Equity Research April 1, 2019

Yanzhou Coal Mining 2018 results slightly beat expectation; output continues growing

Results Review Maintain HOLD

2018 results slightly beat expectation Ticker 600188.SH 01171.HK Yanzhou Coal-H’s 2018 revenue and net profit rose 28% and 17% YoY CICC investment rating HOLD HOLD to Rmb67.4bn and Rmb8.6bn (Rmb1.75/sh), slightly above our Last close Rmb11.11 HK$8.54 expectation due to lower financial expenses in 4Q18. It proposed a CICC target Rmb12.50 HK$9.00 cash dividend of Rmb0.54/sh, about 31% of H-share attributable net 52wk price range Rmb15.11~8.36 HK$~ profit. Yanzhou Coal-H’s 2H18 revenue and attributable net profit Market cap (bn) Rmb47 HK$55 climbed 18.4% and 1.2% YoY to Rmb35.2bn (+9.3% HoH) and Daily value (mn) Rmb370.71 HK$140.64 Rmb3.96bn (-14% HoH). Shares outstanding (mn) 4,912 4,912 Free float (%) 60 40 Commercial coal output was 95.1mnt in 2018 (+19% YoY) and Daily volume (mn sh) 34.72 17.71 24.1mnt in 4Q18 (-6% YoY and +7% QoQ). ASP of self-produced coal Business sector Coal was Rmb542/t in 2018 (+10% YoY with +3% in China and +15% at Yancoal Australia) and Rmb544/t in 4Q18 (+6% YoY and -3% QoQ). HSCEI Sales cost of self-produced coal were Rmb252/t in 2018 (+16% YoY) 106 and Rmb262/t in 4Q18 (+13% YoY and -4% QoQ). SG&A expense rose 100 15% YoY to Rmb10.7bn in 2018 due to increasing sales volume of 94

Yancoal Australia and Rmb1.02bn in provisions for changes in social 88 security contributions. Operating cash flow rose 50% YoY to Rmb18.2bn in 2018 and capex totaled Rmb10.8bn. (%) Value Relative 82 76 Apr-2018 Jul-2018 Sep-2018 Dec-2018 Mar-2019 Trends to watch The company guides sales volume of self-produced coal at 100mnt (Rmb mn) 2017A 2018A 2019E 2020E

(+6.8% YoY) and capex at Rmb9bn in 2019. We expect seasonal Revenue 52,672 67,447 66,844 67,939 weakening in thermal coal price in near term, and forecast thermal (+/-) 58.3% 28.1% -0.9% 1.6% average coal price will drop 8% in 2019. Net profit 7,363 8,583 7,429 7,833 (+/-) 346.4% 16.6% -13.4% 5.4%

Earnings forecast EPS 1.50 1.75 1.51 1.59 We cut our 2019 A/H-share EPS forecasts 9% and 4% to Rmb1.56 and BPS 9.65 10.60 11.32 12.27 DPS 0.48 0.54 0.52 0.54 Rmb1.51, and introduce 2020 forecasts at Rmb1.60 and Rmb1.59. CPS 2.48 3.71 4.53 4.61 P/E 4.7 4.3 5.0 4.7 Valuation and recommendation P/B 0.7 0.7 0.7 0.6 Yanzhou Coal-A is trading at 7.1x and 6.9x 2019e and 2020e P/E, and EV/EBITDA 4.5 3.9 4.3 3.7

Yanzhou Coal-H at 5.0x and 4.7x. Maintain HOLD for A/H-share. Dividend yield 6.7% 7.2% 6.9% 7.1% Maintain A-share TP at Rmb12.5 (8.0x and 7.8x 2019-2020e P/E and ROAA 4.3% 4.3% 3.5% 3.6% 13% upside); cut H-share TP 10% to HK$9 (5.3x and 5.0x P/E and 5% ROAE 17.4% 17.3% 13.8% 13.5% upside).

