2019 annual results presentation - mobi-antenna.com
TRANSCRIPT
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2019 Annual Results Presentation
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Contents
01
02
03
04
[Company Profile]
[2019 Annual Financial Analysis]
[Market Analysis]
[Company Strength]
05 [Strategy Direction]
06 [Q&A]
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※ Company Overview
1. Company Profile
※ Organizational structure
To be your best partner3
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MOBI Development Co., Ltd. ("MOBI" or the "Company") (stock code:0947.HK), mainly engaged in the supply of components for the front-end signal transmission and reception of mobile communication. MOBIGroup has established R&D and production bases in the ShenzhenScience and Technology Park, Guangming District, Shenzhen, Ji'an,Jiangxi, Xi'an, Shaanxi, and Wuhan, Hubei, covering a total area ofapproximately 110,000 square meters.
Company Overview
This system is mainly designated to transmit andreceive electromagnetic waves. The main productsinclude TD/TD-LTE antennas, WCDMA/FDD-LTEantennas, multi-band and multi-system antennas,low-band refarming/IoT antennas, 5G antennas,special antennas, and microstation antennas.
Antenna system
T h i s s y s t e m i s m a i n l y u s e d t o f i l t e relectromagnetic waves. The main products includeRF devices like filters, duplexers, and combiners,such as low-band refarming/IoT RF devices,GSM/CDMA RF devices, WCDMA/FDD-LTE RFdevices, TD/TD-LTE RF devices, and Ceramicdielectric filters.
Base station RFsubsystem
Coverage extensionplan
This plan mainly targets engineering projects.The main products include aesthetic antennasand indoor coverage solutions.
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Organizational Structure
MOBI Technology(Shenzhen)
100%
MOBI Shiye(Shenzhen)
100%
Shenzhen Borynet(Equity
Investment)
15.1%
Wuxi Gaoyusheng (New equity investment)
40%
100%
Shengyuzhihui(Shenzhen)
100%
MOBI Network (Shenzhen)
90%
10%
Jinshengjing(Ji An)
100%
MOBI Technologies
(Xi An)
Telecommunication System Integration
Ancillary Parts Production
100%
MOBI Technology
(Wuhan)
MOBI Telecommunication
(Ji An)
100%
MOBI Technology(Hong Kong)
100%
RF Subsystem Production Base Station Antenna
Production Aesthetic Antenna
Production
MOBI Antenna (Shenzhen)
International Trade and Funding
Research on new materials and production of ceramic dielectric filters
100%
RF Subsystem R&D Antenna R&D Aesthetic Antenna R&D Product Sales
Die-casting and CNC Processing
RF Subsystem R&D and Production
Antenna R&D
ShengrongCommunication
(Xi An)
100%
RF Subsystem R&D and Production Antenna R&D and Production Aesthetic Antenna R&D and
Production
Self-owned Property leasing
RF Subsystem R&D Antenna R&D Aesthetic Antenna R&D
Cloud WIFI
Ancillary Parts Purchase
Telecommunication System Engineering Services
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※ Financial Highlights
※ Revenue Analysis
2. 2019 Annual Financial Analysis
※ Expenses Analysis
To be your best partner6
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2019 Annual Financial Highlights
SalesGross Margin
Net Profit
(RMB million)Net Profit Margin
1257 1215
2018 FY 2019 FY
20.5%23.0%
2018 FY 2019 FY
16.7
23.6
2018 FY 2019 FY
1.3%
1.9%
2018 FY 2019 FY
(RMB million)
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Financial Indicators
Financial Indicators 2019 2018
Return on sales ratio 1.94% 1.33%
Total asset turnover 0.62 0.55
Current ratio 1.82 1.57
Quick ratio 1.46 1.17
Asset/liability ratio 40.54% 49.50%
ROE 2.02% 1.44%
2019 Annual Financial Highlights
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(RMB Million)
2019 Annual Revenue and Percentage – by Customer
International Operators19.2%
International EquipmentManufacturers 30.8%
PRC EquipmentManufacturers 23.4%
2019 Annual Revenue Analysis
PRC Operators 25.9%
Improved Customer Structure
332254
433 545
310 214
165197
175
2018 FY 2019 FY
