( Stock Code: 2789 ). Disclaimer The slides/materials used in this presentation are strictly...

28
Stock Code: 2789

Transcript of ( Stock Code: 2789 ). Disclaimer The slides/materials used in this presentation are strictly...

Page 1: ( Stock Code: 2789 ). Disclaimer The slides/materials used in this presentation are strictly confidential. The information contained in this presentation.

( Stock Code: 2789 )

Page 2: ( Stock Code: 2789 ). Disclaimer The slides/materials used in this presentation are strictly confidential. The information contained in this presentation.

Disclaimer Disclaimer

The slides/materials used in this presentation are strictly confidential. The information contained in this presentation is being furnished to you solely for your information and may not be taken away, reproduced, redistributed, or passed on, directly or indirectly to any other person (whether within or outside your organization/firm), or published, in whole or in part, for any purpose. The slides/ materials do not constitute an offer of securities in the United Kingdom, Australia, the PRC, United States, Canada or Japan. In particular, neither the information contained in this presentation nor any copy hereof may be transmitted, reproduced, taken or transmitted into the United Kingdom, Australia, the PRC, United States, Canada or Japan or redistributed, in whole or in part, directly or indirectly, within the United States or to any U.S. person. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

These slides/ materials do not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. The shares of Yuanda China Holdings Limited (the “Company”) have not been, and will not be, registered under the U.S Securities Act of 1933, as amended (the “U.S Securities Act”) or the securities laws of any state of the United States and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and any applicable state or local securities laws. There will be no public offering of the Company’s shares in the United States. This document shall not constitute an offer to sell or a solicitation of an offer to buy the Company’s securities nor shall there be any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country. In Hong Kong, no shares of the Company may be offered to the public unless it is conducted in compliance with the Securities and Futures Ordinance, Chapter 571 of the laws of Hong Kong and a prospectus in connection with the offering for subscription of such shares has been formally approved by the Stock Exchange of Hong Kong Limited and duly registered by the Registrar of Companies of Hong Kong which contains all the information as required under the Companies Ordinances (Cap. 32) of the laws of Hong Kong and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. Any decision to purchase securities in any offering should be made solely on the basis of the information contained such prospectus or international offering circular to be published in relation to such offering.

This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the Company and factors beyond the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates.

The information in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The information is not intended to provide, and you may not rely on these materials as providing a complete or comprehensive analysis of the Company's financial or trading position or prospects. Some of the information is still in draft form. This presentation also contains information and statistics relating to the plastic pipes industry. The Company has derived such information and data from unofficial sources, without independent verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this presentation regarding the plastic pipes industries. The information contained in this presentation does not constitute a due diligence review and should not be construed as such. The information contained in these materials has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. None of the Company, or any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable whatsoever (in negligence or otherwise) for any loss or damage whatsoever arising from use of the information contained in this presentation or otherwise arising in connection therewith and none of them shall owe you any fiduciary duty in relation to this presentation.

2

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Company Overview

Shenyang Art Centre

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Shareholding StructureShareholding Structure

Yuanda China (Listed Company)

Shenyang Yuanda

38 subsidiaries / branches

(1) Management represents 6 directors and other senior management

54.51% 9.04% 36.45%

Overseas

China

Mr.Kang Baohua(Chairman) Senior Management(1) Public

26 subsidiaries / branches

Overseas

Covering 30 provinces, autonomous regions and

municipalities

BVI & HK Co

4

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Company OverviewCompany Overview

Global leader in curtain

wall industry

Global provider of integrated

curtain wall solutions

The Group is a provider of one-stop integrated curtain wall solutions including the design of curtain wall systems, procurement of materials, fabrication and assembly of curtain wall products, performance testing, installation of products at construction sites, and after-sales services.

We also provide ancillary products related to curtain wall systems, including skylights, metal roofs, canopy systems, shading systems, balustrade and breast board systems, fire doors and rolling doors, and energy-saving aluminum alloy doors and windows.

End customers to our curtain wall solutions mainly comprise non-residential and infrastructure

developments both in domestic and overseas market, such as office building of government authorities or headquarters for leading companies from various

industries, hotels, shopping center, center buildings for the use of conference,

culture, sports, art and exhibition, airport, railway station and hospital and universities.

5

World’s Largest: 2011 revenue at RMB10.80 billion

(2011 market share(1) World: 7.84%; China: 23.0%)

Fastest growth: 2008 – 2011 revenue CAGR at 22.2%; 2008 – 2011 Domestic and World

curtain wall market CAGR at 16.5%, 6.2% respectively.

