2017 Annual Results Presentation

23 March, 2018

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2

Agenda

Company Profile

2017 Annual Results

Market Outlook

Q&A

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Part 1. Company Profile

2

OURcompany

MOBI Development Co., Ltd. (“MOBI”) isone of the few one-stop providers ofwireless communication antennas and basestation Radio Frequency subsystems inChina. Our customers are mainly Chineseand overseas network operators andequipment manufacturers. Our businessconsists of base station constructionproducts and full range of products forrelevant extension coverage. We areespecially professional in antenna R&D andradio frequency technologies. MOBI is listedin HKEx on 17 December, 2009 (Stock Code:0947.HK).

MOBI Development Co., Ltd .has five R&Dand manufacture bases, located in NanshanDistrict in Shenzhen, Guangming District inShenzhen, Ji'an in Jiangxi Province, Xi'an inShaanxi Province, and Wuhan in HubeiProvince separately. The total area ofmanufacture bases is around 110,000㎡.

Company Introduction

3

Introduction of Our Main Business

4

Antenna System

Base Station RF Subsystem

Coverage Extension Solution

1Antenna SystemMain products are microwave antenna and base station antenna, including TD-LTE antenna, multi-frequency multi-system antenna, Internet of Things antenna, Pre-5G antenna, etc.

2Base Station RF Subsystem

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. .

3 Coverage Extension Solution

Main products are aesthetic antennas and indoor coverage solutions.

Company Structure

MOBI Technology (Hong Kong)

MOBI Technology (Xi An)

100%

100%

MOBI Technology (Shenzhen)

100%

International Trade and Funding

Base Station Antenna 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

Self-owned Property Leasing

MOBI Industry (Shenzhen)

100%

Shenzhen Borynet(Equity Investment)

15.1%

Cloud WIFI

MOBI Technology

(Wuhan) (Newly set up in 2017)

Leteng Wireless

（2017 New Investment） Antenna R&D RF Subsystem R&D Aesthetic Antenna R&D

12%

100%

WIFI Acceleration

5

MOBI Communication

(JiAn)

100% MOBI Antenna (Shenzhen)

100%

Part 2. 2017 Annual Results

6

Results Overview in 2017

Gross Profit Margin

Net Profit Net Profit Margin

Sales Volume

65.8

-48.5

2016 FY 2017 FY

24.2%

17.3%

2016 FY 2017 FY

4.5%

-3.4%

2016 FY 2017 FY

1460 1422

2016 FY 2017 FY

7

(RMB million)

(RMB million)

2017Annual Results Analysis — Periodic Fluctuations in Customers' Demand

2008 FY-2017 FY

Sales Volume of MOBI

（’000 RMB）

Source：Company’s Annual Report 8

2G Cycle 3G-4G Cycle 4G-5G Cycle

There are periodic fluctuations in telecommunication industry, but MOBI's

ability to adjust is increasing these years. Every periodic change means

significant adjustment of client structure, switch of market focuses and

technological upgrade.

Decreasing rate approximately

34%

Decreasing rate approximately

14%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY

Adjustment of Client Structure— Prepare for 2018

(RMB Million)

848663

345

370

181

251

78124

814

2016 FY 2017 FY

46.6%

26.0%

17.6%

8.8%1.0%

14221460

9

2017 Annual Results Analysis — by Customer Category

1. Due to the change of operators procurement model, the Company’s

sales to PRC equipment manufacturer customers decrease；

2. The sales to PRC operators was dominated by China Unicom last

few years, but from 2017, sales to China Telecom and China Mobile

increase rapidly, realizing the optimization of client structure；

3. The sales to international equipment manufacturers and overseas

operators increase significantly.

