1

2010/11 Interim Results Announcement

1 December, 2010

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.

33

Top Line Growth

Six months ended 30 Sep (HK$ million) 1H2010/11 1H2009/10 Change

Turnover 11,148 10,013 11.3%Gross profit 1,971 2,272 (13.2%)Gross margin 17.7% 22.7% (5.0pp)Operating profit (EBIT) 556 776 (28.4%)Operating margin 5.0% 7.7% (2.7pp)Profit for the period 413 609 (32.2%)Net profit margin 3.7% 6.1% (2.4pp)Attributable to non-controlling interests 59 36 63.9%Attributable to owners of the Company 354 573 (38.2%)(HK$ cents)

Basic EPSDiluted EPS

13.9613.40

24.8324.02

(43.8%)(44.2%)

Dividend per share 5.0 8.0 (37.5%)Dividend payout (%) 35.8% 32.2% 3.6pp

4

Leverage Cost Structure

• S&D expenses consisting mainly marketing and branding promotional expenses, sales and marketing salaries, and transportation costs

Six months ended 30 Sep

(% to sales)

1H

2010/11

1H

2009/10Change 2009/10

Selling and Distribution 11.8% 12.8% (1.0pp) 13.0%

General and Administration 3.1% 3.2% (0.1pp) 3.0%

Total expenses rate 14.9% 16.0% (1.1pp) 16.0%

55

Highly Liquid PositionSix months ended 30 Sep(HK$ million) Sep 10 Sep 09 Change Mar 10 Change

Inventories- Total- Finished goods

2,9031,801

2,7371,537

6.1%17.2%

3,2981,805

(12.0%)(0.2%)

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

3,9183,4121,007

2,413655

1,989

62.4%420.9%(49.4%)

2,804706

3,428

39.7%383.7%(70.6%)

8,337 5,057 64.9% 6,938 20.2%

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

121662

891,982

36.0%(66.6%)

632,331

92.1%(71.6%)

Cash and bank balances 2,150 1,799 19.5% 2,191 (1.9%)

Trade receivables 2,719 2,499 8.8% 1,584 71.7%

6

Net CashSix months ended 30 Sep(HK$ million)

Sep 10 Sep 09 Change Mar 10 Change

Secured bank borrowingsFinancial liabilities

- for discounted bills#- for forex hedging^

-Other bank loans(included trust receipts)

1,007644

1,525

1,9891,986

17

(49.4 %)(67.6%)

8,870.6%

3,4282,325

968

(70.6%)(72.3%)

57.5%

3,176 3,992 (21.0%) 6,721 (52.7%)

Trade payables- On hand- Under endorsed bills*

2,8733,412

3,332655

(13.8%)420.9%

2,340706

22.8%383.3%

6,285 3,987 57.6% 3,046 106.3%Bills payable 822 1,072 (23.3%) 586 40.3%Total trade & bills payable 7,107 5,059 40.5% 3,632 95.7%Net assets 6,303 5,113 23.3% 5,854 7.7%

7

Low Gearing

Sep 10 Sep 09 ChangeReturn on Equity 11.5% 22.9% (11.4pp)Current Ratio (times) 1.4 1.3 7.7%AR Turnover (days)

- with discounted bills- without discounted bills

160124

12394

30.1%31.9%

Inventories Turnover - Total- Raw materials- Finished goods

622336

471628

31.9%43.8%28.6%

AP Turnover- with endorsed bills- without endorsed bills

10766

9676

11.5%(13.2%)

Debt/Equity Ratio- exclude discounted bills and foreign

exchange hedging arrangements24.7% 0.3% 24.4pp

Book value per share (HK dollars) 2.48 2.09 18.7%

8

China TV77.7% (83.6%) Overseas ODM TV

4.6% (6.4%)

HK$11.1bn11.3%

Digital Set-top box 15.6% (8.2%)

LCD Module 0.4%(0.65%)

