1. 1 Skyworth Digital Holdings Limited 2001/02 Annual Results Mr. Stephen Wong Chairman

2. 2 Financial Highlights Financial Review Business Review Market Outlook Company Outlook Future Strategies Agenda

3. 3 2001/02 Annual Results Announcement Financial Highlights Mr. Joseph Liang Group Financial Controller

4. 4 (HK$ million) Year ended 31 March 2001/02 2000/01 Change % Turnover5,6054,447+ 26% Gross Profit782669+17% Gross Margin1415-8% Net Profit62(61)+201% Net Margin1.1%(1.4)%+180% Dividends (HK cents)80n/a Financial Highlights (1)

5. 5 Year ended 31 March2001/02 2000/01 Change % Earning per Share (HK cents)3.03(3.01)+201% Return on Equity2.9%(2.8)%+203% Current Ratio(times)1.92.3-18% A/R Turnover (days)6152+17% Inventory Turnover (days)5874-22% Gearing %3.4%0.9%+277% Financial Highlights (2)

6. 6 (HK$ million) Year ended 31 March 2001/022000/01 Change % Net Cash Inflow from Operating Activities 39108-64% Net Cash Outflow before Financing (344)(52)-561% Cash & Bank Balances1,1721,516-23% Cash Equivalent1,062633+68% Bank Borrowing7320+265% Capital Expenditures144134+7% Net Asset Per Share (HK$)1.041.07-3% Financial Highlights (3)

7. 7 (HK$ million) Year ended 31 March 2002 2 nd half 2001/02 1 st half 2001/02 Change % Turnover3,8441,761+118% Gross Profit570212+169% Gross Margin14.8%12.0%+23% Net Profit128(66)+294% Net Margin3.3%(3.7)%+189% Dividends(HK cents)35-40% Financial Highlights (4)

8. 8 Financial Highlights (5)

9. 9 2001/02 Annual Results Announcement Financial Review

10. 10 2001/02 Consolidated Profit & Loss Account

11. 11 Consolidated Balance Sheet

12. 12 Revenue and Sales Volume by Market Segments

13. 13 Sales Revenue Breakdown 2002 Revenue 2001 Revenue

14. 14 Financial Highlights- 1Q 2003

15. 15 Revenue Mix by Product 2002 Revenue Contribution 2001 Revenue Contribution

16. 16 Revenue Mix by Geographical Area 2002 Revenue Contribution 2001 Revenue Contribution Oversea sales increased by 58%

17. 17 Product Mix in Mainland China Market (Units) 2002 Product Mix 2001 Product Mix

18. 18 Business Review Mr. Stephen Wong Chairman

19. 19 No.1 Growing in China TV Industry despite intense competition Business Review- TV (1) As of 12/31/01 Source from Ministry of Information in China

20. 20 Business Review- TV (2) sales unit in Y2001/02 4.75m 5.8m 6.5m 3.5m Ranked Top 3 in TV Industry with 16% market share and 42% increase YOY

21. 21 Market Condition Price War in the 1 st half of Year 2001 Market consolidation with small TV manufacturer close as a result of price competition. Top 4 TV player contribute 67% of market share Prices has stabilized in the market place in 2 nd half of the year Stringent cost management to reduce cost by lowering Chassis cost by 25% and selling expenses decreases by 2%. IC cost has decreased by 10%. Business Review- China TV (3)

22. 22 Product Introduced 36 new higher-end products in Year 2001/02 Pure Flat TV-1 st to mass launch in China LCDTV- 1 st to mass launch in China Progressive Scan TV- 1 st mass launch in China Sell more higher end TV in urban cities. Ratio of 25”above : 21” below is ratio 6:4 Reason for High Growth in TV sales Efficient sales and distribution network Accurate marketing and sales strategy and flexible to adapt to market change Strong & Innovative R&D to lead the introduce by rolling out new TV models ahead of other peers Competitive pricing Business Review- China TV (4)

23. 23 Pure Flat TVs Achieved Highest Market Share in China TV industry Sale  1400% Volume  2300% Business Review- China TV (5) Best Seller Products

