NASDAQ: CNTF NASDAQ: CNTF Smart Ultimate Outdoor Pursuing for - - PowerPoint PPT Presentation

NASDAQ: CNTF NASDAQ: CNTF

• Smart
• Ultimate
• Outdoor

Pursuing for the dreams

Safe Harbor Statement

This presentation contains forward-looking statements that involve estimates, assumptions, risks and uncertainties including statements relating to our business outlook statements regarding our business uncertainties, including statements relating to our business outlook, statements regarding our business

• pportunities, statements regarding a broad-based recovery beyond China 3G, and statements

regarding the development of our various businesses. 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 ” statements can be identified by terminology such as will, expects, “anticipates, ”future,“ ”intends,“ ”plans,“ ”believes,“ ”estimates,“ ”confident,“ ”outlook“ and similar

• statements. Among other things, the business outlook and strategic and operational plans of TechFaith

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 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 MobiFox‘s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties A number of important factors Forward looking statements involve inherent risks and uncertainties. A number of important factors cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in MobiFox’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement except as required under not undertake any obligation to update any forward looking statement, except as required under applicable law. Please note that this presentation was created as of the date listed, and reflects management views as

• f that date The Company undertakes no obligation to update information contained herein

Pursuing for the dreams

• f that date. The Company undertakes no obligation to update information contained herein.

Index

• 1. Company Brief
• 1. Company Brief
• 2. Prospective on Industry
• 2. Prospective on Industry
• 3. Global Launch of Our Products
• 3. Global Launch of Our Products
• 4. Sales & Marketing Activities
• 4. Sales & Marketing Activities
• 5. Financial Performance
• 5. Financial Performance
• 6. Appendix
• 6. Appendix

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3

Company Stock Snapshot

US$5.00 Per ADS in Cash & Cash Equivalents

Symbol NASDAQ: CNTF Closing price March 12, 2014 $2.27 Market capitalization $120 million Weighted average diluted American Depositary shares (ADS) in fourth quarter Dec 31 2013 52.9 million Financial year end December 31 Net revenues / Net Income FY 2011 $323.8M / $27.1 M Net revenues / Net Income FY 2012 $137.7M / $(3.3) M Net revenues / Net Income FY 2013 $119.5M / $(2.5) M Net cash year end 2013 ( S) $265.6 M $ Net cash per share (ADS) year end 2013 EPS (ADS) Diluted FY 2012 / 2013 $5.00 $(0.0622)/ $(0.0467)

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Our Primary Businesses

Consumer Products Direct(Branding): a brand of specialized mobile phones for consumers

67% 27%

phones for consumers Games/Apps: an intellectual property based

6% 67% %

gaming business and Cloud applications developer to support wireless devices making

6%

wireless devices making it easier for consumer use and play Enterprise Solutions: an established global Enterprise solutions provider for wireless

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provider for wireless products.

Company History

Mobile Phone Design Branding Ultimate Technology Ruggedized Mobile Year 2002 Year 2008 Year 2005-IPO NASDAQ Year 2008 Year 2011 Year 2014 Ruggedized Devices Sport watch Branding Mobile Year 2011 Year 2013 Ruggedized Phone Sport watch Sport camera Applications Launch MobiFox Brand phone ODM Specialized Phone Brand

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Company Brief and Investment Highlights

Ruggedized smart devices provider with proven track record Ultimate sports watch, sports camera provider Cloud applications developer to support wireless devices making it easier for consumer use and play Enterprise Solutions for the specialized wireless devices for security, military and corporate clients in China military and corporate clients in China One of the few Chinese wireless products makers that export products to USA Strong balance sheet with ample cash and little debt Developing attractive portfolio of real estate in China for potential use, lease or sale lease or sale

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Perspective on the Industry

Lifestyle change create the sporty

• utdoor life everywhere;

y ; The view of Chinese on happiness and casual life has changed dramatically; Rapid rise of people pursuing outdoor lifestyle; Increasing demand on ruggedized smart devices, watch, earphone, camera and more Increasing demand not only for the devices but also the applications and

• nline services.

