1

Yum Cha 飲 茶 January 13, 2016

Source: Bloomberg

INDICES Closing DoD%

Hang Seng Index 19,711.8 (0.9)

HSCEI 8,439.3 (0.8)

Shanghai COMP 3,022.9 0.2

Shenzhen COMP 1,855.4 0.4

Gold 1,086.9 0.03

BDIY 402.0 (3.1)

Crude Oil, WTI(US$/BBL) 30.6 0.4

Crude Oil, BRENT(US$/BBL) 30.9 (2.2)

HIBOR, 3-M 0.4 1.8

SHIBOR, 3-M 3.1 (0.2)

RMB/USD 6.6 0.03

RESEARCH NOTES

TALKING POINT - CASH COST OF MAJOR OIL PLAYERS

As oil prices continued to hit multi-year low, our A-share team held a conference call yesterday and shared

their latest views on the oil and gas sector. In 2015, new global demand was 1.8m barrels/day, compared to

new global supply of 2.3m barrels/day, which led to further accumulation of inventories. In particular, new

global demand in Q4 2015 was only 1.3m barrels/day. In 2016, new global demand growth would be about

1.2m barrels/day, according to International Energy Agency. Meanwhile, new global supply this year is close

to zero, as new supply from OPEC countries will be largely offset by supply decline in non-OPEC countries,

mainly the US and the North Sea. However, we may still see inventory pressure in 1H2016 as new demand

will skew to 2H based on seasonality. Therefore oil prices are expected to remain low in 1H and gradually

recover to US$50/barrel in Q4. Current oil prices of about US$30/barrel are below the all-in costs of many

major players. Our A-share analyst does not expect oil prices to reach cash operating cost level (see table). In

the near term, companies with more downstream business will enjoy a favourable environment. As the au-

thorities have frozen oil product prices (e.g. gasoline, diesel, etc.) to promote energy saving (until the new

pricing formula is determined) while crude oil prices continued to fall, refinery business has been enjoying an

extra spread of RMB480/tonne (ex-factory price of gasoline in early December: RMB6,105/tonne). According

to our A-share analyst, EPS of Shanghai Petrochem [0338.HK] will be increased by RMB0.27 on full-year

basis [1H15 EPS: RMB0.16] while EPS of Sinopec [0386.HK] will be increased by RMB0.3 [1H15 EPS:

RMB0.2]. Relatively speaking, Shanghai Petrochem should be in a better position as Sinopec has a sizable

exposure to upstream business.

DATA RELEASES DUE THIS WEEK

Jan 13 Trade Balance CNY

Jan 13 Exports YoY CNY

Jan 13 Imports YoY CNY

Jan 13 Exports YoY

Jan 13 Imports YoY

Jan 13 Trade Balance

Jan 17 China December Property Prices

FDG ELECTRIC VEHICLES [0729.HK; HK$0.40; NOT-RATED] – We recently visited FDG Vehicles (FDG)

production facility in Hangzhou and had discussion with senior management regarding FDG’s strategy on EV

development and battery business. First phase of FDG production facility in Hangzhou has designed annual

capacity of 100,000 vehicles with a total investment of RMB2.6bn. The production facility is highly automated

and installed over 200 high-end 7-axles robotic arms in different production processes such as welding, as-

sembling, painting and testing. We also conducted a test-drive in FDG’s electric luxury mid-size bus at a speed

of over 100km. FDG is one of the 10 companies complied with MIIT’s standards to produce lithium batteries for

EV. FDG announced that CITIC Limited would subscribe 1,000,000,000 FDG shares at HK$0.465. The pro-

ceeds from placement is used for plant expansion in Hangzhou and production of EV. Concerns on slowing

shipment of EV in 1Q 2016 due to demand front loading in 4Q 2015 may cap near-term upside for EV supply

chain. However, long-term outlook for the EV supply chain remains positive given government’s supporting

policy.

