2019 Annual Results Presentation - mobi-antenna.com

2019 Annual Results Presentation

Contents

01

02

03

04

[Company Profile]

[2019 Annual Financial Analysis]

[Market Analysis]

[Company Strength]

05 [Strategy Direction]

06 [Q&A]

2

※ Company Overview

1. Company Profile

※ Organizational structure

To be your best partner3

MOBI Development Co., Ltd. ("MOBI" or the "Company") (stock code:0947.HK), mainly engaged in the supply of components for the front-end signal transmission and reception of mobile communication. MOBIGroup has established R&D and production bases in the ShenzhenScience and Technology Park, Guangming District, Shenzhen, Ji'an,Jiangxi, Xi'an, Shaanxi, and Wuhan, Hubei, covering a total area ofapproximately 110,000 square meters.

Company Overview

This system is mainly designated to transmit andreceive electromagnetic waves. The main productsinclude TD/TD-LTE antennas, WCDMA/FDD-LTEantennas, multi-band and multi-system antennas,low-band refarming/IoT antennas, 5G antennas,special antennas, and microstation antennas.

Antenna system

T h i s s y s t e m i s m a i n l y u s e d t o f i l t e relectromagnetic waves. The main products includeRF devices like filters, duplexers, and combiners,such as low-band refarming/IoT RF devices,GSM/CDMA RF devices, WCDMA/FDD-LTE RFdevices, TD/TD-LTE RF devices, and Ceramicdielectric filters.

Base station RFsubsystem

Coverage extensionplan

This plan mainly targets engineering projects.The main products include aesthetic antennasand indoor coverage solutions.

4

Organizational Structure

MOBI Technology(Shenzhen)

100%

MOBI Shiye(Shenzhen)

100%

Shenzhen Borynet(Equity

Investment)

15.1%

Wuxi Gaoyusheng (New equity investment)

40%

100%

Shengyuzhihui(Shenzhen)

100%

MOBI Network (Shenzhen)

90%

10%

Jinshengjing(Ji An)

100%

MOBI Technologies

(Xi An)

Telecommunication System Integration

Ancillary Parts Production

100%

MOBI Technology

(Wuhan)

MOBI Telecommunication

(Ji An)

100%

MOBI Technology(Hong Kong)

100%

RF Subsystem Production Base Station Antenna

Production Aesthetic Antenna

Production

MOBI Antenna (Shenzhen)

International Trade and Funding

Research on new materials and production of ceramic dielectric filters

100%

RF Subsystem R&D Antenna R&D Aesthetic Antenna R&D Product Sales

Die-casting and CNC Processing

RF Subsystem R&D and Production

Antenna R&D

ShengrongCommunication

(Xi An)

100%

RF Subsystem R&D and Production Antenna R&D and Production Aesthetic Antenna R&D and

Production

Self-owned Property leasing

RF Subsystem R&D Antenna R&D Aesthetic Antenna R&D

Cloud WIFI

Ancillary Parts Purchase

Telecommunication System Engineering Services

5

※ Financial Highlights

※ Revenue Analysis

2. 2019 Annual Financial Analysis

※ Expenses Analysis


2019 Annual Financial Highlights

SalesGross Margin

Net Profit

(RMB million)Net Profit Margin

1257 1215

2018 FY 2019 FY

20.5%23.0%

2018 FY 2019 FY

16.7

23.6

2018 FY 2019 FY

1.3%

1.9%

2018 FY 2019 FY

(RMB million)

7

Financial Indicators

Financial Indicators 2019 2018

Return on sales ratio 1.94% 1.33%

Total asset turnover 0.62 0.55

Current ratio 1.82 1.57

Quick ratio 1.46 1.17

Asset/liability ratio 40.54% 49.50%

ROE 2.02% 1.44%


8

(RMB Million)

2019 Annual Revenue and Percentage – by Customer

International Operators19.2%

International EquipmentManufacturers 30.8%

PRC EquipmentManufacturers 23.4%

2019 Annual Revenue Analysis

PRC Operators 25.9%

Improved Customer Structure

332254

433 545

310 214

165197

175

2018 FY 2019 FY

20.9%

44.8%

17.6%

16.2%

0.5%

PRC Equipment Manufacturers

PRC Operators

International Equipment Manufacturers

International Operators

Others

12151257

9

1257

(RMB Million)

