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Company Description - AIVtech International Group Co. (“AIVtech” or the “Company”) is a leading manufacturer of consumer electronics products, such as furniture audio and multimedia speakers in China. The Company plans to capitalize on its strong domestic position to become a well-known international brand. AIVtech focuses on the integration of electronic devices, such as multimedia speakers, with furniture and has coined the term “electronic furniture” to describe its products. The Company’s brand—AIV—stands for “Audio & Interactive Video” and describes the integration of audio and video to provide complete audio-visual systems for its customers. Currently, the Company classifies its products within three categories: (1) casual furniture audio such as rocking chair speakers and video game chairs; (2) hi-fi digital and multimedia speakers; and (3) LCD/LED televisions, which entered into production in April 2010. The Company was founded in October 2004 and is headquartered in Shenzhen, China, and its manufacturing facility is located in Dongguan.
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AIVtech International Group Co.Investor Presentation
May 2010
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Safe Harbor Statement
Safe Harbor Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation
Reform Act of 1995: This presentation contains “forward-looking” statements, which are not historical
facts, but are forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements relate to analyses and other information based on forecasts of future
results and estimates of amounts not yet determinable. These statements also relate to our future
prospects and proposed new products, services, developments or business strategies. These forward-
looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”,
“could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “continue” and other
similar terms and phrases, including references to assumptions. Although we believe that the
expectations reflected in any of our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed. Our future financial condition and results of
operations, as well as any forward-looking statements, are subject to changes and to inherent known
and unknown risks and uncertainties. We do not intend, and undertake no obligation, to update our
forward-looking statements to reflect future events or circumstances.
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Equity Snapshot
Symbol OTCBB:ECOH
Price / 52-Week Range $4.60 / N/A
Basic Shares Outstanding 20 million
Market Cap. $92 million
Revenues (CY09) $38.5 million
EBITDA (CY09) $8.3 million
EPS (CY09) $0.37
EV/Sales (CY09) N/A
Cash (12/31/09) $3.6 million
Total Debt (12/31/09) $0
Fiscal Year End December
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Investment Highlights
� Leading consumer electronics manufacturer
with strong brand
� Innovative product design
� Proprietary technology and intellectual
property
� New LED TVs to drive growth in 2010
� Rapid growth in revenue and net income
� Experienced management team
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Company Overview
� Leading audio furniture, multimedia speaker and LED-TV manufacturer with a strong brand name
� Founded in 2004 and headquartered in Shenzhen
� Products sold in North America, Europe, Southeast Asia, Australia and China
� 30,000 sq. m of manufacturing space located in Dongguan
� 600+ employees
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Product Overview
Audio Furniture(80% of CY09 Sales)
Multimedia Speakers(20% of CY09 Sales)
LED/LCD TVs(Launched in 2010)
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� Leading brand with approximately 60% share of international market
� Generated 80% of revenue in 2009
� Award-winning video-game chair
� Works with PS, Xbox
� 26% gross and 18% net margins
AIV-Branded Audio Furniture
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Avid China Gaming Market
� Avid gaming market in China
� 384 million Internet users and 170,000+ Internet cafes
� China ranks #2 with 27% of global network gaming revenue (Iresearch)
� Chinese online game market to hit $9.2 billion by 2014 (Niko Partners)
� Market for online games expected to grow by 11% through 2013 (yStats.com)
� U.S. growth rate: 29%
� China: 21%
Source: China Internet Network Information Center (CINIC)
0
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100
150
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350
400
450
2002
2003
2004
2005
2006
2007
2008
2009
(Mill
ions)
0%
10%
20%
30%
40%
50%
60%
70%
80%
(Perc
ent)
Number of Internet Users Growth Rate
Number of Internet Users and Growth Rate in China
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Multimedia Speakers
� Broad product line
� Notebook PC speakers
� Channel speakers
� Wireless speaker kit
� Generated 20% of revenue in 2009
� 24% gross and 16% net margins
� Hot new product: Digi Panda
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� Global market for multimedia speakers is forecast to hit 127.3 million units and $2.9 billion in 2010, growing 10% in 2011 (HZResearch)
� The Chinese market for multimedia speakers is forecasted to hit 26.9 million units and $615.8 million (HZResearch)
� Steady growth of multimedia speaker sales in China. Expect to gain higher market share in 2010 with fast-selling Digi Panda
Multimedia Industry Outlook
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LCD/LED TV Opportunity
� Global LCD TV market 171 M units in 2010 (+21%) (Corning)
� The China LCD TV market is expected to hit 37 million units (+32%)
� LCD TV penetration is expected to increase by 18 points to 86% in China
� Rapid increase in LED-Backlit TVs (DisplaySearch)
� 35 million units (20% penetration) sold in 2010
� 100 million units (40%) estimated to be sold in 2013
Source: DisplaySearch via Semiconductor Today
Worldwide TV Market by Technology
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LED-Backlit Televisions
New LED-TV line for 2010
� LED TVs offer superior lifetime and image quality
� Professional and powerful build-in audio technique
� Excellent design team in digital circuits and industrial design
� Established customer relationships with many well-known European brands such as ALDI , Dixons, Qmedia, etc.
