Company Profile of HIGER BUS Company Limited

Overseas Sales Company

Part I: Brief Introduction to HIGER

I. About Us

II. Sales Performance

III. Strength of Research and Development Ability

IV. Manufacturing Equipment

V. Quality Management

VI. Application Innovation

VII. International Cooperation

VIII. Milestones

IX. Top Honors

HIGER BUS Company Limited (hereinafter referred to as “HIGER BUS”) was established at the end of 1998. Now,

it possesses a total asset of 5.1 billion yuan, a modern passenger vehicle production facility of 800,000 square

meters and an annual production capacity of 35,000 large and medium-sized buses and coaches as well as

chassis.

I. About Us

Base in the industrial park

Parts base

The new base in the industrial park

HIGER light-duty vehicles are divided into two major categories of light-duty vehicles and pick-ups that consist of more than 40 models in H5A Series, H5C Series, H5V Series and H5P Series.

HIGER BUS has more than 50 series of buses and coaches consisting of over 300 models. Its products are widely used in passenger transport, tourism, city bus and so on.

sales turnover growth chart Unit Unit:100 million Yuan

sales volume growth chart

By the end of 2013，HIGER buses exceed 200,000. The sales of HIGER’s large and medium-sized buses

has reached 20% market share, ranking the second place in the bus & coach industry.

2.4

5.2 11.6

17.5 18.8

24 26.33

35.2

46.67

51.6 50.3

71

85.5 86.6

91.53

0

10

20

30

40

50

60

70

80

90

100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1548

3498

6533

9375 8235

9108 10180

13345

16090 16454

15123

20758

23388

24824

25810

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

24000

26000

28000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

II. Sales Performance (Domestic & Overseas)

Currently, HIGER BUS has more than 1,110 researchers over 20 percent of whom has either a master degree or a

higher degree. HIGER BUS has set up research and development centers and laboratories such as the state-level

laboratory, New Passenger Vehicle Engineering Technology Research Institute and Post-doctoral Research

Center and mastered core technologies for the development of complete vehicles and key spare parts. So far,

HIGER BUS’s product research and development, design and experiment have reached the advanced levels in

the world.

HIGER BUS owns more than 100 issued patents and 2 copyrights, for example, the invention patent of Large and

Medium-sized buses and coaches Anti-theft System based on Energy Storage Spring Parking Brake.

III. Research & Development Ability

Higer Bus flexibly adopts modern design and analysis methods like computer-aided design, optimization design,

finite element analysis , computer simulation technology to improve the bearing capacity of the vehicle and

effectively enhance safety, economy, stability and comfort, then to meet the customers’ all-round requirements.

Higer Bus takes example by the principle of aircraft manufacturing to propose monocoque technology that integrates lightweight, humanity, maximizing space design concept to design the overall framework, which improve the agility of bus running, stability, comfort, safety and ride space.

PLM system Higer Bus introduces the world leading research and development management system platform, the PLM system, which is for the future R&D and product lifecycle management system to make technological innovation the company's core competitiveness.

Thanks to the leading modern production lines consisting of 5 welding lines, 3 coating lines, 5 general assembling lines and 2 chassis production lines, HIGER BUS boasts enormous with the production of more than 90 units of different large and medium-sized buses and coaches per day.

HIGER BUS applies the advanced fiber laser cutting machines with positional accuracy within ±0.03mm. The introduced robotic welding equipment has ensured welding precision and improved welding quality and productivity. HIGER BUS’s cathode electro-coating line with 16 rigorous procedures is capable of making vehicle body resistant to corrosion for 10 years, and has fully improved the corrosion resistance

Laser cutting

Robotic welding

IV. Strength of Manufacturing Equipment

Complete vehicle cathode electro-coating line

HIGER BUS has taken the lead to introduce the robotic welding technique, and this has ensured welding

precision and improved welding quality and productivity.

Robotic Welding

HIGER BUS invested 200 million Yuan in the cathode electro-coating line. It was put into operation in May 2011,

bringing HIGER BUS’s annual production capacity up to 35,000 units.

HIGER BUS’s cathode electro-coating line features the most cutting-edge technologies and the most complete

procedures in the world. The whole processes include 5 major steps including pre- cleaning, pretreatment, electro-

coating, drying and cooling and 16 rigorous procedures. Thanks to advanced technology, perfect technique, strong

throwing power, high automation, energy conservation and environmental protection, it has tremendously

enhanced the electro-coating quality and therefore fully extended the service life and improved the corrosion and

dust resistance.

