Title: Beijing%20Beida%20Jade%20Bird%20Universal
1-
- Beijing Beida Jade Bird Universal
- Sci-Tech Company Limited
Strategic Development
May 2002
2Content
- Part (I) About the Company
- Part (II) Strategic Investment in SMIC
- Part (III) Prospects Outlook of Semiconductor
- Industry
- Part (IV) Proposed Placing of New H Shares
3Part (I)About the Company
4Company Background
- Incorporated as a joint stock limited company
- Registered capital RMB 96,400,000
29 Mar 2000
- The first H Shares Listed on the Growth
Enterprise Market of the Stock Exchange of Hong
Kong - Stock Code 8095
- Capital raised Approx. HK300 million
27 Jul 2000
18 Dec 2000
- Company subdivided each of the Promoters shares
and H shares into ten shares
5Shareholders Structure
Employees of Jade Bird Group the Company
Strategic Investors from Hong Kong
Peking University
93.37
6.63
Dynamic Win
Jade Bird Group
Public (H Shares)
Strategic Investors from HK Singapore
22.82
27.39
32.16
17.63
6Company Structure (1)
The Company
100
75
51
Hebei Beida Jade Bird Universal Fire Alarm
Device Co Ltd
Beijing Jade Bird Hao Di Electric System Co Ltd
Beida Jade Bird Universal Sci-Tech (Cayman)
Development Co Ltd
100
Beida Jade Bird Universal Sci-Tech (Cayman)
Investment Co Ltd
5.29
SMIC
7Company Structure (2)
- JBU (Cayman) Development engaged in the sales
of computer products - JBU (Cayman) Investment holding the investment
in SMIC - SMIC an IC foundry factory located in Shanghai
Pudong - Hebei JBU Fire Alarm Device engaged in the
manufacture and sales of fire alarm devices - Jade Bird Hao Di engaged in the manufacture and
sales of electric meter remote reading system
8Principal Activities
- One of the leading software developers and
integrated circuit designers in the PRC - Engaged in the design, manufacture, marketing,
distribution and sale of proprietary embedded
products including - Application Specific Integrated Circuit (ASIC)
- Network Security Products
- GPS Application System
- Smart Card Application System
- Wireless Fire Alarm System (WFAS)
9Awards Qualifications (1)
10Awards Qualifications (2)
11Awards Qualifications (3)
12Major Products (1)
- ASIC
- Develop embedded microprocessor and specific
integrated circuits - Provide ASIC technologies and customized
engineering design, strives to improve the system
with optimal performance, smaller size and lower
cost - Design and develop ASIC synthesized with
cryptographic logic (Security ICs) for
commercial information security systems
13Major Products (2)
- Network Security Products
- Security gateway, firewall and network monitor
systems are applied in government branches,
financial institutions, large enterprises and the
army - Begin mass production of SJY01- A, SZD02 and
SJY04 encryption cards - Emphasize security services such as risk
evaluation, system optimization, security alarm
and consulting - Strengthen cooperation with SYMANTEC and other
famous information security providers
14Major Products (3)
- GPS Application System
- Box unit installed in moving or static target
sending longitude and latitude information via
wireless communication network, thus allowing
remote monitoring facility and control center to
keep track of target - Apply JB-230M GPS system in fleet management
monitoring, dispatch and theft alarm of all kinds
of vehicles - Strengthen RD on emerging applications such as
logistics distribution and navigation - Strengthen ties with regional governments, and
strive to establish markets in Beijing,
Guangdong, Sichuan and South-eastern part of the
PRC
15Major Products (4)
- Smart Card Application System
- Provide contact and contactless smart cards
- Products cover intelligence household management
system, logistics management system, POS and
access control system - Major customers include universities, hotels,
financial institutions and large enterprises
16Major Products (5)
- WFAS
- Accurate fire detecting and fire alarm functions
- More reliable, economic and versatile
- Apply in Haikou Fire Alarm Control Center,
Zhongnanhai, Yuquan Mountain, the Summer Palace
and other projects - Manufacture fire alarm sensors and controllers
through subsidiary Hebei Beida Jade Bird
Universal Fire Alarm Devices Limited - Strengthen support for upstream RD and flexible
applications of wire and wireless fire alarm
solutions
17Major Clients
18Financial Highlights (1)
19Financial Highlights (2)
RMB000
20Part (II) Strategic Investment in SMIC
21Reasons for Benefits of Investing in SMIC
- Strengthen and enhance the Companys technology
in the design and development of ICs - Enable the Company to obtain more market
intelligence about ICs manufacturing technology,
which in turn benefit our design of ICs which are
key components of the Companys products - Ensure stable supply of ICs at competitive price
by subcontracting ICs manufacture to SMIC - Enable the Company to receive other support from
SMIC in technologies and techniques enhancement
22JBUs Involvement in the Management of SMIC
- The Company has an active role in setting up and
running of SMIC - As one of the promoters of SMIC, the Company has
participated in SMICs feasibility study and
taken up an important role in its liaison with
PRC government authorities - Two of the Companys directors have been actively
participating in the management and operation of
SMIC
23JBUs Investment Highlights
- Investment vehicle Beida Jade Bird Universal
(Cayman) Investment Company Limited, wholly owned
subsidiary - Subscribe for 54,000,540 SMIC Preference Shares
