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    2007/08/24

    Welcome toSanyang Industry

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    AGENDA1. History

    2. Motorcycle Business

    3. Automobile Business

    4. New Business

    5. Future Prospect

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    Mission Philosophy and Vision

    Mission To devote ourselves to developing superior products and contributing to the

    society.

    Philosophy

    To become a competence-driven company that honors positive contributions,

    and to creat the better future by the core value of integrity, vibrancy,

    innovation and customer satisfaction.

    Vision

    To be the fastest growing, market-focused motor vehicle manufacturing

    company in every country and market we serve.

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    Values

    HumanityCustomer orientation

    Professional growth

    Innovative breakthroughAccountability

    Teamwork

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    Vision, Mission, and Philosophy

    Vision

    To be the fastest growing, market-focusedmotor vehicle manufacturing company inevery country and market we serve

    Mission

    To devote ourselves to developingsuperior products and contributing to thesociety

    Philosophy

    To become a competence-driven company

    that honors positive contributions, and tocreate the better future by the core valuesof integrity, vibrancy, innovation andcustomer satisfaction

    Chairman of the Board:

    Shi H. Huang, M.D.

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    Organization

    2-Wheelbusiness Unit

    4-Wheelbusiness Unit

    Spin-offbusiness Unit

    Sanyang

    AdministrativeUnit

    + Product

    Development

    Division

    + Electric VehicleBusiness Division

    + Quality Control

    Division

    + Motorcycle

    Production

    Factory

    + Domestic

    Marketing Division

    + Overseas

    Marketing Division(+ Motor Business

    Planning Office

    + Service Division

    +Europe Marketing

    Dept.

    + Automobile and

    SUV Business

    Planning Office.

    + Automobile

    Purchasing

    Business Office

    + Automobile

    Production

    Factory

    + Marketing

    Division

    + EngineeringTechnology

    Office

    + Guanyin

    Factory

    + SMV

    + ManagementOffice

    + Investment

    Management

    Division

    + FinanceDivision

    + Management

    Division

    + Safety Health

    & Environment

    Protection

    Administration

    OfficeAutomobile

    Business

    New BusinessUnit

    +New

    Business

    Project Office

    MotorcycleBusiness

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    History

    Year Events

    1947 Chinfon Company was founded by Mr. Chi-Chun Huang.

    1954 Sanyang Electric Machinery Plant was established to producedynamoelectric light sets.

    1961 Sanyang Electrical Machinery Co., Ltd. was reorganized asSanyang Industry Co., Ltd.

    1962 Sanyang collaborated with Honda, Japan, to produce 50cc,150cc, and 160cc motorcycles and became the first motorcycle

    manufacturer in Taiwan.

    1967 Sanyang signed a technology transfer contract with Honda,Japan on automobile production.

    1976

    Sanyang independently developed and applied Steadite Alloy

    cylinders to its products and provided 50,000km warranty;

    Sanyang manufactured cylinder heads and exported them to

    Japan.

    1978 Foundation Stone Laying Ceremony of Hsinchu plant was held;the total capital for the company reached NT$483 million.

    Founder:

    ChiChun Huang

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    History

    Year Events

    1980 Dr. Shi H. Huang succeeded Mr. Chi-Chun Huang as Chairman of the Board.The motorcycle production was transferred to Hsinchu plant.

    1982 Sanyang motorcycles were exported to the Dominican Republic.

    1992 Sanyang entered a technology alliance with VMEP in Vietnam.

    1995 Sanyang entered a technology alliance with Xiashing and Qingzhou Engineering in China.

    1998 Sanyang was certified to ISO 14001ISO14001 and OHASA180001.

    2002 Sanyang engaged in technical cooperation with Hyundai Motors, Korea.

    Sanyang formally severed ties with Honda in Japan.

    2003 Aerospace ceramic cylinders were applied to all 2-wheel products and life-long cylinders werewarranted. The R&D center in Hsinfon plant was established.

    QS9000 was certified.

    2004 Sanyang invested US$50 million in Vietnam R&D Center.

    2005 Sanyang Industry Indonesia was established.

    Sanyang Italia S. R. L. was established.

    Sanyang factory in the township of Guanyin started military truck production.

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    History

    Year Events

    2006 Sanyang Deutschland was established.Sanyang announced a formal delivery of the military truck

    to the Ministry of National Defense, R.O.C.

    Sanyang Industry was awarded one of 2006 Taiwans

    Best 20 Global Brands by the External Trade

    Development Council, R.O.C.

    2007 The first motorcycle "Flyte 125", a collaborated work ofSanyang and Kinetic Motor in India, was mass produced

    Sanyang was honored with the 16th Annual Enterprises

    Environmental Protection Award of the R.O.C.