Revenue Breakdown by Products 1H2010/11 (1H2009/10)

90% Revenue Generated in China Market under Brand

* Others include property rental, precision molding, car electronics and white home appliances

Others 1.7%(1.15%) *

99

Gross Profit Margin by Products

GroupSep 10 Sep 09 Change pp Mar 10

17.7% 22.7% 5.0 pp 21.4%

China TV 17.6% 23.4% 5.8 pp 21.8%

Overseas ODM TV 4.5% 4.8% 0.3pp 5.3%China Set-top Box 20.0% 33.8% 13.8pp 27.8%ODM Set-top Box 17.6% 20.3% 2.7 pp 20.3%

LCD Module 14.5% 20.9% 6.4 pp 18.7%

• China TV: Higher inventory level after CNY and speedy market upgrade from CCFL to LED backlight slashed margin and ASP

• Digital STB: Blended GP 19.3% ASP dropped in China; weak overseaseconomy delays digitalisation timetable

• Overseas TV: Reversal of provision of HK$25m• LCD Module: For Samsung handsets and Skyworth TVs

10

Segmental Profit by Business Segments Settop Box 50% Earnings Growth

8413212112

1372069

-8 647333 835

568

-10 90 190

290

390

490

590

690

790

Other Electronic Products

Property Holding

LCD Module

Digital Settop Box

Overseas TV

China TV

Total

(HK$m)

1H2010/11

1H2009/10

Operational ProfitChina TV HK$353m

47.1%Overseas OEM TV HK$6m lossDigital Settop box HK$209m 51.4%

11

China TV Revenue Mix CCFL Upgrading to LED Backlight TV

70%

2%28%

6%0%

94%

0%

50%

100%

CCFL LCD TV LED LCD TV CRT TV

1H2010/11 1H2009/10

GP Margin 1H2010/11 1H2009/10 Change pp 2009/10

LED TV 23.5% N/A (Launched since Oct 2009) 31.6%

CCFLTV 14.5% 23.9% 9.4pp 21.7%

CRT TV 1.0% 2.8% 1.8pp 15.2%

% of China TV Sales

12

Blended China TV ASP Remains Solid Pricing Power with Premium Brand and Product Innovation

1,3421,961

2,570 2,712 2,972

1,459 1,712

+ 4.6%+ 8.7%

+ 17.3% + 14.5%

+ 31.1%+ 5.5% +9.6%

0

1,000

2,000

3,000

2005/06 2006/07 2007/08 2008/09 1H2009 2009/10 1H2010

0%5%10%15%20%25%30%35%40%

ASP (HK$, net of tax and rebate)

ASP 1H2010/11 2009/10 1H2009/10 2008/09

LED LCD TV 4,478 8,063 N/A (launched since Oct 2009)

CCFL LCD TV 2,680 2,949 3,032 3,608CRT TV 576 647 521 845

13

Extensive Sales Network and Logistics Skills Group Revenue Breakdown 1H2010/11 (1H2009/10)

Hypermarket3.3% (3.9%)

Domestic/Exports

Distributors*16.3% (8.2%)

Direct/ BulkSales

5.6% (7.4%) IndividualElectronic

Shops53.4% (56.7%)Large Scale

Chain Stores21.4% (23.8%)

* Domestic/ Exports Distributors are mainly Digital STB

One layer from 40 branches, 169 sales offices to 18,000 retailer shops

60% revenue generated from 3rd to 5th tier cities and growing

Sophisticated coverage and penetration into rural markets

Individual electronic shops and direct sales support margin

Large scale chain stores help on revenue growth

1414

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

1 Hisense 14.3% 1 Skyworth 15.3%2 Skyworth 14.0% 2 Hisense 15.3%

3 Changhong 13.4% 3 TCL 13.2%4 TCL 12.9% 4 Konka 11.3%5 Konka 12.2% 5 Changhong 11.0%6 Haier 6.9% 6 Haier 7.0%7 Sharp 5.0% 7 Sharp 6.2%8 Samsung 4.7% 8 Samsung 5.3%9 LG 3.5% 9 LG 4.3%10 Sony 3.5% 10 Sony 4.3%

