2016 Interim Results Presentation

26 August, 2016

Company Profile

2016 Interim Results

Market Outlook

Q&A

Agenda

1

Part 1. Company Profile

2

Company Introduction

MOBI Development Co., Ltd. (“MOBI”) is dedicated to provide front-endproducts for wireless communication, which apply to signal transmitting,receiving and processing. Our business consists of base station constructionproducts and full range of products for relevant extension coverage. We areespecially professional in antenna R&D and radio frequency 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, locatedin Nanshan District in Shenzhen, Guangming District in Shenzhen, Ji'an inJiangxi Province, and Xi'an in Shaanxi Province, separately. The total area ofmanufacture bases is around 110,000 ㎡.

3

Antenna System Coverage Extension Solution （ Aesthetic antenna ）

Base Station RF Subsystem

Base Station Coverage Extension

Core System

Signal Path

4

MOBI Technology(Hong Kong)

MOBI Communication(JiAn)

MOBI Antenna(Shenzhen)

MOBI Indonesia(Indonesia)

MOBI Technology (Xi An)

MOBI New Materialand Technology

(Xi An)

Shenzhen MOBI Communication

(Shenzhen)

100%

100%

100%

100%100%

95%

5%

MOBI Technology (Shenzhen)

100%

International Trade and Funding

Engineering and Technology Services for Indonesia Market Package Solutions for Indonesian Market Engineering Services for Neighboring

Base Station Production Microwave Antenna Production RF Feeder R&D and Production

Electroplating 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

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

Communication System Engineering and Technology Service

Company Structure

100%

Self-owned Property LeasingMOBI Industry(Shenzhen)

100%Shenzhen Borynet

2016 New Investment

15.1%

Cloud WIFI

5

Part 2. 2016 Interim Results

6

Results Overview in 1H2016

23.1%

23.2%

2015 1H 2016 1H

6.4% 6.4%

2015 1H 2016 1H

Growth Rate of Sales Volume Gross Profit Margin

821

904

2015 1H 2016 1H

10.1%

52.3

58.3

2015 1H 2016 1H

11.4%

7

Net Profit Growth Rate Net Profit Margin

(RMB million)

(RMB million)

68.8%3.7%

27.5%

35 33

382

249

404622

2015 1H 2016 1H

904

(RMB million)

821

54.2%

8.0%

34.8%

Results Analysis in 1H2016 – by Business Category

Antenna System

Base Station RF Subsystem

Coverage Extension Solution

8

403498

218

226

115

7964

6121

40

2015 1H 2016 1H

Results Analysis in 1H2016 – by Customer Category

55.1%

25.0%

8.7%

6.7% 4.4%

Chinese Network Operators

3.7%

Others90.5%

Overseas Direct Sale 4.7%

International Equipment Manufacturers 31.3%

Chinese Equipment Manufacturers 23.8%

(RMB million)

904

821

9

Results Analysis in 1H2016 – by Expenses

Financial ExpenseSubstantially reduced by approximately 44% and accounted for approximately 0.7% ofthe revenue, primarily due to the decrease in borrowings.

Selling ExpenseIncreased by approximately 19% and accounted for approximately 5.5% of therevenue, which was mainly due to increases in business expenditures, travellingexpenses, rent and utilities, consultation fees and low-value consumables resultingfrom increases in products sales..

5.5% 6.1%

5.1%5.5%

4.4%

4.8%

1.3%

0.7%

2015 1H 2016 1H

Administrative ExpenseIncreased by approximately 23% and accounted for approximately 6.1% of therevenue, which was mainly due to (1) the increased expenses in average number ofemployees, salaries, social security contributions, premium for propertyinsurance, housing provident funds and other expenses for business expansion; (2) theincrease in expenses such as business expenditures, travelling expenses, amortizationon intangible assets, repairs and litigation costs.

R&D ExpenseIncreased by approximately 18% and accounted for approximately 4.8% of therevenue, which was mainly attributable to the increase in salaries for research anddevelopment activities, surcharge on wages, repairs, testing fees and research anddevelopment materials costs.

The Operating Expenses to Sales Revenue Ratio

10

Part 3. Market Outlook

11

Market Outlook

Source: www.c114.net

NORTHAMERICA

SOUTHAMERICA

EUROPE

AFRICA

ASIA

AUSTRALIA

GSMA: By 2020, there will be 1 billion newly added independent mobile users, of which users in Asian-Pacificregion will account for 60%. In the coming 10 years, 4G will still be the investment highlight and 4G connection isexpected to account for one-third of all mobile connection by 2020.

Strategy Analytics: In 2016, the global revenue of 4G technology is expected to outnumber that of 3G technology.Its income share will increase to 49% in 2016 from 25% of last year.

- US FCC assigns5G spectrum andw i l l launch alarge-scale 5Gtest in the nextyear. 5G will bec o m m e r c i a l l yavailable as earlyas 2018.

