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Calibri. 64 64 64. 255 102 0. Safe Harbor Statement.

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  1. Calibri 64 64 64 255 102 0

  2. Safe Harbor Statement This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," “will,” "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the effectiveness of the Company’s multiple-brand, multiple channel strategy and the transitioning of its product development and sales focus to a “light-asset” model. Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation, requirements or changes adversely affecting the LCD and LED market in China; fluctuations in customer demand for LCD and LED products generally; our success in promoting our brand of LCD and LED products in China and elsewhere; our ability to have effective internal control over financial reporting; our success in designing and distributing products under brands licensed from others; management of sales trends and client mix; possibility of securing loans and other financing without fixed assets as collateral; changes in government policy in China; the fluctuations and competition in sales and sale prices of LCD and LED products in China; China’s overall economic conditions and local market economic conditions; our ability to expand through strategic acquisitions and establishment of new locations; compliance with government regulations; legislation or regulatory environments; geopolitical events, and other events and/or risks outlined in SGOCO's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this presentation is as of the date of the issuance, and SGOCO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

  3. Agenda • Company Overview • Competitive Advantages • Industrial Overview & Emerging Growth Opportunities • Evolving Business Model & Growth Strategies • Financial Snapshots • Management Team • Appendix

  4. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  5. Sgoco At a Glance

  6. A Company in Transformation …. 2012 2011 2010 2005

  7. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  8. An Integrated “Channel” Solution Model • Product design • Procurement • R&D OEM Distribution Retailer TRADITIONAL LCD/ Monitor Consumers • Co-brand product design • Procurement OEM Distribution Retailer Consumers BRAND SOLUTION or Distribution Retailer Consumers • Find target corporate customers • Product design • Co-brand partnership • Procurement • R&D OEM Corporate customers DISPLAY SOLUTION or • Find target industry verticals • Design solution based services and products • Co-brand partnership • Procurement OEM Industry Verticals

  9. A Multiple Brand Strategy The company's flagship brand China's leading TV brand China's leading PC brand A leading brand in Tier 3 and Tier 4 markets A leading brand in Tier 3 and Tier 4 markets

  10. An Extensive Channel Network in Tier 3 & 4 Markets Heilongjiang Liaoning Inner - Mongolia Beijing | Headquarter Hebei Shandong Henan Shaanxi Jiangsu Sichuan Anhui Hubei Chongqing Zhejiang Jiangxi Hunan Fujian | Product center Guangxi Guangdong Shenzhen | Sales office Self-managed province-level distributors covering 19 provinces in China

  11. A Market Driven Product & Solution Offerings FUTURE GROWTH FOCUS: Application: Specific products and services target at industry verticals Touch-screen Monitor LED/LCD TV LCDMonitor 3D TV ADDITIONAL GROWTH BUSINESS: Smart Display Products LED Monitor Tablet PC All-in-ones (AIO) Part-in-ones (PIO) TRADITIONAL BUSINESS: LCD/LED Monitors, LCD/LED TVs Touch Screen E-board Advertising LCD CCTV Monitor

  12. A Distinctive SGOCO Competencies • Low AP risk : Direct control and billing to few distributors • First-hand market information : Localized sales and CRM teams in key sales points • Top tier licensing brands focus • Continue to expand distribution networks • High growth industries focus • Continue to expand product and solution offerings • Strong presence in rural display market • Product development team owns market-know-how • Cross-connected sales and product development team sharing market knowledge • Successful early development in high margin products • Big opportunities ahead in commercial • International expansion through distribution • Optimize Cross-channel synergies

  13. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  14. Expanding Addressable Display Market in China – Industry Verticals • Travel & Leisure • Transportation & Infrastructure • Education • Fast-growing demand for domestic travel. • Intensive infrastructure investments in China, encouraged domestic travel and the growth of budget hotels. • By the end of 2013, 37% of classrooms in China will have an interactive display. Source: Futuresource. Domestic Tourism Expenditure per Capita Growth in China National Enrolment Breakdown 2012 Approx. 509.6 million students RMB Source: Ministry of Education of China Source: China National Tourism Administration

  15. Emergence of Solutions Driven Demand from Retail and Commercial • Household ASP • Commercial ASP • Younger generation’s need on sophisticated electronic devices Touchscreen Penetration in Desktop PCs • Interactive panel displays are gaining popularity: • For 1H 2013, sales of interactive whiteboards & interactive flat panel displays in the education and corporate sectors up 20% Source: Futuresource • China retained its position as the largest world country market, with 40% of the global market and 77% of the Asia region's sales. Source: KDB Daewoo Securities Research The “Screenager” Era: Touch panels are in increasingly widespread use in a variety of applications, including mobile phones, tablets, notebook PCs, and in-car technology... (Nomura) 15