2019 Annual Revenue – by Product

Coverage extension 86.8%

2019 Annual Revenue Analysis

Antenna system 3.6%

RF subsystem 30.5%

• Due to the impact of major domestic telecom operators’

delay in 4G network construction and slowdown of demands

as well as the decrease of demands for 4G network

construction in emerging international markets (such as the

Indian market)；The revenue from the Company’s base

station RF subsystem in 2019 decreased as compared with

last year;

• The gross profit of GSM/CDMA RF and Low-band

refarming/IoT RF improved obviously；84 157

461 320

712 738

2018 FY 2019 FY

Antenna system

RF subsystem

Coverage extension

1257 1215

• Microwave antenna product category is more diversified, revenue increased by 8.9% approximately as compared with last year;• Multi-band and multi-system antennas grew substantially by 25.2% approximately;• 5G antennas rose greatly by 517.8% approximately;

• Aesthetic antenna income rose dramatically by 91.0% approximately from last year;• Microstations grew by 229.1% approximately.

10

Operating Expenses to Sales Revenue Ratio Amount of Expenses in Good Proportion to Business Scale

8.2% 8.3%

6.6% 6.7%

7.1%8.0%

1.0%0.8%

2018 FY 2019 FYFinancial expenses R&D expenses

Sales expenses Administration expenses


Financial expensesFinancial expenses declined by approximately 22.3%, accounting forapproximately 0.8% of the revenue. Mainly due to the partialrepayment of bank borrowings.

R&D expensesR&D expenses increased by approximately 9.2%, accounting forapproximately 8.0% of the revenue, mainly due to the increase insalaries for research and development activities, costs of research anddevelopment materials, rents costs, office expenses and amortization ofintangible assets.

Sales expensesSales expenses declined by 0.8% approximately, accounting forapproximately 6.7% of the revenue, mainly due to the decrease intravel expenses, communication costs, office expenses, agency fees andconsulting expenses caused by the decreased wages and wagesurcharges, strengthened cost control and reduced business activities.

Administration expensesAdministration expenses decreased by 2.3% approximately, accountingfor approximately 8.3% of the revenue, mainly due to the decrease inexpenses on wages, welfare expenses, transportation expenses, low-value consumables, litigation fees and management/utility expenses.

11

CAPEX of China’s Top 3 Operators2009-2020E

Historic Sales Revenue of MOBI2009-2019

3G 4G

Historic Sales Revenue Analysis

4G & 5G

Source: Announcements of the operators, reports on the communications industry by TF Securities, and www.c114.net

9.68%

-15.14%

7.27%10.24%

20.47%

11.38%16.37%

-18.79%-13.44%

-6.95%

4.53%

11.64%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E

China Telecom

China Unicom

China Mobile

Overall growthrate

(RMB 100 Million)

(RMB 100 Million)

12

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

MOBI

Growth ofOperatingRevenue

3. Market Analysis

※ 5G development in China

※ Overseas status quo


Market Analysis—5G Development in China

4G has a strong ability to cover data. Despite the abundant spectrum resources at present, 4G has space for development. The data services of 2G and 3G will be migrated to 4G/5G (including NB and eMTC). Operators will gradually remove the existing 2/3G networks and refarm the existing 2G/3G frequencies. 5G deployment will be completed gradually. The preliminary deployment will be based on the LTE core network.

1.1 China 5G Economic Report—Co-existence of 4G and 5G in the Next Decade

Source: 2020 China 5G Economic Report issued by the China Academy of Information and Communications Technology (CAICT)

Despite its bright prospects, 5G will not completely change or disrupt the telecommunications industry or other industries in the short term. Operators should have a clear understanding of reality, avoid excessive investment, and develop a coordinated 4G/5G development strategy. It is expected that 4G will continue to co-exist with 5G in the next decade to render seamless user experience.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2009201020112012201320142015201620172018201920202021202220232024202520262027202820292030

Number of 3G users (10,000) Number of 4G users (10,000) Number of 5G users (10,000)

Prediction of 3G/4G/5G Users in China

14


1.2 China's 5G planning

Compared with 3G and 4G, 5G penetrates users is slower than 4G users, because it will take a long time to complete the 5G network. Authoritative scholars think that it will take seven to eight years for 5G to reach coverage the same as 4G.