- V e r i z o ncompleted theestablishment of5 G w i r e l e s sstandards; AT&Tl a b o r a t o r yconducted a lotof 5G tests andexpects to havep r e - s t a n d a r de quipme nt in2 0 1 7 ; S p r i n ts u c c e s s f u l l ydemonstrated5 G m o b i l etechnology andwill conduct al a r g e r - s c a l edeployment.

EU approved all memberstates to use 700MHz bandfor mobile service and willreassign 694-790 MHzband spectrum for mobilebroadband service no laterthan 30 June 2020.

XL Axiata in Indonesia sold out morethan 2 , 5 0 0 telecom tow e r s andf i n a n c e d U S D 2 5 0 m i l l i o n . T h etransaction amount was used for themass deployment of 4G service.

- BSNL in India plans to add 21,000wireless base stations in 2016 andtargets to launch 4G service in 14telecom service areas.- Bharti Airtel will build 70,000 basestations in 2016 and deploy more than160,000 base stations after three years.

Celcom Axiata in Malaysia spentUSD566.7 million on 4G networkupgrade and got prepared for theintroduction of 5G.

- O f c o m , a B r i t i s ht e l e c o m m u n i c a t i o n ss u p e r v i s i o norganization, promised therewould be enough spectrumresources for commerciallyused 5G networks by 2020.

-EE plans to build 750 newbase stations as a part of 4Gexpansion plan, which willcover 95% of British land areaby 2020.

- Thai operator True Move began thescale deployment of 4.5G 4T4R network.- Thai operator TOT in Thailand intendsto start TD-LTE test.

South Korea SK Telecom plans to startthe deployment of LTE-A Pro (4.5G) inmid-2016, targets to cover 90% ofpopulation in 2019, and plans toconduct pre-commercial used 5Gdeployment in 2017.

China IMT-2020 (5G) Promotion Groupreleased "5G Network ArchitectureDesign" white paper.

The huge bonus coming fromAfrican telecommunicationsmarket users will promotethe investment of Chinesetelecommunications industryin Africa. This promotionincludes “African InformationHighway Project”, which wasjointly built by China andAfrica in "Eight Verticals andEight Horizontals".

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Key Events — Acceleration of 4G and Start-up of 5G

Source：www.c114.net13

• China Broadcasting：In May 2016, received the “Basic Telecommunications Business License“ issued by the Ministry of Industry to operate Internet domesticdata transmission services and domestic communication infrastructure services, becoming the 4th large telecom operator after China Mobile, China Unicomand China Telecom. Further applied for more licenses in June 2016, and signed strategic cooperation framework agreement with Citic, to start up building theChina Broadcasting Mobile and be in charge of operating 700 MHz of the best 4G spectrum. Received special construction fund loan of RMB300 millions inJuly 2016,for the construction of basic networks and data broadband.

• The Ministry of Industry permits service providers from HK/Macao to establish joint venture and owned enterprise to offer value added telecom services.

Intensifying Competition in

Mainland Operators

The 3 Largest Chinese Operators

• The 3 largest Chinese operators draw up the plan of starting 5G network business in 2020: have officially initiated the experiment of research anddevelopment of 5G technology in 2016,built up the open platform for experiments; Construction and related tests of trial network is expected to start in2017; Launch 5G network construction in 2018, and officially initiate business by 2020.

• The Ministry of Industry releases signal spectrum sharing, and may make China Broadcasting’s 700 MHz a shared spectrum resource in broadcasting industryand telecom industry, to meet the demand of 5G era.

• The Ministry of Industry approves China Unicom to conduct 900MHz LTE FDD trials in 14 provinces and cities.• China Telecom launches 800M LTE reconstruction of the whole network and forge the first low frequency LTE network in China, to cover the whole network

in 2017.

5G Technology of Equipment

Manufacturers

• ZTE and China Mobile jointly complete the periodical trial of 5G high frequency technology, and conducts research and development and cooperation of5G/Pre5G with several premium operators.

• Ericsson collaborates with Korean SK Telecom and Deutsche Telekom to conduct the first trans-continental 5G trial in the world; cooperates with Vodafoneto build up 5G core network prototype and 5G intelligent network marginal prototype.

• Nokia collaborates with Canadian operator Bell Canada and finishes the first 5G network technology trial in Canada.• Samsung lags behind other international equipment manufacturers due to misjudgment of wireless technology standard; plans action in American market

and strive to become the world’s top 3 manufacturer in 5G network market; joins the White House’s 5G“Advanced Wireless Communication Research Plan”as board member.

International Equipment

Manufacturers Integration

Completes This Year

• The merger of Nokia China and Shanghai Bell is expected to complete in this summer; Nokia purchases Alcatel-Lucent at a re-exchange consideration ofapproximately € 140 millions, with shareholding exceeding 95%.

Foreign Operators Restructuring and

Cooperation• Frequent mergers and acquisitions , and frequent cooperation.