20,453.7

Source: CGS Research

Company Nature

Cash operating cost

(US$/barrel)

All-in cost

(US$ barrel)

PetroChina Conventional onshore crude oil 12 38

Sinopec Conventional onshore crude oil 18 42

Exxon Integrated 11.5 30

BP Integrated 12 35

EOG Shale oil 7 42

Suncor Oil sand 45 69

Imperial Oil Oil sand 33 49

Petrobras Deepwater oil 32 -

Analyst: Wong Chi-man, CFA

SNIPPETS CHTC FONG’S INDUSTRIES [0641.HK; HK$2.21; NOT-RATED] - Despite unexciting operating perfor-

mance in existing business, CHTC Fong’s is likely to record substantial improvement in net profit in 2015 due

to disposal gains, which will also have positive impact on the CTHC Fong’s net profit and financial position in

coming years. A SOE reform play, CHTC Fong’s is the only HK listed platform of parent company, China

Hengtian Group. China Hengtian Group will provide support to CHTC Fong’s to grow existing business

and search for growth drivers. Apart from potential corporate activities, CHTC Fong’s management also found

growing areas within existing business divisions which would create substantial potential to the company.

Weak market sentiment might create volatility to CHTC Fong’s share price, especially when there is limited

news flow. We maintain the view that any share price weakness will provide re-visit opportunity to investors.

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COMPANY NEWS

Analyst: Mark Po

FDG Electric Vehicles Limited [0729.HK; HK$0.40 Not Rated] -

Trial production kicked off

Market Cap: US$999m; Free Float: 63.6%; 3-month Average Daily Turnover: US$5.0m

The Company. FDG Electric Vehicles Limited [0729.HK] (FDG) is

currently engaged in 3 business lines including: a) Power Battery/

Energy Storage; (PB), b) Electric Vehicles (EV); and c) Electric

Vehicle Leasing (EVL).

We recently visited FDG production facility in Hangzhou and had

discussion with senior management regarding FDG’s strategy on EV

development and battery business. FDG, through acquisition, entered

into EV manufacturing in 2014. First phase of FDG production facility

in Hangzhou has designed annual capacity of 100,000 vehicles with a

total investment of RMB2.6bn. The production facility is highly

automated and installed over 200 high-end 7-axles robotic arms in

different production processes such as welding, assembling, painting

and testing. The company’s Hangzhou factory has designed annual

capacity of 100,000 vehicles, mainly producing 2-seater pure electric

passenger cars, 5-seater pure electric passenger cars, and 6-9 meter

long electric minibuses.

The Hangzhou production facility is now in trial production. Utilization

rate is still low at this moment as the company is fine tuning

production process to comply with standards set by in-house industry

experts. We also conducted a test-drive in FDG’s electric luxury mid-

size bus at a speed of over 100km. There is a 10” multimedia panel

installed for information display and control. The luxury mid-size bus

easily climbed up 35 degree slope during the test drive. FDG has

another production facility in Kunming, where the designed capacity

is 4,500 vehicles - 2,500 buses and 2,000 minibuses & commercial

vehicles.

FDG subscribed to a US$2m note and promised subsequent capital

injections into Smith Electric Vehicles (SEV), a US-based EV

manufacturer. SEV has blue-chip partners including Fedex, Pepsi

Cola, Staples and Coca-Cola. Electric vehicles for SEV are ready to

ship in near term. Management believes that cooperation with SEV

will help expand FDG business to Europe, Middle East, US and Asia.

FDG is now marketing its electric minibuses to local government

agencies and departments. According to management, demand for

electric minibuses is strong due to central government’s policy of

supporting development of EV and reduction of PM2.5 emission.

Especially management mentioned that the company had a strong

presence in Hangzhou, where the Hangzhou government targets to

replace all conventional buses for public transportation in 2016 and

2017. The cash production cost of each electric minibus is about

RMB450,000-RMB500,000. With government subsidies, FDG can

make a profit of about RMB300,000-RMB400,000 per minibus. FDG

is also one of the 10 companies complied with MIIT’s standards to

produce lithium batteries for EV.

January 13, 2016

Source: Bloomberg, Company Data.

