techfaith a handset original developed product (odp) provider of... · a handset original developed...

(Nasdaq: CNTF)HK000KRB

TechFaith

A Handset Original Developed Product (ODP)

Provider

Apr 23, 2008


Disclaimer

This presentation contains forward-looking statements. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as ''will,'' ''expects,'' ''anticipates,'' ''future,'' ''intends,'' ''plans,'' ''believes,'' ''estimates'' and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as TechFaith's strategic and operational plans, contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties.

Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, TechFaith's limited operating history, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, TechFaith's ability to retain existing or attract additional international customers, TechFaith's earnings or margin declines, failure of competing against new and existing competitors, and other risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1, as amended. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.


Contents

Industry Evolution

Unique ODP Provider

Product Development Status

Customer Base

Appendix


Top Five Brands

JapaneseBrands

ChineseBrands

EuropeanBrands

CarrierBrands

NicheBrands

Local Brands

PremiumBrands

1980 － 19951995 － 19982006 － 20072000 － 20051998 － 20002008 － Future

Global Handset Players Get More Diversified2008 - Future


CDMA1X

GSM/GPRS

GSM/GPRS/EDGE

TD-SCDMA

WiMAX

CDMA 2000/EVDO

WCDMA

HSDPA

WiFi

HSUPA

Wireless Standards and OS Get More Complicated

3G

2G/2.5G to 2.75G

3.5G/3.9G

Mid-90s 2000 2005 20102002 2007


Fast-Growth Opportunities for TechFaith

Small players are not capable of providing original developed products;Big players can not cover the Design of a full spectrum of technologies from 2G to 3.5G;Carriers are promoting their own services with rich software applications;Dual-mode handsets are in high demand by carriers running two network systems or by international roamers.


Contents

Industry Evolution

Unique ODP Provider


Customer Base

Appendix


CustomerBrandOwner

Total Handset Software & Design Solutions

Drivers onDifferent

OS

Frame workAPI

MMI:Specific

Features forDifferentOperators

U IMMI:

Common Features

Hardware Design

Industrial Design/Mechanical Design

ApplicationSoftware

TechFaith owns customer relationship

EMS is available for production if brand owner outsourcesmanufacturing

EMSProduction

Line

Chipset


NASDAQ IPO

Launched GSM/CDMA Dual Mode Smartphone Sep 07

Oct 05Launched First 3G WCDMA/UMTS Handset

Jul 02Founded

TechFaith – NASDAQ: CNTF

Company History

Business: A Handset Original Design

Product (ODP) Provider

Headquarters: Beijing, China

Facilities: Beijing, Shanghai & Hangzhou

Employees: Approx. 1,400

Engineers: Approx. 1,260

Overview

May 05

May 06Application Software Co.Jointly Invested by Qualcomm

Sep 06Launched Window’s Smartphone

Apr 07Launched HSDPASmartphone


Cutting-Edge Technology Alliances

Strategic partner to develop Smartphone technology

Enabler of CDMA technology

Strategic investor

Collaborative founding “TechSoft”


Contents

Industry Evolution

Unique ODP Provider


Customer Base

Appendix


170Feature Phone

Gross Margin > 20%

45

58

Smartphone & PPC PhoneGross Margin > 25%

Low TierGross Margin > 10%

450

TechFaith’s Product Position- Focusing on Mid to High Tier

90

Cost Wholesale Price

50

Low Tier

Middle

High Tier

35

100

180

20

Unit: US$

35


Product Portfolio with Advanced Technology

Feature PhoneMultimedia Game

MID (Windows XP)

