Attached files
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| 8-K - SINOHUB, INC. | m3231108k.htm |
Facilitating the Mobile Device Revolution
www.sinohub.com
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This presentation contains “forward-looking statements” within the meaning of the “safe-harbor”
provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors that could cause the actual results of the company to
differ materially from the results expressed or implied by such statements, including changes of
anticipated sales levels, future international, national or regional economic and competitive conditions,
changes in relationships with customers, access to capital, difficulties in developing and marketing new
products and services, marketing existing products and services, customer acceptance of existing and
new products and services, and other factors, including those factors described in SinoHub’s Annual
Report on Form 10-K filed on March 14, 2011. Any statements that are not historical facts and that
express, or involve discussions, as to expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of words or phrases such as "will likely
result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” and
“projection”) are not historical facts, may be forward-looking statements and may involve estimates
and uncertainties. Accordingly, although the company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no assurance that such expectations will
prove to be correct. The company undertakes no obligation to update the forward-looking information
contained in this presentation.
provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors that could cause the actual results of the company to
differ materially from the results expressed or implied by such statements, including changes of
anticipated sales levels, future international, national or regional economic and competitive conditions,
changes in relationships with customers, access to capital, difficulties in developing and marketing new
products and services, marketing existing products and services, customer acceptance of existing and
new products and services, and other factors, including those factors described in SinoHub’s Annual
Report on Form 10-K filed on March 14, 2011. Any statements that are not historical facts and that
express, or involve discussions, as to expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of words or phrases such as "will likely
result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” and
“projection”) are not historical facts, may be forward-looking statements and may involve estimates
and uncertainties. Accordingly, although the company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no assurance that such expectations will
prove to be correct. The company undertakes no obligation to update the forward-looking information
contained in this presentation.
Safe Harbor Statement
www.sinohub.com
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Sources: JP Morgan & Nokia, 2010
Growth in White-box Phones Continues
www.sinohub.com
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Wall Street Journal
(June 2010)
Shenzhen Daily
(November 2010)
Custom-Mobile Phones . . . Explosive Growth
www.sinohub.com
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White-box Market - Product Cycle
● Technology changes every 2-3 months
● Marketing life-time for a new design is ~ 3
months
months
● Average volume for new design is 200-300K
www.sinohub.com
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Distribution Channels for White-box phones
Local Chinese
Brand Names
Brand Names
Tianyu
Tianyu Sells China’s
#1 White-box Brand:
#1 White-box Brand:
K-Touch
Overseas
Non-Brand
Names
Names
“Local Kings” in
Developing Countries
Developing Countries
• local brand
• 100,000 units/month
SinoHub ICM Focus
Local Chinese
Non-Brand
Names
Names
Thousands of
small companies
small companies
www.sinohub.com
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Who is Producing White-box Phones?
Local Chinese
Brand Names
Brand Names
Tianyu
Tianyu Produces
China’s #1 Brand:
China’s #1 Brand:
K-Touch
Local Chinese
Integrators
Integrators
>1000 small
companies
companies
Two
Options
Options
www.sinohub.com
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“Local Kings” - Problems with Existing Suppliers
● With Local Chinese Brand Names:
– High Minimum Order Quantities
– Long Lead-times
● With Local Chinese Integrators:
– Quality Control
– Financial Resources
www.sinohub.com
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ICM Competitive Advantage - “Joint-Design”
* If motherboard modifications are required, SinoHub works with design house for R&D costs
Customer
chooses
reference
image
design &
specs from
SinoHub’s
online
platform
chooses
reference
image
design &
specs from
SinoHub’s
online
platform
Customer
contacted
by SinoHub
to work
through
specific
design
features*
contacted
by SinoHub
to work
through
specific
design
features*
Market-Specific
Needs
Needs
SinoHub buys
motherboards
from design
house
motherboards
from design
house
SinoHub
produces
motherboards
in-house
produces
motherboards
in-house
Customer
Choice
Choice
A
B
Order &
deposit
processed,
deposit
processed,
phones
produced
& shipped
produced
& shipped
Moulds,
Production, &
Testing
Production, &
Testing
SinoHub Model
www.sinohub.com
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Benefits Of Joint-Design Model
Flexibility of Design
Ø Competitive features for local markets
Flexible MOQ
Ø Ability to profitably deliver low-volume orders which
eliminates inventory risk
eliminates inventory risk
Reliability
Ø Consistent quality
Ø Financial Strength
www.sinohub.com
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ICM Case Study: HT Mobile
www.sinohub.com
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Synergistic Service Network - Capability
China
Beijing
Regional Office &
Support Center
Shanghai
Regional Service Center
Shenzhen
1)Headquarters
Warehouse
2) ICM Factory
300k phones per mo
630k PCBA boards per mo
3) Customs Office
4) ICM Sales Office
Hong Kong Warehouse
(80k sq. ft.)
(80k sq. ft.)