Chinese Market — Opportunities and Challenges

Number of Newly built 3G/4G base stations by Chinese operators

(Number of Base Stations , thousand)

FY2014 FY2015 FY2016(E)

1034 1080 1016

China Tower

485

China Tower

560

Chinese Operators

DevelopmentsNumber of

Base Station

China MobilePlans over 300,000 new 4G base stationsin 2016

300 thousands

China Unicom

launched 2016 LTE FDD Phase III Projectto intensively purchase wirelessequipments, with over 469,000 basestations

469thousands

China TelecomBidding of collection of base stationantenna has been finished in 2016, withover 740,000 antennas

247 thousands（Supposed 3 antennas with

1 base station）

China TowerIn 2016, undertakes nearly 560,000tower projects demands from top 3Chinese operators.

560thousands

14Source：www.c114.net; Data from the Ministry of Industry

15

01Opportunity

Although the number of base station construction of domestic top 3 operators almost staysflat at that in 2015, China Tower will undertake a majority of base station constructiondemand, so 4G networks and multi-system station will become the trend of networksconstruction, which will help the Company remain leading technological edge in this field.

Changes in Product Structure

02Opportunity

China Mobile 4G networks construction applies the mode of turn-key, while antenna andRF subsystem product is purchased by network solutions providers, such as ZTE. ChinaUnicom and China Telecom lags behind China Mobile regarding to 4G networksconstruction, and China Mobile’s networks construction mode won’t be ruled out.Operators have more complex requirements of technology and reliability of antenna andRF subsystem, and the Company is in a leading position in domestic industry, regarding totechnology and customer tests of 4G high-performance antenna and RF subsystemtechnology product development, with huge potential for growth in the future.

Changes in Commercial Model Structure

Chinese Market — Opportunities and Challenges

Source：www.c114.net

Chinese Market— Comprehensive Technology and Cost Competition

Request from Operator and

Tower Company

MOBI

TD Smart Antenna

Ultra Wideband / Multi-frequency / Multi-system Antenna

Multi-beam Antenna

Massive MIMO Antenna

GPS Antenna

Construction of 4G base station tends to be more stable

Pre 5G was launched; 4.5G Innovation Demonstration Zone was established

Launched 5G R&D technology experiment and cooperated with equipment manufacturers to make 5G commercial plan in 2020

Ultra wideband, multi-frequency and multi-system become popular

Multi-beam, AAU, stealth technology application

Product tends to be lighter, smaller and integrated

Cost Control

Integrated Camouflage antenna

Small Cell Antenna

Special Antenna

Microwave Antenna Pre5G/5G Antenna

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Overseas Market—High Threshold and Key Breakthrough

MIMO Antenna

Independent R&D Ability

Reliability of Products

Price Control

High Technology Standards

Cost Suppression Cost of supplier management (short lists of suppliers with diversified product series;

strict supplier recognition)

The Situationof Overseas

Market

MOBI

The leading LTE experience in cooperation with domestic and abroad operators

Successfully entered into shortlists of overseas operators

Diversified development of MIMO product series

Independent R&D ability

LTE trend among overseas operators (including multi-national and single-national operators)

Good price with high gross profit

17

5G Technology — Start up

Source: www.c114.net

What is 5G?

5G is the super high-speedrail in the information age:High speed, lowlatency, high density.

Current Status

Operators and equipment manufacturers had started to collaborate and develop 5G technology in 2016. Governments from various countries are very concerned about it and plan to launch commercial 5G service in 2020 universally.International Telecommunication Union announced 5G standard will be completed in 2020.

Development

America：First to open the high-frequency spectrum and start 5G development widely.European Union: 17 Telecom operators issued “5G Declaration” in July. EU will launch “5G Operation Plan” in the end of this year, but the internet neutrality is an important variable.Asian: China, Korea, Japan and other countries are actively promoting the development of 5G technology. Korea would even try to use the commercial 5G service in 2018 Pyeongchang Winter Olympics.

Prospects

Ovum, a professional analysis company, forecasted the worldwide 5G users would reach approximately 24millionby the end of 2021 and commercial 5G would be provided in approximately 20 markets; approximately 40% of users in North America and Asia respectively, which centralized mainly in America, Japan, China, Korea and other counties, while approximately 10% of 5G users would be in Europe.

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Three-year Strategy — Double-Driving on Technology & Marketing

European MarketAsian

Market

AfricanMarket

Optimize technologies

Enlarge product series

EmergingMarket

Strengthen market share in China, Africa and Asia Pacific markets. Continue expanding multi-national operators markets, explore new opportunities in

European market and emerging markets. Develop miniature, integrated and MIMO productions and 5G technologies.

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Part 4. Q&A

20

This report is drafted and audited by MOBI Development Co., Ltd. ("Company"). Theinformation contained in this report shall only be disclosed under the permission of relevantlaws, regulations and rules and for the sole purpose of providing information and shall notconstitute any advertisement. The material, comment and forecast (if any) contained in thisreport merely reflects Company's situation or opinion at the date of initial disclosure of thisreport. Company may revise the information contained in this report and suggest investorsto independently pay attention to related updates or amendments.

This report may contain some forward-looking statements. Such statements are thedescription, analyzing or prospect of Company employees with respect to Company orrelating industries. Company makes no promise or guaranty that the contents of suchstatements will be consistent with Company or relating industries' future performance.

Disclaimer

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