Risks Disappointing coal demand and/or coal prices. Source: Wind, Bloomberg, Corporate filings, CICC Research

Yan CHEN, CFA Yubo DONG, CFA, CPA James HU

Analyst Analyst Analyst [email protected] [email protected] [email protected] SAC Reg. No.: S0080515060002 SAC Reg. No.: S0080515080001 SAC Reg. No.: S0080118050025 SFC CE Ref: ALZ159 SFC CE Ref: BFE045 SFC CE Ref: BGF975

Please read carefully the important disclosures at the end of this report CICC Research: April 1, 2019

Financial summary

Financial statement (Rmb mn) 2017A 2018A 2019E 2020E Financial ratios 2017A 2018A 2019E 2020E Income statement Growth ability Revenue 52,672 67,447 66,844 67,939 Revenue 58.3% 28.1% -0.9% 1.6% COGS -33,757 -43,141 -45,962 -47,031 Operating profit 179.7% 34.5% -19.3% 3.0% Selling expenses -4,953 -4,893 -3,488 -3,312 EBITDA 115.0% 20.7% -8.5% 4.5% Administrative expenses -4,306 -5,767 -4,842 -4,877 Net profit 346.4% 16.6% -13.4% 5.4% Other ops income (expense) 4,877 5,897 3,223 3,523 Profitability Operating profit 14,534 19,543 15,776 16,243 Gross margin 35.9% 36.0% 31.2% 30.8% Finance costs -3,255 -3,612 -3,461 -3,257 Operating margin 27.6% 29.0% 23.6% 23.9% Other income (expense) 0 0 0 0 EBITDA margin 38.4% 36.2% 33.4% 34.3% Profit before income tax 11,278 15,931 12,316 12,986 Net margin 14.0% 12.7% 11.1% 11.5% Income tax -2,715 -4,608 -3,030 -3,195 Liquidity Minority interest -1,201 -2,740 -1,857 -1,958 Current ratio 1.02 1.09 1.11 1.29 Net profit 7,363 8,583 7,429 7,833 Quick ratio 0.98 1.02 1.04 1.22 EBITDA 20,227 24,408 22,327 23,329 Cash ratio 0.33 0.46 0.48 0.66 Recurrent net income 7,363 8,583 7,429 7,833 Liabilities / assets 59.6% 57.7% 56.6% 55.1% Balance sheet Net debt / equity 30.7% 27.5% 23.8% 10.8% Cash and bank balances 21,073 27,373 29,454 40,810 Return Trade and bill receivables 12,991 9,157 9,075 9,224 RoA 4.3% 4.3% 3.5% 3.6% Inventories 3,079 4,069 4,240 4,340 RoE 17.4% 17.3% 13.8% 13.5% Other current assets 28,105 24,231 24,753 25,719 Per-share data Total current assets 65,249 64,831 67,522 80,093 EPS (Rmb) 1.50 1.75 1.51 1.59 Fixed assets and CIP 50,784 56,192 62,021 58,637 BPS (Rmb) 9.65 10.60 11.32 12.27 Intangible assets and others 81,280 84,981 83,379 81,756 DPS (Rmb) 0.48 0.54 0.52 0.54 Total non-current assets 132,064 141,173 145,400 140,393 Cash flow per share (Rmb) 2.48 3.71 4.53 4.61 Total assets 197,313 206,004 212,922 220,486 Valuation Short-term borrowings 0 0 0 0 P/E 4.7 4.3 5.0 4.7 Trade and bill payables 8,973 12,514 13,040 13,346 P/B 0.7 0.7 0.7 0.6 Other current liabilities 54,752 47,086 47,993 48,523 EV/EBITDA 4.5 3.9 4.3 3.7 Total current liabilities 63,725 59,600 61,033 61,870 Dividend yield 6.7% 7.2% 6.9% 7.1% Long-term borrowings 45,546 51,350 51,465 51,532 Total non-current liabilities 53,892 59,358 59,473 59,541 Total liabilities 117,617 118,959 120,506 121,410 Share capital 4,912 4,912 4,912 4,912 Retained profit 42,499 47,165 50,679 55,381 Equity 47,411 52,077 55,591 60,293 Total liabilities & equity 197,313 206,004 212,922 220,486 Cash flow statement Pretax profit 8,564 11,323 9,286 9,792 Depreciation & amortization 4,313 6,613 7,054 7,709 Change in working capital 10,356 121 884 -342 Others -11,071 187 5,013 5,504 Cash flow from operations 12,162 18,243 22,236 22,663 Capital expenditure -20,523 -13,634 -16,241 -8,175 Others -10,319 3,462 0 0 Cash flow from investing -30,841 -10,172 -16,241 -8,175 Equity financing 0 0 0 0 Bank borrowings 23,580 -1,891 -3,915 -3,132 Others 0 0 0 0 Cash flow from financing 23,580 -1,891 -3,915 -3,132 Foreign exchange gain (loss) -248 120 0 0 Net changes in cash 4,652 6,300 2,081 11,356 Source: Corporate filings, CICC Research

