View
2
Download
0
Category
Preview:
Citation preview
Page 2(Nasdaq: CNTF)HK000KRB
Disclaimer
This presentation contains forward-looking statements. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as ''will,'' ''expects,'' ''anticipates,'' ''future,'' ''intends,'' ''plans,'' ''believes,'' ''estimates'' and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as TechFaith's strategic and operational plans, contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, TechFaith's limited operating history, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, TechFaith's ability to retain existing or attract additional international customers, TechFaith's earnings or margin declines, failure of competing against new and existing competitors, and other risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1, as amended. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Page 3(Nasdaq: CNTF)HK000KRB
Contents
Industry Evolution
Unique ODP Provider
Product Development Status
Customer Base
Appendix
Page 4(Nasdaq: CNTF)HK000KRB
Top Five Brands
JapaneseBrands
ChineseBrands
EuropeanBrands
CarrierBrands
NicheBrands
Local Brands
PremiumBrands
1980 - 19951995 - 19982006 - 20072000 - 20051998 - 20002008 - Future
Global Handset Players Get More Diversified2008 - Future
Page 5(Nasdaq: CNTF)HK000KRB
CDMA1X
GSM/GPRS
GSM/GPRS/EDGE
TD-SCDMA
WiMAX
CDMA 2000/EVDO
WCDMA
HSDPA
WiFi
HSUPA
Wireless Standards and OS Get More Complicated
3G
2G/2.5G to 2.75G
3.5G/3.9G
Mid-90s 2000 2005 20102002 2007
Page 6(Nasdaq: CNTF)HK000KRB
Fast-Growth Opportunities for TechFaith
Small players are not capable of providing original developed products;Big players can not cover the Design of a full spectrum of technologies from 2G to 3.5G;Carriers are promoting their own services with rich software applications;Dual-mode handsets are in high demand by carriers running two network systems or by international roamers.
Page 7(Nasdaq: CNTF)HK000KRB
Contents
Industry Evolution
Unique ODP Provider
Product Development Status
Customer Base
Appendix
Page 8(Nasdaq: CNTF)HK000KRB
CustomerBrandOwner
Total Handset Software & Design Solutions
Drivers onDifferent
OS
Frame workAPI
MMI:Specific
Features forDifferentOperators
U IMMI:
Common Features
Hardware Design
Industrial Design/Mechanical Design
ApplicationSoftware
TechFaith owns customer relationship
EMS is available for production if brand owner outsourcesmanufacturing
EMSProduction
Line
Chipset
Page 9(Nasdaq: CNTF)HK000KRB
MMI:Specific
Features forDifferentOperators Customer
BrandOwner
UI
PCBA Common Practice: focusing on hardware design by using single chipset solution
EMSProduction
Line
Industrial Design/Mechanical Design
Drivers on
Different OS
FrameWorkAPI
MMI:CommonFeatures
ApplicationSoftware
Chipset
Hardware Design
Single Chipset Solution
No product differentiation Low entry barrier (low margin)Single chipset solution providers only offer GSM/GPRS/EDGE
Page 10(Nasdaq: CNTF)HK000KRB
Cutting-Edge Technology Alliances
Strategic partner to develop Smartphone technology
Enabler of CDMA technology
Strategic investor
Collaborative founding “TechSoft”
Page 11(Nasdaq: CNTF)HK000KRB
Application Software Co. -Jointly Invested by Qualcomm in May ’06First Window’s Smartphone in Sep ’06
First 3.5G HSDPA Smartphone in Apr ’07
Volume based business
Higher ASP from games and other contents
Extra revenue from gameservice, game terminals and UMPC
ODP & Content Provider
2008
Company Founded 2002
Independent Design House
2002-2005
Founded in July ’02 NASDAQ IPO in May ’05
First 3G WCDMA/UMTS
Handset in Oct ’05
Original Dev. Product(ODP)
Provider 2006-2007
Interactive GameBusiness Unit Founded in Q1’08
Company Profile – NASDAQ: CNTF
Project based business
Revenue mainly from NRE
Share the volume business via Royaltyincome
Volume based business
Page 12(Nasdaq: CNTF)HK000KRB
Contents
Industry Evolution
Unique ODP Provider