20093G commercial

2017 2018 2030202520195G commercial

Source: 2020 China 5G Economic Report issued by the China Academy of Information and Communications Technology (CAICT)

Penetration rateof 3G users: 37.7%;penetration rateof 4G users: 7.6%

Penetrat-ion rate of4G users:70%

Penetrati-on rate of4G users:75%

5G users will reach 816 million by 2025. The penetration rate of mobile users will be approximately 48%. After 2025, the penetration rate of 5G users will grow faster. Compared with that in the first five years after commercialization, the average annual growth of the penetration rate will be 7.4%.

It is expected that 5Gusers will reach 1.5billion by 2030, witha penetration rate ofapproximately 85%.

20144G commercial

15


Capital Expenditures of the Three Major Domestic Operators

2007-2020E

(RMB'00 million)

In June 2019, the MIIT issued the 5G commercial license, and the demand for 5G station construction prompted operators' capital expenditure to increase significantly over the same period of last year. Among them, the 5G investment of China Mobile, China Unicom, and China Telecom’s in 2019 accounted for approximately 14.5%, 14.0%, and 12.0% of total capital expenditure, respectively.

2019

2020

With the commercialization of 5G, PRC operators have significantly increased capital expenditures. The overweight of 5G investment will make the capital expenditure margins look better, which is expected to drive industry profitability improvement.

Source: Announcements of the operators, reports on the communications industry by Huatai Securities, and www.c114.net


12.34%

44.08%

9.68%

-15.14%

7.27%10.24%

20.47%

11.38%

16.37%

-18.79%

-13.44%

-6.95%

4.53%

11.64%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E

China Telecom China Unicom China Mobile Overall growth rate

16


China Mobile

China Unicom

China Telecom

Number of 5G base stations opened in 2019 (10,000 stations)

7.4 Shared base stations, 2.7

The MIIT held that: As at December 23, the objectives of the year were completed well. 126,000 5G base stations havebeen opened in China.

1


5G station volume forecast3

0

100

200

300

400

500

600

0

20

40

60

80

100

120

140

2019 2020E 2021E 2022E 2023E 2024E 2025E5G stations Accumulated 5G stations

2

55.6%

50.0%

51.2%

45.0%

50.0%

55.0%

60.0%

0200400600800

100012001400160018002000

China Mobile China Unicom China Unicomtotal capital expenditure 5G investment 5G investment ratio

Newly built 5G base stations by the three major operators in 2019

Source: www.c114.net.

Note: As for the number of base stations opened in 2019. China Mobile, as at the end of

January 2020; China Unicom, as at December 2019.

(RMB'00 million)

(10,000 stations)

The 5G investment of Top 3 operators in 2020

17

1.3 Market demands


5G base station antennas & filters market size forecast

During the 5G period, the structure of base station

antennas and filters is more complex, the integration

is higher, and the volume and price are rising.

2020E 2021E 2022E 2023E 2024E 2025E

Number of domestic 5G base stations (10,000 stations)

64 102.6 124.2 113.4 75.6 48.6

Domestic Antenna market size (RMB’000 million)

67.2 102.3 117.7 102.1 64.7 39.5

Domestic RF market size (RMB’000 million)

55.3 79.8 85.0 68.3 40.1 22.7

Domestic Antenna + RF market size (RMB’000 million)

122.5 182.1 202.6 170.4 104.8 62.2

Global 5G base stations (10,000 stations) (including domestic)

128 153.9 248.4 226.8 151.2 136.1

Structural and morphological changes:

1) 4G antennas are mainly based on 4/8 channels, and 5G antennas are mainly based on 64 channels;2) The 4G antenna is separated from the radio frequency, and the 5G antenna part is integrated with the RRU to AAU;3) The traditional base station antenna is mainly composed of a radiating unit (vibrator), a reflective plate (bottom plate), a power distribution network (feeder network), a packaging protection (radome), and an electronically adjustable antenna controller RCU; the current solution of 5G antenna is that Vibrator, power amplifier, filter are integrated on the PCB.

Source: Guosen Securities, reported on 18 December.18


Source: Reports on the communications industry by Huatai Securities; iResearch—Industry research.

Technology improved. The right of speech of equipment

manufacturers was enhanced. Device/module/RF manufacturers

were benefited first.