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Increasing Demand of Ultimate Products for Outdoor workers

Increasing Demand for outdoor workers for remote command and management

Outdoor Construction Logistics

Fishing

Police Enforcement Mapping

Farming Mi i Pursuing for the dreams

Military

Mining

Fire Protection

Ruggedized Smartphone

Branded mobile phones target niche market with Branded mobile phones target niche market with attractive margins around 30% Innovative and specialized offerings to consumers d i k and enterprise markets Ability to tailor hardware and software solutions to meet customers’ specific needs meet customers specific needs Strong capabilities across all aspects of handset design process

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Wearable Innovative Products-1

MobiFox Ultimate Camera-a “Must Have” for all outdoors enthusiastic (Coming Soon)

Selling Points

Specially suitable for outdoor

all outdoors enthusiastic (Coming Soon)

Specially suitable for outdoor sports photography and support high definition video recording World class photo processing World class photo processing

• CPU. F2.8 wide angle

professional lens Support up to 4K high

Product Specifications

Support up to 4K high definition ,1080P recording in sports mode Support Wifi remote control

p

• Camera：12 million mega pixels,4K high definition，F2.8 wide angle lens
• Memory：512MB RAM + 4GB ROM
• SD Card support：Up to 64GB Micro SD card
• External Ports：Micro USB、Mini HDMI、MIC

Optional：Wi-Fi Remote control（100m range），Casing ，

Support Wifi remote control up to 100m and high definition data transfer IP68 1 5 meters for 30mins

Optional：Wi-Fi Remote control（100m range），Casing ，

• Dimensions： 63*45*25mm（34 camera angles)
• Battery Capacity： 1050mAh
• Status： Q1，2014

IP68 1.5 meters for 30mins small design for easy carry Rich Applications to satisfy

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Rich Applications to satisfy the needs of the users.

Wearable Innovative Products-2

MobiFox Smart “Ultimate Watch”-

Global First “Ultimate Smart Watch” for outdoor

• lovers. Water resistant up to 30 meters

Ultimate Outdoor Smart Headphones- Ultimate Outdoor Smart Headphones-

MobiFox Ultimate Outdoor Smart Headphones are specially tailor for groups, such as outdoor enthusiastic, back packers, rock/mountain e t us ast c, bac pac e s, oc /

• u ta

climbing lovers and more. Based on the Android operating t M biF Ulti t O td S t system, MobiFox Ultimate Outdoor Smart Headphones are integrated with smart phone functions, outdoor recording functions, ear- phone functions and more.

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p

MobiFox Apps-Cloud Mobility Application pp y pp

MobiFox Apps is the platform to support all the ultimate devices of MobiFox devices of MobiFox

Sports data collection p Moment sharing through social platforms Share the joy about sports and exercise within the community. Targeting Customers who wants to keep Fit.” Supporting Devices not limited to MobiFox Products

Exercise Power Record the route and status of your exercise regime 24/7； Ability to customize targets to suit individual needs； Ability to customize targets to suit individual needs； Keep track of calories burnt daily； Instant sharing of exercise results with friends through social platforms

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Create E-appointments with your friends for running and other sporting activities

Sales &Marketing Activities

Increase the efforts in marketing and promotional activities to ensure MobiFox’s leading position within the industry Invested RMB30 million to advertise in various aviation/railway/travel magazines Cooperate with China’s largest Tourism TV channel with a bundle deal valued at RMB1660 million. Pursuing for the dreams

Marketing Performance

A ailable on major E Commerce stores s ch as S ning com and jd com

• 1. Consumer Products

Available on major E-Commerce stores such as Suning.com and jd.com Collaboration with international and regional branders/distributors/telcos Provincial level agents covering all major cities g g j Strong support from more than 120 taobao.com e-commerce shops and

• ther e-commerce platforms
• 2. Enterprise Solutions

： We have successfully tailored products for the following departments/industries： Police, Fishery, Logistics, Security, Mining, Traffic, Railway & Transport.