Rooted in the fastest-growing curtain wall market: China, Undertaken projects globally in

over 40 countries and regions

Newly awarded 132 projects in 1H2012 with total contract value of approximately RMB8.0 billion.

The value of backlog amounted to approximately RMB20.0 billion in total as at 30 June, 2012

5(1) According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.) based on 2011 revenue

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Company Overview (Con’d)Company Overview (Con’d)We believe we are a leading curtain wall provider with a comprehensive product portfolio. Through research and development, we have further developed various curtain wall products by using more complex designs, production and installation as well as combining the new curtain wall products with new materials, technology, energy, environment protection and energy conservation

We are striking to realizing “Low-carbon, Function, Safety” of curtain wall products. Such products include double-skin curtain walls, photovoltaic curtain walls, ecologically friendly curtain walls, video curtain walls and membrane structure curtain walls

6

One of the world’s largest R&D teams, with R&D centers in China, Switzerland, Japan and Australia, 600+ R&D professionals and 1,500+ designers

Launched 80+ new products since 2008, pioneering the extensive use of curtain wall products

Attained 548 patented items

Global marketing network, 38 Chinese and 26 overseas subsidiaries/branches

China‘s world-renowned curtain wall trademark

First time on the ENR’s Top 225 International Contractors List as the only curtain wall supplier in 2011

Undertaken many Landmark projects all around the world

Global leading

curtain wall technology

First brand in global

curtain wall industry

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MilestonesMilestones

7

China

Overseas

Completed landmark domestic projects

Leadership position in the Global and China

curtain wall industry Rapid domestic

growth

By 2010, became the world’s largest

curtain wall company

Incorporation

By 2005, all 4 major

production base s

were completed

2006 – 20091993 – 1997 1998 – 2006

Expansion of international business

20102002 – 2009

No.1 in China : 23.0%(1) market share

No.1 in the world: 7.3 market share

China‘s world-renowned curtain wall trademark

Granted as the first chose curtain wall company by customer in the China Curtain Wall Net

600+ R&D professionals and 1,500+ designers

Undertaken projects in 40 countries and regions

Launched 80+ curtain wall products during the past few years

Has 38 branches in China covering 30 provinces and autonomous regions; and 26 overseas branches

1993 Founded Shenyang Yuanda1994 Undertook Shenyang ICBC

Tower project1997 Awarded the 1st Luban

Award for the Beijing Xidan International Building

1998 Founded Shanghai

Yuanda to strengthen the coverage in Eastern China market

2000 Shanghai and

Chengdu production base completed

2005 Foshan production

base completed

2006 China National Swimming

Center “Water Cube” Beijing New Poly Plaza2007 National Stadium of China

“Bird’s Nest”2008 Wuxi Shangneng R&D

Building2009 Theme Pavilion of Expo

2010

2002 Signed the Huangjian Tower project in

Singapore, representing the Group’s first overseas project

2004 – 2007 Established a number of overseas branches2007 – 2010 Completed various overseas projects such as

Cocoon Tower in Japan, the Legacy at Millennium Park in USA, Executive Towers at Business Bay in Dubai, Airrail Center Frankfurt in Germany, etc

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Landmarks Projects in the WorldLandmarks Projects in the World

COCOON Tower

Theme Pavilion of Expo 2010 Shanghai China

Beijing Galaxy SOHO China National Swimming Center “Water Cube”

National Stadium of China “Bird’s Nest”

Airrail Center Frankfurt Executive Towers at Business Bay Meydan Racecourse

Leadenhall Building in London

The Legacy at Millennium Park

8

Sales network

R&D centers

Federation Tower

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Technology ConceptTechnology Concept

Double-skin energy-saving curtain walls

Introduced the “green” concept in curtain wall

products

Membrane structure curtain walls

Ecologically friendly curtain wallsPhotovoltaic curtain walls

Improve the thermal insulation of the outer building structure, indoor ventilation, sound insulation and daylighting

Possess characteristics such as high transparency, light weight, high resistance to aging and long life

Integrate photo-voltaic system installed on the glass of the curtain wall to generate electricity from solar energy

Outer building structure covered by a botanical layer with a bioclimatic buffering layer, designed to achieve resource conservation and reduce pollution

Low Carbon

SafetyShenyang Art CenterMicrosoft (China)