    Sanyang Global was established in Xiamen.

    VMEP Vietnam was listed on the Stock Exchange of Hong

    Kong Limited.

    President

    Shih-Huang Chiang

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    History

    Year Events

    2008 The first batch of King-Long Bus was formally delivered.

    SYM Vietnam Motor factory was inaugurated and T880 was launched.

    Sanyang won the "National Friendly Working Environment Award.

    Sanyang won the contest of "Good Practice in Greenification and Beautification in

    Industrial Park" .

    2009 Sanyang expanded its production base to Turkey via cooperation with UNITEKS.Sanyang Industry was certified to ISO14064.

    VMEP launched its first EFI scooter Joyride in Vietnam.

    2010 New Fighter 150, a proud invention of 150cc scooter with STCS, was launched.

    Sanyangs motorcycles, GTS 300i EVO and Fighter 4V 150 EFI, were chosen the 18th

    National Awards of Excellence.

    Sanyang R&D Branch was established in Vintnam.

    Sanyang won the contest ofNational HRD InnoPrize.

    SMV T1000 and SYM V5/V9/V11 were launched in Vietnam.

    Hyundai ix35 was chosen as the Car of the Year and the Best Domestic SUV in Taiwan

    for 2010.

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    2-Wheel Business

    Sanyang, Taiwan

    Xiashing Motorcycle, China

    Qingzhou Engineering Industry, China

    Sanyang Global, China

    Hangzhou Xiaxing Sanyang Electric Bicycle, China

    VMEP, Vietnam

    Other Overseas Sites

    Research and Development Center

    M t l & A t bil

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    Motorcycle & Automobile

    Factory, TaiwanFounded in 1978

    LocationHsinchu, Taiwan

    ProductMotorcycles and ATV

    Capacity Per Day

    -Engine1,100 units

    -Motorcycle1,100 units

    -ATV 100 units

    Core CompetenceEngine and high-quality

    frame

    EquipmentFrame coating system, Multiple

    automatic production instruments, Automated

    Storage/Retrieval System (AS/RS) and Automatic

    control system

    Number of employees: 2,100

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    Xiashing Motorcycle, China

    Founded in 1992

    Location: Xiamen City, Fujian

    Product: Motorcycles and parts

    Production Line2 Engine Lines and Vehicle

    Lines

    Capacity Per Day:

    -Engine: 1,000 Units-Motorcycle: 1,000 Units

    Number of employees: 800

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    Qingzhou Engineering Industry, China

    Founded in 1995

    Location

    Zhangjiangang, Jiangsu

    Products Engines for both

    automobile and motorcycle

    Core componentsHead , Ceramic

    Coating Cylinder, Mission Caseetc

    for engine.

    Number of employees: 220

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    Sanyang Global, China

    Founded in 2007Location: Xiamen City, Fujiam

    Main activities:

    Design and R&D of

    motorcycles, electricmotorcycles, automobiles and

    parts, molds, and industrial

    equipment, as well as

    exportation of motorcycles.

    H h Xi i S

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    Hangzhou Xiaxing Sanyang

    Electric Bicycle, China

    Founded in 2006

    Location: Hangzhou, Zhejiang

    Main Products:

    -Electric motorcycles and

    electric bicycles

    Core Competence

    Assembling production andsales of electric 2-wheel

    vehicle.

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    VMEP, Vietnam

    Founded in 1992

    LocationDong Nai

    Product: Motorcycles and parts

    Capacity Per Day:

    -Engine: 2,100 units

    -Motorcycle: 2,100 units

    Number of employees: 1900

    VMEP was listed on the Stock

    Exchange of Hong Kong Limited in

    2007.

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    Other Overseas Bases

    Sanyang, Indonesia

    Founded in 2005

    Product Motorcycles

    MTWL, India

    Founded in 2006Product Sanyang

    motorcycles

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    Other Overseas Bases

    Sanyang Italia S.R.L.

    Founded in 2005

    Main activity Sanyang motorcycle

    sales

    Sanyang Deutschland

    Founded in 2006

    Main activity Sanyang motorcycle

    sales

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    SYM

    Sanyang Map of International Sales

    Our motorcycles are cruising around 75 country

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    Sanyang Production Bases

    SY

    VMEP

    Xiashing

    Qingzhou Engineering

    PT. SY

    Sanyang Deutschland

    MTWL

    Sanyang ItaliaUNITEKS

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    Based on the principles of a green

    Earth, humanity and knowledge, we

    strive to engage in continuous

    innovation and make efforts to utilize

    renewing energy.

    Being the R&D bedrock of the world with

    leading technology, we provide customers

    with products of excellence and

    popularity.