Overall (Revenue) LCD TV (Revenue)

1 Hisense 13.7% 1 Hisense 14.6%

2 Skyworth 12.7% 2 Skyworth 13.8%3 TCL 10.9% 3 TCL 11.6%4 Changhong 10.6% 4 Konka 9.4%

5 Konka 9.2% 5 Sharp 9.2%6 Samsung 8.3% 6 Samsung 8.7%7 Sharp 8.1% 7 Changhong 8.2%8 Haier 6.1% 8 Haier 6.4%

9 Sony 5.5% 9 Sony 6.2%

10 LG 5.0% 10 LG 6.0%

Source: AVC Ltd. Sep 2010 (390 cities; 4,300 retail terminals)

China TV Market Shares Aug 2009 - Sep 2010

1515

China LCD TV Market Share (Sep 2010) Top 6 Domestic Brands Secured 70%

Maximising Profitability at Optimal Market Share

Source: AVC Ltd. Sep 2010 (390 cities; 4,300 retail terminals)

LCD TV (Volume) LCD TV (Revenue)

Brand Sep 2010

Sep 2009

Change (%pt)

Brand Sep 2010

Sep 2009

Change (%pt)

1 Hisense 14.8% 15.3% (0.5%) 1 Hisense 14.2% 13.1% 1.1%2 Skyworth 14.2% 15.6% (1.4%) 2 Skyworth 12.5% 12.9% (0.4%)3 TCL 12.8% 12.3% 0.5% 3 TCL 11.1% 10.6% (0.5%)4 Konka 12.0% 11.8% 0.2% 4 Sharp 10.5% 13.2% (2.7%)5 Changhong 10.4% 7.5% 2.9% 5 Konka 9.9% 9.1% 0.8%6 Sharp 7.6% 8.5% (0.9%) 6 Samsung 9.8% 10.2% (0.4%)7 Samsung 6.2% 6.7% (0.5%) 7 Sony 8.7% 6.7% 2.0%8 Sony 6.1% 3.9% (2.2%) 8 Changhong 7.8% 5.4% 2.4%9 Haier 5.7% 7.1% (1.4%) 9 LG 5.8% 7.7% 0.1%10 LG 4.5% 6.7% (2.2%) 10 Haier 5.3% 6.0% (1.9%)11 Sanyo 1.0% 0.1% 0.9% 11 Philips 1.0% 3.4% (2.4%)12 Tongfang 0.9% 0.4% 0.5% 12 Toshiba 0.8% 0.6% 0.2%

16

2010 Jan – Oct “Home Appliances To Countryside” LCD TV Volume Market Share

Haier11.8%

Rowa 2.2%

Hisense21.7%

Konka11.4%

TCL14.5%

Skyworth20.8%

Changhong14.2%

LG 0.6%Sharp 0.1%

Source: AVC Ltd. Sep 2010 (Nationwide terminals; Designated TV products)

Skyworth No. 2 LCD TV revenue market share 21.0%

LCD TV % of Volume and RevenueCY 2009 2010 YTD

16% & 10% 81% & 84%

1H2010 impact: 40% and 35% nationwide LCD TV sales volume and revenue

17

Digital Set Top Box Doubled Revenue China Market Migrating to Digitalisation 2015

Convergence of Broadcast, Internet and Telecommunications

-500.0

1,000.01,500.02,000.0

Total 92.8 733 1,120 1,309 822 1,895 1,740 Overseas - 171 418 408 380 710 516 PRC 92.8 562 702 901 442 1,185 1,224