International Operators59.0%

Chinese Equipment Manufacturers

21.9%

International Equipment Manufacturers

38.7%

Chinese Operators7.2%

Technological Upgrade and Switch of Market Focuses — Change in Products' Revenue

94 75

483 592

883755

2016 FY 2017 FY

Coverage Extension SolutionBase Station RF SubsystemAntenna System

14221460

10

2017 Annual Results Analysis — by Business Category

• TD/TD-LTE antenna decreased significantly by 86.3%;

• Low-band refarming/IoT antennas increased

significantly by 3528.7%;

• Pre-5G antenna increased significantly by 74.4%;

• Multi-frequency Multi-system antennas grew greatly

by 156.8%.

• Maintained speedy growth in the sales to the clients

of ZTE and Nokia;

• Officially approved and certified by Ericsson and became a

qualified supplier of its global RF subsystem in 2017.

• Aesthetic antenna is the main achievement in business. The

Company has secured major shares in China Mobile and

China Telecom central procurement for aesthetic

antennas, but the revenue is yet to be recognized in 2017;

• Revenue from other construction decreased by 76%.

(RMB Million)

Base Station RF Subsystem 22.8%

Antenna System 14.5%

Coverage Extension Solution 20.6%

2017 Annual Results Analysis – by Expenses

7.8% 8.9%

6.4%6.4%

6.1%

7.5%0.9%

1.0%

2016 FY 2017 FY

Administrative ExpensesIncreased by approximately 11.4% and accounted for approximately8.9% of the revenue, which was mainly due to the increases inexpenses on wages, depreciation charge, exchange loss, rents andsocial insurance..

Selling ExpensesDecreased by approximately 1.4%, and accounted for approximately6.4% of the revenue, which was mainly due to the decrease inbusiness expenditures and transportation costs resulted form thestrengthened cost management and the reduced business activities.

R&D ExpensesIncreased by approximately 19.0%, and accounted for approximately7.5% of the revenue, which was mainly due to the increase in salariesfor research and development activities, surcharge onwages, travelling expenses, social security contributions, testing feesand depreciation charges. Due to the significantly rise in the demandfor development in 5G technologies and overseas projects, theCompany’s investment in research and development was in rapidgrowth for 2017, which is expected to provide business opportunitiesin the future.

Financial ExpensesIncreased by 11.2%, and accounted for approximately1.0%, primarily due to the increase in bank borrowings.

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The Operating Expenses to Sales Revenue Ratio

2017 Annual Results Analysis – by Non-cash Expenditure

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0.4%

3.9%3.2%

3.2%

0.6%

2016 FY 2017 FY

Allowance for

doubtful debts

Depreciation

Allowance for

inventories

Non-cash Expenses to Sales Revenue Ratio

The non-cash expenditure in 2017 was mainly the

allowance for inventories, which increased by

approximately 869% and accounted for approximately

3.9% of the sales revenue. In view of the upcoming

5G, in order to improve the inventory turnover, the

Group negotiated the sale of some of its existing

inventories at a discount with its customers, which may

lead to the possible significantly decrease in the

realizable value of the dispatched 2G products, as

such, provision for impairment has been increased.

Part 3. Market Analysis & Outlook

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Industry Challenges - Periodicity of Operators' Capital Expenditure

Actual 2011- Projected 2017

Capital Expenditure of the 3 Largest Chinese Operators

（RMB hundred million）

Source: Operators' Announcement; Essence Securities Research Report on the Telecommunications Industry; www.c114.net

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3G Cycle 4G Cycle3G-4G Transition, capitalexpenditures from low tohigh

12.34%

44.08%

9.68%

-15.14%

7.27%10.24%

20.47%

11.38%

16.37%

-18.79%

-12.97%

-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

China Mobile

China Unicom

China Telecom

Overall Growth

4G-5G transition, capitalexpenditure from low tohigh

Industry Challenges - Industry Chain Interactions

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Communication Industry Chain

Hardware, Plastic Materials and Electronic Components Suppliers

Operators and Equipment Manufacturers

Base Station Antenna and RF Device Manufacturers

Upstream

DownstreamMidstream

• Presenting a complete competitive landscape, with sufficient raw material production and sufficient supply;

• Affected by changes in metal prices at home and abroad, prices of electronic components have steadily declined;

• Manufacturers began to constantly compete in the midstream industry.