Company description

Yanzhou Coal Mining Co., Ltd. is the largest coal producer in eastern China and one of the largest coal exporters. The company is principally engaged in the underground mining, preparation, sales and railway transportation of coal. It mainly produces semi-hard coking coal, semi-soft coking coal, PCI coal and thermal coal, which are mainly distributed to customers in eastern, southern and northern China as well as Japan, South Korea and Australia. In an active step to develop the coal chemical industry, Yanzhou has invested in the construction of the biggest domestic methanol production base in the Yulin region of Shaanxi Province to produce methanol and acetic acid, etc.

Please read carefully the important disclosures at the end of this report 2 CICC Research: April 1, 2019

Figure 1: 2018 results review 2018A vs CICC 2019E (Rmb mn) 2017A 2018E 2018A 2019E YoY estimate YoY Revenue 52,672 61,956 67,447 28.1% 8.9% 66,844 -0.9% Gross profit 18,915 26,596 24,307 28.5% -8.6% 20,883 -14.1% Operating profit 14,534 17,050 19,543 34.5% 14.6% 15,776 -19.3% Net profit 7,363 7,180 8,583 16.6% 19.5% 7,429 -13.4% Fully-diluted EPS (Rmb) 1.50 1.46 1.75 16.6% 19.5% 1.51 -13.4%

Gross margin 35.9% 42.9% 36.0% 0.1ppt -6.9ppt 31.2% -4.8ppt Operating margin 27.6% 27.5% 29.0% 1.4ppt 1.5ppt 23.6% -5.4ppt Net margin 14.0% 11.6% 12.7% -1.3ppt 1.1ppt 11.1% -1.6ppt Source: Corporate filings, Wind Info, CICC Research

Figure 2: Semi-annual earnings Rmb mn 1H2017 2H2017 1H2018 2H18 HoH YoY 2017 2018 YoY Sales revenue 22,922 29,750 32,220 35,227 9.3% 18.4% 52,672 67,447 28.1% Sales cost 14,831 18,926 19,869 23,272 17.1% 23.0% 33,757 43,141 27.8% Gross profit 8,091 10,824 12,352 11,955 -3.2% 10.4% 18,915 24,307 28.5% SG&A 3,233 6,026 5,293 5,367 1.4% -10.9% 9,259 10,660 15.1% Equity investment gains 342 514 854 681 -20.2% 32.5% 855 1,534 79.4% Other operating revenue 1,172 2,850 2,345 2,017 -14.0% -29.2% 4,022 4,362 8.5% EBIT 6,373 8,161 10,257 9,286 -9.5% 13.8% 14,534 19,543 34.5% Financing cost 1,323 1,932 1,816 1,797 -1.0% -7.0% 3,255 3,612 11.0% EBT 5,050 6,229 8,442 7,489 -11.3% 20.2% 11,278 15,931 41.3% Income tax 1,131 1,584 2,494 2,114 -15% 33% 2,715 4,608 70% Net profit 3,919 4,645 5,948 5,375 -9.6% 15.7% 8,564 11,323 32.2% Minority interest 468 733 1,325 1,415 7% 93% 1,201 2,740 128% Profit attributable to shareholders 3,451 3,911 4,623 3,960 -14.3% 1.2% 7,363 8,583 16.6% Diluted EPS(Rmb) 0.70 0.80 0.94 0.81 -14.3% 1.2% 1.50 1.75 16.6%

