Thailand for 3G construction;

3. Realized direct sale of RF

products to Japanese

customers; working on

breakthrough on operators’

short lists.

9

Sales Network of 2013

Sales of Major Customers in 2013 Customer

（RMB ’000) 2012 Percentage 2013 Percentage Change

ZTE 263,760 38.35% 456,165 51.36% 72.95%

China Mobile 140,559 20.44% 93,581 10.54% -33.42%

China Unicom 95,545 13.89% 35,399 3.99% -62.95%

China Telecom 7,571 1.10% 13,654 1.54% 80.35%

Nokia 41,359 6.01% 84,785 9.55% 105.00%

Alcatel – Lucent 66,635 9.69% 112,742 12.69% 69.19%

Japanese Market 22,869 3.33% 5,155 0.58% -77.46%

Thai Market 23,862 3.47% 67,600 7.61% 183.30%

Others 25,604 3.72% 19,145 2.16% -25.23%

Total 687,764 100% 888,226 100.00% 29.15%

10

In 2013, revenue from most of our customers recorded a substantial growth YoY.

Because of China Mobile’s turn-key purchase, the relevant revenue was accounted into equipment

manufactures. The latter one enjoyed a increased significant growth (especially ZTE).

Decreased CAPEX and devalued Yen caused revenue decline in China Unicom and Japanese market

respectively.

0

50

100

150

200

250

300

350

400

450

500

FY2012 FY2013

11

Sales of Strategic customers

2012 V.S. 2013 Strategic Customers Sales Structure in 2013

51.35%

16.10%

22.75%

9.80%

Chinese Equipment Manufactures

Chinese Network Operators

International Equipment Manufactures

Overseas Direct Sale

(RMB million)

Sales revenue recorded a significant increase because of China Mobile’s TD Phase 6.2 network construction and Chinese

operators’ LTE construction.

Revenue from Chinese operators recorded a decrease YOY because of turn-key purchase from China Mobile. The relevant

revenue was accounted into Chinese and international equipment manufactures.

Strong sales growth in Thailand was partly offset by drop in Japanese and other markets.

Sales Structure of Strategic Customers in 2013

Chinese

Equipment

Manufactures

Chinese

Network

Operators

International

Equipment

Manufactures

Overseas

Direct

Sale

12

Revenue by Year Revenue by Products in 2013

37.05%

55.97%

6.98%

Antenna System

Base Station RF subsystem

Coverage Extensive solution

(RMB million)

Benefiting from construction of China Mobile’s TD-SCDMA6.2 &TD-LTE network and China Telecom’s FDD LTE

network in 2013, total sales recorded a significant growth YOY.

Base station RF subsystem products recorded a higher growth rate than antenna products. It is because the

front ones are used in main equipments and have an earlier delivery than the latter ones.

For coverage extension solution, we focused on aesthetic antenna business and realized revenue growth in this

area. We believe MIMO aesthetic antennas will have great potential in LTE rollout.

0

100

200

300

400

500

600

FY09 FY10 FY11 FY12 FY13

Antenna System

Base Station RF subsystem

Coverage Extensive solution

Sales Structure of Products in 2013

New product with higher profit margin increased;

Chinese operators requested more on technology and product performance, thus price competition is less

intense;

With the increasing demand for high-end products and more sales to overseas customers, gross margin is

believed to be supported gradually in the future.

13

Gross Profit Margin & Net Profit Margin Outlook

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

FY08 FY09 FY10 FY11 FY12 FY13

Gross Profit Margin Net Profit Margin

Revenue is about to achieve accelerate growth:

China starts its LTE network construction;

Overseas LTE network construction is going to

begin;

Product sales will increase rapidly.

Portions of high margin products will keep on

growing:

Sales to international carriers;

Sales of LTE, MIMO and aesthetic antennas.

Profit Margin in 2013

14

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

FY2012 FY2013(RMB ’000)

R&D

Expense

Administrative

Express

Selling

Expense

Finance

Expense

Expenses in 2013

2013 Change Reason

R&D

Expense 43,316 -8.9%

R&D of new LTE product

has started in 2012

Administrative

Expense 89,063 17.1%

Increased labor cost,

raised in social security

ratio and exchange losses

by the appreciation of the

RMB

Selling

Expense 44,890 -6.2%

Enhanced cost control and

more sales to equipment

manufacturer customers.

Finance

Expense 286 -71.5%

Most of bank loans used

on the construction

projects, interest

capitalized

15

Leading MIMO

antenna technology

in China

June Passed China Mobile’s TD-SCDMA/TD-LTE

antenna and GSM/TD-SCDMA/TD-LTE

antenna tests.