[FDG Electric Vehicles Limited]

FDG announced that CITIC Limited would subscribe

1,000,000,000 FDG shares at HK$0.465. The proceeds from

placement is used for plant expansion in Hangzhou and

production of EV. Completion of share placement to CITIC

Limited will boost sentiment on FDG. FDG reported losses in

last several financial years and share price movement may be

volatile given the lack of track record in EV industry and weak

market sentiment. Concerns on slowing shipment of EV in 1Q

2016 due to demand front loading in 4Q 2015 may cap near

term upside for EV supply chain. However, long term outlook

for the EV supply chain remains positive given government’s

supporting policy.

Key risks for FDG include: a) change in government policy

and b) car accident.

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Jan15 Mar15 May15 Jul15 Sep15 Nov15

(HK$ million)(HK$)

Turnover (RHS) Price (LHS)

Key Financials

(in HK$ m)FY12 FY13 FY14 FY15

Revenue 59.4 53.9 84.0 307.4

Gross Profit 4.8 7.2 6.9 74.3

Gross Margin % 8.1 13.4 8.3 24.2

Net Profit (442.3) (324.4) (906.4) (409.8)

Net Margin % (744.2) (602.5) (1,079.6) (133.3)

EPS (Basic) (0.04) (0.03) (0.07) (0.02)

ROE (%) (86.2) (74.6) (87.4) (21.5)

Dividend Yield (%) - - - -

PER (x) (9.71) (13.79) (6.00) (16.95)

PBR (x) 8.31 14.41 3.92 3.45

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Figure 1: Peer Comparisons

Source: Bloomberg

Sector Ticker Company

Price Market Cap 2015F 2016F 2017F 2015F 2016F 2017F 2014 2015F 2014 2015F 2014 2015F 2014 2015F 1M 3M 6M 12M

Lcy US$m x x x x x x x x % % % % % % % % % %

Automaker

PV 1211 HK Byd Co Ltd-H 36.45 18,495 37.9 33.2 27.2 20.7 17.8 16.3 3.0 2.5 1.8 7.9 0.6 2.3 0.0 0.0 -8.5 -21.1 -4.5 22.9175 HK Geely Automobile Holdings Lt 3.33 3,778 10.0 7.6 6.5 4.9 3.7 3.2 1.3 1.3 8.6 13.3 4.8 6.2 0.7 1.2 -21.3 -14.6 -7.0 14.42238 HK Guangzhou Automobile Group-H 6.40 15,040 9.7 8.2 7.1 82.8 67.3 57.3 0.9 0.9 9.3 9.9 5.9 5.1 n.n 3.4 -10.6 -5.9 3.6 -10.92333 HK Great Wall Motor Company-H 7.13 11,966 6.3 5.7 5.4 6.3 5.5 5.2 1.5 1.4 26.2 23.8 15.7 13.1 5.8 5.1 -24.9 -28.8 -43.7 -49.0600104 CH Saic Motor Corp Ltd-A 18.98 31,813 7.3 6.6 6.4 12.2 10.3 9.3 1.3 1.2 18.9 17.6 6.8 7.2 n.n 7.0 -7.0 6.8 -27.3 -22.9