  16. Exponential Growth in Lower Tier Cities • TV • PC • Mobile/ Handheld Disposable Income of Urban Households 2008 ~ 2012 (2) • In China: • PC shipment to have double-digit growth until 2016. Lower tier cities are growth drivers. (1) • Disposable income per capita of urban households up 9.6% to nearly RMB 25K. (2) • Urbanization rate at 42.2% in 2012 (3). 390 million people will move to urban areas by 2030. • Internet population to reach ≈ 800 mil by 2015. Mobile internet users up 18.1% yoy to 420 mil in 2012. (4) • 210 mil fixed-line broadband subscribers by 2013, 270 mil by 2015 end, 400 mil by 2020 end • IDC, June 2012 • National Bureau of Statistics of China • Chinese Academy of Social Sciences, CASS Chinese Ministry of Industry and Information Technology, MIIT China’s Sate Council – 2013-2020 Broadband Development Plans

  17. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  18. Transformative Business Model Moves Up the Value Stack • Multi-brands: • Sgoco • TCL • Founder • Povizon • No. 10 Channels SGOCO Brand Display Solution Channels e-commerce V A L U E C H A I N Others …. P R O D U C T S Sector Driven : Education Market Driven : Media Display Channel Play = Combining products and display solution

  19. Transformation in 4-Pronged Strategies • Leverage on strong distribution network to sign up top tier brands • Increase overall brand awareness for SGOCO and clients to capture additional market share • Continue to expand in the traditional distribution network • Look into emerging channels such as e-commerce to capture the shift of consumer behaviors in the market • Identified high growth industries, such as budget hotel chains - provide them with tailored display products for their boutique size • Self-develop and partner with brand clients to develop niche products • All-in-one PCs • Parts-in-one PCs

  20. Product Driven Short-Term Growth Catalysts All-in-One / Part-in-One PCs Design and Price is King! Worldwide All-in-one Desktop PC Forecast • Features: Touch-screen, Built-in to a flat screen monitor, Multi-functional, Slim design. PIO also provides flexibility for users to configure and build their own PC system • Target markets: Retail and Commercial use e.g. Budget hotels CAGR: 13% DisplaySearch

  21. Solution & Channel Driven Mid to Long-Term Growth Catalysts • Target markets: High growth industries in China • Education • Infrastructure • Travel and Leisure Flexibility and Diversification is King!

  22. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  23. Revenue Growth Traction Returned Total Revenue US$ Millions • 3Q 2012: • SGOCO was experiencing the transition to a “light-asset” business model. Therefore, the revenues were negatively impacted.

  24. Profitability Focused Income from Operations & Operating Margin US$ Millions US$ Millions

  25. Stabilized Cash Position to Fuel Growth Inventories Cash and Cash Equivalents Working Capital & Current Ratio US$ Millions US$ Millions US$ Millions

  26. Shareholders’ Return Focused Return on Invested Capital Return on Equity Per Quarter Per Quarter

  27. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  28. A Dynamic Management Team Mr. Tin Man Or • Chairman of the Board • Appointed as SGOCO’s Chairman of the Board in January 2014 • Previously served as a director of the Board from 2010 to 2013 • 35+ years of experience in the investment and marketing of the display and trading industries throughout Greater China. • Owns Sun Zone Investments Limited, which is the major shareholder of SGOCO Group. • Served as General Manager of Honesty Group from 2005 to 2011, before SGOCO's sale of Honesty Group and transformation into a light-asset business model Mr. David Xu • Chief Executive Officer • Appointed as SGOCO’s CEO in January 2014 • Served as SGOCO’s COO from July 2013 to January 2014 • Served as SGOCO’s CFO from May 2011 to July 2013 • Nearly 20 years of finance and accounting experience in both Asia and North America • Previous employers include General Electric and Yum! Brands • MBA from the University of Illinois at Chicago, and a BA in English and American Literature from Beijing Normal University Mr. Johnson Lau • Chief Financial Officer • CPA in Hong Kong and Australia • Started with Deloitte in Hong Kong and Beijing from 1997, Mr. Lau has over 17 years of experience in the accounting profession • Previous worked in various public companies in the US and England as Director of Finance and CFO for nine years • Bachelor degree in commerce from Monash University, Australia

  29. Company Overview Competitive Advantages Industrial Overview & Growth Opportunities Evolving Business Model & Growth Strategies Financial Snapshots Management Team Appendix

  30. P&L – Selected Items

  31. Balance Sheet – Selected Items

  32. Cash Flow Statements – Selected Items

  33. Investor Relations Contact Serena Wu SGOCO Group, Ltd. Direct Line: +86-10-8587-0173 Email: ir@sgoco.com

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