2003/04 2006/07 2007/08 2008/09 1H2009/10 2009/10 1H2010/11

Sales HK$ million

Volume growth: China Skyworth Brand 96% Overseas ODM 10% Overall 35%

Overseas volume: Europe 56%, America 23%, Asia 16%

China market share 18% (nationwide 28m units in 2009, 30m in 2010E)*

Accelerating rollout of the digital cable network and higher specifications for Internet and/or voice enabled set-top boxes

* Source : GL Research, China

18

Overseas Sales Geography Summary Self-brand TVs Entering Emerging Markets

36%

7%

21%27%

5% 4% 6%2%

23%30%

5%

34%

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

America Europe Asia Middle East Australasia Africa

% overseas sales1H2010/11 1H2009/10

Revenue included TV and set-top boxes

TV – Product mix migrating to LCD TV (CCFL and LED)

STB - High- end production for overseas cable operators

Tough China Market in 1H2010 High Inventories and Price Competition

Foreign Brands Market Shares in Cities

Volume Revenue

Source: AVC Monitor and Forecast 19

2020

Seasonality of China TV 2009 was a Special Year and Created a High Base

60 – 70% of Sales in 2H Comes from Rural Areas where Dominated by Domestic brands

Skyworth China TV Sales Volume by Month

-

200

400

600

800

1,000

1,200

Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar

('000

) Uni

t Sal

es

FY10FY09FY08FY07FY06FY05

Source: Skyworth 2004/05 – 2009/10

2121

2010/11 Apr – Oct (7 months) TV Sales Volume China TV LED TV Targets 28%

(Units) 2010/11(Apr - Oct)

2009/10(Apr - Oct)

Change %

2010/11 NEW

TargetAchieved

%

China Flat Panel TVcomprises:

3,251.3k 3,073.5k 6% 7,000k 46%

- CCFL TV

- LED TV

2,595.8k655.5k

3,070.3k3.2

(15%)20k%

5,000k2,000k

52%33%

Overseas TV 789k 1,116k (29%) 1,300k 61%

Total 4,134k 4,912k (16%) N/A N/A

• China LCD TV targets 17% growth, maintains top tier market share at 20% • Total China TV Revenue (Apr – Oct) 1% growth YoY• 2009/10 China LCD TV sales volume 6m, Overseas TV 2m units

22

Differentiated Products - ASP and Margin Premium

LED backlight + Internet + Health Care (Sports Games)

Built-in high-definition settop box

Energy saving series meet Government top standard

Countryside High-end models (55” LED TV RMB$6,999)

3D; 4C trend (cable, computer, communication, content)

232323

National Day 3 weeks (20 Sep – 10 Oct): LCD TV 5.4m units + 30% YoY; total TV 5.9m units +17% YoY

1H 2010 Unit Growth: LCD TV 15.7m + 72% YoY; All TV 19.5m +28% YoY

Source: AVC Monitor and Forecast

2004-2011中国液晶电视市场零售规模与变化

25 127390

774

1175

2359

3362

3816

321%

405%

208%

98%

52%

101%

43%14%

2004 2005 2006 2007 2008 2009 2010F 2011F

LCD（万台）

增长率(%)

(0000) unitsGrowth rate (%)

2004 – 11 China National LCD TV Unit Growth

China LED TV Penetration is Speeding Up More Significant in 2011

LED TVs will hit about 9mn units in 2010 in China

Source: AVC Monitor and Forecast, RedTech Advisors

LED Penetration(10k units)

24

National Day Holidays – LED TV Price Reduction Boosts Penetration LED TV Penetration Volume 37% Revenue 50% 3D TV Penetration Volume 1.4% Revenue 4.5%

Size CCFL LEDDomestic

Price Change(RMB)

ForeignPrice Change

(RMB)

PremiumDomestic

Price Change(RMB)

ForeignPrice Change(RMB)