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Financial Performance – Margins

Gross Margin Gross Margin Business 2010 2011 2012 2013 Enterprise Solutions(ODP) 18.9% 17.8% 6.6% 10.9% Consumer Products (Branding) 42.6% 38.9% 31.9% 21.2% Gaming/Apps 79.7% 48.7% 38.7% 17.5% Operating margin and net profit margin Overall 24.7% 26.3% 22.7% 14.1% 2010 2011 2012 2013 Operating margin 13 3% 11 8% 1 1% 2 3% Operating margin and net profit margin Operating margin 13.3% 11.8% 1.1%

• 2.3%

Net profit margin 10.2% 8.4%

• 2.1%
• 2.4%

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Financial Performance – Revenues

‘000 USD 2009 2010 2011 2012 2013 Revenue 211,076 271,877 323,800 137,663 119,507 Consumer Consumer Products(Branding) n/a 38,462 67,535 50,266 32,203 Gaming/Apps 488 10,866 43,481 29,594 7,643 E t i Enterprise Solutions(ODP) 210,588 222,549 212,784 57,803 79,661

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2009 2010 2011 2012 2013

High Tech Park

Jinqiao Shanghai Binjiang Hang Zhou Jinqiao, Shanghai 1 building 1,500 m2 , R&D center Binjiang, Hang Zhou Xihongmen, Beijing under construction Shenbei, Shenyang under construction Jiuxianqiao, Beijing- 1 building 20,000 m2 il bl f l available for lease. Pursuing for the dreams

Real Estate Portfolio Development Progress

TechFaith Continues to make further progress on the

In Hangzhou 3 buildings or 43 300 m2 have been completed We are in

TechFaith Continues to make further progress on the development on our High Tech Park Campus

In Hangzhou, 3 buildings or 43,300 m have been completed. We are in the process of finalizing documentation with various government agencies and expect the buildings to be available for use or lease in the 4th quarter of 2014.

2

In Beijing, 16 buildings or 73,557 m2 are on track to be completed by the 4th quarter 2014. These would be potentially available for use or lease in the 4th quarter of 2015 4 quarter of 2015. In Shenyang, 2 buildings or 24,770 m2 are under construction and will be

Pursuing for the dreams

completed for use by the end of 2014 as our production center.

Commitment to Transparency & Shareholder Value

• Strong Corporate Governance
• Proven Business Model & Growth Strategy
• Long-tenured Management, Finance Team and Board

g g ,

• Chairman & CEO is a Major Holder
• Legal counsel: Skadden Arps Slate Meagher & Flom

Legal counsel: Skadden, Arps, Slate, Meagher & Flom

• Qualified Auditor: Deloitte & Touche Tohmatsu
• Transfer Agent: The Bank of New York
• Transfer Agent: The Bank of New York

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Appendix

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Innovative Ruggedized Smart Devices-1

J1(RMB2880) J2(RMB3980) J3(RMB4580) MobiFox is the first brand in China to launch outdoor Ruggedized Smart devices In 2012, MobiFox ruggedized products has obtained approval and support from the Chinese government to establish the national “Fire Torch” Project

J4(RMB5880) J5(RMB5288)

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Chinese government to establish the national “Fire Torch” Project.