Bus 600066 CH Zhengzhou Yutong Bus Co -A 19.08 6,422 12.8 11.0 9.7 8.6 7.4 6.8 3.8 3.4 25.8 27.4 15.3 14.7 n.n 4.1 -7.5 -3.6 -10.8 11.2000957 CH Zhongtong Bus & Holding Co-A 21.45 967 17.2 15.5 12.6 18.1 16.6 n.n 2.7 3.9 30.0 24.5 3.5 6.4 n.n 0.5 -10.3 -10.6 18.2 41.2000868 CH Anhui Ankai Automobile-A 6.81 720 n.n n.n n.n n.n n.n n.n 3.7 n.n 1.9 n.n 0.7 n.n n.n n.n -25.5 -15.4 4.4 18.0600166 CH Beiqi Foton Motor Co Ltd-A 5.72 2,900 57.2 47.7 40.9 n.n n.n n.n 1.0 n.n 3.1 7.1 0.9 n.n n.n n.n -5.5 -9.1 -12.1 -8.9476 HK China Dynamics Holdings Ltd 0.29 136 25.9 8.9 5.8 n.n n.n n.n 0.3 0.3 -2.2 1.1 -2.0 1.3 0.0 n.n -38.0 -27.8 -26.0 -59.3729 HK Fdg Electric Vehicles Ltd 0.40 999 n.n n.n n.n n.n n.n n.n 3.6 n.n -87.4 n.n -1.4 n.n 0.0 n.n -14.0 -27.3 -27.3 3.93836 HK China Harmony New Energy Aut 4.42 898 9.4 7.4 6.4 5.0 4.0 3.5 1.1 1.1 22.0 15.1 5.7 6.1 2.1 1.7 -18.3 -5.4 -35.5 -27.3Average 19.4 15.2 12.8 19.8 16.6 14.5 2.0 1.8 4.8 14.8 4.7 6.9 1.4 2.9 -15.9 -13.6 -14.0 -5.5600884 CH Ningbo Shanshan Co Ltd-A 27.83 1,738 16.1 21.8 16.2 11.7 15.2 n.n 2.7 2.3 9.3 17.7 10.0 8.2 n.n 0.6 -15.5 7.1 23.4 64.0300073 CH Beijing Easpring Material-A 25.79 718 175.4 50.3 31.8 122.7 34.8 16.7 3.8 4.6 -3.1 2.9 -1.8 1.7 n.n 0.4 -29.9 14.1 6.7 46.5000839 CH Citic Guoan Information-A 15.55 3,706 n.n n.n n.n n.n n.n n.n 3.7 3.6 3.1 4.4 2.9 n.n n.n n.n -34.0 -34.0 -34.0 46.1

Cathode materials 000009 CH China Baoan Group-A 13.05 3,159 n.n n.n n.n n.n n.n n.n 4.6 n.n 9.4 n.n 4.7 n.n n.n n.n -22.8 9.6 22.0 2.0600390 CH Kingray New Materials Sci -A 11.05 758 n.n n.n n.n n.n n.n n.n 3.3 n.n -3.1 n.n -3.0 n.n n.n n.n -27.6 -9.8 9.0 -7.4002056 CH Hengdian Group Dmegc -A 21.29 1,330 23.1 22.2 20.7 n.n n.n n.n 2.5 2.4 12.2 10.3 7.7 7.3 n.n 0.1 -15.4 -2.1 -1.7 -2.3002176 CH Jiangxi Special Electric -A 14.14 2,658 n.n n.n n.n n.n n.n n.n 8.3 n.n 2.8 n.n 1.4 n.n n.n n.n -8.5 22.2 103.7 122.4002091 CH Jiangsu Guotai Int Group -A 18.87 1,033 26.6 23.6 n.n 21.3 18.9 n.n 4.0 3.6 14.2 14.5 7.7 8.4 n.n 0.6 -28.0 -28.0 -28.0 23.5

Anode material 000009 CH China Baoan Group-A 13.05 3,159 n.n n.n n.n n.n n.n n.n 4.6 n.n 9.4 n.n 4.7 n.n n.n n.n -22.8 9.6 22.0 2.0600884 CH Ningbo Shanshan Co Ltd-A 27.83 1,738 16.1 21.8 16.2 11.7 15.2 n.n 2.7 2.3 9.3 17.7 10.0 8.2 n.n 0.6 -15.5 7.1 23.4 64.0000973 CH Fspg Hi-Tech Co Ltd -A 13.00 1,912 n.n n.n n.n n.n n.n n.n 6.2 n.n 4.0 n.n 1.0 n.n n.n n.n 9.8 67.5 83.4 111.4

Li-ion battery separator 002389 CH Zhejiang Nanyang Technolog-A 15.60 1,684 97.5 70.9 48.8 n.n n.n n.n 3.3 n.n 2.6 n.n 2.5 n.n n.n n.n -15.1 -4.9 13.5 68.1002168 CH Shenzhen Hifuture Electric-A 8.81 1,035 n.n n.n n.n n.n n.n n.n 5.8 n.n -8.2 n.n 3.0 n.n n.n n.n -20.5 -10.1 -23.9 -13.0002108 CH Cangzhou Mingzhu Plastic -A 13.54 1,273 38.0 29.2 22.8 25.3 21.6 n.n 4.8 4.3 12.1 12.2 8.0 8.8 n.n 1.1 -19.5 -19.5 26.8 45.0002091 CH Jiangsu Guotai Int Group -A 18.87 1,033 26.6 23.6 n.n 21.3 18.9 n.n 4.0 3.6 14.2 14.5 7.7 8.4 n.n 0.6 -28.0 -28.0 -28.0 23.5300037 CH Shenzhen Capchem Technolog-A 39.92 1,117 55.1 42.3 n.n 44.5 37.1 n.n 3.8 3.7 10.2 7.9 5.8 6.7 n.n 0.6 -11.7 36.2 20.5 23.1

