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-0- China Resources Microelectronics A leading Analog Semiconductor Company in China July 2011 Corporate Presentation

China Resources Microelectronics - 首页 华润微电子 … Killer Application will drive the high growth of IC Market i.e. IC cost occupied 2-3% in auto production cost in 1970s,

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China Resources Microelectronics A leading Analog Semiconductor Company in China

July 2011

Corporate Presentation

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Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion

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Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion

-3--3-

ChinaChina’’s Semiconductor Markets Semiconductor Market

Sources: CCID, 2011/03

37.2648.74

60.7772.06

81.82 81.09

127.88136.92

118.38107.65

40.2%

30.8%

24.7%

18.6%

6.2%

-5.0%

29.5%

8.0% 7.1%

10.0%

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011(F) 2012(F) 2013(F)-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

China Market China Market Growth

China Market is expected to grow 10% in 2011

The emerging electronic products like auto electronics, energy-saving and environmentally friendly products drive China market growth

US$Bn

-4--4-

Global Semiconductor MarketGlobal Semiconductor Market

Sources: 2004-2008, SIA; 2009-2013, iSuppli 2010/10

201.6227.5

247.7 255.7 248.6228.9

302.0322.2 335.8317.4

23.8%

12.8%8.9%

3.2%

-2.8%

-12.0%

32.0%

1.5%4.2%

5.1%

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011(F)2012(F)2013(F)-15%-10%-5%0%5%10%15%20%25%30%35%

Global Market Global Market Growth

Global market is expected to grow 5%+ in 2011

SIA:6.3%; TRI:5.4%

2004-2013 Global Semiconductor Market (US$ billion)

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Semiconductors EverywhereSemiconductors Everywhere

The 3C industry (Computer, Communication, and Consumer Electronics) occupied 88% semiconductor consumption in China (in revenue, CCID 2010)

Communication20%

Others12%

Consumer22%

Computer46%

-6-

New Killer ApplicationsNew Killer Applications

The Killer Application will drive the high growth of IC Market

i.e. IC cost occupied 2-3% in auto production cost in 1970s, but it will become 40% in year 2011~

Global LED lighting CAGR: 97.4% over 2009-2013 (Digitimes Research, 2010/12)

The market size of Internet of Things (IOT) industry in China is expected to top RMB 200 billion (USD30 b) in value this year, and is further forecast to top RMB 750 billion by 2015

LEDAuto Electronics Internet of Things

IGBTMOSFETSensorMCU

IGBTMOSFETSensorMCU

LED ControlLED driver

LED ControlLED driver

RFIDSensorRFID

Sensor

40+%Production cost

RMB 750BBy 2015

97.4%CAGR ’09-13

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Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion

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Operations

3 design houses

2 open foundries lines with 6-inch capacity of over 90K wafers per month(“ WPM “)

8-inch open foundry line with 30K WPM

1 4-6 inch discrete device production line

2 IC testing lines

1 mask production line

Business

Product & Service Focus

Employees 7,751 as end of 2010

End Market Focus

Technology Design: 0.11 mManufacturing: 0.18 m

Wuxi

OverviewOverview

CR Micro- A Leading Analog Semiconductor Company in China

IC Design, Open Foundry, IC Packaging & Testing, Discrete Devices

Consumer electronics, Green Lighting & Automotive Electronics

Analog IC and Discrete Devices with focus on power management

Shenzhen

Shanghai

Beijing

Turnover: HK$ 3.8 billion (2010)

Total Assets: HK$ 7.5 billion

Capacity• Foundry: 6-inch over 90K WPM / 8-

inch 30K WPM• Discrete Devices: 170K WPM• Packaging & Testing: 4 billion wires

per month

-9-

Our StrengthsOur Strengths

CR MicroCR Micro-- A leading Analog Semiconductor Company in ChinaA leading Analog Semiconductor Company in China

Strong Shareholder

Support

Strong Customer

Base

Strong Analog in Growing Market

Proven Profitability

Track Record

Strong Team

Unique Positioning

Strong China

Presence

CR MicroCR Micro

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Unique PositioningUnique Positioning

Customers

Design

Foundry

Packaging&

Testing

System Companies Design Houses/IDM

Utilize comprehensive and synergetic capabilities in IC design, open foundry, testing and packaging, as well as discrete devices.