Headquarters

Theme Pavilion of Expo 2010 Shanghai China

Theme Pavilion of Expo 2010 Shanghai China

Theme Pavilion of Expo 2010 Shanghai China

Wuxi Shangneng R&DBuilding

Beijing Van Palace

Energy-saving Membrane Structure

PhotovoltaicEcologically Friendly

“Water Cube”

Energy-

saving

9

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10

Global marketing strategy

Core technology strategy– Technology Leads Market

Brand Strategy– Build the world’s first brand

Extension of industrial chain strategy– Vertical and horizontal integration

M&A and restructuring strategy

Corporate strategy

Corporate strategy

Corporate StrategyCorporate Strategy

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Curtain Wall Market

Dalian Hang Lung Plaza

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Curtain Wall Market SizeCurtain Wall Market Size

840919

1,028

1,1441,243

1,313

1,455

1,617

1,803

2,017

2,263

0

500

1,000

1,500

2,000

2,500

2005

2006

2007

2008

2009

2010

2011

2012E

2013E

2014E

2015E

(Rm

b 0

0'm

n)

98 109 128

169

210

259

311

374

450

541

650

0

100

200

300

400

500

600

700

2005

2006

2007

2008

2009

2010

2011

2012E

2013E

2014E

2015E

(Rm

b 00

'mn)

Growth in China curtain wall market size Growth in global curtain wall market size

2005 – 2015F CAGR: 10.4%

2005 – 2015F CAGR: 20.8% (1

)

12

(1) According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.)

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Market share(1) around the world for Yuanda

Global Curtain Wall Market Distribution & Yuanda Curtain Wall Market ShareGlobal Curtain Wall Market Distribution & Yuanda Curtain Wall Market Share

23.0% 24.1%

5.8%2.9% 1.7%

0.1%0%

5%

10%

15%

20%

25%

30%

China Middle East Other areasin the world

Other areasin Asia

Europe USA

Global Market Share :7.4%

Regional Market Size ( RMB bn )

31.2 6.0 17.3 18.7 36.8 35.5

25%25%

21%21%

25%25% 12%12%

13%13%

4%4%

Other areas in the world

Europe

USA

China

Middle East

Other areas in Asian

Global Mar-ket share

Distribution

Low Market Share in the Blooming American Market by now

13

U.S. market and the European market constitute each 1/4 of the global

curtain wall market Brazil, Southeast Asia and other emerging markets are growing fast Australia, Russia and other markets still in great growth potential

(1) According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.) based on 2011 revenue

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China Curtain Wall MarketChina Curtain Wall Market

14

Three major driving factors

of China curtain wall

market development

Inner driving force - Replacement needs

New Driving Force - Energy saving construction

Original driving force - Urbanization

620

1500

4000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2005 2010 2015

(Rm

b00

'mn)

2005 – 2010 CAGR: 19.33%

12th Five-Year Plan: Expected production value of Rmb400 bn in the curtain wall market by 2015

(1) According to Industry Association

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China Curtain Wall Market Urbanization

China Curtain Wall Market Urbanization

15

China's urbanization rate reached 51.27% in 2011(2)

Urbanization

The rise of the Midwest, the second and third tier cities

Continued strong demand for commercial real estate

Continued growth in the construction of public buildings

expected that the urbanization rate will exceed 55% in 2015

Regional average annual urbanization growth rate in 2005-2010 around the world(1)

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2015

E

2.0%

0.4%0.2% 0.1%

0.4%0.2%

0%

1%

1%

2%

2%

3%

China MiddleEast

Australia Russia U.S. U.K.

51.27%

(2) Source: National Bureau of Statistics(1) Source: Bloomberg

Fastest urbanization rate in China

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16

Office building investment growth accelerating

Completed Investment value of office building maintains rapid growth

Investment in commercial business buildings growing fast

Investment in commercial business buildings maintains rapid growth

China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)

China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)

Completed investment value in office building (Bmb 100m)

YoY growth (Right Axis)

Investment value in commercial business building (Bmb 100m)

YoY growth (Right Axis)

Completed investment value in real estate development: Office Building: Accumulated value (Rmb 100m)

Accumulated YoY (Right Axis)

Completed investment value in real estate development: Commercial Business Building: Accumulated value (Rmb 100m)

Accumulated YoY (Right Axis)

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China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)

South Australian Institute of Health and Medical (RMB160 mn)

BBVA Bank, Mexico (RMB220 mn)

High-end Residential inYekaterinburg, Russia (RMB120 mn)

Dalian Henglong Plaza (RMB320 mn)

Landmark projects awarded in 1H2012

Shenyang Art Centre (RMB190 mn)