2 .5 - 3 million phones
Per month
Shenzhen
Shanghai
Beijing
www.sinohub.com
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Company 10-year Growth & Evolution
Markets
Served:
Served:
China
Developing
Countries
ECP
ICM
SCM
China
2000
2005
2010
Business
Unit:
Unit:
Supply Chain
Management
Management
Electronic Component
Purchasing
Purchasing
Integrated Contract
Manufacturing
Manufacturing
ECSS
www.sinohub.com
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Strong Customer Relationships
|
Vendors,
Distributors |
Design
Houses
|
Distributors, Operators |
|
|
|
|
www.sinohub.com
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Financial Highlights
Founded: 2000 NYSE Amex: SIHI
Shenzhen, China No. of Employees: 900
2011 Guidance 30% Growth ($255MM Revenue)
www.sinohub.com
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Financial Highlights - Annual Figures
|
YOY Growth
Revenue
|
51%
|
176%
|
62%
|
53%
|
|
Gross profit
|
68%
|
142%
|
38%
|
69%
|
|
Net income
|
192%
|
143%
|
46%
|
54%
|
|
(Audited, USD millions, except EPS)
|
2007
|
2008
|
2009
|
2010
|
|
Revenue
|
$28.8
|
$79.5
|
$128.4
|
$196.7
|
|
Gross profit
|
$6.7
|
$16.2
|
$22.4
|
$37.8
|
|
Net income
|
$3.5
|
$8.5
|
$12.4
|
$19.1
|
|
Earnings per share - diluted
Number of shares (millions) - diluted |
$0.22
15.9 |
$0.4
21.5 |
$0.48
25.7 |
$0.67
28.4
|
www.sinohub.com
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Financial Highlights (Q4 2010)
Revenue
Gross profit
Net income
Earnings per share (fully diluted)
Revenue
(Unaudited, USD millions, except EPS)
$58.5
$42.8
$13.0
$6.4
$7.2
$3.7
$0.25
$0.13
37%
102%
98%
Q4
2010
Q4
2009
YOY
www.sinohub.com
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Balance Sheet
Assets:
Cash & Cash Equivalents
$14.6
$45.7
$32.1
$67.8
$42.2
$110.1
$1.3
$0.7
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$11.2
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$38.9
$4.5
$110.1
Restricted Cash
Accounts Receivable
Inventories
Property, Plant & Equipment
Prepaid & other
Deposits with Suppliers
Total Assets
Liabilities & Shareholders’ Equity:
Total Debt, including current portion
Total Liabilities
Total Shareholders’ Equity
Total Liabilities & Shareholders’ Equity
(Audited, USD, millions) December 31, 2010
www.sinohub.com
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Growth Strategy
■ New Customers: Mobile Phone
Distributors & Operators
Distributors & Operators
■ Penetrate Chinese market
■ Expansion in Southeast Asia: Indonesia,
India, Vietnam, Thailand & Malaysia
India, Vietnam, Thailand & Malaysia
■ ICM Factory: ~700 employees
ICM: Deepen
Asian Market
Penetration
Asian Market
Penetration
www.sinohub.com
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Experienced Management Team
Henry T. Cochran - CEO and Chairman of the Board
§ 30+ years founding and managing companies
§ Former CEO and president - Content Integrity & Advanced Visual Systems
§ Former VP - Sybase
§ Strong MIS background
Lei Xia - President
§ 15 years in electronics industry in China
§ Significant senior management experience in the Chinese electronics industry
§ First sales manager of Arrow Electronics’ Shanghai office
§ Founded RGL Beijing (high-end distributor and solution provider) and NEFAB China
(manufacturer and packaging solution provider)
(manufacturer and packaging solution provider)
Willa Li - CFO (De Hai Li)
§ Deep experience working with Chinese banks
§ Significant knowledge of electronic components industry
§ Prior CFO of Shenzhen Excellence Investment Development Co. where he helped to raise
RMB 120 million
§ Prior CFO of Hong Kong B&D Engine Company
www.sinohub.com
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Jeff He - Director. Commercial Operations, China, Saint-Gobain Abrasives, Shanghai
- Extensive business experience in the USA and China; M&A experience; background in Finance; MBA
P
World-Class Corporate Governance
BOARD OF DIRECTORS
Audit
Committee
Harry Cochran - Chairman of the Board and CEO
Lei Xia - President
Will Wang Graylin - CEO, ROAM Data
- Extensive operational and entrepreneurial skills in mobile phone industry
Ted Shen - Senior Associate, Austen Morris Associates, Shanghai
- Experience in finance, investment management, manufacturing and sales
Daniel Lui - CEO, Porcheers Consultants
- Former CFO of U.S. listed Chinese company, significant experience with internal controls, MBA
P*
* Chairman, Audit Committee
P
www.sinohub.com
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Why Invest in SinoHub?
ü Experienced Management
ü Effective Corporate Governance
ü 5 consecutive years of high growth & profits
ü Barriers to Entry: Proprietary Platforms &
Extensive Know-how
ü Top-10 Accounting Firm: Baker Tilly
ü US law firm: Seyfarth Shaw
www.sinohub.com
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COMPANY: Vice President, Investor Relations:
Cathy Hu Douglas Menelly
SinoHub, Inc. SinoHub, Inc.
Phone: +86 159 8675-5834 Phone (China): + 86 (139) 2524-5053
Email: cathy.hu@sinohub.com Phone (USA): + (516) 445-5387
Email: dmenelly@sinohub.com
External I.R. Firm:
Ted Haberfield
HC International, Inc.
Phone: +1 (760) 755-2716
Email: thaberfield@hcinternational.net
Thank you for your time !
Facilitating the Mobile Device Revolution