2012 Interim Results Presentation 29 August, 2012

1

Agenda

Company Overview

Results and Analysis

Market Outlook

Q&A

Part 1. Company Overview

International trade and funding

公司布局概览

MOBI Development Co., Ltd.

（HKSE 0947）

Company Structure Overview

Provide engineer and technology service

for Indonesia market

Provide package solution for Indonesian

market

Provide engineer and technology service

for South East Asia markets

Electroplate

MOBI Technology

(Hong Kong)

Die-casting and CNC processing

RF subsystems production

Antenna and RF R&D

Terminal antenna system R&D and

production

Basic station production

Microwave antenna production

Jumper and RF product R&D

100%

MOBI Development

（In Preparation）

(Indonesia)

Mobi New material and

Technology

（In Preparation）

(Xi’an)

100%

95% 5%

RF subsystems R&D

Antenna R&D

Aesthetic antenna R&D

100%

MOBI Antenna

(Shenzhen)

100%

MOBI Communication

(Ji An)

MOBI Technology

(Xi’ An)

100%

4 4

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

Our business consists of base station equipment construction and relatedproductions.

The technology of base station RF is extremely professional.

RF Path

Core System

Microwave

Transmission

Base Station Coverage

Extension

Mobile

Handset

Fixed-line Telephone Switching Center Microwave Transmission

5

天线系统

电缆

Structure of Wireless

Communication Base Station

Antenna Systems

Base station Subsystems

Bias Tee

Tower mount

amplifier

Company Business

6

Indoor/Outdoor Coverage Extension Solutions Aesthetic Antenna

Company Business (Cont.)

Part 2. Results and Analysis

8

Results Overview for 1H 2012

8

Sales Revenue

(RMB million)

Due to the downturn of the global economy, there was a postpone of procurement of the equipments from

the clients especially in the Europe market and led to the decline of company sales revenue in 1H 2012.

With the procurement of China mobile TD 6 and China Unicom, the domestic market is recovering in the 2H

of 2012.

Meanwhile, the business expansion of our international operators facilitates our group for achieving a

diversified and steady growth in the future.

1H 2012 Key Financial Indicators

(RMB 000) 1H 2011 1H 2012 Change (%)

Sales Revenue 439,186 342,833 -21.9%

Cost of sales 341,676 263,008 -23.0%

Taxation and Surcharges 1,508 2,197 45.7%

Gross Profit 96,002 77,628 -19.1%

Gross Profit Margin 21.86% 22.64%

Net Profit 27,807 14,326 -48.5%

Net Profit Margin 6.33% 4.18%

9

1H 2012 Statement of Cash Flow

(RMB 000) 1H 2011 1H 2012

Net Operating Cash Flow -72,000 7,248

Net Investing Cash Flow -25,634 -29,892

Purchase of land 0 -10,324

Purchase of plant and equipment -29,885 -10,017

Net Financing activities Cash Flow 585 -33,350

Net Cash Flow -97,049 -55,994

Improve the management of the account receivables, the operating cash flow improved significantly.

Caution in investment. Mainly focus on the upstream processing sector to strengthen the vertical

integration ability.

Purchase of the industrial land （11,180㎡） in Shenzhen , the current leasing of the factories will terminate

after two years and will save 70 thousand RMB per year.

RMB 2.4 million for future development.

10

1 2 3 4

Procurement from the

global network

operators postponed

due to the economic

downfall and resulted

in the decreasing

revenue of the

telecommunication

manufacturers.

In 2012, the increase

of the expenditure of

global manufacturers

and operators are

lower than 2011.

The 4G network

building does not

reach its peak and

could not bring a

bouncing effect for

the industry

The digitalization

of the industry

brings a great deal

of challenges and

competition to the

tradition

telecommunication

manufacturers.

Reasons of the downfall of the industry

11

Europe：

1.Due to the economic downturn,

the demand reduced

2.Telenor entered the delivery

period, the market awareness of

Mobi increased significantly

China

1.The expenditure of the

manufactures recover with

higher proportion in 3G

2.The Trial of TD-LTE speed

up

Asia：

1.Recovery of

India market.

2.Breakthrough

of Japan market.

Africa：

1.The political instability of North

Africa led to the decrease in

demand.

2.The network building has a great

potential in Central and South

Africa with a steady growth.

Latin America：

The potential of

developing the

technical solution

service.

