SG Automotive Group

CONTENT

OVERVIEW1

PRODUCTS2

ADVANTAGE3

4 GLOBAL STRATEGY

SG OVERVIEW

4

• Employees: 8,000

• Assets: > 8 Bil Rmb

• Revenue 2015: ≈ 10 Bil Rmb

• Mfg facilities: ≈ 3.5 mil m2

• Capability: 130K vehicles & 1 mil axles

• Subsidiaries: 18

• Rankings:

• 22nd in China Auto OEM & Suppliers

• 12th in China Auto Components Suppliers

• 52nd in China Equipment Industry Fortune 500

• 32nd in China Most Competitive Big Companies

• #1 light duty independent axle supplier in China

• Top 5 in China for med-large city bus

• Public traded in Shanghai Stock Exchange since 2000

• AAA Vehicle Export OEM

5

Mission

Profitability & Social

Responsibility

Philosophy

Create Win-Win

ValueValue

People are the Key

Vision

Achieve Industry

Sustainability

Principles

Improve Together

1984 1992 1995 2000

Founded

in

1984

Pioneered

Independent

Suspension in China

Launch

Vehicle

Operation

2002 2010 2015

IPO

Shanghai

Exchange

Acquired

Huang Hai

Bus (founded

in 1951)

Achieve d

Sales

Rmb 10.6 Bln

Huanghai leading in

full electric

commercial vehicle

18

Managing Committee

Axle Bus Pickup LD VanSpecial Vehicle

Group Dept.

Board of Directors

Huanghai equipped with license to design, produce and sell: SUV, light-duty van and truck (below 4T)

Bus 6m and up

Mid and Heavy-duty truck 4T and up

All power options of all above

All derivatives of all above

Systems & Components

SG Axle has been leading axle market since 1997 Suspension & axle for all vehicle types

In house ring & pinion gear design & manufacturing

Dedicated and advanced axle lab

The Founder and Everlasting Chair of Axle manufacturer Council

1.5 Leader in Axle&Light-Med Duty Vehicles

Products

BUSCommercial

VehiclePassenger

VehicleLD Vehicle

Over 5 m

Diesel / CNG / LNG / Hybrid / Electric Bus / BRT/i-Bus

All kinds of modified

Over 4 T

Diesel/CNG

All kinds of modified

Over 4 T

LDV/LD Truck

Passeger/Logistics

Diesel / CNG / LNG / Dual fuel/ Electric Bus /

All kinds of modified

CUV/SUV

5 seats

Gasoline/Diesel

2.1 Huanghai Auto Portfolio

V platform N platform City bus

4m

Super bus

5m

6m

7m

8m

10m

12m

A platform Coach

2.2 Huanghai New Energy Vehicles Platform

Mini-van

Mini-Truck

Pickup

LDV

Bus

New Energy Commercial Vehicles

SOP 2016 Q1 2.2T, 4*1.7m (L*W)

SOP 12/2015 > 200km

extended range

Current in production

2.3 Huanghai Bus Portfolio

5.客车系列BUS series2.4 Huanghai Bus

65 years flagship brand in commercial vehicle manufacturing Leader of mid-large city bus The only manufacturer with authorized MAN BRT Bus technology transfer Fully localized with mass units in operation Product range from 5m to 18m，Market population over 100K units Diesel / CNG / LNG / Hybrid / Electric Bus / BRT/i-Bus Steel leaf spring suspension, air suspension Low floor/ low entry/ high floor/ standard floor

2.5 Mid-Heavy Duty Truck

The one and only HD truck manufacturing license issued to Liaoning OEMs by Ministry of IIT(Industry and Information Technology)

Huanghai brand truck product payload ranging from 7.8T to 13.8T Manufactured in Dandong Facility Signed MOU with TaTa Daewoo for special truck chassis localization

cooperation project

Bulk Tank Semi-trailer Oil field mortar Semi-trailer

Concrete Mixer Mobile Antenna Tower Truck

2.6 Huanghai SPV

Various Semi-trailer

Refuse Truck

65 years in manufacturing Both in-house truck chassis and other OEMs 63 product varieties Market population over 60K units