20.9%
44.8%
17.6%
16.2%
0.5%
PRC Equipment Manufacturers
PRC Operators
International Equipment Manufacturers
International Operators
Others
12151257
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1257
(RMB Million)
2019 Annual Revenue – by Product
Coverage extension 86.8%
2019 Annual Revenue Analysis
Antenna system 3.6%
RF subsystem 30.5%
• Due to the impact of major domestic telecom operators’
delay in 4G network construction and slowdown of demands
as well as the decrease of demands for 4G network
construction in emerging international markets (such as the
Indian market);The revenue from the Company’s base
station RF subsystem in 2019 decreased as compared with
last year;
• The gross profit of GSM/CDMA RF and Low-band
refarming/IoT RF improved obviously;84 157
461 320
712 738
2018 FY 2019 FY
Antenna system
RF subsystem
Coverage extension
1257 1215
• Microwave antenna product category is more diversified, revenue increased by 8.9% approximately as compared with last year;• Multi-band and multi-system antennas grew substantially by 25.2% approximately;• 5G antennas rose greatly by 517.8% approximately;
• Aesthetic antenna income rose dramatically by 91.0% approximately from last year;• Microstations grew by 229.1% approximately.
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Operating Expenses to Sales Revenue Ratio Amount of Expenses in Good Proportion to Business Scale
8.2% 8.3%
6.6% 6.7%
7.1%8.0%
1.0%0.8%
2018 FY 2019 FYFinancial expenses R&D expenses
Sales expenses Administration expenses
2019 Annual Financial Highlights
Financial expensesFinancial expenses declined by approximately 22.3%, accounting forapproximately 0.8% of the revenue. Mainly due to the partialrepayment of bank borrowings.
R&D expensesR&D expenses increased by approximately 9.2%, accounting forapproximately 8.0% of the revenue, mainly due to the increase insalaries for research and development activities, costs of research anddevelopment materials, rents costs, office expenses and amortization ofintangible assets.
Sales expensesSales expenses declined by 0.8% approximately, accounting forapproximately 6.7% of the revenue, mainly due to the decrease intravel expenses, communication costs, office expenses, agency fees andconsulting expenses caused by the decreased wages and wagesurcharges, strengthened cost control and reduced business activities.
Administration expensesAdministration expenses decreased by 2.3% approximately, accountingfor approximately 8.3% of the revenue, mainly due to the decrease inexpenses on wages, welfare expenses, transportation expenses, low-value consumables, litigation fees and management/utility expenses.
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CAPEX of China’s Top 3 Operators2009-2020E
Historic Sales Revenue of MOBI2009-2019
3G 4G
Historic Sales Revenue Analysis
4G & 5G
Source: Announcements of the operators, reports on the communications industry by TF Securities, and www.c114.net
9.68%
-15.14%
7.27%10.24%
20.47%
11.38%16.37%
-18.79%-13.44%
-6.95%
4.53%
11.64%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E
China Telecom
China Unicom
China Mobile
Overall growthrate
(RMB 100 Million)
(RMB 100 Million)
12
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
2
4
6
8
10
12
14
16
18
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
MOBI
Growth ofOperatingRevenue
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3. Market Analysis
※ 5G development in China
※ Overseas status quo
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Market Analysis—5G Development in China
4G has a strong ability to cover data. Despite the abundant spectrum resources at present, 4G has space for development. The data services of 2G and 3G will be migrated to 4G/5G (including NB and eMTC). Operators will gradually remove the existing 2/3G networks and refarm the existing 2G/3G frequencies. 5G deployment will be completed gradually. The preliminary deployment will be based on the LTE core network.