Innovative Ruggedized Smart Devices-2

MobiFox is the first brand to launch Ruggedized Outdoor PAD globally and Ruggedized Outdoor PAD globally and has obtained very positive results from the market J PAD（RMB7380） 2014,MobiFox will continue to develop and launch more technologically advance ruggedized smart devices J-PAD（RMB7380） gg 2014 MobiFox will launch an extremely high end ruggedized smart device equip with unique functions

• J6(RMB5280）

J-Note（RMB6280）

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（RMB9800）

Ruggedized Devices for Enterprise Customers

Based on the platform of our consumer products, MobiFox has actively develop the market for enterprise solutions and launch devices develop the market for enterprise solutions and launch devices specifically tailor to their needs

J5S-Encryption SKY100-Precision N12- Logistics S300- For Police use with y Data Protection Mapping N12 Logistics Tracing functions such as finger print scanning and ID cards scanning

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Experienced Management Team

• Mr. Defu Dong, Chairman of the Board and CEO

Founder of TechFaith Worked at Motorola (China) as a Head of Regional Sales for four years. More than 15 years of wireless industry experience. Co-founder of Beijing Sino-Electronics Future Telecommunication R&D, Ltd., or SEF, a mobile handset design house, in February 2001. He was a director, shareholder and the Chief Executive Officer of SEF from its inception until July 2002.

M D D Chi f O ti Offi d P id t

• Mr. Deyou Dong, Chief Operating Officer and President

Director, Chief Operating Officer and President since August 2009. He joined Techfaith in 2007, acting as general manager of sales. Prior to this, he served as director of marketing and finance at Century Legend Technology Beijing Limited in 1998, and general manager of system integration department in China System Integration Technology Beijing Limited in 2003. Mr. Dong received a diploma in accounting from the Jilin University of Agricultural Science and Technology in 1997.

• Ms. Yuping Ouyang, Chief Financial Officer

Chief Financial Officer since August 2008. From September 2004 to August 2008, Ms. Ouyang was in various financial positions at the company, including US GAAP reporting manager and chief accounting

• fficer.

Prior to joining the TechFaith, Ms. Ouyang served as an accounting manager at Guangzhou Metro Corporation. Ms. Ouyang received her MBA from the Sun Yat- sen University and her bachelor’s degree in management from the Guangdong University of Foreign Studies. Ms. Ouyang is also a member of the Association of Chartered Certified Accountants.

• Mr. Fang Yibo, Chief Technology Officer

Before joining TechFaith in August 2002 Mr Fang worked at Beijing Sino Electronics Future Telecommunication R&D Ltd for five months as hardware director Before joining TechFaith in August 2002, Mr. Fang worked at Beijing Sino-Electronics Future Telecommunication R&D, Ltd. for five months as hardware director. From August 2001 to January 2002, Mr. Fang worked at ZT Telecom as hardware engineer. From 1995 to 2001, Mr. Fang worked at Motorola China as hardware

• engineer. Mr. Fang received his bachelor’s degree in engineering from Tsinghua University in 1991.

The President of STEP Technologies (Beijing) Co., Ltd. From August 2002 to March 2005, Mr. Yibo Fang was the Vice President and Chief Technology Officer of Techfaith China.

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Contact

Corporate Headquarter Legal Counsel Building C, No. 5, Rong Chang East Street Beijing Economic‐Technological Development Area (Yi Zhuang) B iji 100176

Skadden, Arps, Slate, Meagher & Flom 42/F, Edinburgh Tower, The Landmark | 15 Queen's Road Central | Hong Kong T: +852.3740.4748 | F: +852.3910.4748

Beijing, 100176 IR Contact US IR/Media Contact

|

Independent Accountants

Deloitte & Touche Tohmatsu

US IR/Media Contact David Pasquale Global IR Partners New York, NY P: +1‐914‐337‐8801 E: cntf@globalirpartners com

Deloitte & Touche Tohmatsu 26/F Wing On Centre 111 Connaught Road Central Hong Kong,

E: cntf@globalirpartners.com IR Contact Jay Ji Director of IR P: 86 10 5822 8390 Transfer Agent

The Bank of New York Attn: Receive and Deliver 101 B l St t 11W

P: 86‐10‐5822‐8390 F: 86‐10‐5822‐8200 E: ir@techfaith.cn

101 Barclay Street., 11W New York, NY 10286 Phone: 800-524-4458

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Thanks Thanks

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