HIGER BUS’s cathode electro-coating line boasts 16 rigorous procedures

V. Quality Management

In order to ensure the sustainable conformity and stability of product quality, HIGER BUS has been

sticking to the rigorous and standard quality management system and carrying out comprehensive

quality management throughout the processes spanning from product design, procurement of

spare parts, manufacturing to service and improvement of complete vehicles that have been

handed over.

HIGER BUS has built standard vehicle testing runways, established state-level laboratory and

perfect complete vehicle testing system in the plant and conducted successful overturning tests,

which has fully guaranteed and improved product quality.

Monitoring of impaired driving behavior

Control over fuel consumption

Monitoring of vehicle condition Optimization of maintenance and repair Long-distance failure handling

Match between vehicles and driving

routes

Carrying forward the entire vehicle life cycle management concept, G-BOS Intelligent Operation System has offered brand new datalization management approach for vehicle safety management, energy conservation and emission reduction and brought forth more values to customers.

VI. Application Innovation

Energy Efficient

Driver

Vehicle Line

Intelligent Management

Safe Operation

Durability

G-BOS Intelligent Operation System has been listed as one of energy conservation and emission reduction

demonstration program by China’s Ministry of Transport and become a carrier of significant importance to

promote the transformation and upgrading of the administration of road transport industry. It has won HIGER BUS

an array of top honors, such as the Top Innovation Award of China’s Automobile Industry, the Top Innovation

Award of China’s buses and coaches, and the Top Informationization Award of China’s Automobile Industry.

HIGER BUS formally entered into strategic cooperation with SCANIA in March 2007. The cooperation between the two sides has created a new cooperative pattern between domestic and foreign passenger vehicle manufacturers. The cooperation including technical research and development, production and manufacturing, quality management and inspection, the development of global high –end buses markets, after-sales service, etc.

VII. International Cooperation

HIGER BUS has set up teams dedicated to the research, development, production and sales of products

“SCANIA · HIGER” brand. SCANIA Group’s headquarters has sent a management team consisting of more than

20 members to work in HIGER BUS together with their Chinese colleagues.

SCANIA · HIGER has special production lines and manufactures products which are in full compliance with the

process requirements of SCANIA.

HIGER BUS has tremendously improved its production techniques and quality management through

continuous learning, absorption and renovation.

SCANIA · HIGER management SCANIA · HIGER Production Line

SCANIA · HIGER has launched a series of luxury models

including A95 Series, A90 Series, A80 Series, A50 Series, A30

Series and Touring since the beginning of mutual

cooperation in 2007.

SCANIA · HIGER exported 162 units of vehicles in 2013 and

has exported more than 1300 units of premium buses and

coaches in total. The cooperation between the two sides has

been moving forward along the track of rapid and sound

development.

Touring made its debut at Bus world Kortrijk in Oct.2009.

SCANIA Touring debuted at Bus world Kortrijk 2011

With the integration of advantageous international resources, HIGER BUS has been promoting

international cooperation in product design, quality control, global procurement, market

development, joint construction of after-sales service chain, staff training, information sharing

and many other aspects to achieve the transcendence of its products and brand and then to

realize the strategic goal of “growing from domestic excellent into international outstanding”.

•December 1998: HIGER BUS was established

•2001: HIGER BUS acquired qualification in independent development of chassis

•July 2003: HIGER BUS acquired ISO/TS16949 Certification

•August 2006: HIGER BUS was accredited as “National Complete Vehicle Export Base Enterprise” by the State

Development and Reform Commission and the Ministry of Commerce

•October 2006: 500 HIGER buses and coaches served the 15th Doha Asian Games

•March 2007: HIGER BUS and SCANIA entered into the Overall Strategic Cooperation Agreement in Shanghai

•September 2007: HIGER BUS was granted the honorary title of “China’s Top Brand”

•September 2008: Foundation stone laying of HIGER BUS AUTO Spare Parts Manufacturing Co., Ltd

•March 2009: HIGER BUS was accredited as the Enterprise for Exemption from Export Inspection

•July 2010: HIGER BUS launched G-BOS Intelligent Operation System

•December 2010: HIGER BUS was capable of manufacturing and selling 20,000 buses and coaches in a year

•June 2011: HIGER BUS’s complete vehicle cathode electro-coating line was formally put into mass production

•March 2012: Higer school buses were put on the market in batch

•2013：HIGER buses exceed 200,000 units in the market with the brand value of 13.162 billion RMB.