Demand pull

Cost impact

1.4 Prominent strengths of the 5G market

Continuous capital investment Quality spectrum resources Rich existing sites

Upstream

Downstream

Demand increase

2 Faster network construction

3 Improved right of speech in 5G

4 Strengths in spectrum sharing

The MIIT granted the Radio Frequency Use License toChina Telecom, China Unicom, and the National Radio andTelevision Administration (NRTA) and agreed that thethree operators could share 3300-3400MHz frequencybands nationwide for 5G indoor coverage. The threeoperators share the most mature frequency bands in theindustry chain to raise the utilization efficiency offrequency spectra, reduce the cost of the supply chain, andpromote fair competition among operators.

1

19

Overseas Opportunities—Overseas Status Quo

LTE growth Allocation of the TD-LTE Spectrum License

Networks Launched and Accumulated Annually (including mobile and FWA networks)

In 2019 we see deployment of LTE reaching into almostevery part of the world. By the end of July 2019, GSA hadidentified 769 operators running LTE networks providingmobile and/or fixed wireless broadband services in 225countries worldwide. GSA is aware of at least another 115companies actively trialing, investing or that have statedplans to invest in LTE.

Source: GSA

78

1

5819

59

36 Frequency band 38

Frequency band 39

Frequency band 40

Frequency band 41

Frequency band 42

Frequency band 43

Most LTE deployments use paired spectrum (FDD). TheLTE TDD mode is complementary and the perfect choicefor providing high-speed mobile broadband access inunpaired spectrum. Many operators have deployed bothFDD and TDD modes in their networks. LTE-TDD is anintegral part of the 3GPP standard, implementing amaximum of commonalities with LTE-FDD and offeringcomparable performance and similar high spectralefficiency. GSA has identified 228 operators that holdspectrum licenses enabling them to launch LTE-TDDservices. Of those, 164 operators have so far introducedTDD into their LTE networks. Spectrum in Band 38 (78licenses) is the most commonly licensed for LTE, followedby spectrum in Bands 42 and 40 (58 licenses each).

0100200300400500600700800900

0

20

40

60

80

100

120

140

New increment Accumulative amount

20

Overseas Demand

Overseas Opportunities—Overseas Status Quo

Antenna

4G: Southeast Asia and Latin America will continue tohave many FDD 4T4R renovations. Africa has begun toconstruct the 4G network on large scale. Macro cellantennas will steadily grow in the global market in thenext five years. Especially, developing markets willhave 2,244 million new users.

5G: 3.5G 64TR Massive MIMO AAU antennas are themain demand. Traditional 2T, 4T, and 8T passive 5Gantennas and millimeter wave (MMW) 5G antennaswill also be demanded greatly.

Filter

4G: 4G filters will enjoy broad space in countries andregions with a large population base. It is expectedthat 4G filters will have big space in the global low-band refarming market by 2025, bringing about manyopportunities for equipment manufacturers andbenefiting major equipment manufacturers and theirupstream and downstream companies engaging inantenna, RF and optical modules.

5G: The industry is facing technological upgrading.Metal cavity filters are being replaced with ceramicdielectric filters. Major equipment manufacturersmainly focus on semi-dielectric or small metal filters.Along with the mature of dielectric waveguidet e c h n o l o g y , t h e y w i l l c o n c e n t r a t e o n t h eindustrialization of dielectric waveguide.

CollectionRepresentatives: Asia-Pacific region

represented by Japan and India;

Self-built channel sales

BundleRepresentatives: Multinational

operators in Europe;