Bohai Bank Tianjin Branch (RMB180 mn)

Beijing Gezhouba Building (RMB120 mn)

Fuzhou Administrative Center (RMB150 mn)

17

• The 12th Five-Year Plan driven further development on new energy, culture, tourism, health care, finance, electricity, logistics, automotive and other industries, which brings a new round of development of commercial real estate and public buildings

Chart : …which account for more than 95% of the market in China

2007 – 2012 China curtain wall market breakdown

5 7 8 9 11 13

104 122146

176215

262

38 48 62 74 89 107

0

50

100

150

200

250

300

2007 2008 2009 2010F 2011F 2012F

(RM

B 1

00

m)

Residential Commercial Public(1)

( 1) Public buildings include government buildings, schools, libraries, pharmaceutical and public systems

According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.)

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World One Tower 444m印度最高楼

财务摘要Operating information

Shanghai Tower 632m

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Operation ScaleOperation Scale

11.77%

5.31%3.84%

6.05%4.28%

1.33%

23.46%

9.59%

16.99%

6.73%

10.64%

0%

5%

10%

15%

20%

25%

MiddleEastFarEastAustralia Europe American Others NortheastNorthern Eastern WesternSouthern

(%

)

Backlog by Region

Overseas China

19

Value of Backlog

48.9%54.8% 51.9%

61.3%

67.4%

56.9%

51.1%45.2%

48.1%

38.7%

32.6%

43.1%

11,90012,488

14,331

17,186

13,196

20,015

0

5,000

10,000

15,000

20,000

2008 2009 2010 2011 1H2011 1H2012

(RM

B¥ m

n)

Overseas

China

(For the year ended 31 Dec) (For 6 months ended 30 Jun)

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Newly-awarded ProjectsNewly-awarded Projects

4.16%

4.13%

2.41%3.01%

8.50%

0.00%

37.24%

7.74%

17.32%

6.33%9.16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Middle EastAsia AustraliaEuropeAmericanOthers NortheastNorthernEastern WesternSouthern

(%

)

Chart 2 : Newly-awarded Projects by region

Overseas China

Chart 1 : Value of Newly-awarded Projects

China Overseas

4,7555,3546,577

10,272

3,767

6,257 6,003

2,2954,528

3,3802,0541,786

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 20111H20111H2012 2008 2009 2010 20111H20111H2012

(RM

mn)

(For the year

ended 31 Dec)(For the 6 months

ended 30 Jun)(For the year

ended 31 Dec)(For the 6 months

ended 30 Jun)

20

Chart 3 : Newly-awarded projects sorted by end consumers

Offi

ce b

uild

ing

by

func

tion

Public buildings25%

Commercial Real Estate70%

Residential5%

5.4%

0.5%

9.4%

4.4% 4.7%2.5% 3.0%

19.9%

1.9%

6.2%

42.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Hou

se &

Hom

e

Stat

ium

Cul

ture

Logi

stic

Gov

ernm

enta

lIn

stitu

tion

Med

ical

Indu

stria

lC

ompl

ex

Bus

ines

sD

istr

ict

Tour

ism

Hot

el

Offi

ceB

uild

ing

Finance32.29%

IT6.60%

Petrifaction2.89%

House & Home0.84%

Motor0.82%Electricity

7.17%

Media3.43%

Others45.96%

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Financial Stats

South Australian Institute of Health and Medical

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Financial AbstractsFinancial Abstracts

22

1H2012 1H2011 Change

(RMB¥ mn) (For the 6 months ended 30 Jun)

Turnover 5,213.5 4,802.0 8.6%

Gross profit margin (%) 18.8% 23.8% (5.0%)

EBITDA 402.7 647.9 (37.8%)

Profit attributable to equity shareholders of the Company

262.4 416.6 (37.0%)

Basic and diluted earnings per share (RMB cents)

4.2 8.9 (52.8%)

Net cash used in operating activities (1,122.2) (204.9) 447.7%

Debt/Equity ratio (%) 45.9% 45.8% 0.1%

Liquidity ratio (times) 1.55 1.38 4.54%

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TurnoversTurnovers

Turnover breakdown by regionTurnover

66.8% 61.4%

64.5%66.5%

65.7% 63.4%

33.2%

35.5%

33.5%

34.3% 36.6%

5,911

7,062

9,261

10,797

4,8025,214

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2008 2009 2010 2011 1H2011 1H2012

(RM

B¥ m

n)

Overseas

China

35.5%

(for the year ended 31 Dec) (For the 6 months ended 30 Jun)

