1

Interim Results 2008/09 11 December 2008

2

Forward Looking Statement

This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and businesses of Skyworth. These forward-looking statements represent Skyworth’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

3

• Key Achievements

• Financial Highlights

• Company Snapshot

• Company Spotlights

• Appendices

Agenda

44

Key Achievements

Gross Margin Maintained

Turnover 26%

Gross Profit 26%

Gross Profit Margin 18.6% (No Change)

Net Profit 17%

Proven Quality and Leading Market Share in China*

No. 3 Overall TV & LCD TV; No. 2 CRT TV

Top Tier Digital Settop Box

Gaining market share

*Source : AVC Ltd. Nov 2007 - Oct 2008 (230 major cities; 2,200 retail terminals)

55

• Key Achievements

• Financial Highlights

• Company Snapshot

• Company Spotlights

• Appendices

66

Operating Margin Improved Clearance of Disappointing Business Units

Six months ended 30 Sep (HK$ million) 1H2008 1H2007 ChangeTurnover 7,380 5,841 26.3%Gross Profit 1,370 1,090 25.7%Gross Margin (%) 18.6% 18.7% (0.1pp)Operating Profit (EBIT) 273 142 92.3%Operating Margin (%) 3.7% 2.4% 1.3ppProfit attributable to equity holders of the Company- Including gain on disposal of partial

interest of digital set-top box business

91-

9842

(7.1%)NA

Minority Interests 24 - NANet Profit 115 98 17.3%Net Profit Margin (%) 1.6% 1.7% (0.1pp)(HK$ cents)Basic EPSDiluted EPS

3.983.98

4.284.26

(7.0%)(6.6%)

Dividend per share 1.0 0.5 100%Dividend payout (%) 25.3% 11.7% 13.6pp

77

Stringent Measures to Tighten Expenses Expected Slower Growth in Labour and Transportation Costs

• S&D expenses increased on brand building and marketing activities to welcome Beijing Olympics (Aug 2008)

• G&A expenses increased on R&D costs, implementing “new labour law” in China and one-off fair value adjustment upon initial recognition of other receivables (HK$29m).

Six months ended 30 Sep

(% to sales)1H2008 1H2007 Change 2007/08

Selling and Distribution 14.2% 13.6% 0.6pp 14.1%

General and Administration 4.0% 3.7% 0.3pp 3.5%

Total expenses rate 18.2% 17.3% 0.6pp 17.6%

88

Highly Liquid Position

Six months ended 30 Sep (HK$ million) Sep 08 Sep 07 Change Mar 08 Change

Inventories- Total- Finished goods

1,9901,203

1,9121,001

4.1%20.2%

1,9131,173

4.0%2.6%

Liquid bills receivable- On hand- Endorsed to suppliers*- Discounted to banks#

1,9421,843

58

1,5311,071

259

26.8%72.1%

(77.6%)

1,6541,932

817

17.4%(4.6%)

(92.9%)

3,843 2,861 34.3% 4,403 (12.7%)

Pledged bank deposits- for banking facilities, etc- for forex hedging^

731,072

56914

30.4%17.3%

681,802

7.4%(40.5%)

Cash and bank balances 1,236 831 48.7% 1,389 (11.0%)

Trade receivables 1,882 1,375 36.9% 1,276 47.5%

99

Reduced Borrowings More Bargaining Power on Payables

Six months ended 30 Sep(HK$ million)

Sep 08 Sep 07 Change Mar 08 Change

Secured bank borrowings- Construction loans- Financial liabilities

- for discounted bills#- for forex hedging

arrangements^- Other bank loans

85

581,020

220

-

-915593

N/A

N/A11.5%

(62.9%)

353

8171,708

257

(75.9%)

(92.9%)(40.3%)(14.4%)

1,383 1,508 (8.3%) 3,135 (55.9%)Trade payables- On hand- Under endorsed bills*

2,4671,843

2,0561,071

20.0%72.1%

1,6721,926

47.5%4.3%

4,310 3,127 37.8% 3,598 19.8%Bills payable 269 60 348.3% 105 156.2%Total trade & bills payable 4,579 3,187 43.7% 3,703 23.7%Net assets 4,124 3,403 21.2% 3,952 4.4%

1010

Efficient Distribution System to Turn Inventories Trading Below Net Cash Per Share

Sep 08 Sep 07 ChangeReturn on Equity (%) 4.4 5.8 (1.4pp)Current Ratio (times) 1.3 1.4 (7.1%)AR Turnover (days)