Passed China Telecom’s TDD/FDD LTE

antenna tests.

Strategic Breakthrough in 2013 – Product Technology

September

16

Our client is the sixth largest multi-national network

operator among the world. MOBI has signed

procurement framework agreement with the

operator and become one of its three antenna

suppliers.

In 2012, the products trial went smooth and has bulk

sales delivered to its Pakistan subsidiary. In 2013,

there has been an on-construction trial for its

Malaysia subsidiary.

In 2012, MOBI became an antenna supplier for a well-

known network operator in India and provided

exclusive antennas for its GSM/UMTS network

construction in both Northern and Southern district.

In 1H2013, MOBI has also become its exclusive

antenna supplier for network expansion in its

Eastern district.

Development of the Strategic Customers in 2013

Nordic Client A Nordic Client B

India Client Thailand Client

In October 2012, Thailand started its auction on 3G

license.

MOBI then started to provide bulk supply in 3G

antennas to a Thailand operator.

The sales remained positive growth in 2013.

MOBI successfully breakthrough another major

European network operator since Nordic client A.

MOBI passed the network construction tests and

became one of its qualified antenna supplier in

November 2013.

MOBI would have cooperation on the project of

FDD LTE network construction with this operator.

Part 3. Market Outlook

18

Chinese 4G Market in 2014 ──

“The total domestic investment on 4G in 2014 will over 100 billion” (note)

— Miao Wei MIIT Minister

0

10

20

30

40

50

60

70

80

90

100

2013 2014

(RMB Billion)

Total investment on base stations (Estimated)

2013VS2014

Source: www.c114.net

Note: translated from Chinese, unit: RMB

19

0

100

200

300

400

500

600

The actual station

numbers and planned

projects in 2014

“Scheduled to build 500,000 4G base stations at the end of 2014.“ (note 1)

- Xi Guohua Chairman of China Mobile

（The total construction number of TD-LTE station within two years is equivalent to which

of TD-SCDMA station within six years. ）

Significant

Increase

Note 2: 100,000 GSM base stations.

2013

LTE+TD-SCDMA

2014

LTE+TD-

SCDMA+GSM

about 500,000 to 600,000 Base Stations (note 2)

(Unit: ‘000)

Source: www.c114.net and estimated by the company

Note 1: translated from Chinese

0

10

20

30

40

50

2013LTE 2014LTE

China Telecom’s Investment

20 Source: www.c114.net

RMB Billion

Planned to invest RMB 45 billion in 4G project in 2014.

(Compared to 2013: Total investment in LTE is RMB10 billion,

building TD/FDD LTE hybrid network.)

21

The total tender of FDD-LTE construction:

50,000 * 9 = 450,000 stations

Our clients

LTE Supply Chain -

The key channels to LTE market are main equipment manufacturers

Market

Technology

innovation

Share

22

23

In the 4G era, our leading technology can help us to get leading market shares.

Operator's dilemma:

a serious shortage of Base station sites

Our strategy:

2G/3G/4G MIMO antenna technology

Current Status:

• Comparative advantage in 3G/4G

MIMO antennas

• Passed tests by operators

Operator's dilemma:

poor coverage and serious interference

Our strategy:

• Good performance products

• High technology reliability technology

Current Status:

• Full score in 2G antenna technology

assessments

• Ranking high in 4G antenna tests

LTE ── Our Technology Strategy

Leading TD-LTE antenna technologies in the nation

Bulk sales experience in overseas LTE network constructions

Top

5

Leading

Japan Brazil Mexico

24

Working closely with the main equipment manufactures

Advantages of MOBI ──

Carry network examination for

the largest operator in Africa.

TD-LTE network

construction will be started

in 2H2014 and GSM / UMTS

network expansion

in India.

Orders from Thailand

are as good as 1H,

which are mainly for 3G

network constructions.

Extend multinational operator customers in

Europe and achieve scale sales.

25

Overseas Market Outlook ──

MOBI’s

Customers

&

Product

Technology

RF subsystems and

TD-LTE antennas

Multi-band/multi-system antennas

3G and FDD LTE antennas

Aesthetic antennas

Expand multi-national operators and enter their supplier

short lists

Develop LTE and multi-band/multi-system technologies

Increase customers and upgrade technologies simultaneously

26

Our Three-Year Strategy ──

www.mobi-antenna.com

27

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.

28

Disclaimer