Company Description - AIVtech International Group Co. (“AIVtech” or the “Company”) is a leading manufacturer of consumer electronics
products, such as furniture audio and multimedia speakers in China. The Company plans to capitalize on its strong domestic position
to become a well-known international brand. AIVtech focuses on the integration of electronic devices, such as multimedia speakers, with
furniture and has coined the term “electronic furniture” to describe its products. The Company’s brand—AIV—stands for “Audio & Interactive
Video” and describes the integration of audio and video to provide complete audio-visual systems for its customers. Currently, the
Company classifies its products within three categories: (1) casual furniture audio such as rocking chair speakers and video game chairs;
(2) hi-fi digital and multimedia speakers; and (3) LCD/LED televisions, which entered into production in April 2010. The Company was
founded in October 2004 and is headquartered in Shenzhen, China, and its manufacturing facility is located in Dongguan.
2. Safe Harbor Statement
Safe Harbor Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation
Reform Act of 1995: This presentation contains “forward-looking” statements, which are not historical
facts, but are forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements relate to analyses and other information based on forecasts of future
results and estimates of amounts not yet determinable. These statements also relate to our future
prospects and proposed new products, services, developments or business strategies. These forward-
looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”,
“could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “continue” and other
similar terms and phrases, including references to assumptions. Although we believe that the
expectations reflected in any of our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed. Our future financial condition and results of
operations, as well as any forward-looking statements, are subject to changes and to inherent known
and unknown risks and uncertainties. We do not intend, and undertake no obligation, to update our
forward-looking statements to reflect future events or circumstances.
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3. Equity Snapshot
Symbol OTCBB:ECOH
Price / 52-Week Range $4.60 / N/A
Basic Shares Outstanding 20 million
Market Cap. $92 million
Revenues (CY09) $38.5 million
EBITDA (CY09) $8.3 million
EPS (CY09) $0.37
EV/Sales (CY09) N/A
Cash (12/31/09) $3.6 million
Total Debt (12/31/09) $0
Fiscal Year End December
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4. Investment Highlights
Leading consumer electronics manufacturer
with strong brand
Innovative product design
Proprietary technology and intellectual
property
New LED TVs to drive growth in 2010
Rapid growth in revenue and net income
Experienced management team
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5. Company Overview
Leading audio furniture,
multimedia speaker and LED-TV
manufacturer with a strong
brand name
Founded in 2004 and
headquartered in Shenzhen
Products sold in North America,
Europe, Southeast Asia,
Australia and China
30,000 sq. m of manufacturing
space located in Dongguan
600+ employees
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6. Product Overview
Audio Furniture Multimedia Speakers
(80% of CY09 Sales) (20% of CY09 Sales)
LED/LCD TVs
(Launched in 2010)
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7. AIV-Branded Audio Furniture
Leading brand with approximately
60% share of international market
Generated 80% of revenue in 2009
Award-winning video-game chair
Works with PS, Xbox
26% gross and 18% net margins
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8. Avid China Gaming Market
Number of Internet Users and Growth
Avid gaming market in China Rate in China
384 million Internet users and 450 80%
170,000+ Internet cafes 400 70%
China ranks #2 with 27% of
350 60%
global network gaming revenue
(Iresearch) 300
50%
(Millions)
(Percent)
Chinese online game market to 250
hit $9.2 billion by 2014 (Niko 40%
200
Partners) 30%
150
Market for online games
100 20%
expected to grow by 11%
through 2013 (yStats.com) 50 10%
U.S. growth rate: 29% 0 2002 0%
2003
2004
2005
2006
2007
2008
2009
China: 21%
Number of Internet Users Growth Rate
Source: China Internet Network Information Center (CINIC)
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9. Multimedia Speakers
Broad product line
Notebook PC speakers
Channel speakers
Wireless speaker kit
Generated 20% of revenue in 2009
24% gross and 16% net margins
Hot new product: Digi Panda
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10. Multimedia Industry Outlook
Global market for multimedia speakers is forecast to hit 127.3
million units and $2.9 billion in 2010, growing 10% in 2011
(HZResearch)
The Chinese market for multimedia speakers is forecasted to hit
26.9 million units and $615.8 million (HZResearch)
Steady growth of multimedia speaker sales in China. Expect to gain
higher market share in 2010 with fast-selling Digi Panda
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11. LCD/LED TV Opportunity
Global LCD TV market 171 M Worldwide TV Market by Technology
units in 2010 (+21%)
(Corning)
The China LCD TV market is
expected to hit 37 million units
(+32%)
LCD TV penetration is expected
to increase by 18 points to 86%
in China
Rapid increase in LED-
Backlit TVs (DisplaySearch)
35 million units (20%
penetration) sold in 2010
100 million units (40%) Source: DisplaySearch via Semiconductor Today
estimated to be sold in 2013
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12. LED-Backlit Televisions
New LED-TV line for 2010
LED TVs offer superior lifetime and image quality
Professional and powerful build-in audio technique
Excellent design team in digital circuits and industrial design
Established customer relationships with many well-known European
brands such as ALDI , Dixons, Qmedia, etc.