- with discounted bills- without discounted bills

124120

137133

(9.5%)(9.8%)

Inventories Turnover - Total- Finished goods

5938

6738

(11.9%)-

AP Turnover- with endorsed bills- without endorsed bills

11369

11764

(3.4%)7.8%

Debt/Equity Ratio (%)- exclude discounted bills and foreign

exchange hedging arrangements7.5% 9.8% (2.3pp)

Net cash per share (HK cents) 54.2 36.3 49.3%Book value per share (HK dollars) 1.79 1.49 20.5%

1111

• Key Achievements• Financial Highlights

• Company Snapshot

• Company Spotlights

• Appendices

1212

Overall (Volume) LCD TV (Volume) CRT TV (Volume)Rank Brand % Rank Brand % Rank Brand %

1 Konka 13.4% 1 Hisense 11.1% 1 Konka 20.8%2 Hisense 13.2% 2 Samsung 10.6% 2 Skyworth 16.5%3 Skyworth 12.1% 3 Skyworth 9.4% 3 Hisense 15.3%4 Changhong 10.3% 4 Sharp 9.4% 4 Changhong 14.7%5 TCL 9.9% 5 Sony 9.3% 5 TCL 14.5%6 Haier 6.3% 6 Konka 8.3% 6 Haier 8.6%7 Samsung 5.5% 7 TCL 7.2% 7 Xoceco 3.4%8 Sony 4.8% 8 Philips 6.3% 8 SVA 2.6%9 Sharp 4.8% 9 Changhong 5.8% 9 Sanyo 1.4%10 Philips 3.5% 10 LG 5.7% 10 Panda 0.6%

Overall (Revenue) LCD TV (Revenue) CRT TV (Revenue)1 Samsung 10.9% 1 Samsung 13.8% 1 Konka 19.5%2 Sony 10.2% 2 Sony 13.1% 2 Skyworth 17.7%3 Hisense 9.8% 3 Sharp 11.4% 3 Changhong 15.4%4 Sharp 8.9% 4 Hisense 8.8% 4 TCL 15.2%5 Skyworth 8.3% 5 Toshiba 8.1% 5 Hisense 14.9%6 Konka 7.2% 6 Skyworth 7.6% 6 Haier 8.9%7 TCL 6.5% 7 Philips 7.0% 7 Xoceco 2.8%8 Changhong 6.4% 8 LG 6.6% 8 SVA 1.8%

9 Philips 5.6% 9 TCL 6.0% 9 Sanyo 1.4%

10 Panasonic 4.3% 10 Konka 5.9% 10 Philips 0.7%

Source: AVC Ltd. Nov 2007 - Oct 2008 (230 major cities; 2,200 retail terminals)

China TV Market Share Nov 2007 – Oct 2008

13

LCD TV Market Share Oct 2008 VS Nov 2007 Balancing Market Share and Profitability

LCD TV (Volume) LCD TV (Revenue)Brand Oct

2008Nov 2007

Change (%pt)

Brand Oct 2008

Nov 2007

Change (%pt)

1 Hisense 13.6% 12.4% 1.2% 1 Sony 12.8% 10.4% 2.4%

2 Skyworth 11.3% 10.1% 1.2% 2 Sharp 12.8% 9.2% 3.6%3 Sharp 10.0% 6.9% 3.1% 3 Samsung 12.2% 11.0% 1.2%4 Konka 10.0% 9.6% 0.4% 4 Hisense 10.9% 10.2% 0.7%5 Samsung 9.1% 8.4% 0.7% 5 Skyworth 9.2% 8.5% 0.7%6 Sony 8.8% 5.9% 2.9% 6 Konka 7.3% 6.8% 0.5%7 TCL 7.7% 7.9% (0.2%) 7 TCL 6.6% 6.5% 0.1%

8 Philips 5.7% 5.6% 0.1% 8 Philips 6.1% 6.7% (0.6%)9 LG 5.4% 4.0% 1.4% 9 LG 6.1% 5.1% (1.0%)

10 Changhong 5.2% 6.9% (1.7%) 10 Toshiba 5.9% 8.7% (2.8%)

Source: AVC Ltd. Nov 2007 - Oct 2008 (230 major cities; 2,200 retail terminals)

1414

China TV75.6% (80.1%)

Overseas OEM TV

13.7% (6.5%)

HK$ 7.4bn26.3%

Digital Set-top box 8.6% (9.1%)

• Others 1.5%(1.8%)• Mobile Phone 0.6% (2.5%)*

Revenue Breakdown by Products: 1H2008 (1H2007)