24. 24 Business Review- Overseas TV Business (1) No 1 in Overseas Business in China TV industry

25. 25 Business Review- Overseas Business (2) Year 2002

26. 26 Market Condition As worldwide manufacturer is focusing to lower their production cost, there is an increasing demand from our overseas client to transfer their manufacturing production to China Operations Increased 3 production line in order to meet the increase demand of overseas business purchase orders Business Review- Overseas Business (3)

27. 27 Product More new models for clients to choose. 25 new TV models and 20 new AV models. Introduce DVD into the new product line in 2001. A new popular product in many countries and is expecting continuous high demand in volume Sales Increase 20% orders with existing clients Solicited 25 new clients DVD overseas sales increased by 400%. Competitive pricing Business Review- Overseas Business (4)

28. 28 Market Outlook

29. 29 Market condition has improved. Steady market growth. 5% per annum by Ministry of Information in China 2002 Rural Area 15%-20%growth rate per annum Increase in Consumer Power in China and demand for higher- end product. Last consumption revolution boom in China was 1990. Expecting 2 nd round coming. TV replacement for urban area, increase demand in rural area. Demand for standardization in digital broadcasting in China by 2008. Hence demand for digital display product and set-top box Despite China enter WTO, China TV market is still dominating 70% of market share. Competitive edge in pricing, quality, sales network and unique sales culture is difficult to adapt. Market Outlook- China Market

30. 30 China as a manufacturing base. Expected OEM/ODM volume to double. Expanded to new major countries Japan Korea and Western Europe in 1Q 2002/03 and is expected to increase in purchase order later in the year. Skyworth is the pioneer and have 10 years of overseas business experience. Key competitive edge is low manufacturing cost in China with high quality of service China Government helps standardize patent and royalty rights as China enter into WTO Market Outlook- Overseas Market

31. 31 Company Outlook

32. 32 Operations and Cost Maintain stable profit margin by strengthen R&D to lower chassis cost. Centralize R&D centre in High Tech Park to encourage inter-company discussion and collaborate product development roll out Established ERP by SAP to improve operations and inventory control Expand Production Capacity to meet increase sales demand. 350,000 sq m of land in ShiYan, Shenzhen Strengthen talents in Technical, Design, Management areas Company Outlook- Overview

33. 33 Marketing Strategy Market segmentation. Urban cities- target higher end TV, bigger size model Rural cities- target lower end to mid range TV Trade market- higher end bigger size TV such as Rear Projector TV Educational market- Special team to expand in education projects Company Outlook- Overview

34. 34 TV Will roll out 50 new products in 2002/03. Strengthen R&D to continue to lower manufacturing cost and develop new produce to stay ahead of competitor Continue to enhance sales network Expand PDP and TFT TV production line in ShiYan, Shenzhen. AV Will roll out 360 new products More efficient AV sales force in China market Adapted higher compensation sales scheme to boost sales Company Outlook

35. 35 Sales Expanded new markets to Japan, Korea and Western Europe market. Signed 9 new clients in 1Q2002/3. Increasing trends of existing orders in CRT TV manufacturing. While overseas clients is focusing to manufacturer higher end product such as Plasma TV. Operations Awarded Japanese Quality Assurance Approval in all 3 export production line. Company Outlook- Overseas Business

36. 36 Strategy Studying expansion to US market Increase higher end TV products in overseas business to improve profit margin. Increase partnership with multinational consumer electronic industry cooperation Company Outlook- Overseas Business

37. 37 Broadband Digital Set-top box To roll out 9 new digital set-top boxes in 2002/03. Already launched 5 include, DVBS,DVBT,DVBC. Information Technology Pursuant to the collaboration projects with Jiangsu provinical Administrations for Industry and Commerce (AIC), the group had completed the IT infrastructure, including the set-up of an internal information systems for the AICs. The systems will be ready for commercial launch by the end of 2002. Company Outlook- Other Business

38. 38 Future Prospects

39. 39 Strategy Focus on core business of digital display technology Leverage Strategic Alliances to strengthen core business mission Leverage strength of sales and distribution network and increase product variety Increase international awareness and increase corporate identity in business sector Future Prospects

40. 40 Thank You