China Public Security Technology, Inc.
(OTCBB: CPBY)
Roth Capital OC Conference Presentation
February 2007
Michael Lin, Vice President Investor Relations, (949) 929-0601,
mlin@chinapsh.com
1
Safe Harbor Statement
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This presentation contains certain statements that may include ''forward looking
statements'' within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical fact included herein are "forward-
looking statements" including statements regarding China Public Security Technology,
Inc. and its subsidiary companies' business strategy, plans and objectives and
statements of non-historical information. These forward looking statements are often
identified by the use of forward-looking terminology such as "believes," "expects" or
similar expressions, involve known and unknown risks and uncertainties. Although
China Public Security Technology, Inc. believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect. You should not place
undue reliance on these forward-looking statements, which speak only as of the date
of this presentation. China Public Security Technology, Inc.'s actual results could differ
materially from those anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in China Public Security Technology, Inc.'s
periodic reports that are filed with and available from the Securities and Exchange
Commission. All forward-looking statements attributable to China Public Security
Technology, Inc. or persons acting on its behalf are expressly qualified in their entirety
by these factors. Other than as required under the securities laws, China Public
Security Technology, Inc. does not assume a duty to update these forward-
looking statements.
2
Company Background
China Public Security Technology, Inc.
(formerly, Irish Mag, Inc.) is a software
development and solutions provider
specializing in providing public security
and real time Geographic Information
Systems (GIS) to first responders and
governmental agencies in China.
Our primary business operations are
conducted through our wholly-owned
subsidiary, China Public Security
Holdings Limited and its wholly-owned
operating Chinese subsidiary, Bo Hai
Wen Technology (Shenzhen)
Company Limited.
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Business Turnkey Agreement
We operate through a business turnkey agreement
with Shenzhen iASPEC Software Engineering Company
Limited (iASPEC):
iASPEC grants to Bo Hai Wen and then licenses back an exclusive
software license for 16 iASPEC copyright protected software
iASPEC engages Bo Hai Wen as iASPEC's subcontractor in
connection with all iASPEC's contracts with its customers
The Company pays iASPEC $180,000 per year
The Company receives between 90-100% of the revenues received
by iASPEC from its customer contracts
4
Our Business
We use a combination of GPSOne, GPS and MPS technology in
location-based services with customized maps in a 1:1000m detail
ratio
We have successfully maintained customer relationships with high-
profile government agencies through our subcontracting services
and our superior technology platform
Based on our knowledge of the market, Management estimates that
the Company holds a greater than 60% market share in the
Shenzhen, Guangdong Province public security sector
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Financials
$12.5M
$27M
** 2007E
$2.3M
$3.6M
* Oct-Dec 06E
$21M
$45M
** 2008E
Net Income
Revenue
*Unaudited ** Target financial performance goals established in connection with "make good" escrow arrangement (see Current Report on Form
8-K filed February 1, 2007) *** Based on the historical performance of iASPEC whose contracts will now be serviced by the Company through
the business turnkey agreement and software license
$ 8.00
Recent price (as of Feb 16, 2007)
39.4 Million
Shares Outstanding
(Fully Diluted)
CPBY.OB
Ticker Symbol
$4M
Net Income
$9M
Revenue
*** Jan-Sep 06E
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Market in China – Year 2006
* Source: China Economic Net, www.ce.cn , China Market Information Center and Norson Telecom Consulting, HC International, Inc.
Public Security Information Technology: a market size of USD 4.5B
and a 19% growth rate*
Police-use GIS: management estimates a market size of USD 263M
and a 23% growth rate
Civil-use GIS: a market size of USD 1.0B and a 50% growth rate*
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Industry & Market
Management estimated
the market for public
security information
technology to have been
USD 4.5 billion in year
2006, with an annual
growth of 19%.*
* Source: China Economic Net, www.ce.cn , China Market Information Center
Public Security Information Technology Market: 19% annual growth
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Industry & Market
* Source: Management estimate
China Police-use GIS Market: 23% annual growth
9
Industry & Market
* Source: China Market Information Center and Norson Telecom Consulting, HC International, Inc.