1.1 China 5G Economic Report—Co-existence of 4G and 5G in the Next Decade
Source: 2020 China 5G Economic Report issued by the China Academy of Information and Communications Technology (CAICT)
Despite its bright prospects, 5G will not completely change or disrupt the telecommunications industry or other industries in the short term. Operators should have a clear understanding of reality, avoid excessive investment, and develop a coordinated 4G/5G development strategy. It is expected that 4G will continue to co-exist with 5G in the next decade to render seamless user experience.
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2009201020112012201320142015201620172018201920202021202220232024202520262027202820292030
Number of 3G users (10,000) Number of 4G users (10,000) Number of 5G users (10,000)
Prediction of 3G/4G/5G Users in China
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Market Analysis—5G Development in China
1.2 China's 5G planning
Compared with 3G and 4G, 5G penetrates users is slower than 4G users, because it will take a long time to complete the 5G network. Authoritative scholars think that it will take seven to eight years for 5G to reach coverage the same as 4G.
20093G commercial
2017 2018 2030202520195G commercial
Source: 2020 China 5G Economic Report issued by the China Academy of Information and Communications Technology (CAICT)
Penetration rateof 3G users: 37.7%;penetration rateof 4G users: 7.6%
Penetrat-ion rate of4G users:70%
Penetrati-on rate of4G users:75%
5G users will reach 816 million by 2025. The penetration rate of mobile users will be approximately 48%. After 2025, the penetration rate of 5G users will grow faster. Compared with that in the first five years after commercialization, the average annual growth of the penetration rate will be 7.4%.
It is expected that 5Gusers will reach 1.5billion by 2030, witha penetration rate ofapproximately 85%.
20144G commercial
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Market Analysis—5G Development in China
Capital Expenditures of the Three Major Domestic Operators
2007-2020E
(RMB'00 million)
In June 2019, the MIIT issued the 5G commercial license, and the demand for 5G station construction prompted operators' capital expenditure to increase significantly over the same period of last year. Among them, the 5G investment of China Mobile, China Unicom, and China Telecom’s in 2019 accounted for approximately 14.5%, 14.0%, and 12.0% of total capital expenditure, respectively.
2019
2020
With the commercialization of 5G, PRC operators have significantly increased capital expenditures. The overweight of 5G investment will make the capital expenditure margins look better, which is expected to drive industry profitability improvement.
Source: Announcements of the operators, reports on the communications industry by Huatai Securities, and www.c114.net
1.2 China's 5G planning
12.34%
44.08%
9.68%
-15.14%
7.27%10.24%
20.47%
11.38%
16.37%
-18.79%
-13.44%
-6.95%
4.53%
11.64%
-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 2018 2019 2020E
China Telecom China Unicom China Mobile Overall growth rate
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Market Analysis—5G Development in China
China Mobile
China Unicom
China Telecom
Number of 5G base stations opened in 2019 (10,000 stations)
7.4 Shared base stations, 2.7
The MIIT held that: As at December 23, the objectives of the year were completed well. 126,000 5G base stations havebeen opened in China.
1
1.2 China's 5G planning
5G station volume forecast3
0
100
200
300
400
500
600
0
20
40
60
80
100
120
140
2019 2020E 2021E 2022E 2023E 2024E 2025E5G stations Accumulated 5G stations
2
55.6%
50.0%
51.2%
45.0%
50.0%
55.0%
60.0%
0200400600800
100012001400160018002000
China Mobile China Unicom China Unicomtotal capital expenditure 5G investment 5G investment ratio
Newly built 5G base stations by the three major operators in 2019
Source: www.c114.net.
Note: As for the number of base stations opened in 2019. China Mobile, as at the end of
January 2020; China Unicom, as at December 2019.