China65.74%

Middle East

14.23%

Europe4.73%

Australia11.60%

USA 0.11%

Asia 1.97%

Others1.61%

China63.40

%

Middle East10.50

%

Europe7.39%

Aus-tralia

8.43%

Asia8.55%

USA 1.39%

Other 0.55%

23Turnover of 1H2012 : RMB 5,214 mn

Turnover of 1H2011: RMB 4,802 mn

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Profit MarginProfit Margin图 1 :毛利润及毛利率Chart 1: Gross profit and

Gross margin

1,148

1,657

2,074

2,306

1,143

982

19.4%

23.5% 22.4% 21.4%23.8%

18.8%

0%

10%

20%

30%

40%

50%

0

500

1,000

1,500

2,000

2,500

3,000

2008 2009 2010 2011 1H2011 1H2012

(R

MB

¥ m

n)

Gross profit Gross margin

551

943

1,195 1,205

648

4039.3%

13.4% 12.9% 11.2%13.5%

7.7%

0%

10%

20%

30%

40%

50%

0

500

1,000

1,500

2008 2009 2010 2011 1H2011 1H2012

(RM

B¥ m

n)

EBITDA EBITDA margin

Chart 2: EBITDA and EBITDA margin Chart 3: Net Profit and Net Profit Margin

328

661

806850

422

2495.5%

9.4% 8.7%7.9% 8.8%

4.8%

0%

10%

20%

-200

200

600

1,000

2008 2009 2010 2011 1H2011 1H2012

(R

MB

¥ m

n))

Net pro fit Net pro fit margin (excl. non-controlling in terest)

(for the year ended 31 Dec) (for the 6 months ended 30 Jun)

24

(for the year ended 31 Dec) (for the 6 months ended 30 Jun)

(for the 6 months ended 30 Jun)(for the year ended 31 Dec)

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Cost of Sales & Operating ExpensesCost of Sales & Operating Expenses

Chart 1: Stable cost of sales Chart 2: Operating expenses(as % of revenue) continue to decrease steadily

52.9% 49.9%

23.0%25.0%

6.0% 7.0%

4.5% 5.1%3.0% 2.7%2.9% 2.8%2.9% 2.9%3.2% 3.3%1.6% 1.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H2011 1H2012

Raw material

Installation

Processing

On-siteTransportationWagesR&D

OthersTaxation

25

11.6% 11.4%10.9%

11.6%

(for the year ended 31 Dec) (for the 6 months ended 30 Jun)

11.8%11.3%

(for the year ended 31 Dec)

2.6% 2.7%2.1% 2.1% 2.2% 2.2%

9.0% 8.7%8.8%

9.5% 9.1%9.6%

0%

3%

6%

9%

12%

15%

2008 2009 2010 2011 1H2011 1H2012

Selling ExpensesAdministrative Expenses

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Operating Turnover DaysOperating Turnover Days

Chart 1: Inventory and trade receivables turnover days Chart 2: Account payables turnover days

Due to the influences of economies and tight credit policy, turnover days has slightly increased

32 32 29 33 38

56 60

87

132

183

0

20

40

60

80

100

120

140

160

180

200

2008 2009 2010 2011 1H2012Inventory turnoverdays

Net contract workreceivables turnover days

97 97101 101

126

149

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

160

2007 2008 2009 2010 2011 1H2012

(day

)

(d

ay)

26

(For the year ended 31 Dec) (For the 6 months ended 30 Jun)(For the year ended 31 Dec) (For the 6 months ended 30 Jun)

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Competitors Comparison

BBVA Bank, Mexico

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Leading R&D CapabilitiesLeading R&D Capabilities

Possesses 187 proprietary patented technologies in 2012 1H;Newly applied for the registration of 388 patents; (included patents on 2011 for 2012); 548 patents have obtained the certificate.

One of the world’s strongest R&D teams, with 600+ R&D professionals

Global R&D network with 4 regional R&D teams located in China, Switzerland, Australia, and Japan, respectively

No.1 in Terms of R&D Investment (1H2011) R&D Investment Continues to Grow

Source: Company Announcement, by the end of 2012, converted into RMB refer to the exchange rate in September 2012

Growth Rate:16%

106.9123.9

0

50

100

150

1H2011 1H2012

(Rm

b m

n)

123.9

26.0 19.7

2.3%

0.6%

1.0%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0

20

40

60

80

100

120

140

(Rm

b m

n)

R&D Expenditure % of Total Revenue

28