at US1.1111 per share - Subscribe for 54,000,540 SMIC Series A-1
Preference Shares at US0.00001 per share - Total investment amounting to US60 million
- Hold approximately 5.29 of the total issued
voting share capital of SMIC
24Pro Forma Financials after the Investment
(Based on the actual financials of year 2001)
Upon Completion of Investment and Share Placing
Current
RMB000
124,617
124,617
Turnover
39,840
-
Income Dividend
77,350
37,510
Profit attributable to shareholders
6.7
3.9
Profit per share - (RMB cents)
787,764
831,372
Total assets
-
390,000
Bank loans
787,764
403,997
Shareholders equity
Assumed the preference shares dividend rate
at 8 Based on issuing the additional
192,800,000 H shares and the current market price
of HK1.5 per share (total placing proceeds
amounting to HK289 million or US37 million)
25SMICs Competitive Advantages (1)
- Strong base of strategic partners and investors
- Enormous market potentials
- Lower costs
- Building/facilities
- Workforce/operations
- Supplies/material
- Strong government support
- Experienced management
26SMICs Competitive Advantages (2)
- Import tax (tariff) exemptions
- Equipment
- Raw Material
- Value added tax (VAT) rebates
- 17 Vs lt5
- Corporate tax discounts
- First profitable year 5 exempt-5 halves
- Accelerated depreciation (tax purposes)
- Preferential treatment for Fabless design houses
- Same treatment as software industry (3 VAT)
27SMICs Initial Financing
- Registered Capital US1 billion
- First phase investment amount US 1.4 billion
- Major investors include
- Strategic Partners
- Jade Bird Universal
- Shanghai Industrial Holdings
- Institutional Investors
- Goldman Sachs
- HQ Asia Pacific
- Walden International
- Vertex Management
28SMICs Capability
- Low power static random access memory (SRAM)
technology transfer from Toshiba - 0.18-micron baseline logic process technology
transfer and patent license rights from
Chartered, one of the world's top three silicon
foundries - Manufacture 0.22um and 0.18um FCRAMTM (Fast Cycle
RAM) Products for Fujitsu Limited - Conclude a non-exclusive alliance with ChipPAC,
Inc. (Nasdaq CHPC) for end-to-end solutions from
wafer probe to packaging and test and final
distribution in China and global market - Establish partnership in the area of advanced
semiconductor process technology with Europe's
leading independent RD centre for
microelectronics, IMEC
29SMICs Development Plan
Equipment installation begin
Pilot production begin
Half capacity reaches 25,000 wafers/month
Combined production to 85,000 wafers/month
Photo mask shop cleanroom completed
2004
Jan
1H
Construction ground breaking
Initial products/ processes qualified
Volume production commence
Possible 2nd phrase financing (2H 2003)
SMIC has 1-2 year leads over its competitors in
terms of entering into the China market
30SMICs Employees
By Education
By Region
By Experience
Total 1032 employees as at August 27, 2001
31Part (III)Prospects Outlook of Semiconductor
Industry
32Supply Demand of ICs in China
SourceCCID
33Semiconductor Market Worldwide and China
SourceDataquest
34Existing Suppliers in China
Grace, Belling, Hua Xia and others are either
under the construction or at the planning stage
35Existing Fab Technology in China
Unit Inch
Unit Micron
Year 2000
Source Computer World, CLSA Emerging Markets
36Market Outlook (1)
Expected Growth
- Rapid expansion of domestic market
- Current market US15 Billion (8 global
market) - 30.8 Growth p.a. 1998-2000
USBillion
Source Gartner Dataquest
37Market Outlook (2)
Data Processing Semiconductor
- Growth drivers
- Internet continues to drive growth
- Increase investment from Taiwanese motherboard/
notebook/ PC manufacturers - Global OEMs are establishing production in China
- Local consumer electronics producers are
venturing this sector
Source Gartner Dataquest
38Market Outlook (3)
Communications Semiconductor
- Growth drivers
- Governments effort to enhance the information
and networking system - Strong foreign direct investment inflow in
electronics and communications equipment sector - Increase percentage of low to mid end
communications production
Source Gartner Dataquest
39Market Outlook (4)
Consumer Semiconductor
- Growth drivers
- Robust GDP growth
- Critical mass of middle class consumers
Source Gartner Dataquest
40Market Outlook (5)
PC Market
- Only 1.9 PC penetration in 2000
- 48 growth Y/Y in Q1 2001
- Projected 26 CAGR 2001-2003
- Data processing electronics 43 p.a. growth
1997-2000
Source IDC, JP Morgan estimates
41Market Outlook (6)
Mobile Phone Subscribers
No. of subscribers (in million) (Accumulative)
Source IDC, JP Morgan estimates
42Part (IV)Proposed Placing of NewH Shares
43Proposed Transaction
- Issuer
- Shares Offer
- Size of Offer
- Use of Proceeds
- Closing Date
- Beijing Beida Jade Bird Universal Sci-Tech Co
Ltd - (Stock code 8095.hk)
- 192,800,000 ordinary shares (H Shares)
- US 37 million (estimated)
- Repayment of bank loan used for investment in
- SMIC
- June 2002
44Special Capital Price
- Record High HK2.925 per H share
- 31 May 2001
- Record Low HK1.1 per H share (Placing Price)
- 27 July 2000 (IPO)
RMB 0.1
Nominal Value
700,000,000
Number of Promoters Shares
264,000,000
Number of H Shares
964,000,000
Total Number of Issued Shares
RMB 96,400,000
Total Issued Share Capital
Current Market Capitalization
HK1,426,720,000
45Stock Performance
Stock Price and Volume Performance (IPO Date to
Present)
46-
- Beijing Beida Jade Bird Universal
- Sci-Tech Company Limited
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www.china-jbu.com