Gross margin 35.3% 36.4% 38.3% 33.9% -4.4ppt -2.4ppt 35.9% 36.0% 0.1ppt Operating margin 27.8% 27.4% 31.8% 26.4% -5.5ppt -1.1ppt 27.6% 29.0% 1.4ppt Net margin 15.1% 13.1% 14.3% 11.2% -3.1ppt -1.9ppt 14.0% 12.7% -1.3ppt SG&A ratio 14.1% 20.3% 16.4% 15.2% -1.2ppt -5ppt 17.6% 15.8% -1.8ppt Financing costs ratio 5.8% 6.5% 5.6% 5.1% -0.5ppt -1.4ppt 6.2% 5.4% -0.8ppt Effective tax rate 22.4% 25.4% 29.5% 28.2% -1.3ppt 2.8ppt 24.1% 28.9% 4.9ppt Source: Corporate filings, Wind Info, CICC Research

Please read carefully the important disclosures at the end of this report 3 CICC Research: April 1, 2019

Figure 3: Key assumptions Price(Rmb/t) 2019e new 2019e old Diff 2020e new ASP of self-produced coal 505 487 4% 504 Domestic ASP 486 499 -3% 486 Australian ASP 551 512 8% 547

Production (kt) 2019e new 2019e old Diff 2020e new Total 102,902 101,648 1% 108,616 China 60,372 59,929 1% 63,685 Australia 42,530 41,719 2% 44,932

Sales volume(kt) 2019e new 2019e old Diff 2020e new Total 100,236 97,951 2% 102,638 China 57,706 56,232 3% 57,706 Australia 42,530 41,719 2% 44,932

Financials (Rmb mn) 2019e new 2019e old Diff 2020e new Total revenue 66,844 62,043 8% 67,939 COGS 45,962 35,818 28% 47,031 Gross profit 20,883 26,224 -20% 20,908 SG&A 8,330 8,693 -4% 8,189 Net non-operating income 3,223 647 n.a. 3,523 Operating profit 15,776 16,884 -7% 16,243 Financial costs 3,461 3,830 -10% 3,257 Profit before taxes 12,316 13,055 -6% 12,986 Taxes 3,030 3,525 -14% 3,195 Net profit 9,286 9,530 -3% 9,792 Minority interests 1,857 1,811 3% 1,958 Equity holders of the company 7,429 7,719 -4% 7,833 EPS-H (Rmb) 1.51 1.57 -4% 1.59 Source: CICC Research

Figure 4: P/E and P/B bands

Yanzhou Coal-H P/E Band Yanzhou Coal-H P/B Band

Px Last 3X 6X 9X 12X Px Last 0.5X 1X 1.5X 2X 35 HKD 35 HKD 30 30 25 25

20 20

15 15

10 10

5 5

0 0 2011-04 2013-04 2015-04 2017-04 2019-04 2011-04 2013-04 2015-04 2017-04 2019-04

Source: Wind Info, CICC Research

Please read carefully the important disclosures at the end of this report 4 CICC Research: April 1, 2019