Product Development Status
Customer Base
Appendix
Page 13(Nasdaq: CNTF)HK000KRB
170Feature Phone
Gross Margin > 20%
45
58
Smartphone & PPC PhoneGross Margin > 25%
Low TierGross Margin > 10%
450
TechFaith’s Product Position- Focusing on Mid to High Tier
90
Cost Wholesale Price
50
Low Tier
Middle
High Tier
35
100
180
20
Unit: US$
35
Page 14(Nasdaq: CNTF)HK000KRB
170
45
58
CDMA1X Gross Margin
10%-40%
HSDPA Gross Margin
20%-40 %
GSM Gross Margin
10%-30%
WCDMA Gross Margin
15%-30%
Low Tier
Middle
High Tier
Cost Wholesale Price
50
450
35
100
180
90
TechFaith’s Product Position- Focusing on Mid to High Tier
3520
Unit: US$
Page 15(Nasdaq: CNTF)HK000KRB
Product Portfolio with Advanced Technology
Feature PhoneMultimedia Game
MID (Windows XP)
Windows GoogleMobile
GSM
CDMA
WCDMA
HSDPA
TD-SCDMA
Patented
General
UniqueGSM/CDMA
GSM/GSM
WCDMA/GSM
WCDMA/CDMA
GSM/TD-SCDMA
Page 16(Nasdaq: CNTF)HK000KRB
GSM GSM
PPC
Phones
Launched
Technology Combinations in High Demand
Feature
Phones
Q4’ 2007
Digo S26
Q1’ 2008
Twins Yin Tai
GSM CDMA
GSM GSM
GSM GSM
T7620+ T7630
GSM CDMAT7620
GSM WCDMATwins
Cynthia 850Gallic
GSM GSM
CDMA WCDMA GSM TD-SCDMA
Page 17(Nasdaq: CNTF)HK000KRB
HSDPA Data/Voice Card- Pike
Band: HSDPA2100/GPRS10/GSM900/DCS1800/PCS1900MHzLCD: 0.8’’ OLEDEntertainments: Modem /MP3 AAC /AAC+Size: 98*36*16mm/ 56gPatent: Industry Design authorized in China, Eastern Europe and Japan
Page 18(Nasdaq: CNTF)HK000KRB
Slider Qwerty
GPS HSDPA PPC - Bono
Platform: Marvell Bulverde270 ( 520 MHz ) +Qualcomm 6280
LCD: 3.0” WVGA TFT Touch panel
Patent: Window Based Touch Screen Split
Page 19(Nasdaq: CNTF)HK000KRB
HSDPA PPC - Fox H
Platform: Marvell Bulverde 270 ( 520 MHz )+ Qualcomm 6280
LCD: 2.5” QVGA TFT, touch panel
Patent: 3D UI Interface
Page 20(Nasdaq: CNTF)HK000KRB
Contents
Industry Evolution
Unique ODP Provider
Product Development Status
Customer Base
Appendix
HK000KRBHK000J5S21
Russia
China JapanTaiwan
Indonesia
India
Brazil
United StatesEgypt
UkraineEurope
MalaysiaVietnamThailand
South Korea
United Arab Emirates
Worldwide Market Coverage
Turkey
Saudi ArabiaMorocco
Algeria
Canada
Libya
Yemen
KenyaNigeria
Page 22(Nasdaq: CNTF)HK000KRB
Africa
Europe Russia
North America
Latin America ChinaSouth East Asia
IndiaMiddle EastAfrica
TechFaith’s Worldwide Customers & Prospects
Page 23(Nasdaq: CNTF)HK000KRB
Contents
Industry Evolution
Unique ODP Provider
Product Development Status
Customer Base
Appendix
Page 25(Nasdaq: CNTF)HK000KRB
Q3/07 Q4/07 2009
Engineering Sample
Mass Production
TD-SCDMA Product Road Map
TD/GSM AR + AH + EDGE
HSDPA2.8M/GSM + AR +AH+EDGE
Linux-based & One-chip Low-costHSUPA (UMTS)
Engineering Sample
Mass Production
Mass Production
CTA of Feature Phone & Data Card
No.1 CNC Qingdao Field Testing
Demonstration at PT/EXPO COMM CHINA 2007
Working Sample for MII Field Testing
Q1/08 Q3/08
Page 26(Nasdaq: CNTF)HK000KRB
Development of TechFaith’s TD-SCDMA Projects
Two models of feature phone and one model of data card were shown to
the public in our customers’ name at PT/EXPO COMM CHINA 2007 from
23rd-27th Oct 2007.
Data card won CMCC bidding recently in one of our customers name.
Two models of feature phone are joining the CMCC bidding.
TechFaith has secured TD-SCDMA contracts for both data card and
feature phone from customers home and abroad, first shipment is
expected in Q2 2008.
Page 28(Nasdaq: CNTF)HK000KRB
Component Suppliers
PA Suppliers(1) NXP Platform: RFMD and Skyworks.(2) Qualcomm Platform: Avogo and Anadigics(3) T3G: Maxim
LCD Suppliers(1) Samsung SDI: 2.2 ", 2.4 " QVGA(2) Tovis: 1.8 " QCIF, 2.8" QVGA(3) Sharp: 1.8 " QQVGA, 2.6" WQVGA, 3.0" WVGA(4) CASC: 2.2 " QCIF, 2.4 " QVGA(5) TPO: 2.5 " QVGA landscape
GPS Supplier: SiRFFinger Print Recognition Suppler: Atrua
Page 29(Nasdaq: CNTF)HK000KRB
ODP & ODC Business Models Allow TechFaith to Build Its Competitive Advantages, Achieve Fast Growth, and
Maintain Sustainable Profitability
Recommended