� Expect significant revenue contribution in 2010
� Offers 15% gross and 6% net margins
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Sales Channel
� LED TV and Furniture Audio businesses are 100% ODM
� Multimedia speaker business is 50% ODM
� International retailers (80% of total sales): Ace Bayou, Target, TC-STAR, and Wal-Mart
� Domestic distributors (20% of total sales): Dakang Holding, Anji Chaoya, Anji Weiyu, Beijing Huaqi, and Guangdong Guanghong
14.5%
10.2%
7.7%
4.1%
16.3%
47.3%
14.5%
10.2%
7.7%
4.1%
16.3%
47.3%
Anji Chaoya
Da Kang
Guangdong
Guanghong
Beijing Huaqi
Anji Weiyu
Others
CY 09 Sales by Distributor
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� Several patents awarded and hundreds of international product certifications
� Innovative and unique patented products� Digital speaker with audio and video function
� Multimedia furniture chair with audio
� Core technology includes:� Integrating multimedia digital products and furniture
� “Seat-back linkage” in the under-bed of an intelligent chair
� Key technology and application of a digital family doctor
Proprietary Technology
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Disciplined Manufacturing
� Manufacturing facility located in Dongguan, Guangdong Province
� Strict production management
� Forecast of annual production capacity of furniture audio, multimedia speakers, and LED TVs (in 2010, post-financing): 1.8 million, 1.2 million, and 1.2 million units, respectively
� Fast response time
� Existing products: 12-18 days
� New products: ready for shipment in 15-21 days
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Awards and Certifications
Awards and certifications include:
� ISO9001: 2000
� China Compulsory Certification
(3C)
� South Korea electrical and
electronic research institute
� Hong Kong standards and testing
product certification
� European Union CE certification
� State FCC certification
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Competitive Advantages
ChannelEstablished, stable distribution channels such as Ace Bayou, Carrefour, Target, Wal-Mart, and TC-STAR, etc. More than 60 domestic distributors nationwide
Transportation Close proximity to waterways and railways
TechnologySeveral patents and hundreds of international product certifications in multimedia speaker and furniture audio, as well as LED technology
Team Experienced R&D and aggressive management team
BrandWell-known brand in domestic and global market for producing high quality, innovative products
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Growth Strategy
LED TVs
� Entered rapidly growing market for LCD TVs with LED backlighting
� Leverage strong brand name and sales and distribution network
Audio Furniture
� Introducing new exciting and unique products in international markets
� Further penetrate China, Australia, United States and Southeast Asia: huge market potential
Multimedia / Digital Speakers
� Design, develop and produce innovative products such as the Digi Panda to attract new customers and gain share
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Management Team
Name Position Background
Mr. Jinlin GuoChairman and
CEO
Founder, professional engineer, many years of design experience
Mr. Xiaoyou Luo Vice ManagerProfessional advanced engineer, many years of design and project management experience
Mr. Wenfeng He COOFormer controller at Malata group and of Shenzhen Wei Zhi group
Mr. Yilin Shi CFOMany years experience as financial manager and controller
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$14.4
$20.7
$38.5
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2007(*) 2008 2009
Re
ve
nu
e (
$ m
illio
ns)
Strong Revenue Growth
64% CAGR
* 2007 figures are unaudited
3mo ended 03/31/09
$3.9
$19.1
3mo ended 03/31/10 (**)
* Q1 2010 figures are unaudited
390%
CAG
R
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$3.9
$1.8
$7.5
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2007(*) 2008 2009
Net
Inco
me (
$ m
illio
ns)
Strong Net Income Growth
107% C
AGR
* 2007 figures are unaudited
$0.5
$3.8
3mo ended 03/31/09
3mo ended 03/31/10 (**)
* Q1 2010 figures are unaudited
660%
CA
GR
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Income Statement Highlights
CONSOLIDATED INCOME STATEMENT
Three Months Ended March 31,
Year Ended December 31,
($ in Millions) 2010 2009 2009 2008
Sales, net $19.1 $3.9 $38.5 $20.7
Cost of sales 14.0 2.8 28.1 15.1
Gross profit 5.1 1.0 10.4 5.6
Selling, general and administrative expenses 0.7 0.4 2.1 1.7
Income from operations 4.4 0.6 8.3 3.9
Other income/(expenses) 0.0 1.6 0.0 0.0
Profit before income tax 4.4 0.6 8.3 3.9
Income taxes 0.5 0.1 (0.8) 0.0
Net income before minority interest 3.9 0.5 0.0 0.0
Minority interest 0.1 0.0 0.0 0.0
Net income 3.8 0.5 7.5 3.9
Net income per share $0.19 $0.03 $0.37 $0.21
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Balance Sheet Highlights
CONSOLIDATED BALANCE SHEET
($ Millions) March 31, 2010 December 31, 2010
Cash and cash equivalents $3.6 $3.6
Other current assets 22.0 7.2
Non-current assets 1.0 1.0
Total assets 26.6 11.8
Current liabilities 21.5 10.5
Total liabilities and shareholders’ equity 26.6 11.8
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Investment Highlights
� Leading consumer electronics manufacturer
with strong brand
� Innovative product design
� Proprietary technology and intellectual
property
� New LCD TVs to drive growth in 2010
� Rapid growth in revenue and net income
� Experienced management team
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Contact Information
Company Contact:
AIVtech International Group Co.
Mr. Teli Liao, VP/Secretary of the Board
Tel: +86-755-2533-3022
Cell: +86-135-1052-0564
Email: [email protected]
Website: www.aivtechgroup.com
Auditor:
Acquavella, Chiarelli, Shuster,
Berkower & Co., LLP
1 Penn Plaza, 36th Floor
New York, NY 10119
Investor Relations Firm:
CCG Investor Relations
John Harmon, CFA, Sr. Account Manager
Tel: +1-646-833-3424
Email: [email protected]
Counsel:
Anslow & Jaclin LLP
1350 Avenue of the Americas, 3rd Floor
New York, NY 10019
Thank You!