Premium

22” 1410 4% 1784 5% 1.3 1783 -16% 2696 -17% 1.526” 1945 -7% 2333 -4% 1.2 2623 -16% 3119 -26% 1.232” 2634 -4% 3035 -4% 1.2 3508 -20% 4507 -17% 1.337” 3536 -5% 4160 -5% 1.2 4740 -15% 6783 -12% 1.442” 4376 -6% 4699 -13% 1.1 6066 -22% 6842 -21% 1.147” 5614 -1% 6178 -12% 1.1 8849 -8% 8789 -28% 1.055” 8316 0% 10188 -18% 1.2 11580 -16% 16043 -15% 1.4

Overall 3384 -7% 4570 -9% 1.4 4990 -29% 10410 -19% 2.1

Source: AVC, National Days (20 Sep – 10 Oct 2010) 25

65%

71% 71% 71%

61%63%

65%67%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Domestic brands secure the market in 3rd tier cities and downwards

LCD TVs growth rate will be much higher in 3rd – 4th tier cities in 2H

Domestic brands may regain 65% or more of the market

Source: RedTech Advisors

Top 6 Domestic TV Makers Market Share in Cities

26

2727

Appendices

Subsidy Policies Extensions and Updates

LCD TV Replacement Demand in China

Industry Outlook

TV Production Capacity and industrial chain management

China Becomes the World Largest LCD TV Market in 2010 LCD TVs > 80% of TV sales

Penetration of STB/ household in China

Global demand of STB

28Source: AVC Sep 2010, MII May 2010

“TV to Countryside” Sales Volume (m units)1H2009 1.9 20% LCD TV 2H2009 6.0 Dec 70% LCD TV

2009 7.8 48% LCD TV2010 (Jan – May) 7.3 72% LCD TV

2010E 10 - 12 70 - 75% LCD TV(25 - 30% of nationwide volume in 2010E)

Speed Up Replacement and Penetration of LCD TV

“Swapping Old for New” Sales Volume TV 2010E (m units)

Pilot Regions Additional RegionsJan - May 3.7m N/A

Jun – Dec E 4.4m 1.7m

292929

Subsidy Policies Extensions

Home Appliances To Countryside (Nationwide till Feb 2013)

The forth round of designated products will be launched in Dec, 2010. No. of models increased from 50 to 80. Skyworth has 42 of 80 are 24” (RMB$2,199) – 55” (RMB$6,999) LED TV models.

Sony has not participated. LG and Samsung have only 2 and 5 models respectively.

Retail price cap raised from RMB3,500 to RMB$7,000, subsidy cap at RMB$455

Jan – Oct 2010, nationwide total sales volume 59.5m units, RMB132bn, YoY up 140% and 190% respectively

Oct, nationwide sales volume 7m units, RMB16.6bn, YoY up 81% and 123% respectively. TV = 30% of total sales, 157% up YoY

303030

Subsidy Policies Extensions

Swapping Old For New

Up to 4 Nov, 2010, total sales volume 26.7m units, over RMB$100bn

1 June, 2010 – end of 2011, 19 additional provinces and cities (Hebei, Shanxi, Liaoning, Dalian, Jilin, Heilongjiang, Anhui, Fujian, Xiamen, Jiangxi, Henan, Hubei, Hunan, Chongqing, Sichuan, Guizhou, Shaanxi, Gansu, Qinghai) are covered

Skyworth sales offices covered by pilot program: 30% sales used the subsidy; 19 additional areas accounted for 60% of its China TV sales

Restricts the maximum number of home appliance to 5 per individual and 50 per company to prevent illegal subsidies claims

10% of selling price as the subsidy with a maximum subsidy amount of RMB400 remains unchanged

Pilot program launched in Jun 2009 in 9 cities and provinces: Beijing, Shanghai, Tianjin, Jiangsu, Zhejiang, Shandong, Guangdong, Fuzhou and Changsha