China Civil-use GIS Market: 50% annual growth
10
Successful Cases
Shenzhen City Police Bureau PGIS
Real-time comprehensive police-use GIS
system in Guangdong Province.
Increases communication efficiency and
police force management and coordination.
Facilitates the arrival of police officers to
“hot zones” within police guidelines.
Shenzhen City Fire Control Bureau 119
Command Center System
Comprised of multiple sub-systems to
accomplish various tasks in a single
command center.
Optimizes fire engine allocation and
accomplishes firefighter dispatch within 45
seconds.
Assists in providing fire safety for a city of
over 12 million residents.
Through our subcontracting arrangement
and our software license:
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Successful Cases, cont’d
Other Successes:
Guangdong Province Police-use Geographic Information System (PGIS)
Hainan Dongfang City Police Bureau 3-in-1 Integrated System
Shenzhen Citywide Ambulance Command System
Shenzhen City Police Bureau Consolidated Warning Information
Interface Platform
Shenzhen City Police Force Dynamic Management System
and many more…
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Competitive Strength
Pioneer in China’s public security information technology industry
Proven track record:
Multiple government contracts.
Superior technology platform.
High profile public sector relationships
Proprietary digital map for Shenzhen City, with an approximate
population of 12 million and for Guangdong Province with a
population of over 83 million.*
180 software engineers, including 30 project managers
* Source: China.org.cn
Through our subcontracting arrangement and our software license:
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Recent Developments
In November 2006, iASPEC won 3 key
government contracts in border control projects
totaling USD $10 million, all of which we will
service
Installation is expected to be completed in the 2nd
quarter of FY07
System “live” date is July 1, 2007, the 10-year
anniversary celebration of Hong Kong’s return to
China
$ 2.4 million
Immigration Automobile Auto Check
Information System
$ 6.6 million
Hong Kong and Macau residents
I.D. Card Auto Check System
$1.0 million
Immigration Check Information System
Contract
size
Project Name
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Additional Financial Information
FY07: Management estimates USD 27M in Revenues and USD
12.5M in Net Income*
FY08: Management estimates USD 45M in Revenues and USD
21M in Net income*
Management has pledged 7.89M shares of its own stock into an
escrow account subject to achieving FY07 and FY08 “Make Good”*
net income targets
Significant operating leverage opportunity
Free cash flow generation
* Target financial performance goals established in connection with "make good" escrow arrangement (see Current Report on Form 8-K filed
February 1, 2007)
15
Future Plans
2007
2007
~
2008
2008
~
Broader expansion in
Shenzhen City;
Implementation in Province-
level governmental
departments;
New Service development on
existing GIS platform.
Province-wide promotion in
Guangdong Province market;
Development in Funan,
Hainan & Fujian Provinces
Nationwide promotion
of PGIS
Cooperating with China
Unicom and China Mobile to
develop GIS software
platforms such as technician
location tracking.
Capitalize on the success in
the telecom industry;
Further promote the CGIS
value-added service to the
logistics and insurance
industries.
Nationwide promotion of
CGIS values in the telecom,
logistics and insurance
industries and
penetration of the CGIS
market
Expanding our position in the GIS segment
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Management
Founder and General Manager of
Fujian Wild Wolf Electronics Co. Ltd
Well-rounded experience in
business development and strategic
planning
Lin Jiang Huai (President & CEO)
Hong Ying (CMO)
Over 11 years marketing
experience
Senior position with ZTE
Corporation, Wintek and
Shenzhen Developing
Technology Co.
Huang Zhi Xiong (CTO)
Over 15 years in software system
development
CTO of Singapore Solution 3, CKT
Thomas, Shenzhen RunShen
Information System Co. etc.
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Summary
Rapidly growing software development provider in Southern China
Trusted source to police, fire department and other government
agencies charged with public safety and security
Copyright protected core technology
Management’s make good pledge speaks volumes to our
confidence in our ability to produce results
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Thank you
China Public Security Technology, Inc.
(OTCBB: CPBY)
For more information:
Michael Lin, Vice President Investor Relations
(949) 929-0601, mlin@chinapsh.com
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