• Operators’ capital expenditures determine base station antenna and RF industry development progress;

• Equipment vendors gradually began to operate their own ecological chains, determining the future competition and ecological landscape of the industry.

• There are many manufacturers of antennas and RF devices, and competition is fierce. However, there are fewer professional manufacturers with international competitiveness.

• Operators’ capital expenditures on mobile networks are significantly cyclical, directly affecting sales performance of mid-stream antenna and RF manufacturers.

Fierce Competition

The more market participants and the periodic fluctuations of operators’ capital expenditure lead to the fierce competition in antenna and filter industry.

Source: Essence Securities Research Report on the Telecommunications Industry

Industry Challenges - Affected by Periodic Fluctuation

2015-2017

Sales Volume of Other Domestic Listed Companies of Same TypeOverall SituationIn 2017, the overall performanceof the communications industrywas less than that of 2016.Affected by the overall delay inthe construction of LTE byoperators, sales of most of theantennas and RF manufacturersshowed a decline.

Main ReasonsAt present, the industry is in thetransition period from 4G to 5G.The 4G construction of the threemajor domestic operators hasgradually slowed down, and theamount of tenders has graduallydecreased. At the beginning of2017, only China Telecom’slarge-scale bid for FDD-LTE low-frequency refarming, ChinaMobile’s TD-LTE 4G constructionwas delayed until the secondhalf of 2017. In addition, ChinaUnicom has entered a mixed-mode reform and drasticallyreduced its expenditure, and itsantenna procurement has alsobeen delayed until 2018.

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- 1,000,000,000.00 2,000,000,000.00 3,000,000,000.00 4,000,000,000.00

The First Half

of 2015

The Second

Half of 2015

The First Half

of 2016

The Second

Half of 2016

The First Half

of 2017

The Second

Half of 2017

Company A

Company B

Company C

MOBI

Source: Announcement of Listed company

（RMB）

Industry Opportunity - Global RAN investment continues to grow

17

0

5000

10000

15000

20000

25000

30000

35000

40000

2015 2016 2017 2018 2019 2020 2021 2022

CDMA GSM WCDMA/HSPA+ LTE Pre-5G/5G

Global RAN (Radio Access Network) Revenue

2015-2022

（$ m）

The real culprit in the market decline is not LTE; it is older mobile technologies. 2G is gradually facing a withdrawal.

Although LTE network expenditures have declined in markets such as North America, but overall LTE investments are still growing, especially in areas such as Africa, Eastern Europe, and Latin America .

LTE investments will not peak until 2019. Even after initial commercial 5G solutions hit the market, LTE will remain strong.

Investments in 5G will bring revenue growth back to the market.

Source: Ovum Report

Industry Opportunity — 5G Technology Promotes the reform and development of the industry

At different Stages

5G：Three scenarios correspond to three networks

Enhance mobile broadband

Massive Machine-Type Communication Ultra-high reliability low latency communication

Interpersonal mobile network

(mobile phone, etc.)

2G-3G：mature commercial，some

countries exit 2G network；

4G：Commercially available in 2013, but

keep on updating；

5G： The first edition in 2018 is clear in

standard and is expected to be commercially

available in 2020.

Wide-area Internet of Things

4G：NB-IoT，EMTC，agreed to freeze

in 2016，Commercial use in 2017；

5G：The standard is not yet clear, and

is expected to be finalized after

2020, and will be commercially

available around 2022

Highly reliable Internet of things

(Internet of vehicles)

4G： 2016 LTE-V initial standard

landing, not yet commercial ；

5G： The preliminary standard landing

in 2020 and is expected to be

commercially available in 2025

Attention

5G actually means three networks. Since the slow progress of Internet of things and Internet of vehicles, current 5G is now as an interpersonal network.