DiscreteDevices

CR MicroOne of Top 3 Semiconductor Manufacturers in China (1)

CSMC: largest 6’

in China (5)

Semico: #10 (2)

Powtech: #34 (3)

Huajing #3 (4)

Notes/Sources:• Note (1) from China Semiconductor Industry Association (CSIA) based on year 2010 revenue;• Note (2) and (4) based on CCID 2011 research reports 2010 in terms of company revenue• Note (3): Powtech was awarded No. 34 in the “Deloitte Technology Fast 500 Asia Pacific Ranking”• Note (5): ranked by CCID in terms of 6 inch wafer capacity in year 2009

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Strong TeamStrong Team

Elvis DENG Mao-Song, CEO

Former President of CSMC Technologies Corporation, the foundry business of the Group

Cofounder and Former Vice President of Resources and Strategy at Ardentec Corporation in Taiwan

Former liaison director for product development and support of Vanguard International Semiconductor-America, in California of the United States

Began his semiconductor career at ERSO/ITRI in Taiwan from 1988

Graduated from National Chiao Tung University, Taiwan with a Bachelor of Science in engineering degree and holds a MBA degree from the Management School of the National Taiwan University

WANG Guoping, Chairman

Former Executive Director and Chief Executive Officer of CR Logic

Extensive experience in semiconductor research & development and production management

Well versed in managing operation of manufacturing bipolar integrated circuits and discrete devices, testing & packaging

Master Degree in Engineering from the University of Electronic Science and Technology, Chengdu, the PRC

Experienced management team and effective local labor force

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Green Lighting & Electronics Consumer ElectronicsAuto-

mobileElectronic Lighting LED Frequency

Control

Green Power Supply

TV Stereo ACHome

Applian ces

Hand- sets

Power Mgt IC

LED driver Audio Video

SOC

MCU based IC

Display Driver

DMOS/IGBT/bi-polar power

device

Area of applications

CR Micro’s target market CR Micro’s future target products

Key Products and Target MarketKey Products and Target Market

-13-

Why Analog Focus?

Analog IC Digital IC

Nature

Process nature signals such as lighting, sound, visual, etc. Process digital signals

R&D & Manufacturing

Performance oriented, handle complexity than technology (more “Art”)

Mainly produced at 6 and 8 inch lines with 0.18-0.25 um technology; key of success lies in process technology (such as BCD) and unique IPs instead of geometry and the wafer size

Function and speed oriented, technology oriented (more “Technical”)

Pursue high-integration, most advanced geometry (90, 60, 45nm) and largest wafer size (8 inch and 12 inch)

Market

Longer product life cycle

Relatively stable market

Relatively low price volatility

Niche markets focus

Shorter product life cycle

High generation replacement

Relatively high price volatility

Mass market focus

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Reasons for Strong China GrowthReasons for Strong China Growth

Global Fab-lite trend

Semiconductor supply chain completing in China

China Fabless getting strong

Govt funding & support

MarcoConsumer Market

End Product Manufacturer

Semiconductor Industry

Domestic 3C brands getting strong

China as the world factory

Local sourcing

China-specific applications (Shanzhai etc)

Internet of Things

Green awareness & Low-carbon

Strong domestic market

Economic stimulus package

Killer applications (LED lighting, automobile electronics)

-15-

1212thth FiveFive--Year ProgramYear Program

China is considering investments of up to US$1.5 trillion over five years in seven strategic industries, a plan to accelerate the country's transition from the world's supplier of cheap goods to a leading purveyor of high-value technologies

new-generation information technology

energy-saving and environmentally friendly technologies

biotechnology

high-end equipment manufacturing

advanced materials

alternative-fuel cars

alternative energyPower Mgt ICPower Mgt IC

IGBT/MOSFETIGBT/MOSFET

LEDLED

Auto ElectronicsAuto Electronics

Semiconductors MaterialsSemiconductors Materials

Semiconductors EquipmentSemiconductors Equipment

Seven Strategic Industries Related Semiconductors Products/Applications

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Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion

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2011 Interim Financial2011 Interim Financial ReviewReview

HK$MFor 6 months ended 30 June

2011 2010Increase/

(Decrease)

Turnover 1,878.30 1,854.30 1.3%

Gross profit 386.90 475.90 (18.7%)

Gross margin 20.6% 25.7% - 5.1 point

Profit (loss) for the period 47.70 130.40 (63.4%)

Operating cash flows, net 58.82 525.40 (88.8%)

EBITDA 343.70 439.00 (21.7%)

Earnings (loss) per share (Basic) (HK cents) 0.52 1.45 (64.1%)

Earnings (loss) per share (Diluted) (HK cents) 0.52 1.45 (64.1%)

-19-

2010 Financial Highlights2010 Financial Highlights

HK$MFor 12 months ended 31 December

2010 2009Increase/

(Decrease)

Turnover 3,874.21 3,036.88 27.6%

Gross profit 972.96 551.80 76.3%

Gross margin 25.1% 18.2% + 6.9 points

Profit (loss) for the year (“Net profit (loss)”) 279.55 (182.38) --

Net cash inflow from operating activities 788.34 648.66 21.5%

EBITDA 894.38 389.10 129.9%

Earnings (loss) per share (Basic) (HK cents) 3.13 (2.35) --

Earnings (loss) per share (Diluted) (HK cents) 3.13 (2.35) --

Proposed dividend for the Year (HK cents) 0.5 N/A N/A

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2272.5 ,74%

413.7 ,14%

332.8 ,11%

17.9 ,1%

The mainland ChinaAsia, other than the mainland China United StatesEurope

2848.0 ,74%

434.8 ,11%574.4 ,

15%

17.0 ,0%

The mainland ChinaAsia, other than the mainland China United StatesEurope

-20-

Results by Results by Geographical RegionGeographical Region

2009 Revenue (HK$ M)2010 Revenue (HK$ M)

The Group continued its focus in China market in 2010. Meanwhile maintained a healthy geographical business mix to balance the market differentiation, growth potential as well as concentration risks