VIII. Milestones

Honor: Best Safety Equipment of the Year for consecutive 5 years (2004-2008)

Conferring Unit: BAAV

IX. Top Honors

Honour: One of China’s Top 10 Favorites Commercial Vehicle Brands (December 2006)

Conferring Unit: The Government of P. R. China

Honor: Best Bus Exporter of China (April 2007)

ConferringUnit: The Government of P. R. China

Honor: Best Safety Equipment, Bus builder of the Year Worldwide, Luxurious Bus of the Year,

Inter-city Bus of the Year (2009)

Conferring Unit: BAAV

Honour: Enterprise for Exemption from Export Inspection (2009)

Conferring Unit: The Chinese Government

Honor: The Credible Quality Assurance Enterprise of China (2010)

ConferringUnit:China Entry & Exit Inspection and Quarantine Association

Honor: Certificate of AAA-Level Credit Enterprise

Conferring Unit: China Chamber of Commerce for Import & Export of Machinery & Electronic Products

Higer donated school buses to the public welfare project “Happy School Bus” in 2012 when Higer school buses began to enter the market in batch.

Honor: China’s Top 500 Brands (2013)

ConferringUnit: World Brand Lab

Part II. Brief Introduction to Overseas Business

I. Export Achievements

II. Global Markets

III. Certifications

IV. KD Programs

V. Foreign Aid Projects

VI. Products

VII. After-sales Services

Annex I: Major Export Orders

Annex II: Distinguished guests

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0.04 0.1

0.8

1.6

2.0

0.7

1.5

3.0 2.9

2.5

100 million dollars

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

156 372

1498

2966 3221

1502

3024

4869

4077 3990

unit

Export Volume Export Amount

I. Export Achievements

In 2013, HIGER exported 3990 units with a sales of 0.25 billion dollars .

HIGER BUS has started the mass export of its products since 2004. Its vehicle in foreign countries

has exceeded 25,000 units.

Africa: 7,700units Middle East: 6,300units

Commonwealth of Independent States: 4,300 units

Oceania: 1,200units

the Americas: 2,500units

Southeast Asia: 3,500 units

Export figures over the years

Europe: 600 units

II. Global Markets

HIGER BUS’s products have been exported to nearly 94 countries and regions. So far, HIGER BUS has built

67 stable sales channels and more than 50 signed service stations and therefore has been capable of

offering high quality products and reliable services.

HIGER BUS has acquired EEC (European Union), GCC (the Middle East) and GOST (Russia)

certifications as well as certifications for the access to the markets of Australia, Singapore, Hong

Kong and other countries and regions, enabling HIGE BUS’s products to be exported to most

countries and regions in the world.

III. Certifications

Since 2007, HIGER BUS has successfully established SKD/CKD plants in

Iran, Venezuela, Malaysia and Vietnam. The success of SKD/CKD

businesses has tremendously improved the market competitiveness of

HIGER BUS’s products.

KD

Vietnam plant

Iran plant

Malaysia plant

IV. KD Programs

Venezuela plant

The 2011 Armenia Project was the first large-scale China’s government foreign-aid project that HIGER BUS participated in. The Project was an order of 249 units 7m city buses, totaling 60 million Yuan.

V. Foreign Aid Projects Armenia Project

7m city buses Letter of Thanks Buses at the handover ceremony

Buses are ready for delivery

HIGER BUS’s 5 coaches and 20 buses were designated as the conference vehicle for the African Union Summit in January 2012. These vehicles were the order from China’s foreign aid project to Ethiopia in 2011, with a total number of 25 vehicles including 5 units 12m luxury coaches and 20 units 8m city buses.

Ethiopia Project

Ambassador XIE, Counselor QIAN, Ethiopian Finance and Economic Development Minister and other Ethiopian leaders inspected the vehicles aided from China’s government.

12m Large-sized luxury coach

8m city buses Letter of Thanks

HIGER BUS exported 35 vehicles to Zambia in 2011. These vehicles were the order from China’s foreign aid project to Ethiopia in 2011, consisting of 10 units 12m luxury coaches and 25 units 8m city buses.

Zambia Project

8m city buses

12m Large-sized luxury coach

Zambian mainstream media reported the arrival of HIGER Buses

Letter of Thanks

Higer bus exported 10 units 12m Large-sized luxury coaches to Laos and 8 units 8m city buses to Djibouti. These vehicles were the order from China’s foreign aid project.