(RMB'00 million)
(10,000 stations)
The 5G investment of Top 3 operators in 2020
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1.3 Market demands
Market Analysis—5G Development in China
5G base station antennas & filters market size forecast
During the 5G period, the structure of base station
antennas and filters is more complex, the integration
is higher, and the volume and price are rising.
2020E 2021E 2022E 2023E 2024E 2025E
Number of domestic 5G base stations (10,000 stations)
64 102.6 124.2 113.4 75.6 48.6
Domestic Antenna market size (RMB’000 million)
67.2 102.3 117.7 102.1 64.7 39.5
Domestic RF market size (RMB’000 million)
55.3 79.8 85.0 68.3 40.1 22.7
Domestic Antenna + RF market size (RMB’000 million)
122.5 182.1 202.6 170.4 104.8 62.2
Global 5G base stations (10,000 stations) (including domestic)
128 153.9 248.4 226.8 151.2 136.1
Structural and morphological changes:
1) 4G antennas are mainly based on 4/8 channels, and 5G antennas are mainly based on 64 channels;2) The 4G antenna is separated from the radio frequency, and the 5G antenna part is integrated with the RRU to AAU;3) The traditional base station antenna is mainly composed of a radiating unit (vibrator), a reflective plate (bottom plate), a power distribution network (feeder network), a packaging protection (radome), and an electronically adjustable antenna controller RCU; the current solution of 5G antenna is that Vibrator, power amplifier, filter are integrated on the PCB.
Source: Guosen Securities, reported on 18 December.18
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Market Analysis—5G Development in China
Source: Reports on the communications industry by Huatai Securities; iResearch—Industry research.
Technology improved. The right of speech of equipment
manufacturers was enhanced. Device/module/RF manufacturers
were benefited first.
Demand pull
Cost impact
1.4 Prominent strengths of the 5G market
Continuous capital investment Quality spectrum resources Rich existing sites
Upstream
Downstream
Demand increase
2 Faster network construction
3 Improved right of speech in 5G
4 Strengths in spectrum sharing
The MIIT granted the Radio Frequency Use License toChina Telecom, China Unicom, and the National Radio andTelevision Administration (NRTA) and agreed that thethree operators could share 3300-3400MHz frequencybands nationwide for 5G indoor coverage. The threeoperators share the most mature frequency bands in theindustry chain to raise the utilization efficiency offrequency spectra, reduce the cost of the supply chain, andpromote fair competition among operators.
1
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Overseas Opportunities—Overseas Status Quo
LTE growth Allocation of the TD-LTE Spectrum License
Networks Launched and Accumulated Annually (including mobile and FWA networks)
In 2019 we see deployment of LTE reaching into almostevery part of the world. By the end of July 2019, GSA hadidentified 769 operators running LTE networks providingmobile and/or fixed wireless broadband services in 225countries worldwide. GSA is aware of at least another 115companies actively trialing, investing or that have statedplans to invest in LTE.
Source: GSA
78
1
5819
59
36 Frequency band 38
Frequency band 39
Frequency band 40
Frequency band 41
Frequency band 42
Frequency band 43
Most LTE deployments use paired spectrum (FDD). TheLTE TDD mode is complementary and the perfect choicefor providing high-speed mobile broadband access inunpaired spectrum. Many operators have deployed bothFDD and TDD modes in their networks. LTE-TDD is anintegral part of the 3GPP standard, implementing amaximum of commonalities with LTE-FDD and offeringcomparable performance and similar high spectralefficiency. GSA has identified 228 operators that holdspectrum licenses enabling them to launch LTE-TDDservices. Of those, 164 operators have so far introducedTDD into their LTE networks. Spectrum in Band 38 (78licenses) is the most commonly licensed for LTE, followedby spectrum in Bands 42 and 40 (58 licenses each).