Expect significant revenue contribution in 2010
Offers 15% gross and 6% net margins
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13. Sales Channel
LED TV and Furniture Audio
businesses are 100% ODM CY 09 Sales by Distributor
Multimedia speaker business is 50%
ODM Others
International retailers (80% of total 16.3%
16.3%
sales): Ace Bayou, Target, TC-STAR,
and Wal-Mart Anji Weiyu
4.1%
4.1%
Beijing Huaqi 7.7%
7.7% 47.3%
47.3%
10.2%
Guangdong 10.2%
Guanghong Da Kang
Domestic distributors (20% of total 14.5%
14.5%
sales): Dakang Holding, Anji Chaoya,
Anji Weiyu, Beijing Huaqi, and Anji Chaoya
Guangdong Guanghong
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14. Proprietary Technology
Several patents awarded and hundreds of international product
certifications
Innovative and unique patented products
Digital speaker with audio and video function
Multimedia furniture chair with audio
Core technology includes:
Integrating multimedia digital products and furniture
“Seat-back linkage” in the under-bed of an intelligent chair
Key technology and application of a digital family doctor
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15. Disciplined Manufacturing
Manufacturing facility located in Dongguan, Guangdong Province
Strict production management
Forecast of annual production capacity of furniture audio, multimedia
speakers, and LED TVs (in 2010, post-financing): 1.8 million, 1.2
million, and 1.2 million units, respectively
Fast response time
Existing products: 12-18 days
New products: ready for shipment in 15-21 days
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16. Awards and Certifications
Awards and certifications include:
ISO9001: 2000
China Compulsory Certification
(3C)
South Korea electrical and
electronic research institute
Hong Kong standards and testing
product certification
European Union CE certification
State FCC certification
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17. Competitive Advantages
Established, stable distribution channels such as Ace
Channel Bayou, Carrefour, Target, Wal-Mart, and TC-STAR, etc.
More than 60 domestic distributors nationwide
Transportation Close proximity to waterways and railways
Several patents and hundreds of international product
Technology certifications in multimedia speaker and furniture audio,
as well as LED technology
Team Experienced R&D and aggressive management team
Well-known brand in domestic and global market for
Brand
producing high quality, innovative products
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18. Growth Strategy
LED TVs
Entered rapidly growing market for LCD TVs with LED backlighting
Leverage strong brand name and sales and distribution network
Audio Furniture
Introducing new exciting and unique products in international markets
Further penetrate China, Australia, United States and Southeast Asia: huge
market potential
Multimedia / Digital Speakers
Design, develop and produce innovative products such as the Digi Panda to
attract new customers and gain share
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19. Management Team
Name Position Background
Founder, professional engineer,
Chairman and
Mr. Jinlin Guo many years of design
CEO
experience
Professional advanced engineer,
Mr. Xiaoyou Luo Vice Manager many years of design and
project management experience
Former controller at Malata
Mr. Wenfeng He COO group and of Shenzhen Wei Zhi
group
Many years experience as
Mr. Yilin Shi CFO
financial manager and controller
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20. Strong Revenue Growth
$45
$40 $38.5
$35
Revenue ($ millions)
R
C AG
$30 %
64
$25
$20.7 $19.1
$20
GR
CA
$14.4
$15
%0
39
$10
$5 $3.9
$0
2007(*) 2008 2009 3mo ended 3mo ended
03/31/09 03/31/10 (**)
* 2007 figures are unaudited
* Q1 2010 figures are unaudited 20
21. Strong Net Income Growth
$8.0
$7.5
$7.0
Net Income ($ millions)
$6.0 R
C AG
$5.0
7 %
10
$3.9 $3.8
$4.0
GR
$3.0
CA
$1.8
0%
$2.0
66
$1.0 $0.5
$0.0
2007(*) 2008 2009 3mo ended 3mo ended
03/31/09 03/31/10 (**)
* 2007 figures are unaudited
* Q1 2010 figures are unaudited 21
22. Income Statement Highlights
CONSOLIDATED INCOME STATEMENT
Three Months Ended Year Ended
March 31, December 31,
($ in Millions) 2010 2009 2009 2008
Sales, net $19.1 $3.9 $38.5 $20.7
Cost of sales 14.0 2.8 28.1 15.1
Gross profit 5.1 1.0 10.4 5.6
Selling, general and administrative
expenses 0.7 0.4 2.1 1.7
Income from operations 4.4 0.6 8.3 3.9
Other income/(expenses) 0.0 1.6 0.0 0.0
Profit before income tax 4.4 0.6 8.3 3.9
Income taxes 0.5 0.1 (0.8) 0.0
Net income before minority interest 3.9 0.5 0.0 0.0
Minority interest 0.1 0.0 0.0 0.0
Net income 3.8 0.5 7.5 3.9
Net income per share $0.19 $0.03 $0.37 $0.21
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23. Balance Sheet Highlights
CONSOLIDATED BALANCE SHEET
($ Millions) March 31, 2010 December 31, 2010
Cash and cash equivalents $3.6 $3.6
Other current assets 22.0 7.2
Non-current assets 1.0 1.0
Total assets 26.6 11.8
Current liabilities 21.5 10.5
Total liabilities and shareholders’ equity 26.6 11.8
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24. Investment Highlights
Leading consumer electronics manufacturer
with strong brand
Innovative product design
Proprietary technology and intellectual
property
New LCD TVs to drive growth in 2010
Rapid growth in revenue and net income
Experienced management team
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25. Contact Information
Company Contact: Investor Relations Firm:
AIVtech International Group Co. CCG Investor Relations
Mr. Teli Liao, VP/Secretary of the Board
John Harmon, CFA, Sr. Account Manager
Tel: +86-755-2533-3022
Tel: +1-646-833-3424
Cell: +86-135-1052-0564
Email: john.harmon@ccgir.com
Email: terryliao@aivtechgroup.com
Website: www.aivtechgroup.com
Auditor: Counsel:
Acquavella, Chiarelli, Shuster, Anslow & Jaclin LLP
Berkower & Co., LLP 1350 Avenue of the Americas, 3rd Floor
1 Penn Plaza, 36th Floor
New York, NY 10019
New York, NY 10119
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