Enter the market by bundling with

equipment manufacturers

Sales Method

21

※ Product strengths

※ Production line strengths

4. Company Strengths

※ Market strengths


Frequency

Spectrum efficiency

Sec

tor

den

sity

Omni

3 sector

6 sector

Small cell

Dense Cell

Multi-bandBroadband CA High-band

2T2R

4T4R

8T8R

Massive MIMO

NR Massive MIMO AAU antenna solutions

5G MM antennas

Indoor coverage & capacity solutions

MIMO small cell antennasLTE & 5G

Outdoor capacity solutions

Multi-beam + MIMO antennas

Macro cell coverage & capacity solutions

FDD multi-band and multi-port antennas

Company Strengths—Product Strengths

1.1 Antenna family—5G R&D

MM(A)+P antennas

LTE&NR ALLinONE antennas solutions

LTE&NR 1+1 antennas solutions

2/3/4G (TDD + FDD)Multi-port and multi-standard antennas

23

1.2.1 Antenna family—4G antenna sequence


Product FamilyFDD Multi-band and Multi-system Antennas

Multi-beam and Hybrid-beam Antennas

TF Multi-band and Multi-system Antennas

Application scenarios

LTE & NA outdoor macro cell coverageLTE high-capacity and high-density scenarios

LTE & NR outdoor continuous coverage

Product appearance & technical characteristics

Passive array antennas. Small nested array technology and integrated lumped phase shifter technology are adopted. 698-960MHz, 1495-2700MHz, and 3300-3800MHz ultra wide band (UWB), broadband, and narrowband frequency spectra are supported. Intelligent working parameter management function is available.

Passive array antennas. UWB hybrid-ring technology is adopted. 698-960MHz and 1495-2700MHz UWB, broadband, and narrowband frequency spectra are supported. The FDD/TDD hybrid networking is supported. Intelligent self-adaptive beam switching technology is supported. Intelligent working parameter management function is available.

Passive array antennas. Fully nested array technology and integrated phase shifter frequency decomposing technology are adopted. 698-960MHz, 1710-2170MHz, 2300-2700MHz, and 3300-3800MHz UWB, broadband, and narrowband frequency spectra are supported. Intelligent working parameter management function is available.

Development direction

Band extension, multi-standard, 4T4R, 8T8R

4T4R Band expansion

16+PortIntegration with multi-band antennas (hybrid-beam)

Integration with 5G active antennas

Small and lightweight Small, lightweight, and multi-functional Small, lightweight, and multi-functional

24

1.2.2 Antenna family—5G antenna sequence


Product Family Massive MIMO Antennas Small Cell Antennas

Application scenarios NR high-capacity high-density coverageLTE & NR street stations, indoor stations, hotspots, and blind spot coverage


Active array antennas. Compact array technology is adopted. 1710-2170MHz, 2300-2700MHz, 3300-3800MHz, and 4500-4900MHz broadband and narrowband frequency spectra are supported. Metal/dielectric filter integration technology is supported. Integrated LTE&NR A+P antenna technology is integrated. 5G macro cell stations are integrated.

Active/passive antennas. Integrated radiating element and feed network technology is adopted. 698-960MHz, 1710-2700MHz, 2300-2700MHz, 3300-3800MHz, 4500-4900MHz broadband and narrowband frequency spectra are supported. FDD/TDD hybrid networking is supported. The integrated A+P technology is supported.


16/32/64TR 4T4R/8T8R

AFU LTE & NR integration

Small, lightweight, and A+P integrated Active, low-profile, and conformal design

25

2.1 RF family—5G R&D direction

The Company has applied for 18 invention patents and 16 utility model patents;

Independent patents

The original production equipment of the Company has been updated in line with the production requirements for 5G products. And automatic production lines have been adopted;

Production equipment

Automated testing has been employed to improve testing efficiency and meet the needs of 5G products in small batches and many varieties;

Automated testing

Improve product delivery and seize 5G opportunities;

Delivery ability

Submit more samples of products with independent patents to raise the pass rate.

Product innovation


26

2.2.1 RF family—Metal cavity filter


Product Family

4G Metal Cavity Filters Pro 5G Metal Cavity Filters 5G Metal Cavity Filters

Application scenarios

2G/3G/4G core network base station equipment

Pro 5G core network base station equipment

5G core network base station equipment


Integrated duplexer or multiplexer devices feature independent RF signal frequency selection, signal monitoring, and signal amplification.

Integrated 32 channel filter devices, integrated with the antenna module, feature independent RF signal frequency selection.

Single channel filter devices, directly installed in an AFU antenna in int32 or int64, feature RF signal frequency selection.


Functional integration Small and lightweight Small and lightweight

Gradual evolution from 2 and 4 ports to 8 ports above

Replaced with metal cavity filtersDevelopment toward ceramic dielectric filters

Application of dielectric resonator power load technology

Application of welding of the coverplate and the resonator bar

Application of welding of the coverplate and the resonator bar;Application of automatic assembly and debugging technology

4G Pro 5G 5G

27


Product Family Ceramic Dielectric Filters Multi-mode Dielectric Filters

Application scenarios 5G core network base station equipment 4G/5G core network base station equipment

Product appearance & technical

characteristics

Single channel filter devices, directly installed in an AFU antenna in int32 or int64, feature RF signal frequency selection.