Electrolytic solution 002407 CH Do-Fluoride Chemicals Co-A 61.49 2,349 246.0 69.6 40.9 65.7 23.9 17.9 9.3 9.4 0.3 3.5 0.7 1.8 n.n 0.3 -8.6 46.7 260.4 229.7002411 CH Jiangsu Jiujiujiu Technolo-A 13.60 2,593 n.n n.n n.n n.n n.n n.n 5.8 n.n 3.3 n.n 0.5 n.n n.n n.n -26.5 7.1 25.6 38.9600884 CH Ningbo Shanshan Co Ltd-A 27.83 1,738 16.1 21.8 16.2 11.7 15.2 n.n 2.7 2.3 9.3 17.7 10.0 8.2 n.n 0.6 -15.5 7.1 23.4 64.0002190 CH Sichuan Chengfei Integrat -A 31.27 1,641 46.0 39.1 n.n n.n n.n n.n 6.5 n.n 2.6 n.n 2.3 n.n n.n n.n -19.2 -11.5 -11.4 0.4

Power core 300068 CH Zhejiang Narada Power Sour-A 14.68 1,350 44.4 29.4 20.6 23.4 17.2 13.5 3.0 3.2 3.8 6.7 2.5 3.6 n.n 0.3 -17.0 1.9 0.7 49.2000049 CH Shenzhen Desay Battery Tec-A 41.35 1,290 25.3 22.4 18.3 18.3 14.8 13.6 9.7 8.5 36.8 32.3 7.4 6.7 n.n 0.3 -32.5 -3.7 -10.4 28.8300207 CH Sunwoda Electronic Co Ltd-A 22.78 2,235 40.5 25.3 17.4 28.9 19.3 13.8 8.6 7.9 12.3 20.0 6.3 7.0 n.n 0.5 -15.4 -15.7 4.7 99.1

BMS 002139 CH Shenzhen Topband Co Ltd -A 17.23 688 n.n n.n n.n n.n n.n n.n 4.6 n.n 12.3 n.n 7.0 n.n n.n n.n -26.8 -8.2 13.3 25.9600699 CH Ningbo Joyson Electronic -A n.n n.n n.n n.n n.n n.n n.n n.n n.n n.n 14.7 14.6 5.0 7.2 n.n n.n n.n n.n n.n n.n002460 CH Jiangxi Ganfeng Lithium Co-A 44.82 2,575 137.5 101.2 78.2 74.2 57.8 45.5 11.4 9.8 6.3 7.7 4.6 6.6 0.2 0.3 -25.2 62.3 182.2 170.3

Lithium materials 000762 CH Tibet Mineral Development-A 18.26 1,321 n.n n.n n.n n.n n.n n.n 5.3 n.n -5.3 n.n -2.2 n.n n.n n.n -33.2 35.4 49.3 34.6000792 CH Qinghai Salt Lake Industry-A 18.83 5,317 23.1 19.3 16.8 23.7 19.6 24.3 1.7 1.6 7.6 5.3 1.7 1.3 n.n 0.4 -18.1 1.5 6.3 -17.2002466 CH Sichuan Tianqi Lithium Ind-A 111.00 4,412 201.1 75.2 55.3 39.4 24.0 19.4 10.0 8.6 4.3 3.7 2.4 1.4 n.n 0.0 -29.1 56.8 142.7 144.5