Over 80% Revenue Generated in China Market under SKYWORTH Brand

* Sold 80% equity interests of Mobile Phone in 1Q09(Transfer procedures to be completed in Dec 2008)

1515

Operating Profit by Business Segments Solid and Market-leading Core China TV business

129

-7319

-628

122116

200192199

344

-150

-50 50 150

250

350

450

Property Holding

Other ElectronicProducts

Mobile Phones

Digital Set TopBoxes

TV

Total

(HK$m)

1H2008

1H2007

• Operational profit of China TV HK$194m while operational loss of Overseas TV HK$2m

• Set top box 1H2007 operational profit included exceptional gain HK$42m• Complete closure of Small Appliances and sold 80% of Mobile Phones• Write-back of inventories provision for mobile phones

1616

Gross Profit Margin Sustainable

• China TV: Margin is sustainable due to differentiated icon models, effective inventories management, softening panel prices and raw materials cost.

• Digital STB: GP% up 6.6%pt to 35.4% and ASP stable in China• Overseas TV: Expanding gross margin in progress to turnaround

Group

Sep 08 Sep 07 Change pp Mar 08

18.6% 18.7% 0.1pp 21.4 %

China TV 20.4% 21% 0.6 pp 24.5 %

Overseas TV (OEM) 2.5% 1.6% 0.9pp 3.0 %

Digital Set-top Box 29.5% 23.9% 5.6pp 23.1 %

1717

China TV Profitability Outperforms High-end Revenue Mix and Gross Margins

11%

60%

19%

3.0%7%0.9%

9%21%

53%

16%

-5%5%

15%25%35%45%55%65%75%

High DefinitionTV (CRT)

LCD TV Pure Flat (CRT) Sphere &Super-Flat

(CRT)

Plasma

% to China TV Sales 1H2008 1H2007

GP Margin 1H2008 1H2007 Change pp 2007/08

HDTV (CRT) 28.3% 27.4% 0.9 pp 32.0%

LCD TV 19.2% 21.1% 1.9 pp 24.2%

1818

ASP Growth in LCD TV Units Coupled with Premium Brand, Stayed Ahead of Peers on

Market Segmentation and Product Innovation

1,283 1,618 1,712 1,8741,342 1,459

+ 5% + 9% + 11% + 6%+ 10%

0

1,000

2,000

2004/05 2005/06 2006/07 1H2007 2007/08 1H2008

4%

9%

14%

ASP (HK$,net of tax and rebate)

LCD TV ASP HK$4,643

HDTV (CRT) ASP HK$928LCD TV 5x Higher

1919

7mths 2008/09 TV Sales Volume Better Performed Slack Season

(Units) 2008/09(Apr – Oct)

2007/08(Apr -Oct)

Change %

2008/09 Target

Achieved %

Total 5,607k 4,211k 33% 9,000k 62.3%

China TVcomprises:

3,370k 3,286k 3% 6,500k 51.8%

- Flat Panel TV- HD CRT TV- Traditional

CRT TV

927.3k694.8k

1,747.7k

555k696.9k

2,033.8

67%0%

(14%)

1,800k1,800k

-

51.5%38.6%

-

Overseas TV 2,237k 925k 142% 2,500k 89.5%

Overseas TV sales volume increasing significantly due to increase of business from quality and loyal strategic OEM clients.

2020

Impressive Breadth of Distribution and Logistics Skills

Hypermarket3.5% (3.5%)

Domestic/Exports

Distributors*11.3% (12.6%)

Direct/ BulkSales

6.8% (3.6%)

IndividualElectronic

Shops57.3% (56.9%)

Large ScaleChain Stores21.1% (23.4%)

* Domestic/ Exports Distributors are mainly Digital STB

Individual electronic shops and direct sales support margin

Large scale chain stores help on revenue growth

Sophisticated coverage and penetration into rural markets

2121

Overseas Sales Geography Summary Loyal Customer Base

40%

3%

17%

31%

7%2% 5%1%

25%22%

7%

40%

0%10%20%30%40%50%60%

America Europe Asia MiddleEast

Australasia Africa

% overseas sales1H2008 1H2007

Revenue included TV and set-top boxes

More strategic OEM TV to South America marketsMore strategic OEM TV to South America markets

2222

Digital Set Top Box Focus China Market Accelerated Gross Margin and Leading Market Share

-

500.0

1,000.0

Total 92.8 175 368 733 527 1,120 635 Overseas - 90 181 171 149 418 165PRC 92.8 85 187 562 378 702 470