0100200300400500600700800900
0
20
40
60
80
100
120
140
New increment Accumulative amount
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Overseas Demand
Overseas Opportunities—Overseas Status Quo
Antenna
4G: Southeast Asia and Latin America will continue tohave many FDD 4T4R renovations. Africa has begun toconstruct the 4G network on large scale. Macro cellantennas will steadily grow in the global market in thenext five years. Especially, developing markets willhave 2,244 million new users.
5G: 3.5G 64TR Massive MIMO AAU antennas are themain demand. Traditional 2T, 4T, and 8T passive 5Gantennas and millimeter wave (MMW) 5G antennaswill also be demanded greatly.
Filter
4G: 4G filters will enjoy broad space in countries andregions with a large population base. It is expectedthat 4G filters will have big space in the global low-band refarming market by 2025, bringing about manyopportunities for equipment manufacturers andbenefiting major equipment manufacturers and theirupstream and downstream companies engaging inantenna, RF and optical modules.
5G: The industry is facing technological upgrading.Metal cavity filters are being replaced with ceramicdielectric filters. Major equipment manufacturersmainly focus on semi-dielectric or small metal filters.Along with the mature of dielectric waveguidet e c h n o l o g y , t h e y w i l l c o n c e n t r a t e o n t h eindustrialization of dielectric waveguide.
CollectionRepresentatives: Asia-Pacific region
represented by Japan and India;
Self-built channel sales
BundleRepresentatives: Multinational
operators in Europe;
Enter the market by bundling with
equipment manufacturers
Sales Method
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※ Product strengths
※ Production line strengths
4. Company Strengths
※ Market strengths
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Frequency
Spectrum efficiency
Sec
tor
den
sity
Omni
3 sector
6 sector
Small cell
Dense Cell
Multi-bandBroadband CA High-band
2T2R
4T4R
8T8R
Massive MIMO
NR Massive MIMO AAU antenna solutions
5G MM antennas
Indoor coverage & capacity solutions
MIMO small cell antennasLTE & 5G
Outdoor capacity solutions
Multi-beam + MIMO antennas
Macro cell coverage & capacity solutions
FDD multi-band and multi-port antennas
Company Strengths—Product Strengths
1.1 Antenna family—5G R&D
MM(A)+P antennas
LTE&NR ALLinONE antennas solutions
LTE&NR 1+1 antennas solutions
2/3/4G (TDD + FDD)Multi-port and multi-standard antennas
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1.2.1 Antenna family—4G antenna sequence
Company Strengths—Product Strengths
Product FamilyFDD Multi-band and Multi-system Antennas
Multi-beam and Hybrid-beam Antennas
TF Multi-band and Multi-system Antennas
Application scenarios
LTE & NA outdoor macro cell coverageLTE high-capacity and high-density scenarios
LTE & NR outdoor continuous coverage
Product appearance & technical characteristics
Passive array antennas. Small nested array technology and integrated lumped phase shifter technology are adopted. 698-960MHz, 1495-2700MHz, and 3300-3800MHz ultra wide band (UWB), broadband, and narrowband frequency spectra are supported. Intelligent working parameter management function is available.
Passive array antennas. UWB hybrid-ring technology is adopted. 698-960MHz and 1495-2700MHz UWB, broadband, and narrowband frequency spectra are supported. The FDD/TDD hybrid networking is supported. Intelligent self-adaptive beam switching technology is supported. Intelligent working parameter management function is available.
Passive array antennas. Fully nested array technology and integrated phase shifter frequency decomposing technology are adopted. 698-960MHz, 1710-2170MHz, 2300-2700MHz, and 3300-3800MHz UWB, broadband, and narrowband frequency spectra are supported. Intelligent working parameter management function is available.