Figure 5: Valuations of comparable companies SH-HK A-share comps Rating Price (Rmb) Market Cap EPS (Rmb) P/E (x) BPS (Rmb) P/B (x) 2019/4/1 Connects (Rmb mn) 2017A 2018A/E 2019E 2020E 2017A 2018A/E 2019E 2020E 2017A 2018A/E 2019E 2020E 2017A 2018A/E 2019E 2020E Coking coal comps Xishan Coal & Elec. 6.43 × 19,600 0.50 0.70 0.58 0.56 12.9 9.2 11.1 11.5 5.69 6.25 6.82 7.38 1.1 1.0 0.9 0.9 Pingdingshan Tian'an Coal 4.36 √ 9,964 0.58 0.40 0.50 0.54 7.5 10.9 8.7 8.0 5.07 5.40 5.79 6.20 0.9 0.8 0.8 0.7 Kailuan Energy Chemical 6.83 √ 10,416 0.33 n.a. n.a. n.a. 20.7 n.a. n.a. n.a. 5.86 6.53 7.28 7.94 1.2 1.0 0.9 0.9 Lu'an Environmental Energy 8.14 √ 23,572 0.93 0.98 1.03 1.12 8.8 8.3 7.9 7.3 7.06 7.41 8.19 9.01 1.2 1.1 1.0 0.9 Jizhong Energy 4.48 × 15,018 0.30 0.32 0.36 0.37 14.9 13.9 12.3 12.0 5.46 5.70 5.98 6.26 0.8 0.8 0.7 0.7 Shanghai Energy 10.89 √ 7,834 0.72 1.47 1.17 1.16 15.1 7.4 9.3 9.4 12.38 n.a. n.a. n.a. 0.9 n.a. n.a. n.a. Panjiang Refined Coal 5.80 √ 9,169 0.53 0.59 0.60 0.62 10.9 9.9 9.7 9.3 3.89 4.97 5.49 6.01 1.5 1.2 1.1 1.0 Anthracite comps Lanhua Sci-tech 8.30 √ 8,739 0.68 0.95 0.93 0.99 12.1 8.8 8.9 8.4 8.22 9.43 10.31 11.24 1.0 0.9 0.8 0.7 Shenhuo Coal 5.35 × 9,483 0.19 0.20 0.65 0.36 27.6 27.2 8.2 14.7 3.11 4.17 4.75 5.18 1.7 1.3 1.1 1.0 Yangquan Coal 6.26 √ 14,045 0.68 0.80 0.84 0.87 9.2 7.8 7.4 7.2 6.23 6.34 6.93 7.54 1.0 1.0 0.9 0.8 Other coal comps China Shenhua* HOLD 20.15 √ 384,839 2.26 2.21 2.30 2.32 8.9 9.1 8.8 8.7 15.16 16.48 17.89 19.30 1.3 1.2 1.1 1.0 China Coal* HOLD 5.25 √ 59,618 0.17 0.26 0.32 0.31 30.4 20.3 16.4 16.8 6.71 6.95 7.27 7.58 0.8 0.8 0.7 0.7 Yanzhou Coal* HOLD 11.11 √ 43,452 1.38 1.61 1.56 1.60 8.1 6.9 7.1 6.9 11.18 12.42 13.44 14.52 1.0 0.9 0.8 0.8 Shaanxi Coal* BUY 9.47 × 86,100 1.04 1.21 1.28 1.39 9.1 7.8 7.4 6.8 4.42 5.22 6.01 6.88 2.1 1.8 1.6 1.4 Datong Coal 5.11 √ 7,933 0.36 0.42 0.51 0.39 14.2 12.1 10.0 13.1 3.34 n.a. n.a. n.a. 1.5 n.a. n.a. n.a. Hengyuan Coal 8.14 √ 6,910 1.10 1.05 0.96 0.94 7.4 7.8 8.5 8.7 6.91 7.43 8.34 9.31 1.2 1.1 1.0 0.9 Lutian Coal 9.59 × 14,562 1.07 1.24 1.37 1.43 9.0 7.7 7.0 6.7 6.61 7.55 8.61 9.64 1.5 1.3 1.1 1.0 Zhengzhou Coal 3.76 √ 3,513 0.62 0.52 0.58 0.62 6.1 7.2 6.5 6.1 3.26 n.a. n.a. n.a. 1.2 n.a. n.a. n.a. SDIC Xinji 3.54 √ 9,300 0.01 0.48 0.52 0.53 393.3 7.3 6.9 6.6 1.85 2.13 2.63 3.13 1.9 1.7 1.3 1.1 Anyuan Industrial 2.98 √ n.a. -0.70 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.80 n.a. n.a. n.a. 3.7 n.a. n.a. n.a. Jingyuan Coal 3.24 × 7,135 0.24 0.29 0.29 0.30 13.4 11.2 11.2 10.8 3.00 n.a. n.a. n.a. 1.1 n.a. n.a. n.a. Shanxi Coal Intl. 4.69 √ 7,355 0.19 0.38 0.43 0.43 24.7 12.4 10.8 11.0 2.48 n.a. n.a. n.a. 1.9 n.a. n.a. n.a. Yuanxing Energy 3.09 × 11,294 0.18 n.a. n.a. n.a. 17.2 n.a. n.a. n.a. 2.26 n.a. n.a. n.a. 1.4 n.a. n.a. n.a.