Battery 1043 HK Coslight Technology Intl Gp 2.79 144 n.n n.n n.n n.n n.n n.n 0.5 n.n 1.8 n.n 0.4 n.n 0.0 n.n -14.9 -10.3 1.5 -43.1819 HK Tianneng Power Intl Ltd 5.38 793 9.5 7.2 6.0 7.2 5.5 4.7 1.7 1.6 -10.7 18.8 -0.9 6.8 0.8 3.3 -19.2 7.4 59.6 169.0951 HK Chaowei Power Holdings Ltd 4.55 601 9.5 7.5 6.1 7.2 5.8 5.3 1.6 1.2 -1.3 14.3 -0.2 4.6 0.0 0.0 -11.0 8.9 6.1 40.9378 HK Ciam Group Ltd 1.00 662 n.n n.n n.n n.n n.n n.n 4.2 n.n -3.7 n.n -15.5 n.n 0.0 n.n 47.1 -28.6 -47.9 249.7

Super Capacitor 894 HK Man Yue Technology Holdings 0.64 39 n.n n.n n.n n.n n.n n.n 0.2 n.n 2.8 n.n -1.3 n.n 1.6 n.n -8.6 -30.4 -36.0 -48.4Average 63.7 36.2 27.0 32.8 21.5 17.5 4.7 4.5 5.8 12.3 3.0 5.9 0.4 0.6 -17.5 5.0 27.5 56.2

Permanent magnetic material 000970 CH Beijing Zhongke Sanhuan Hi-A 11.13 1,802 38.1 30.2 19.3 20.5 17.7 12.8 3.1 3.0 8.2 8.0 4.7 5.2 n.n 0.7 -22.9 -20.4 -9.1 -26.0600360 CH Jilin Sino-Microelectronic-A 6.97 782 92.9 43.6 24.0 n.n n.n n.n 2.6 2.6 1.8 2.8 1.1 1.5 n.n 1.6 -36.8 9.1 15.2 42.2002249 CH Zhongshan Broad Ocean Moto-A 10.67 2,795 52.3 35.4 28.2 37.0 22.4 16.4 5.4 4.4 9.6 8.8 4.7 7.6 n.n 1.7 -14.0 -8.6 0.4 75.53898 HK Zhuzhou Csr Times Electric-H 35.95 5,447 13.1 11.5 10.2 10.7 9.3 8.3 3.1 2.7 23.9 22.5 15.5 15.3 1.3 1.9 -19.9 -33.9 -35.0 -19.6300124 CH Shenzhen Inovance Technolo-A 37.18 4,470 34.2 27.4 22.6 35.9 27.3 21.3 7.7 7.4 20.4 22.0 16.3 16.6 n.n 1.5 -17.2 -10.9 -23.2 17.8

Motor driver 002196 CH Zhejiang Founder Motor Co -A 23.48 947 119.2 43.7 33.7 85.1 30.6 26.4 4.8 5.2 1.4 2.8 1.9 2.5 n.n 0.6 -20.6 -10.7 6.6 51.0000970 CH Beijing Zhongke Sanhuan Hi-A 11.13 1,802 38.1 30.2 19.3 20.5 17.7 12.8 3.1 3.0 8.2 8.0 4.7 5.2 n.n 0.7 -22.9 -20.4 -9.1 -26.0000799 CH Jiugui Liquor Co Ltd-A 14.55 719 n.n n.n n.n n.n n.n n.n 2.7 n.n -5.7 n.n 1.9 n.n n.n n.n -10.4 -29.9 -29.9 -16.8002176 CH Jiangxi Special Electric -A 14.14 2,658 n.n n.n n.n n.n n.n n.n 8.3 n.n 2.8 n.n 1.4 n.n n.n n.n -8.5 22.2 103.7 122.4600366 CH Ningbo Yunsheng (Group) Co-A 16.24 1,374 24.7 21.7 24.6 18.6 16.8 n.n 2.5 2.6 6.5 10.5 7.5 8.1 n.n 1.6 -20.4 -10.6 -53.7 -4.6600580 CH Wolong Electric Group Co L-A 11.63 1,963 24.0 17.5 15.5 n.n n.n n.n 3.3 3.5 12.1 12.7 4.0 n.n n.n n.n -15.1 -6.1 8.2 11.0002664 CH Xinzhi Motor Co Ltd-A 31.77 1,932 55.5 41.6 32.2 43.9 33.4 25.5 8.9 8.1 14.9 13.9 10.7 10.2 n.n 0.6 19.0 15.6 -13.4 102.5Average 49.2 30.3 23.0 34.0 21.9 17.6 4.6 4.3 8.7 11.2 6.2 8.0 1.3 1.2 -15.8 -8.7 -3.3 27.4