2003/04 2004/05 2005/06 2006/07 1H2007 2007/08 1H2008

Sales HK$ million

Volume Growth on Track: China Skyworth brand 35%; Overseas OEM 13%; Overall 27%

China market share around 20% (nationwide 14m units in 2008E)*

OEM sales volume breakdown by areas: EU 77%; Asia 7%; Africa 2%; Middle East 5% & Austrasia 9%

* Source : GL Research, China

2323

• Key Achievements• Financial Highlights• Company Snapshot

• Company Spotlights

• Appendices

2424

Replacement Cycle of Flat TV Just Began Sales in Rural Areas Soon Explode

Time required for Market Permeation of Flat TV in China from 20% to 100%

Color CRTTVs

Urban 1986 1997

Rural 1996 2007

Flat-screen TVs

Urban 2006F 2013F

Rural 2009F 2020F

Source: Skyworth forecasts., Chinese Statistics Yearbook, Displaysearch, DIR

11 years

11 years

7 years

11 years

2525

Additional Growth Driver – Rural Areas

LCD TV penetration in rural area will be robust in the coming years, given 700m population affordability, less than 10% households penetration rates and 20m households without TV.

China is extending subsidy measures to farmers' purchase in TV in 14 provinces, going nationwide in February 2009 for 4 years.

Rural household incomes, living standards and spending have been growing significantly.

Individual electrical appliance stores, the major distributor, push more sales on higher margin TV – LCD TV.

2626

Anchored Footprints in Rural Areas

14 regional branches, 84 sales offices and 10 service centers covering 3,000 retail terminals

Win-win and loyal relationship with retailers tailored to sell Skyworth products

High-tech brand building, R&D develops customised products

Sophisticated sales network and logistic centers can be diversified in utilization

Strong financial position weathers for any slower economic growth and market consolidation

2727

• Key Achievements• Financial Highlights• Company Snapshot

• Company Spotlights

• Appendices

2828

30.4627.07 24.3 21.4 18.7

3.9 7.74 12.57 16.88 20.07

0.61 0.651.15 1.42 1.57

0.32 0.150.09

0.04

0

5

10

15

20

25

30

35

40

2006 2007 2008E 2009E 2010E

CRT LCD PDP PTV

Units (m)

Sales Volume

(m units)2006 2007 2008E 2009E 2010E

CRT 30.46 27.07 24.30 21.40 18.70

LCD 3.90 7.74 12.57 16.88 20.07

PDP 0.61 0.65 1.15 1.42 1.57

PTV 0.32 0.15 0.09 0.04 0.02

China TV 35.29 35.60 38.11 39.74 40.36

Flat TV 4.50 8.40 13.70 18.30 21.64

Growth% 87% 63% 34% 18.3%

Source: SARFT; AVC Ltd.

China TV National Unit Growth by Products LCD TV Over CRT TV by 2010

2929

China TV National Revenue Growth by Products 2006 - 2010

Source: AVC Ltd.

0

60

120

180(RMB billion)

PTV 2.6 1.1 0.6 0.3 0.1PDP TV 8.7 7 10 10.5 10.8LCD TV 37.1 61 87.8 106.2 117.6CRT TV 47 39.2 32.9 26.8 22.1

2006 2007 2008E 2009E 2010E

3030

China Digital Set-top Box Low PenetrationGovernment Push & Unique broadcasting model in China gives domestic

manufacturers an edge over international competitors

4 12.7

344 348 352385 402 409

27.748

6999

134 141 148 156 163 172

0

50

100

150

200

250

300

350

400

450

2005 2006 2007 2008E 2009E 2010EDigital Cable Households Cable Households TV Households

(m) Units

Source: SARFT; Informa, 2007; GL Research; AVC May 2008

3131

Global Set-top Box Fast Growing

0

5

10

15

20

25

30

35

40

45

2007 2008 2009 2010DVB-C DVB-T (DTT & iDTV & Combo) DVB-S (DTH & FTA)

(m) Units/ Year

Source: IMS Research, ST, Sony,2007

33.5

13.815.2

37.8

17.2

21.2

39.542.8

22.6

29.6 28.8

32.5

MERRY MERRY XX’’masmas & HAPPY New Year& HAPPY New Year

ObjectiveWholly devoted to provide excellent

digital audio-visual life to humans

VisionTo be the world’s No. 1 in the audio-visual industry

ir@skyworth.com.hk www.skyworth.com