2012年上半年主要市场分析

Sales Network of 1H 2012

12

North America：

LTE becomes the

investment highlight

Mobi is developing

new products

Strategic Customers Sales structure in 1H 2012

Sales of strategic customers

1H 2011 V.S. 1H 2012

(RMB million)

13

The biding of China Mobile TD 5 started and the demand of Chinese network operators increased.

Stable partnership with ZTE, as their core supplier, we involved in many overseas projects and developing the high

end products

Affected by the global economy, the sales revenue decreased but the products coverage increased significantly

31.2%

-24.6%

Customer (RMB 000)

1H 2011 Percentage 1H 2012 Percentage Change

ZTE 130,250 29.7% 97,503 28.4% -25.1%

China Mobile 48,644 11.1% 48,100 14.0% -1.1%

China Unicom 50,870 11.6% 82,365 24.0% 61.9%

China Telecom 7,180 1.6% 10,245 3.0% 42.7%

Nokia Siemens 95,515 21.7% 12,719 3.7% -86.7%

Alcatel - Lucent 74,891 17.1% 43,994 12.8% -41.3%

Japan Market 21,790 6% New

Others 31,836 7.2% 26,119 8% -18%

Total 439,186 100% 342,833 100% -21.9%

14

The increase of Japan and other market was offset by the decrease demand of the Europe market.

The market share of the China market is rising in the next two years due to the building of 3G and

TD-LTE.

Sales of Major Customers in 1H 2012

15

One of the major mobile

network operators in Latin

America, as regulated by the

laws of the region, the base

station requires coverage

extensive and aesthetic

antenna solution and the

expense of procurement is

expected to be over US 20

million.

After the visit of their Vice

President and CTO, they

highly graded our products

and willing to have further

cooperation.

DKK is a enterprise specializes

in R&D of telecommunication

equipment with a large market

share and numerous business

partners.

Mobi passed DKK’s test and

certification in 2011 and

obtained orders. This lot of

base station antennas

products will be used in

mobile network construction

in Japan.

In 1H 2012, the sales of DKK

was approximately to RMB 2

million

Telenor is the sixth largest

multi-national network

operator with 11 subsidiaries

spread over Europe and Asia.

Mobi has signed

procurement framework

agreement with Telenor and

become one of three biggest

antenna suppliers of Telenor

In 1H 2012, the products trial

is smooth and entered the

delivery period with its

Pakistan subsidiary

2012年客户战略突破

15

Development of the strategic Customers in 1H 2012

16 16

(RMB million

Revenue by Products in 1H 2012 Revenue by year

Due to the instability of the global economy, the delayed of procurement of the network operators

affected the income of the equipment manufactures and led to the decrease in demand of product.

The impact on RF subsystem is obvious.

Sales Structure of Products in 1H 2012

17

Gross Profit Margin & Net Profit Margin Analysis

Our profit margin reduced due to the downfall

of the global economy and led to a decrease

in demand of our products.

1）Long Term Trend：The technology and the structure

of products will improve continuously

•The coverage of overseas FDD-LTE and the increasing

importance of TDD-LTE in China and India will further

motivate the use of 4G products

• The increase of sales of Products with high profit

margin: Multi –System station in Europe; the aesthetic

antenna solution in China and Oversea market

2）Short Term Trend：Revenue Recovering and reduce

of costs

•The procurement of China Unicom and the TD 6 of

China mobile will increase the sales

•Strengthen the transfer of production and investment in

vertical integration such as production line of plating

and established overseas technology platform (e.g. Mobi

Indonesia)

Profit Margin in 1H 2012

(RMB 000)

18

1H 2012 Change Reason

R&D expense 14,926 8.7% Increase input in R&D

Administrative

Expense 35,425 0.8%

Increase in salary

expense, social security

expense, depreciation

and maintenance

expense were offset by

decrease in foreign

exchange loss and

administrative expenses

Selling expense 18,073 -14.5% Operating activities

decreases

Finance Expense 161 - Decrease bank loan and

increase cash revenue

Expenses in 1H 2012

Application of Net Global Offering Proceeds

(RMB 000’)

