EX-99.1 2 ex99_1.htm POWERPOINT PRESENTATION ex99_1.htm


 Facilitating the Mobile Device Revolution
 
 
 
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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.
Safe Harbor Statement
 
 
 
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Sources: JP Morgan & Nokia, 2010
Growth in White-box Phones Continues
 
 
 
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Wall Street Journal
(June 2010)
Shenzhen Daily
(November 2010)
Custom-Mobile Phones . . . Explosive Growth
 
 
 
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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
● Average volume for new design is 200-300K
 
 
 
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Distribution Channels for White-box phones
Local Chinese
Brand Names
Tianyu
Tianyu Sells China’s
#1 White-box Brand:
K-Touch
Overseas
Non-Brand
Names
“Local Kings” in
Developing Countries
• local brand
• 100,000 units/month
SinoHub ICM Focus
Local Chinese
Non-Brand
Names
Thousands of
small companies
 
 
 
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Who is Producing White-box Phones?
Local Chinese
Brand Names
Tianyu
Tianyu Produces
China’s #1 Brand:
K-Touch
Local Chinese
Integrators
>1000 small
companies
Two
Options
 
 
 
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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
 
 
 
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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
Customer
contacted
by SinoHub
to work
through
specific
design
features*
Market-Specific
Needs
SinoHub buys
motherboards
from design
house
SinoHub
produces
motherboards
in-house
Customer
Choice
A
B
Order &
deposit
processed,
phones
produced
& shipped
Moulds,
Production, &
Testing
SinoHub Model
 
 
 
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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
 Reliability
 Ø Consistent quality
 Ø Financial Strength
 
 
 
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ICM Case Study: HT Mobile
 
 
 
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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.)
2 .5 - 3 million phones
Per month
Shenzhen
Shanghai
Beijing
 
 
 
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Company 10-year Growth & Evolution
Markets
Served:
China
Developing
Countries
ECP
ICM
SCM
China
2000
2005
2010
Business
Unit:
Supply Chain
Management
Electronic Component
Purchasing
Integrated Contract
Manufacturing
ECSS
 
 
 
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Strong Customer Relationships
Vendors,
Distributors
Design
Houses

Distributors,
Operators
 
 
 
 
 
 
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Financial Highlights
Founded: 2000       NYSE Amex: SIHI 
Shenzhen, China     No. of Employees: 900
2011 Guidance 30% Growth ($255MM Revenue)
 
 
 
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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
 
 
 
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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
 
 
 
 
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Balance Sheet
Assets:
 Cash & Cash Equivalents
 $4.5
 $4.5
 $4.5
 $4.5
 $4.5
$11.2
$14.6
$45.7
$32.1
 $4.5
 $4.5
 $4.5
 $4.5
 $4.5
 $4.5
$38.9
 $4.5
$110.1
$67.8
$42.2
$110.1
$1.3
$0.7
$4.5
 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
 
 
 
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Growth Strategy
■ New Customers: Mobile Phone
    Distributors & Operators
■ Penetrate Chinese market
■ Expansion in Southeast Asia: Indonesia,
    India, Vietnam, Thailand & Malaysia
■ ICM Factory: ~700 employees
ICM: Deepen
Asian Market
Penetration
 
 
 
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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)
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
 
 
 
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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
 
 
 
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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
 
 
 
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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