2018 Interim Result Presentation

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Content

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04

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Introduction

2018 Interim Financial Analysis

Market Analysis and Outlook

Q&A

1. Introduction

Company Profile01

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03

Primary Business

Company Framework

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MOBI Development Co., Ltd. (“MOBI”) is one of the

one-stop providers of wireless communication

antennas and base station Radio Frequency (“RF”)

subsystems in China. Most of our customers are

Network operators and equipment manufacturers from

China and overseas. Our business includes a full range

of products for base station equipment construction

and related supplementary coverage. Besides, we are

especially professional in base station antenna R&D

and RF technologies. MOBI is listed in HKEx on 17

December, 2009 (Stock Code: 0947.HK).

MOBI Development Co., Ltd. has four R&D and

manufacture bases, located in Nanshan District in

Shenzhen, Guangming District in Shenzhen, Ji'an in

Jiangxi Province, and Xi'an in Shaanxi Province,

separately. The total area of manufacture bases is

around 110,000㎡.

OURCOMPANY

Company Profile

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Antenna System

Radio Frequency (“RF”)

Subsystems

Coverage Extension Solution

1Antenna System

Main products are base station antennas and microwave antennas, such as TD/TD-LTE antennas, WCDMA/FDD-LTE antennas, multi-frequency and multi-system antennas, low-band refarming and IoTantennas, pre-5G antennas, microcell antennas, etc.

2RF Subsystems

Main products are RF devices including filters, diplexers and combiners, such as low-band refarming/IoT RF devices, GSM/CDMA RF devices, WCDMA/FDD-LTE RF devices, TD/TD-LTE RF devices, etc.

Primary Business

3Coverage Extension Solution

Main products are aesthetic antenna and indoor coverage solutions.

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Company Framework

MOBI Technology (Hong Kong)

MOBI Communication

(JiAn)

100%

100%

MOBI Technology (Shenzhen)

100%

Base Station Production Microwave Antenna

Production RF Feeder R&D and

Production

Die-casting and CNC Processing RF Subsystem R&D and Production Antenna R&D

RF Subsystem R&D Antenna R&D Aesthetic Antenna R&D Product Sales

RF Subsystem R&D and Production Antenna R&D and Production Aesthetic Antenna R&D and Production

100%

Self-owned Property Leasing

MOBI Industry (Shenzhen)

100%

Shenzhen Borynet(Equity Investment)

15.1%

Cloud WIFI

MOBI Technology (Wuhan)

Antenna R&D RF Subsystem R&D Aesthetic Antenna R&D

100%

WIFI Acceleration

Leteng Wireless (Equity Investment)

12%

International Trade and Funding

MOBI Technology (Xi An)

MOBI Antenna (Shenzhen)

100%

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2. 2018 Interim Financial Analysis

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02

03

Financial Introduction

Revenue Analysis

Expense Analysis

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Financial Introduction

688

596

2017 1H 2018 1H

22.5% 22.1%

2017 1H 2018 1H

8.3

7.4

2017 1H 2018 1H

1.2% 1.2%

2017 1H 2018 1H

Revenue(RMB million)

Gross Profit Margin

Net Profit(RMB million)

Net Profit Margin

8

(RMB million)

321

154

225

206

81

135

48

87

13

14

2017 1H 2018 1H

25.9%

34.6%

22.7%

14.6%

2.2%

PRC equipment manufacturers

PRC operators

International equipment manufacturers

International operators

Others

596

688

2018 Interim revenue and proportion(by customer type)

International operators79.8%

International equipment manufacturers 66.7%

PRC equipment manufacturers 52.0%

Revenue Analysis

PRC operators 8.2%

Further Optimization of Client Structure

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52 41

271

176

365

379

2017 1H 2018 1H

Coverage Extension Solution RF Subsystems

Antenna System

596

688

(RMB million)

2018 Interim revenue(by product type)

Coverage Extension 19.6%

• Revenue decreased because of the temporary fluctuation

caused by operator procurement in 2018;

• Needs of aesthetic antenna will continue increasing due to the

lack of base station site and the operation of China Tower.

Revenue Analysis

Antenna System 3.9%

• Multi-frequency and multi-system antennas rapidly increased

by 67.3%;

• WCDMA/FDD-LTE antennas rapidly increased by 70.3%;

• TD/TD-LTE antennas increased by approximately 16.0%

compared with the same period last year.

RF Subsystems 35.4%

• WCDMA/FDD-LTE RF devices rapidly increased by 79.1%;

• Gross profit rose gradually compared with 2017.

Revenue of antenna system increased compared with the same period last year.