Net Proceeds

Applied in

Listing

Net Proceeds

Applied in

1H 2012

The balance of

Net Proceeds

Capacity Expansion —— 30% 163,200 163,200 0

Acquisition Reserves—— 45% 244,800 - 244,800

Investment in R&D——15% 81,600 81,600 0

Supplement of Working Capital ——10% 54,400 54,400 0

Total Net Global Offering Proceeds 544,000 299,200 244,800

Cash and bank balances

(Up to the end of June) 248,628

19

Application of Net Global Offering Proceeds

Part 3. Market Outlook

In February 2012, according to the information of the Internet

search engine companies, it was the first time the market share

of IOS exceeded Mac

According to Baidu, the users of China mobile internet has a

massive growth during the past year and exceeded PC user for in

the 1st season of 2012

行业展望：移动互联网时代

Industry Outlook：The era of Mobile Internet

21

Exclusive developer and supplier of

several TD-LTE projects

Overseas FDD-LTE projects are

developing and the first project is

expected to begin delivery in the 2H 2012

TD-LTE Technical Partner

Exclusive supplier of TD-LTE project in Japan

Exclusive supplier of FDD-LTE project in HK

The major partner of TD-LTE project of China

Mobile

Products entered the LTE Global Supply Chain

22

23

Global TD- LTE Initiative (GTI)

20,000 TD –LTE base stations start to build in 2H 2012

The LTE base stations of China Mobile will adopt the Turn-key of system equipment

manufacturers and thus Mobi maintain the competitive edge

2011 2012 2013 2014

TD-LTE internationalize development

23

CM has set up

over TD-LTE

base stations in

7cities of China.

Japanese

Softbank has

officially

commercialized

CM will raise the

number of base

station to a full

20,000 up.

Japanese

Softbank

looking forward

to build up

12,000 TD-LTE

base stations.

Hi3G and Hong

Kong plan to

commercialized

LTE TDD/FDD

integrated

internet.

America

Clearwire plans

to

commercialized

TD-LTE

The global TD-

LTE base

station will

reach 500,000,

and the terminal

will over 100, it

will exceed 2

billion to cover

population.

The increasing demand of mobile internet Speed

up the network building of TD-SCDMA

It is expected the TD 6 will kick off in 2H 2012

The TD-LTE experiment station will start to run in

2012

China Unicom have the fastest growth in 3G

business and they will have a double digit growth of

the network construction expenditure

After the system biding , it is expected the biding

of Antenna system is coming soon.

中国运营商客户展望

Customers Outlook

24

25

TD-LTE

Overseas

Market

TD-LTE

Global

Market

ZTE overseas Turn-Key Projects:

Projects in India and Malaysia will

enter the delivery stage in the

second half of year.

40%

100%

100%

5%

50%

中兴客户展望

ZTE outlook

ZTE is a leading TD-SCDMA and

TD-LTE supplier in China, with a

TD-LTE market share of 30%.

ZTE is a major cellphone supplier

globally.

It recorded a sales volume

increase of 200% to 600 million

pieces in 2011.

Overseas

Market

26

In 2H 2012, a number of projects of NSU

enters the delivery stage and the sales in 2H

2012 will improve

In the 1H of 2012, ALU aimed at clearing their

inventory, the demand of procurement will

improve in the 2H

2011.3 2012.3

NSU 7 12

ALU 11 19

Ericsson 0 8

The demand of antennas is equivalent to RF

system.

As the antennas are separately install in the

spires, the brand name can be seen easily.

Foreign operators’ recognition of Mobi still

need certain time.

Our microwave antenna production step out

among the other equipment manufacturers.

2011.3 2012.3

NSU 1 13

ALU ≥ 300 ≥ 300

Ericsson 4 9

国际设备商客户展望 Overseas Markets Overview

R & D Projects（RF System）

Amount of antennas passed test

The downturn of the economy has applied cost pressure on international network operators and equipment

manufactures, which may bring more chances for Chinese Equipment Manufactures.

27

Company Strategy

The Industry is facing the challenges

bring by the technology breakthrough.

We will strengthen our position through

strategic investment in 3G/4G .

Professional integration of mobile

communication supplier

Vertical and horizontal integration

To achieve market growth by the

strategic cooperation

year on year

Sales

Profit

Gain

Loss

Revenue by Products

Future Plans

Vertical

Integration

28

Terminal

Products

Future

Plans

Overseas

Market

Product

Differentiation

Mobi will continue optimize our customer base and structure, adapt strategies of product

differentiation based on the technology and costs, maximize the market opportunities in 3G,

LTE and the new generation wireless technology. We will strive to enhance its integrated

competitiveness to ensure the stable growth of our group.

www.mobi-antenna.com

29

30

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 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.