313131

TV to TV to Countryside subsidyCountryside subsidy

SwappingSwappingOld for New subsidyOld for New subsidy

LCD TV Replacement Demand in China365m Units CRT TV Remained by 2011

70% > 8 years old

LCD TV Replacement Demand in China365m Units CRT TV Remained by 2011

70% > 8 years old

Robust growth in the coming years, given 25% penetration rate

(95 m existing LCD TV) & increasing affordabilityUrban CRT TV

105 m(140% TV penetration) New TVNew TV

• Per household • Urbanisation• Property• Wedding 10m/yr

Source: Skyworth, Chinese Statistics Yearbook

Rural & Hinterlands Cities

CRT TV 260 m(90% TV penetration)

Energy Energy Efficiency StandardEfficiency Standard

32

The Overlay of TV Upgrade and Replacement (2010 – 2013 Boom) Urban begins 2nd wave upgrade (CCFL – LED)

while Rural begins 1st wave of upgrade (CRT – LCD)

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

Color TVs(Boom 1995 –

1999)

Urban 1986 1997

Rural 1996 2009E

Flat-screen TVs

(Boom 2010E – 2013E)

Urban2008 2012E

(CCFL)2010 2018E

(LED)

Rural 2010 2022E

Source: Chinese Statistics Yearbook, Displaysearch, CICC Research

11 years

13 years

4 years

12 years

8 years

33

Industry OutlookIndustry Outlook

Golden DecadeRapid Value &

Volume Upgrade

Golden DecadeGolden DecadeRapid Value & Rapid Value &

Volume UpgradeVolume Upgrade

Brands Brands ConsolidationConsolidation

Vertical Vertical IntegrationIntegration

Panel, ModulePanel, ModuleAllianceAlliance

DiversifiedDiversifiedSales ChannelsSales Channels

Replacement

&

Penetration

ReplacementReplacement

&&

PenetrationPenetrationDigitalisation

&

3C Convergence

DigitalisationDigitalisation

& &

3C Convergence 3C Convergence Countryside

Consumption

Countryside Countryside

ConsumptionConsumption

3434

Well Equipped for Earnings Growth

Upstream supply chain management

Logistics investments in regional

logistic centers in Chengdu, Jiangxi and Nanjing

Strategic partnerships with LG Display and CMO

Investments in LCD panel, module production and LED chips R&D

Shenzhen 7m units

Guangzhou 2m units

Inner Mongolia 1m units

Adequate Production Capacity 2011/12

Downstream inventories management

353535

China Becomes the World Largest LCD TV Market in 2010 LCD TV > 80% TV sales

High mid/long term growth visibility on accelerating upgrade to LCD TV

China LCD sales expanded much more faster in 2008 and 2009 than in the US, Europe, or Japan. Chinese consumers have stronger upgrade demand for new products with reasonable performance-price ratio, handsets is a good example.

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009E 2010E

Europe North America Japan China

Source: DisplaySearch, CICC research, AVC

3636

China Digital Set-top Box PenetrationGovernment Push & Unique Broadcasting Model In China Gives Domestic

Manufacturers An Edge Over International Competitors

72 99

211238

498534

580615 640

672710

125 150 173 193174 184 195 205 216 227

0

100

200

300

400

500

600

700

2009 2010E 2011E 2012E 2013E 2014E 2015EDigital Cable Households Cable Households TV Households

(m) Units

Source: CMIC, GL Research; AVC May 2009; SARFT; Informa

3737

Global Set-top Box Huge Demand 2009 YoY 29% 74% Made in China, YoY

42%

10.8

59.371.1

14

76.5

91.2

15.3

83.8

100

16

91.2

110

0

20

40

60

80

100

120

2008 2009 2010E 2011EDVB-C DVB-T (DTT & iDTV & Combo) DVB-S (DTH & FTA)

(m) Units/ Year

Source: iSupplyi, IMS Research, ST, Sony 2007

ObjectiveObjectiveWholly devoted to provide excellent digital

audio-visual life to humans

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

ir@skyworth.com.hk www.skyworth.com/investor