Integrated filter or duplexer devices, feature independent RF signal frequency selection technology.


Small and lightweight. Integrated low-pass filter unit, layer design. Development from filters to multiplexers.

Small and lightweight. Partial replacement of metal cavity filters.

2.2.2 RF family—Ceramic dielectric filter

28

MMW signal return system

Pico base station

Cloud WIFI

Multiple networks collaborate with each other in the 5G era. The Company concentrates on accelerating the construction of small and integrated base stations, and launches broadband-based and customized products, such as pico base stations, cloud WIFI, and intelligent light poles, to provide solutions to practical application scenarios.


Micro-distribution

Intelligent room divisionIntelligent signal

boosters

Intelligent light pole signs

Main products:

...

Smart city solutions Indoor coverage solutions

Intelligent transportation solutions Private network coverage solutions

Intelligent campus solutions Intelligent factory solutions

...

Market opportunities:

3.1 New businesses—5G R&D direction

29

3.2.1 New business family—Pico base station


High-power pico base stations Distributed pico

base stations

Integrated an enterprise-level

Product Description

Application Scenarios

MOBI's pico base stations are wireless indoor multi-mode deep coverage solutions for indoor hotspot expansion and blind spot coverage, based on all frequency band resources of Chinese operators and integrating multiple technologies.

Wireless network capacity and coverage in the indoor environment.

Product Features

• Simple structure, shorter construction cycle, and easy deployment;

• Management without blind spots and easy operation and maintenance;

• Dual-stream MIMO available and no need for room division transformation;

• RU co-cell, remote cell splitting;• Pain points are addressed. Macro and micro collaboration.

30

3.2.2 New business family—Mobile digital micro room division system


Intelligent signal boosters

Mobile digital micro room division system

Product Description


Product Features

The mobile digital micro room division system is a new coverage product developed by MOBI to rapidly address closed blind spots or areas with weak coverage with a low business volume.

Low-value scenarios and difficult scenarios like underground parking lots, elevators, and small sites for business operations.

• Mobile dual-band system, high integration;• Multi-source access;• LTE supports automatic switching among frequency

bands;• Automatic network optimization, and automatic

balancing of forward and reverse links;• Isolation detection and self-excitation elimination;• Remote monitoring and warning. 31

3.2.3 New business family—Cloud WIFI solution


Indoor

HOME WIFIOutdoor

Product Description


Product Features

Technological revolution of new-generation enterprise-level

WIFI, local AP management based on public or private

cloud AC, and AC-controlled cloud.

Scenarios like offices, Industry 4.0, public coverage,

supermarkets, and chain stores.

• Enterprise-level cloud AP, automatic discovery, and

plug and play;

• Wireless RF acceleration and load balancing;

• Hierarchical strategy management;

• BeamCloud cloud antennas;

• Anti-attack, access control, and multiple isolations.

32

3.2.4 New business family—Intelligent light pole


Intelligent light

poles

Product Description


Product Features

Remote and centralized control and management of street lights are achieved based on computer, network, communication, and Internet technologies as well as multiple classic products of MOBI.

High-tech parks, tourist attractions, municipal roads, and business districts.

Functions include wireless communication, intelligent lighting, intelligent security protection, LED screens, intelligent broadcasting, charging piles, emergency calls, and environmental monitoring.

33

Reflow soldering Wave soldering

Automatic welding robotsAutomatic dip soldering machines

Automatic assembly and welding robots

Automatic testing stations

Production Equipment

Company Strengths—Production Line Strengths

The Company has deployed multiple automatic equipment and production lines to further strengthen the manufacturing processes of 4G & 5G products, raise capacity utilization, and reduce costs.

34

36-port automatic testing platform:• Auto connection + auto testing+ auto

switching + auto uploading• Efficiency enhancement by 30%

Automated Test

Company Strengths—Production Line Strengths

35

Company Strengths—Market Strengths

Antenna Business

• 4G: MOBI made continuous breakthroughs in expanding overseas operators. Especially, it acquired new customers in Northeast Europe, South Asia, and Southeast Asia;

• 5G: It was included in the Chinese equipment manufacturers’ list of major suppliers and won a big share in several key code tenders.