    R&D Hardware Plant

    A total area of 49,586 square

    meters with equipment

    investment of US$ 14 million

    Engineering Divisiona building

    of US$ 9 million

    R&D Centera building of US$

    9 million

    Total investment of US$ 32.5 million

    NVH Building

    Sanyang R&D Center

    R&D Philosophy R&D Vision

    Administrative Building Design Building

    Development Building

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    R&D Center, Vietnam

    Enging Testing Building

    Dormitory and Activity Center for R&D StaffSanyang South-East-Asian R&D Subcenter, Vietnam

    New R&D

    1. Design Center

    2. Enging Testing Building

    3. Activity Center, Simplied Test Drive Track

    and other research facility

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    Global R&D Platform

    Sanyang R&D

    Center in HQs

    Qingzhou Engineering

    Industry and R&D Branch,China

    Xiashing Motorcycle

    and R&D Branch,China

    VMEP, Southeast

    Asian R&D Branch,

    Vietnam

    Sanyang R&D Center holds the core technology and know-how

    and transfers them to China and Vietnam branches

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    4-Wheel Business

    Cooperation with Hyundai

    Automobile Assembly

    Our Products

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    Hyundai Motors

    Hyundai Automobile in Taiwan, 2002Sanyang has become one of Hyundais important partners in its international

    strategies since 2002. With aid of Sanyangs professional manufacturing skills

    and sales channels, Hyundai aims at bigger sales volume.

    Hyundai

    The 4th largest car manufacturer in the world

    The best in JD Powers 2007 test for New Cars

    The best automobile of 2005 in India

    The highest sales volume, combining all varieties of models, in China, 2004.

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    Automobile Factory, Hsinchu

    Completes automatic

    - welding, Painting and

    Assembling lines

    Sophisticated Development

    - Efficient Engineering

    Processes

    - Always ready responding

    system toward the marketdemands

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    LAVITA

    SANTA FE

    i30CW

    ix35

    Our 4-Wheel Products

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    Car of the Year & the Best Domestic SUV

    Hyundai ix35 was chosen as the Car of the Year and the Best Domestic SUV in

    Taiwan for 2010.

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    Spin-off Business

    Medium Tactical

    Vehicles Light Tactical Vehicles

    King Long Buses

    Sanyang Light Truck

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    Medium Tactical Vehicles

    Sanyang started to manufacture MediumTactical Vehicles in 2008 in alliance with

    ITEC of USA. Sanyang received orders for Military Trucks

    from Ministry of National Defense.

    The Tactical Vehicles were formallydelivered to the Ministry of NationalDefense in 2009.

    Sanyang received orders for Light TacticalVehicles in 2009.

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    Light Tactical Vehicles

    Sanyang was engaged by the

    Ministry of National Defense inmanufacturing the Light Tactical

    Vehicles in 2009.

    About the Light Tactical Vehicle

    Technology: Chrysler, USA Original Model: Jeep Wrangler

    Unlimited X

    Technical Support: AIL

    (Automobile Industries Ltd.,),

    Israel OthersChrysler is also the main

    provider of light tactical vehicles

    for Israeli military.

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    King Long Buses, Xiamen

    Sanyang invested in King Long Buses,

    Xiamen in 2004.

    Guanyin factory started buses production in

    2007.

    Sanyang manufactured King Long Bus, and

    the brand name King Long entered other

    international markets. Sanyang-manufacture King Long Medium

    Bus was launched in Taiwan.

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    Low-Floor Buses Start Services

    The Sanyang-manufactured buses, on

    which the brand King Long is seen in

    front and rear, are providing services in

    Taipei city.

    Low FloorLow Pollution

    Common Product Platform

    Humanity

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    King Long Medium Buses, Sanyang

    A completely self-manufactured bus,

    from low-floor body assembling,painting to quality control inspection,

    Sanyang King Long is a proud

    product of quality assurance.

    There are more than 10 full-function

    service networks, including 7 engine-maintenance centers, to provide after-

    sales services.

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    Sanyang Motor, Vietnam

    Mi i V T880

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    Mini Van T880

    SMV, 100% invested by Sanyang was granted a license of car production in 2006.

    SMV introduced Mini Van T880 in 2008 and exported it to other Southeast Asian

    markets. Number of employees: 210

    Area: 33 hectares currently used

    Annual capacity: 10,000 units

    B d S

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    2W 4W

    ITEC

    (International Truck and

    Engine Corporation)

    Product

    Brand

    Corporate

    Brand

    ( Taiwan Only)( Vietnam Only)

    Brand System

    (King Long Bus)

    B d I Wid l R i d

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    Brand Image Widely Recognized

    Sanyang received the 13th

    Industry Technology of the

    Ministry of EconomicAffairs, R.O.C.