18Source: Citic Construction Investment Securities Communication Industry Research Report

Industry Opportunity— Acceleration of 5G Technology

2015 2016 2017 2018 2019 2020

3GPP Research on 5G System and Key

Technology The first version of 5G standardComplete all the 5G standardization

work

First Stage of 5G Second Stage of 5G

ITU

World Carriers

China MITT

China Operators

Rel-14 Rel-15 Rel-16

Prepared for making 5G

international standard

Identified technology assessment indicators

Formed file template for submission

Clearly defined the requirements for 5G Technical Performance

ITU-R will start to solicit candidate 5G technologies

Start technical program evaluation and standardization

Form 5G commercial

ability

America Verizon completed 5G

technical specification

making in July 2016

America Verizon will use 5G

commercially in the 4th quarter of 2017; will deploy wireless network and core

network in the second half of 2018

Korea SK and KT plans to use 5G commercially in

February 2018; start 5G commercial use

in 2109

Japan NTT commercially uses

5G in 2020

Completes R&D test for 5G technology (Three stages: key technology verification, technical program verification and system program verification ); the first 2 stages have been

completed in 2017; will finish 5G NSA &SA framework formulation and NSA trial in 2018.

R&D test for 5G product

China Mobileused 4.5G in 2016; 2018 Q1, construct 5G trial network in five cities; 2018 Q1-

Q3, participate in the stage 3 of technology trial

Top 3 Operatorscommercially use

5G in 2020

Top 3 Operators conduct 5G

commercial trial in 2019

China UnicomIn 2017, started 5G

technology preparation; in

2018, will conduct 5G trials in 7 cities

American AT&TPlans to deploy 5G technology by the

end of 2018 or beginning of

2019, and to achieve scale usage in 2019.

Source: Citic Construction Investment Securities Communication Industry Research Report ；www.cww.net.cn；www.c114.net 19

MOBI Opportunities - Highlights in China Market Segments

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China Market Reconstruction of the Roof of Base Station

• Due to limited space resources, it is a trend to use smart

antennas to integrate existing mobile systems and frequency

bands before the arrival of 5G;

• China Mobile’s 4488 antenna has entered the province’s coal

mining and it is expected that it will soon begin to collect

central mining.

Low Frequency Refarming /IoT

• China Telecom and China Unicom 800/900MHz

low frequency refarming tender;

• China Mobile NB-IoT Internet of things tender.

5G Advancement

• The Chinese government has divided the

5G commercial frequency band, and the first version of the 5G

international standard will be completed in June 2018;

• Chinese manufacturers' 5G technologies are leading the world,

and the acceleration of 5G technology will become a new

revenue growth point.

2

1

3

MOBI Opportunities – Continuously Explore the Overseas Market

Overseas Market

Market Entry Extent

Asia-pacific: Base Station Antenna, Microwave Antenna, RF Module

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North America: Base Station Antenna, RF Module

Europe: Base Station Antenna, Microwave Antenna, RF Module

Africa: Base Station Antenna, RF Module

Latin America: Base Station Antenna, RF Module

The golden opportunity in international market has appeared. New breakthroughs were made in the Russian and Southeast Asian markets, and overseas bundles and direct sales projects continue to grow.

Company Three-year Strategy

Enlarge products

series

Optimize product

technology

Improve product

reliability

01

02

03

Continue expanding overseas market. Strengthen share in China, Africa and Asia Pacific markets, meanwhile, explore new opportunities in European market and emerging markets.

Seize the opportunity of low frequency refarming and Internet of Things construction, enlarge the products series and improve products quality and reliability.

Develop miniature, integrated and

MIMO products and prepare for 5G.

Double-Driving on Technology & Marketing

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Part 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 bedisclosed under the permission of relevant laws, regulations and rulesand for the sole purpose of providing information and shall notconstitute any advertisement. The material, comment and forecast (ifany) contained in this report merely reflects Company's situation oropinion at the date of initial disclosure of this report. Company mayrevise the information contained in this report and suggest investors toindependently pay attention to related updates or amendments.

This report may contain some forward-looking statements. Suchstatements are the description, analyzing or prospect of Companyemployees with respect to Company or relating industries. Companymakes no promise or guaranty that the contents of such statements willbe consistent with Company or relating industries‘ futureperformance.

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