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Operating expenses to sales revenue ratio

8.4% 7.8%

6.7% 6.8%

7.8%7.6%

1.0%1.3%

2017 1H 2018 1H

Selling ExpensesDecreased by approximately 12.9% and accounted for about 6.8% of revenuedue to the decrease in wages, surcharge on wages, rents and charges ofwater and electricity, business expenditures, travelling expenses and agencyfees resulting from the decrease in sales products.

R&D ExpensesDecreased by approximately 15.5% and accounted for about 7.6% of revenuedue to the decrease in salaries for research and developmentactivities, surcharge on wages, communication cost, businessexpenditures, transportation costs and research and development materialscost.

Financial ExpensesIncreased by approximately 7.5% and accounted for about 1.3% of revenue.

Cost Analysis

Administration, Selling and R&D expenses decreased compared with the same period of last year.

Administration ExpensesDecreased by approximately 20.2% and accounted for about 7.8% of revenuedue to (1) the decrease in the average number of employees, which led tothe decrease in expenses such as wages, surcharge on wages and rents; (2)the decrease in expenses such as business expenditures, travellingfees, maintenance costs, audit, consulting and advisory fees and legal costs;and (3) the depreciation of RMB against HK dollar, US dollar and Euro, whichleads to a significant increase in the Group’s asset exchange incomedenominated in those foreign currencies..

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3. Market Analysis and Outlook

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02

03

Industry Status

Company Highlights

Three-year Strategy

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Industry Status- Current Low Operator Capital Expenditure is Expected to Rebound

Capital Expenditure Of the 3 Largest Chinese OperatorsYear 2007 to 2018E

Under the background of basicallycompleting 4G network coverageand speed reduction, the threelargest Chinese operators will keepinvestment reduction strategies in2018.

2018

2019

Looking forward to 2019, capitalexpenditures are expected to startto pick up as 5G pre-commercialnetworks will begin construction andcarrier network equipment willbegin to purchase.

Source: Company Announcement, Cinda Securities Communications Industry Research Report, www.c114.net

12.34%

44.08%

9.68%

-15.14%

7.27%10.24%

20.47%

11.38%

16.37%

-18.79%

-13.44%

-5.59%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E

China Telecom China Unicom China Mobile Overall Growth

(RMB hundred million)

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Industry Status-A Periodic Cycle

In the early 3G of 2009 and the early 4G of 2014, the revenue growth rate of enterprises which operate base station RF and antenna business reached the peak. The periodic feature is obvious and 5G investment peak is expected to come between Year 2019 and Year 2020.

Revenue changes of antenna and RF device manufacturersYear 2009 to Year 2017

Source: Company Announcement, Essence Securities Communications Industry Research Report

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

0

10

20

30

40

50

60

70

80

2009 2010 2011 2012 2013 2014 2015 2016 2017

Company A

Company B

Company C

Company D

MOBI

Reveue Growth Rate of Company A

Reveue Growth Rate of Company B

Reveue Growth Rate of Company C

Reveue Growth Rate of Company D

Reveue Growth Rate of MOBI

3G Cycle 4G Cycle

(RMB hundred million)

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Industry Status-A Periodic Cycle

Most companies peaked at the beginning of the cycle and reached a low point during the transition period. Then Profits gradually declined after reaching the high point in the initial stage of investment.

Net profit changes of antenna and RF device manufacturersYear 2009 to Year 2017

Source: Company Announcement, Essence Securities Communications Industry Research Report

-600.0%

-400.0%

-200.0%

0.0%

200.0%

400.0%

600.0%

800.0%

1000.0%

-6

-4

-2

0

2

4

6

8

10

2009 2010 2011 2012 2013 2014 2015 2016 2017

Company A

Company B

Company C

Company D

MOBI

Net Profit Growth Rate of Company A

Net Profit Growth Rate of Company B

Net Profit Growth Rate of Company C

Net Profit Growth Rate of Company D

Net Profit Growth Rate of MOBI

3G Cycle 4G Cycle(RMB hundred million)

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Industry Status — 5G Speeds up

02. Asia Pacific

01. Europe

04. North America

03. South America and Africa

Global Operators’ 5G Schedule

South Africa:Comsol: to launch 5G in 2019;BrazilClaro: to launch 5G in 2020.

USAAT&T: to launch 5G in over 10 cities in America by the end of 2018;Verizon: to launch commercial 5G services in around 3-5 cities in America in 2018;Sprint: to launch commercial 5G service in 2019；T-Mobile: to deploy 5G network in 2019 and cover the nation in 2020. CanadaTelus: to deploy 5G between 2019 and 2020.