Windows GoogleMobile

GSM

CDMA

WCDMA

HSDPA

TD-SCDMA

Patented

General

UniqueGSM/CDMA

GSM/GSM

WCDMA/GSM

WCDMA/CDMA

GSM/TD-SCDMA


ValuePhone

ModemPhone

GPS Phone

Long Standby

Dual Mode / Dual SIM

Big Memory

G-Lancer

GSM/TD CDMA/EVDO WCDMA Smartphone G-Phone MID

Product Strategy

G3000

Big-eye32G B

Digo/ Dici GGS26

Killer 300

BonoLampson

Cynthia

Rolex

JET

HG Twins

UC Twins

WG Twins

Muse

Lucas

Pike E

CG-102

Capric

Gallic

VistaCK

Maya500 Hours


GSM GSM

PPC

Phones

Launched

Technology Combinations in High Demand

Feature

Phones

Q4’ 2007

Digo S26

Q1’ 2008

Twins Yin Tai

GSM CDMA

GSM GSM

GSM GSM

T7620+ T7630

GSM CDMAT7620

GSM WCDMATwins

Cynthia 850Gallic

GSM GSM

CDMA WCDMA GSM TD-SCDMA


HSDPA Data/Voice Card- Pike

Band: HSDPA2100/GPRS10/GSM900/DCS1800/PCS1900MHzLCD: 0.8’’ OLEDEntertainments: Modem /MP3 AAC /AAC+Size: 98*36*16mm/ 56gPatent: Industry Design authorized in China, Eastern Europe and Japan


Slider Qwerty

GPS HSDPA PPC - Bono

Platform: Marvell Bulverde270 ( 520 MHz ) +Qualcomm 6280

LCD: 3.0” WVGA TFT Touch panel

Patent: Window Based Touch Screen Split


HSDPA PPC - Fox H

Platform: Marvell Bulverde 270 ( 520 MHz )+ Qualcomm 6280

LCD: 2.5” QVGA TFT, touch panel

Patent: 3D UI Interface


Contents

Industry Evolution

Unique ODP Provider


Customer Base

Appendix

HK000KRBHK000J5S20

Russia

China JapanTaiwan

Indonesia

India

Brazil

United StatesEgypt

UkraineEurope

MalaysiaVietnamThailand

South Korea

United Arab Emirates

Worldwide Market Coverage

Turkey

Saudi ArabiaMorocco

Algeria

Canada

Libya

Yemen

KenyaNigeria


Africa

Europe Russia

North America

Latin America ChinaSouth East Asia

IndiaMiddle EastAfrica

TechFaith’s Worldwide Customers & Prospects


Contents

Industry Evolution

Unique ODP Provider


Customer Base

Appendix

HK000KRB

Financial OverviewFinancial Overview


Revenue Contribution

15%12%21%52%

18%8%7%67%

24%11%29%36%

14%16%12%4%3G(WCDMA)13%Dual-Mode

CDMA1XGSM

by Technology

7%89%

24%64%

19%65%

33%39%

60%

40%

69%

31%

56%

44%

China

International

by End-user Market

95%5%

52%48%

54%46%

56%

44%

55%

45%

67%

33%

56%

44%

Domestic Brands

Int’l Brands

by Brand Owner

36%

64%

40%

60%

35%

65%

55%

45%

FY05 FY06 07Q1 07Q2 07Q3 07Q4 FY07


172,009

58,670

232,792

192,088

50,763

44,034

88,143

2007 Dec 31,

164,883 166,350 175,853 Shareholders Equity

51,263 37,123 15,335 Current Liabilities

218,029 207,714 194,163 Total Assets

180,751 175,506 178,237 Current Assets

34,442 8,546 4,974 Inventories

47,609 39,463 34,060 Accounts Receivable

90,142 118,377 137,207 Cash and Restricted Cash

2007 2006 2005 Sep 30,Dec 31, Dec 31,

Selected Balance Sheet (in 000’s USD)

Financial Highlights


ODP & ODC Business Models Allow TechFaith to Build Its Competitive Advantages, Achieve Fast Growth, and

Maintain Sustainable Profitability

techfaith a handset original developed product (odp) provider of... · a handset original developed...

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