Development direction
Band extension, multi-standard, 4T4R, 8T8R
4T4R Band expansion
16+PortIntegration with multi-band antennas (hybrid-beam)
Integration with 5G active antennas
Small and lightweight Small, lightweight, and multi-functional Small, lightweight, and multi-functional
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1.2.2 Antenna family—5G antenna sequence
Company Strengths—Product Strengths
Product Family Massive MIMO Antennas Small Cell Antennas
Application scenarios NR high-capacity high-density coverageLTE & NR street stations, indoor stations, hotspots, and blind spot coverage
Product appearance & technical characteristics
Active array antennas. Compact array technology is adopted. 1710-2170MHz, 2300-2700MHz, 3300-3800MHz, and 4500-4900MHz broadband and narrowband frequency spectra are supported. Metal/dielectric filter integration technology is supported. Integrated LTE&NR A+P antenna technology is integrated. 5G macro cell stations are integrated.
Active/passive antennas. Integrated radiating element and feed network technology is adopted. 698-960MHz, 1710-2700MHz, 2300-2700MHz, 3300-3800MHz, 4500-4900MHz broadband and narrowband frequency spectra are supported. FDD/TDD hybrid networking is supported. The integrated A+P technology is supported.
Development direction
16/32/64TR 4T4R/8T8R
AFU LTE & NR integration
Small, lightweight, and A+P integrated Active, low-profile, and conformal design
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2.1 RF family—5G R&D direction
The Company has applied for 18 invention patents and 16 utility model patents;
Independent patents
The original production equipment of the Company has been updated in line with the production requirements for 5G products. And automatic production lines have been adopted;
Production equipment
Automated testing has been employed to improve testing efficiency and meet the needs of 5G products in small batches and many varieties;
Automated testing
Improve product delivery and seize 5G opportunities;
Delivery ability
Submit more samples of products with independent patents to raise the pass rate.
Product innovation
Company Strengths—Product Strengths
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2.2.1 RF family—Metal cavity filter
Company Strengths—Product Strengths
Product Family
4G Metal Cavity Filters Pro 5G Metal Cavity Filters 5G Metal Cavity Filters
Application scenarios
2G/3G/4G core network base station equipment
Pro 5G core network base station equipment
5G core network base station equipment
Product appearance & technical characteristics
Integrated duplexer or multiplexer devices feature independent RF signal frequency selection, signal monitoring, and signal amplification.
Integrated 32 channel filter devices, integrated with the antenna module, feature independent RF signal frequency selection.
Single channel filter devices, directly installed in an AFU antenna in int32 or int64, feature RF signal frequency selection.
Development direction
Functional integration Small and lightweight Small and lightweight
Gradual evolution from 2 and 4 ports to 8 ports above
Replaced with metal cavity filtersDevelopment toward ceramic dielectric filters
Application of dielectric resonator power load technology
Application of welding of the coverplate and the resonator bar
Application of welding of the coverplate and the resonator bar;Application of automatic assembly and debugging technology
4G Pro 5G 5G
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Company Strengths—Product Strengths
Product Family Ceramic Dielectric Filters Multi-mode Dielectric Filters
Application scenarios 5G core network base station equipment 4G/5G core network base station equipment
Product appearance & technical
characteristics
Single channel filter devices, directly installed in an AFU antenna in int32 or int64, feature RF signal frequency selection.
Integrated filter or duplexer devices, feature independent RF signal frequency selection technology.
Development direction
Small and lightweight. Integrated low-pass filter unit, layer design. Development from filters to multiplexers.
Small and lightweight. Partial replacement of metal cavity filters.
2.2.2 RF family—Ceramic dielectric filter
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MMW signal return system
Pico base station
Cloud WIFI
Multiple networks collaborate with each other in the 5G era. The Company concentrates on accelerating the construction of small and integrated base stations, and launches broadband-based and customized products, such as pico base stations, cloud WIFI, and intelligent light poles, to provide solutions to practical application scenarios.
Company Strengths—Product Strengths
Micro-distribution
Intelligent room divisionIntelligent signal
boosters
Intelligent light pole signs
Main products:
...
Smart city solutions Indoor coverage solutions
Intelligent transportation solutions Private network coverage solutions
Intelligent campus solutions Intelligent factory solutions
...