UKEE/BT: to provide 5G services in UK in 2019;Vodafone/ O2: to launch 5G in UK in 2020. GermanyDeutsche Telekom: to fully deploy 5G in 2020;FranceSFR: to deploy 5G network across France in 2019 and to launch commercial 5G in 2020;Orange：to deploy 5G across France by 2020.

ChinaChina Mobile: to launch 5G in 2019;China Telecom/China Unicom: to launch commercial 5G in 2020.JapanSoftBank: to deploy 5G by 2020;NTT Docomo: to launch 5G in Tokyo Olympics 2020.South KoreaSK Telecom/KT/ LG Uplus : to launch 5G in March, 2019. AustraliaOptus: to deploy the first 5G fixed wireless network in the beginning of 2019;Telstra: to deploy 5G through three phases and realize full deployment by 2020.

RussiaMegafon/Yota: deployed 5G testing network in 2018 and plan for full deployment;Rostelecom: to launch commercial 5G network across Russia in 2019;MTS: to launch 5G in 2020.

Basic commercial schedule will be executed in 2019-2020, China, USA and South Korea lead the group

Source: www.c114.net 16

Industry Status — 5G Speeds up

5G Process of International Equipment Manufacturers

NSAcore net

NSA base station function

3.5GHz RF

4.9GHzRF

NSAoutdoors

R16Pre-research

Huawei ✔ ✔ ✔ ✔

ZTE ✔ ✔ ✔

ERICSSON ✔ ✔ ✔

Nokia ✔ ✔ ✔ ✔

DTT ✔ ✔ ✔ ✔

The latest progress of the technology R&D test of the equipment manufacturers in the third phase of the 5G test led by the Ministry of Industry and Information Technology:

Operators are actively involved in testing and R&D of 5G, while commercial equipment are ready in the first half of 2019.

Source: IMT-2020(5) Promotion group, Sinolink Securities Communication Industry Research Report, www.c114.net

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Industry Status — 5G Technologies Generate Market Volume

Certification

Technology Fund

High Barriers to Entry：limited participants

Source: Essence Securities Communication Industry Research Report

01

02

03

04

The demand for the construction of new 5G base station

The demand for reconstruction of the roof of existing base station

The demand for special antenna and high quality aesthetic antenna

Increase the value of antenna and RF devices

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Company Highlights— Overseas Golden Opportunities

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2014 1H 2015 1H 2016 1H 2017 1H 2018 1H

Asia Europe America Total

Revenue Growth of Overseas Export in Recent Five Years

2014 1H-2018 1H

(’000 RMB)Overall Situation

Revenues of overseas export’ s continuous growth

brought in golden opportunities for global markets.

In the first half of 2018, the revenue generated

from export of the Group recorded 92.5% growth

in Asian, European as well as American markets.

In 2017, many overseas client, especially European

clients offered opportunities to the Group for the

products with high price-to-performance ratio. In

the first half of 2018, the Group also becomes core

supplier or even the whole-network exclusive

antenna supplier, apart from the significant year-

on-year increase in the business scale of

international direct sales.

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Company Highlights— Customer Structure Optimized

National Operator

National EquipmentManufacturer

International Operator

International Equipment

Manufacturer

National Operator

The implementation of the bidding for China Mobile and China Telecom has been well implemented;

The Group still maintains powerful cooperation with China Unicom, and was recorded as the biggest winner in China Unicom 2018-2019 antenna centralized procurement plan.

International Operator

The Group’s revenue of direct sales to international operators significantly increased by 79.8% as compared to the previous year and continued to maintain growth momentum.

National Equipment Manufacturer

The Group still possess advantage as a leading supplier with its leading advantage in aspects such as product technologies and customer communications.

International Equipment Manufacturer

In the first half of 2018, the Groupcontinued to maintain its overall growth momentum in sales of antenna and RF subsystem products to Nokia, with an overall increase of approximately 66.7%.

The signed order with Ericsson will be executed in the second half of 2018.

34.6%

14.6%

25.9%

22.7%

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Business Strategy of Three Years

Three Strategic Direction：Market Exploration & R&D & Cost Management

01

02

03

Seize the overseas golden opportunitiesFurther enhance the business development strategy with international client and advocates internationalization, meanwhile optimizing national client structure.

Accumulation of R&D and TechnologiesActively develop 5G technologies; develop miniaturized, integrated, and MIMO products; enlarge product series, and control product quality and reliability.

Effective Cost ManagementOptimize both product and customer structures through effective internal cost management, in order to improve overall net profit margin.

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4. Q&A

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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.

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