RF Business

• MOBI won a big share of international equipment manufacturers’ products;

• The first pass yield, efficiency, and gross profit of RF products were improved.

New Business

• MOBI covers indoor data coverage, Internet of Vehicles, and Internet of Things;

• It won the bidding for pico base stations;• It won the ICT bidding in multiple

provinces.

36

Export sales

Company Strengths—Market Strengths

(RMB million)

0

50

100

150

200

250

300

350

400

450

2016 FY 2017 FY 2018 FY 2019 FY

Europe America Asia

The decline in exports was mainly due to the

slowdown in global macroeconomic growth, the

slowdown in demand for mobile network construction

in countries and regions, and delays in some projects.

However, the company continued to strengthen the

development of emerging markets such as Europe, and

European export revenue increased significantly.

0

50

100

150

200

250

2016FY 2017FY 2018FY 2019FY

Overseas direct sales

(RMB million)

Overseas direct sales Overseas direct sales revenue increased by 19%.

1、Product structure upgrade

2、Broaden sales channels

3、 Obvious cost advantage

37

Company Strengths—Summary

Ability to provide solutions of the antenna + filter system

End-to-end full-chain business procedures

4G + 5G independent development & accumulation of intellectual property

Cost-effective solutions

Fast response & product iteration

Why MOBI

38

※ Corporate mission

※ Business Direction

5. Strategy Direction


Strategy Direction

Under the impact of the COVID-19 coronavirus, variousconsumption and production activities have been affected tovarying degrees, and the macro economy may be under pressure.5G new infrastructure investment is expected to become animportant means for the country to reverse the economic cycle.

496.8 463.68 496.8

189.4 200.6 197.6

289.19250

428.19

0

200

400

600

800

1000

1200

2002 2003E 2003

Planned and Actual Capital Expenditures in 2003

China Telecom

China Unicom

China Mobile

10511272 1363

257.2

309.5

704.9463.34

459.6

484.1

0

500

1000

1500

2000

2500

3000

2007 2008E 2008

Planned and Actual Capital Expenditures in 2008

China Telecom

China Unicom

China Mobile

The capital expenditure of operators is expected to improve

Enterprises fully restore production.

Sources: Operators' annual reports and Research Department, Founder Securities

During the epidemic period, the company formulated the anti-epidemic workmanagement system, anti-killing plan, and arranged the coordination staff tocarry out clean and anti-killing work before resuming work, providing safetyprotection for employees to return to work smoothly, and providingcomprehensive protection for full-scale resumption of production. At present,the Group subsidiaries’ rework rate have exceeded 100%.

RMB 100 million RMB 100 million

40

Strategy Direction

1、Market expansion

Seize golden opportunities overseas

Grasp new opportunities arising from 5G development

2、Technology R&D

Increase investment in 5G

R&D

Continue to explore new businesses

3、Cost control

Continue to exercise cost

control internally

Optimize structure of

products and customers

Three Strategy Direction

Explore and work on path survival and development of the company with collective intelligence from employees; continuously bring management and technology innovation into practice; and develop into a global leading provider of RF technology for mobile communications.

Corporatemission

41

戰略方向

Business Direction

Antenna

• 5G Massive MIMO antenna• AAU antenna• China Mobile + National

Radio and Television Administration (NRTA) FDD + TDD antenna

• Capacity expansion by overseas operators and TDD + FDD antenna of NSA networking

• ……

RF

• Metal filter• Ceramic dielectric filters• ……

New business

• Indoor data coverage• Internet of vehicles• Internet of things (IoT)• Pico base station• ……

Strategy Direction

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6. Q&A

Q&A


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 contains some forward-looking statements. Such statements are the description, analysis, and

expectations of the Company's employees of the Company or relevant industries. The Company neither

promises nor guarantees that such statements would be consistent with the future performance of the Company

or relevant industries. Such performance may be materially different from these statements, for which the

Company takes no responsibility.

The report is copyrighted by the Company and may not be disclosed, reproduced, published, used, or cited by

any organization or individual in any form without the written permission of the Company. Citation upon

approval by the Company should be within the scope of the written permission of the Company. And the

source should be specified. This report should not be cited, abridged, or modified to become contrary to the

original meaning.

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Documents

2019 Annual Results Presentation - mobi-antenna.com