Market opportunities:
3.1 New businesses—5G R&D direction
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3.2.1 New business family—Pico base station
Company Strengths—Product Strengths
High-power pico base stations Distributed pico
base stations
Integrated an enterprise-level
Product Description
Application Scenarios
MOBI's pico base stations are wireless indoor multi-mode deep coverage solutions for indoor hotspot expansion and blind spot coverage, based on all frequency band resources of Chinese operators and integrating multiple technologies.
Wireless network capacity and coverage in the indoor environment.
Product Features
• Simple structure, shorter construction cycle, and easy deployment;
• Management without blind spots and easy operation and maintenance;
• Dual-stream MIMO available and no need for room division transformation;
• RU co-cell, remote cell splitting;• Pain points are addressed. Macro and micro collaboration.
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3.2.2 New business family—Mobile digital micro room division system
Company Strengths—Product Strengths
Intelligent signal boosters
Mobile digital micro room division system
Product Description
Application Scenarios
Product Features
The mobile digital micro room division system is a new coverage product developed by MOBI to rapidly address closed blind spots or areas with weak coverage with a low business volume.
Low-value scenarios and difficult scenarios like underground parking lots, elevators, and small sites for business operations.
• Mobile dual-band system, high integration;• Multi-source access;• LTE supports automatic switching among frequency
bands;• Automatic network optimization, and automatic
balancing of forward and reverse links;• Isolation detection and self-excitation elimination;• Remote monitoring and warning. 31
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3.2.3 New business family—Cloud WIFI solution
Company Strengths—Product Strengths
Indoor
HOME WIFIOutdoor
Product Description
Application Scenarios
Product Features
Technological revolution of new-generation enterprise-level
WIFI, local AP management based on public or private
cloud AC, and AC-controlled cloud.
Scenarios like offices, Industry 4.0, public coverage,
supermarkets, and chain stores.
• Enterprise-level cloud AP, automatic discovery, and
plug and play;
• Wireless RF acceleration and load balancing;
• Hierarchical strategy management;
• BeamCloud cloud antennas;
• Anti-attack, access control, and multiple isolations.
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3.2.4 New business family—Intelligent light pole
Company Strengths—Product Strengths
Intelligent light
poles
Product Description
Application Scenarios
Product Features
Remote and centralized control and management of street lights are achieved based on computer, network, communication, and Internet technologies as well as multiple classic products of MOBI.
High-tech parks, tourist attractions, municipal roads, and business districts.
Functions include wireless communication, intelligent lighting, intelligent security protection, LED screens, intelligent broadcasting, charging piles, emergency calls, and environmental monitoring.
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Reflow soldering Wave soldering
Automatic welding robotsAutomatic dip soldering machines
Automatic assembly and welding robots
Automatic testing stations
Production Equipment
Company Strengths—Production Line Strengths
The Company has deployed multiple automatic equipment and production lines to further strengthen the manufacturing processes of 4G & 5G products, raise capacity utilization, and reduce costs.
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36-port automatic testing platform:• Auto connection + auto testing+ auto
switching + auto uploading• Efficiency enhancement by 30%
Automated Test
Company Strengths—Production Line Strengths
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Company Strengths—Market Strengths
Antenna Business
• 4G: MOBI made continuous breakthroughs in expanding overseas operators. Especially, it acquired new customers in Northeast Europe, South Asia, and Southeast Asia;
• 5G: It was included in the Chinese equipment manufacturers’ list of major suppliers and won a big share in several key code tenders.
RF Business
• MOBI won a big share of international equipment manufacturers’ products;
• The first pass yield, efficiency, and gross profit of RF products were improved.
New Business
• MOBI covers indoor data coverage, Internet of Vehicles, and Internet of Things;
• It won the bidding for pico base stations;• It won the ICT bidding in multiple
provinces.