-21--21-

434.7 ,14%

571.5 ,19%

1876.7 ,62%

154.0 ,5%

Analog Non-analog Testing & Packaging Others

TechnologyTechnology

499.9 ,13%

837.6 ,22%

2414.1 ,62%

122.6 , 3%

Analog Non-analog Testing & Packaging Others

2010 Revenue (HK$ M) 2009 Revenue (HK$ M)

Turnover contribution from analog segment maintained a healthy 60+%

-22--22-

711.318.4%523.3

17.2%

0

100

200

300

400

500

600

700

800

2009 2010

Application / ProductApplication / Product

557.114.4%413.0

13.6%

0

100

200

300

400

500

600

2009 2010

+34.9%+35.9%

Turnover from Power Management (HK$ M)

Turnover from Green Lighting (HK$ M)

Consumable electronic product was the largest contributor to the Group’s revenue, accounting for 41%;

Turnover of the green lighting and power management segments increased 35.9% and 34.9% to HK$711.3 million and HK$557.1million respectively during the year

Turnover from green lighting and power management together accounted for 32.8% of the consolidated turnover

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88--inch Open Foundry Operationinch Open Foundry Operation

Manufacturing capacity reached 30,000 8-inch wafers per month in December 2010

Set up reliable quality assurance and manufacturing management system

Successfully extended its processing geometry into 0.18µm and several products started mass-production

Main market focuses include green power, LED lighting and automotive electronics

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CRM Highlights Semiconductor Market Financial Summary China Resources (Holdings) Co., Ltd. Conclusion

-25-

Strategic Business Units

Consumer Goods Power Property Cement Gas Medication Finance Others

CR Retail is one of the largest retail operator in China

CR Power has been listed in the Platt's top 250 Global Energy Companie s Ranking

CR Land is one of the most competiti ve real estate developer in mainland China

CR Cement is one of the biggest cement producer which obtained governme nt support

CR Gas is one of the biggest gas operator in China

CR Medicati ons is one of the most competit ive national medicati on corporati on

CR Finance provided persiste nt drive for CR Holdings long- term develop ment

• CR Microelec tronics

• CR Textiles

• CR Chemical

• CR Compres sor

……

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Listed Companies

Reference to 30 April, 2011 closing price

CR Gas(Stock Code: 1193.HK)

GasMkt Cap: HK$14.4Bn

CR Microelectronics(Stock Code: 0597.HK)

SemiconductorMkt Cap: HK$3.5Bn

CR Land(Stock Code: 1109.HK)

Real EstateMkt Cap: HK$76.7Bn

CR Power(Stock Code:

0836.HK)Power Generation

Mkt Cap: HK$72.8BnCR Enterprise

(Stock Code: 0291.HK)Retail & DistributionMkt Cap: HK$75.1Bn

CR Cement(Stock Code: 1313.HK)

CementMkt Cap: HK$45.1Bn

-27-

Source: China Resources (Holdings) Co., Ltd. (For the year ended 2010)

Financial Performance

Revenue (HK$100M) Operation Profit (HK$100M)

In 2010, CR Holding’s total assets and revenues was HK$542Bn and HK$217Bn, respectively. 94% of total assets and 93% of revenues was contributed from domestic market.

Meanwhile, CR Holding’s total revenue was ranked No. 9 in all central corporations, as well as No. 395 in Fortune Global 500 companies.

-28-

CRM Highlights Semiconductor Market Financial Summary China Resources (Holdings) Co., Ltd. Conclusion

-29-

ConclusionConclusion

CR MicroCR Micro-- A leading Analog Semiconductor Company in ChinaA leading Analog Semiconductor Company in China

Strong Shareholder

Support

Strong Customer

Base

Strong Analog in Growing Market

Proven Profitability

Track Record

Strong Team

Unique Positioning

Strong China

Presence

CR MicroCR Micro

-30-

Thank you!

-31-

DisclaimerDisclaimer

The information and opinions contained in this document have been compiled or arrived at in good faith from the Company and other sources believed to be reliable.

This document is for information purposes only, and all information contained or opinions expressed herein are subject to change without prior notice.

Descriptions of the Company herein are not intended to be complete and this document is not, and should not be construed as, an offer or solicitation of an offer to buy or sell securities in any jurisdiction.

No legal or other responsibility whatsoever is accepted for the contents of this document and any error, omission, misunderstanding or other inaccuracy which may appear or not appear therein as the case may be.

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This information made available in this document contains certain forecast statements that reflect the Company’s current view of future events and financial performance. Whenever used, the words "plan", "believe", "expect", "anticipate" and similar expressions identify forecast statements. Any such forecast statements are subject to risks and uncertainties and the company's future results of operation could differ materially from historical results or current expectations.