Charging equpment 002227 CH Shenzhen Auto Electric Pow-A 29.73 992 60.7 43.4 n.n n.n n.n n.n 8.6 n.n 11.4 n.n 6.4 n.n n.n n.n -30.1 -14.5 38.0 42.9600406 CH Nari Technology Co Ltd-A 15.08 5,568 32.9 26.0 22.0 38.9 24.1 18.4 5.2 4.7 19.4 12.1 6.9 6.1 n.n 0.8 4.1 -5.5 -3.3 -3.1002028 CH Sieyuan Electric Co Ltd-A 12.45 1,183 19.8 14.8 n.n 13.2 9.9 n.n 2.1 2.0 13.5 10.5 6.9 6.7 n.n 0.7 -17.7 -6.3 -26.6 -7.0600680 CH Shanghai Potevio Co Ltd - A 35.87 1,611 n.n n.n n.n n.n n.n n.n 10.2 n.n 0.7 n.n -0.5 n.n n.n n.n -29.9 20.7 146.4 117.7002518 CH Shenzhen Kstar Science And-A 24.80 1,119 35.3 25.8 19.8 31.9 22.0 17.5 4.6 4.3 10.3 12.3 8.7 8.3 0.6 0.6 -21.5 -5.2 21.7 55.0300141 CH Suzhou Industrial Park Hes-A 17.59 446 97.7 27.9 15.4 77.2 20.5 9.5 4.3 4.2 7.8 4.3 5.0 3.2 0.6 0.3 -33.9 -9.6 15.0 37.02188 HK China Titans Energy Technolo 1.40 167 n.n n.n n.n n.n n.n n.n 2.4 n.n -10.2 n.n -5.9 n.n 0.0 n.n -23.9 0.0 53.8 89.23393 HK Wasion Group Holdings Ltd 6.91 915 9.7 8.0 6.6 8.0 6.6 5.5 1.5 1.4 15.8 16.1 8.5 9.7 3.3 4.2 -10.7 -23.1 -33.3 -5.0763 HK Zte Corp-H 14.20 9,421 13.4 11.7 10.3 11.9 10.3 9.3 1.4 1.6 11.1 13.1 3.4 2.8 n.n 1.9 -15.4 -21.5 -10.7 -3.71366 HK Jiangnan Group Ltd 1.26 662 5.1 4.4 3.8 7.6 6.3 5.4 1.0 0.9 22.7 20.2 6.9 8.1 4.7 4.6 -14.9 -25.9 -36.7 -13.7Average 34.3 20.3 13.0 26.9 14.2 10.9 4.1 2.7 10.2 12.7 4.6 6.4 1.8 1.9 -19.4 -9.1 16.4 30.9HSI Index -8.2 -13.3 -20.8 -18.0HSCEI Index -9.3 -19.9 -28.8 -29.8SHCOMP Index -12.0 -8.1 -22.0 -6.4

ROE ROA Div yield Share Price PerformanceP/BPE EV/EBITDA

4

Figure 2: Heavy Stamping Machine

Source: CGIS Research

Figure 3: Assembling Line

Source: CGIS Research

Figure 4: Assembling Line With Robotic Arms

Source: CGIS Research

Figure 5: Battery Assembling Line

Source: CGIS Research.

Figure 6: Luxury Mid Size Bus

Source: CGIS Research

Figure 7: Test Drive

Source: CGIS Research

5

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BUY share price will increase by >20% within 12 months in absolute terms :

SELL share price will decrease by >20% within 12 months in absolute terms :

HOLD no clear catalyst, and downgraded from BUY pending clearer signal to reinstate BUY or further downgrade to outright SELL :