Laos & Djibouti Project

12m Large-sized luxury coaches 8m city buses

◆5-18 meters

◆6 series

◆more than 50 types

◆more than 300 varieties

VI. Products

HIGER A Series are the deluxe buses ,jointly launched by HIGER BUS and SCANIA ,including A80, A50, A30, Touring,A90 and A95. As the new generation product, HIGER H Series have been popular with customers since its release. Carrying the excellent genes of HIGER H Series, HIGER New H Series have incorporated G-BOS Intelligent Operation System and advanced complete vehicle cathode electro-coating technique and become the new models shining with aesthetic wisdom. As HIGER BUS's classical product, HIGER V Series have realized the Company's dream to rejuvenate the business of large-sized buses and won many top awards.

Bus and Coach

VI. Products

Bus and Coach

Bus and Coach cover the models of 6 to 12 meters with 10 to 67 seats. It boasts features such as the application of proven technologies, high cost performance, widespread use, low use cost and so on.

New Energy Bus (LNG/CNG) contains a large number of advantages such as safety, reliability, economy, long service, high efficiency, environmental protection and many models available for selection. It is the 1st choice for road passenger transport enterprises to lower costs and increase efficiencies.

New Energy Bus

HIGER City Buses are the 4th generation products of the Company. Thanks to the substantial improvements in product design, quality, adaptability and performances, they are highly popular in markets.

HIGER City Buses

School Buses

School Buses adopt monocoque structure technology and thus boasts stronger resistance to impact, overturning and rolling. The driving chamber adopts the design of 360 degrees of vision to avoid any blind spots. With G-BOS Intelligent Operation system and many advanced electronic devices, the Series can protect kids intelligently and fully improve the riding safety of school children.

HIGER Light-duty Vehicles

HIGER Official & Commercial Vehicles are the new generation of Haishi vehicle. The elegant and gorgeous appearance, the extra-large internal space and the multiple high-end configurations have allowed the Series to satisfy your official, business, travelling and group touring demands. HIGER Pickup has retained the shapes of the latest 5th generation of pickups in the world. It looks gorgeous and fashionable. With extra-large cargo , it is a light-duty commercial vehicle featuring economy and practical application.

Service Procedures

Service planning

Repair & maintenance service

Spare part service

Customer care

Service Based Support

Customer complaints handling

Information feedback

Satisfaction of special needs

Service monitoring

VII. After-sales services

Spare part service

Failure in new vehicles

Breakdown during

warranty period

VIP customers

Significant complaints,

etc.

Urgent

needs

Direct delivery by suppliers

Cargo preparation by the Company

Disassemble

Assembly

Urgent shipping

Urgent cargo preparation

Shipment tracking

Document processing

Data support

Vehicle sales orders Vehicle production

planning Vehicle production Vehicle delivery

Data lists：

User’s Manual (Given to customer together with vehicle handover)

Quality Assurance Manual (Given to customer together with vehicle handover)

Spare Parts Pictures (Service Station, online check within 7 working days after the products of mass production

orders are put in storage)

Repair & Maintenance Manual (Service Station, online check within 1 month after the delivery of products of

mass production orders)

Data Formation plan Data Formation Data delivery

Training support

Cost estimation

Business Managem

ent

Cab Operation

Maintenance

Technician

Collection of training

demands

Training planning case

Cost

estimation

Coursework

processing

Schemes planning

Training organization and implement

Effect evaluation and improvement

500 HIGER buses and coaches served the 15th Doha Asian Games in 2006.

Annex I: Major Export Orders

HIGER BUS exported over 2,000 buses to Russia in 2007.

HIGER BUS exported 600 buses and coaches to Syria in 2008

HIGER BUS exported 500 buses and coaches to Ethiopia in 2008

The mass shipment of HIGER buses to Algeria in 2011 and 2012

The mass shipment of HIGER buses to Angola in 2012

In 2013, the first batch 0f 180 vans were waiting for shipment.

The mass shipment of HIGER city buses to Nigeria in 2013

Mr. Brigadier Tau'aika 'Uta'atu, the Commander of Tonga Defense Services, and his party visited HIGER BUS on July 3, 2010.

Annex II: Distinguished guests

Mr. Frank Bainimarama, the Prime Minister of Fiji, and his party visited HIGER BUS on Aug. 7, 2010.

The delegation consisting 24 members from the Ministry of Economic Development of the Russian Federation, accompanied by Deputy Director-General of the Department of European Affairs of China’s Ministry of Foreign Affairs, visited HIGER BUS on March 4, 2011.

President of Costa Rica and his party visited Higer Bus on Aug 14, 2012.

On 15th April ,2013，the National Assembly President of Ecuador visited Higer Bus

On December 2th, 2013, the Vice President of New Caledonia paid a visited to Higer and discussed with Higer’s management on cooperation.

Higer Takes You Higher!