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Export sales
Company Strengths—Market Strengths
(RMB million)
0
50
100
150
200
250
300
350
400
450
2016 FY 2017 FY 2018 FY 2019 FY
Europe America Asia
The decline in exports was mainly due to the
slowdown in global macroeconomic growth, the
slowdown in demand for mobile network construction
in countries and regions, and delays in some projects.
However, the company continued to strengthen the
development of emerging markets such as Europe, and
European export revenue increased significantly.
0
50
100
150
200
250
2016FY 2017FY 2018FY 2019FY
Overseas direct sales
(RMB million)
Overseas direct sales Overseas direct sales revenue increased by 19%.
1、Product structure upgrade
2、Broaden sales channels
3、 Obvious cost advantage
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Company Strengths—Summary
Ability to provide solutions of the antenna + filter system
End-to-end full-chain business procedures
4G + 5G independent development & accumulation of intellectual property
Cost-effective solutions
Fast response & product iteration
Why MOBI
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※ Corporate mission
※ Business Direction
5. Strategy Direction
To be your best partner39
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Strategy Direction
Under the impact of the COVID-19 coronavirus, variousconsumption and production activities have been affected tovarying degrees, and the macro economy may be under pressure.5G new infrastructure investment is expected to become animportant means for the country to reverse the economic cycle.
496.8 463.68 496.8
189.4 200.6 197.6
289.19250
428.19
0
200
400
600
800
1000
1200
2002 2003E 2003
Planned and Actual Capital Expenditures in 2003
China Telecom
China Unicom
China Mobile
10511272 1363
257.2
309.5
704.9463.34
459.6
484.1
0
500
1000
1500
2000
2500
3000
2007 2008E 2008
Planned and Actual Capital Expenditures in 2008
China Telecom
China Unicom
China Mobile
The capital expenditure of operators is expected to improve
Enterprises fully restore production.
Sources: Operators' annual reports and Research Department, Founder Securities
During the epidemic period, the company formulated the anti-epidemic workmanagement system, anti-killing plan, and arranged the coordination staff tocarry out clean and anti-killing work before resuming work, providing safetyprotection for employees to return to work smoothly, and providingcomprehensive protection for full-scale resumption of production. At present,the Group subsidiaries’ rework rate have exceeded 100%.
RMB 100 million RMB 100 million
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Strategy Direction
1、Market expansion
Seize golden opportunities overseas
Grasp new opportunities arising from 5G development
2、Technology R&D
Increase investment in 5G
R&D
Continue to explore new businesses
3、Cost control
Continue to exercise cost
control internally
Optimize structure of
products and customers
Three Strategy Direction
Explore and work on path survival and development of the company with collective intelligence from employees; continuously bring management and technology innovation into practice; and develop into a global leading provider of RF technology for mobile communications.
Corporatemission
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戰略方向
Business Direction
Antenna
• 5G Massive MIMO antenna• AAU antenna• China Mobile + National
Radio and Television Administration (NRTA) FDD + TDD antenna
• Capacity expansion by overseas operators and TDD + FDD antenna of NSA networking
• ……
RF
• Metal filter• Ceramic dielectric filters• ……
New business
• Indoor data coverage• Internet of vehicles• Internet of things (IoT)• Pico base station• ……
Strategy Direction
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6. Q&A
Q&A
To be your best partner43
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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 contains some forward-looking statements. Such statements are the description, analysis, and
expectations of the Company's employees of the Company or relevant industries. The Company neither
promises nor guarantees that such statements would be consistent with the future performance of the Company
or relevant industries. Such performance may be materially different from these statements, for which the
Company takes no responsibility.
The report is copyrighted by the Company and may not be disclosed, reproduced, published, used, or cited by
any organization or individual in any form without the written permission of the Company. Citation upon
approval by the Company should be within the scope of the written permission of the Company. And the
source should be specified. This report should not be cited, abridged, or modified to become contrary to the
original meaning.
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