    Sanyang received the Elite

    Innovators of Industrial

    Technology Advancement

    Award in Taiwan Sanyang was ranked one of

    the top 20 "2006

    International Brands in

    Taiwan" by International

    Trade Institute, R.O.C. Sanyang won the Golden

    Award of Trusted Brands in

    the category of motorcycles

    in Taiwan in 2009

    Taiwan Excellence Award & Taiwan

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    Taiwan Excellence Award & Taiwan

    Excellence Gold Award

    1. New Fighter 150 was the winner ofthe 18th Taiwan Excellence Award.

    2. GTS 300i EVO was presented the 18th

    Taiwan Excellence Gold Award

    N ti l HRD I P i

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    National HRD InnoPrize

    Sanyang was honored with the 6thNational HRD InnoPrize

    F t T d

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    Future Trend

    1. Continuing to develop fuel efficient

    motorcycles.

    2. Researching and developing in accordance

    with the EU5 regulation.3. Assisting government with experimenting

    and proceeding the mechanism of motorcycle

    inspection.

    4. Acquiring the ISO 14001 certificate and

    encouraging engaged suppliers to follow suit.5. Researching and Developing electric

    motorcycles and bikes.

    Facing the environmental issues, energy problems, and the changes of human life,

    Sanyang promise to take our responsibility and devote to better solutions by

    C t S i l R ibilit

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    Corporate Social Responsibility

    Educationculture

    Socialparticipation

    CSR(Corporate

    Social

    Responsibility

    Environmental

    protection

    Sanyang was elected one of the most

    responsible business in the 4th CorporateSocial Responsibility Survey in 2008.

    E i t l P t ti A d

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    Environmental Protection Award

    Green Products

    R&D technology correspondsto green environment.

    Green FactorySanyang has adopted various

    anti-pollution system,such as the drainage system,

    waste and dirty management

    system, air pollution control

    system and incinerator system

    Green Accounting

    Sanyang has adopted a greenaccounting system in 2004.

    Sanyang Industry, allied with

    some of its subcontracting

    factories formed an

    environment-friendly accountingsystem.

    16th Annual EnterprisesEnvironmental Protection Award

    Low Pollution

    Low Fuel

    H2 Injection EFI

    Lean Burn

    Engine

    HybridVVT

    Idling Stop

    Turbo Charge

    + EGR

    3KA

    Green Procurement made by the Enterprises

    M Ri Fi ld P

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    My Rice Field Program

    Adopting rice fields in

    Dong Sham Township tohelp farmers sustain harsh

    seasons

    R h t t L l C iti

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    Reach out to Local Communities

    Sanyang opens to elementary

    children

    for school excursions

    for summer camp

    activities

    Social Participation

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    Social Participation

    New Year, New Wishes

    -Love to the MountainsDonation to Jia-Lan elementary school, where aboriginal

    children need assistance to continue their education

    Beyond the Summit: the Expedition to Mountain Ali

    Donation to Jia-Yi county government and Taiwan Aborigines

    Association to help the poor and the neededLove in May

    Recurring donation every May, starting from 2008

    Fund Raising Project for Sichuan Earthquake

    Send out Care to the Disastrous Areas in the Aftermath

    of typhoon Morak

    Sanyang donated money and motorcycles to Kaohsiung

    county government for disaster relief

    Taiwan

    In the aftermath of typhoon

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    ypMorak-Care for Typhoon Victims

    Love in May

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    Love in May

    2009/09 Care for the elderly

    2010/05 Sanyang Scholarship

    Social Participation in Vietnam

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    Social Participation in Vietnam

    Vietnam

    Helping the Vietnamese Government to Fight Brid Flu

    Donating 582.75 million VND to Ministry of Agriculture to help control bird flusituation in 2004providing 100 million VND and motorcycles were 4 main

    provinces and cities to cope with the epidemic

    Continuing Caring 10000

    Helping 10,000 people in need every year since 2006

    Building 100 BridgesHelping to build 100 bridges in countryside and trying to ease off the traffic

    problems

    ContinuingLittle Angel Project

    Giving regular recurring donations to children in need and helping them accept

    normal education and live normal lives

    Future Prospect

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    Future Prospect

    To achieve our mission, to devote

    ourselves to developing superior

    products and contributing to the

    society , we dedicate to innovation

    and creation and excellence to sustain

    our corporation and to serve the

    society.To execute our quality policy, to

    meet requirement and satisfy

    customers, we establish world-class

    quality standards and create an aim to

    an ideal riding environment forenthusiastic riders.