1616

2.7 Light-Duty Van

• Built in Dalian Huanghai facility

• Sub-brand as Raytour

• Platform product line-5m,6m,7m

• Over 100 applications

• w/ seats up to 19, payload 0.8T-2.4T

• Offer diesel and electric options

1717

2.7 Light-Duty Van

Huanghai Raytour Van appointed as the only full electric vehicle for 2015

Summer World Economic Forum and The 2nd Understanding China Global

Forum held in Nov. 2015

Competitive as passenger rider and cargo hauler

Customized by offering 4WD with higher comfort & safety standards

Leading edge Full-size truck fits both high-end buyer and pickup enthusiasts

Customer Value

2014 2015 2016

Built in Dandong PV facility As Pickup market leader since 1995 Brand new N platform launched in late 2014 w/ annual target to

60K-80K by 2017

Basic

Customized

High-end

2.8 Pickup Trucks

2.9 Axle & Components

MPV, SUV & Pickup Axle

Suspension Module

Truck & Bus Axle(3T & up)

Core Components(gears, differentials)

• 30 years in design &

manufacturing

• Largest independent axle

producer since 1997

• 1 million axle sold annually

• 9 manufacturing locations

nationwide to serve

strategic OEM customers

• Invested heavily in R&D

and automation process

Advantage

3.1 Huanghai Advantages

Full ProductLine & Proven Technology

Integrated System-Sales & supply chain

-Brand Recognition-Quality System

Skilled Work Force

Open Minded Management

Team- With Global Experienced

Sustainability

Value & Trust

Mature MfgKnow-how-State-of-art capabilities-Logistics convenience

Financial Leasing Model

Shared Value, Shared Resources, Shared Growth

4 R&D centers in Dandong & Shenyang for axle, pickup, bus and van

> 500 engineering professionals SG Group formed strategic partnership

w/ AVL, Dassault, MTS, CATARC, etc. 89 service center for commercial vehicles for various product development & testing demand

SG

Bus & Van R&D

Axle R&D

PickupR&D

3.2 Product Development

二、优越的资源利用3.3 Global Supply Chain

Reliable Quality & Best-Value Supply Chain Base w/ long-term partnership Local Tier 1 and Tier 2 in Hundreds approved for localization Strategic alliance with global suppliers

3.4 Manufacturing Presence

Shenyang Chassis Facility

LD Van Facility in Dalian

Gear facility in Shandong Rongcheng

Axle Facility in Shandong Zhucheng

Axle Shaft Facility in FengchengSUV & Pickup Facility in Dandong

Bus Facility in Dandong

Bus Facility in Dandong

WHQ & Axle Facility in Dandong

• 15 main manufacturing sites in China• Full capabilities for

• Axle & Chassis system & key components• SUV/Pickup • Light-duty Van• Bus & Truck• Vehicle/Lab Testing• TS/ISO certified

3.5 In-House Manufacturing Capabilities

3.6 Government & Industrial Recognition

Ex-Prime Minster

Mr. Wen,Jiabao

2003/6/20

Ex-President Mr.

Hu, Jingtao met

with Chairman Li,

Jindian

2009/3/4

President Xi,

Jinping met with

SG CEO Mr. Li,

Haiyang

Current Prime

Minster Mr. Li,

Keqiang on

Huanghai Bus

2007/9/30

Mr. Li, Yuanchao,

member of

Politic Bureau

visited SG

2011/6/25 2013/3/6

Solid reputation and support among the industry Besides support from local government, SG is highly recognized by central

government SG Axle served as the Chair of China Axle Council

3.7 Stable Quality Work Force

Lower cost but more stable labor force

Skilled engineers and technicians

Controlled by SG, HuanghaiInstitute of Engineering in Dandong with over 1500 students served as automotive-related skilled work force hub

GlobalStrategy

4.1 Global Network

Prime market in Africa, South-eastern Asia, S. America, Mid-east KD plant in Ethiopia, Africa Local distributors

4.2 Global Strategy

2011-2015 2015-2018 2018-2025

Regional Trade Global Mapping Global Operation

Explore lKD operation with local

partner in selected market such as

Africa

Regional distribution network

Primarily bus

Decide on strategic market w/

value-added product and local

mfg mapping

Export while increasing oversea

local content and start investing

oversea operation

Global platform product

planning aiming mid-high end

market (LD van/pickup, new

energy vehicle as core)

Build International

operation team w/ global

management structure and

culture

Expand R&D,

manufacturing, purchasing

and sales overseas by steps

Focus on core

competence of new energy

vehicle

2010 2015 2018

Exporting &

Selected Local KD

Mfg

Strategic

Distribution

Mapping

Made Local &

Sell Local

Thank you!