Price (HK$) SH-HK Market Cap EPS (Rmb) P/E (x) BPS (Rmb) P/B (x) H/B-share comps Rating 2019/4/1 Connects (HK$ mn) 2017A 2018A/E 2019E 2020E 2017A 2018A/E 2019E 2020E 2017A 2018A/E 2019E 2020E 2017A 2018A/E 2019E 2020E China Shenhua* HOLD 18.06 √ 450,167 2.40 2.22 2.32 2.37 6.3 7.2 6.9 6.7 15.36 16.68 18.12 19.58 1.0 1.0 0.9 0.8 China Coal* HOLD 3.29 √ 69,739 0.25 0.34 0.36 0.35 10.8 8.6 8.0 8.3 6.71 6.94 7.30 7.65 0.4 0.4 0.4 0.4 Yanzhou Coal* HOLD 8.54 √ 50,828 1.50 1.75 1.51 1.59 4.7 4.3 5.0 4.7 9.65 10.60 11.32 12.27 0.7 0.7 0.7 0.6 Yitai Coal-H* HOLD 6.88 × 28,098 1.51 1.29 1.25 1.33 3.8 4.7 4.9 4.6 11.52 13.08 13.98 15.09 0.5 0.5 0.4 0.4 Shougang Res* (HK$) BUY 1.85 √ 9,596 0.20 0.21 0.24 0.25 9.1 8.9 7.8 7.3 3.01 2.90 2.98 3.05 0.6 0.6 0.6 0.6 Hidili 0.36 × 747 -0.53 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.5 n.a. n.a. n.a. Note: companies marked with * are CICC-covered and we use market consensus for uncovered companies. Source: Bloomberg, CICC Research

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Beijing Shanghai Hong Kong China International Capital China International Capital China International Capital Corporation Limited Corporation Limited – Shanghai Branch Corporation (Hong Kong) Limited 28th Floor, China World Office 2 32nd Floor Azia Center 29th Floor, One International Finance Centre 1 Jianguomenwai Avenue 1233 Lujiazui Ring Road 1 Harbour View Street Beijing 100004, P.R. China Shanghai 200120, P.R. China Central, Hong Kong Tel: (86-10) 6505-1166 Tel: (86-21) 5879-6226 Tel: (852) 2872-2000 Fax: (86-10) 6505-1156 Fax: (86-21) 5888-8976 Fax: (852) 2872-2100

Shenzhen Singapore United Kingdom China International Capital China International Capital China International Capital Corporation Limited – Shenzhen Branch Corporation (Singapore) Pte. Limited Corporation (UK) Limited 72th Floor, Shenzhen PingAn Finance Center #39-04, 6 Battery Road Level 25, 125 Old Broad Street 5033 Yitian Boulevard, Futian District Singapore 049909 London EC2N 1AR, United Kingdom Shenzhen 518000, P.R. China Tel: (65) 6572-1999 Tel: (44-20) 7367-5718 Tel: (86-755) 8319-5000 Fax: (65) 6327-1278 Fax: (44-20) 7367-5719 Fax: (86-755) 8319-9229

Beijing Jianguomenwai Avenue Branch Beijing Kexueyuan South Road Branch Shanghai Pudong New District Century Avenue 1st Floor, Capital Tower Room 1311, Block B, Raycom Infotech Park Branch 6A Jianguomenwai Avenue 2 Kexueyuan South Road, Haidian District Unit 4609-14, 46th Floor, Phase II Shanghai IFC, No.8 Beijing 100022, P.R. China Beijing 100022, P.R. China Century Avenue,China (Shanghai) Pilot Free Trande Tel: (86-10) 8567-9238 Tel: (86-10) 8286-1086 Zone, Shanghai, 200120, P.R. China Fax: (86-10) 8567-9235 Fax: (86-10) 8286 1106 Tel: (86-21) 5359-9800 Fax: (86-21) 2057-9488

Shanghai Huangpu District Hubin Road Branch Shenzhen Fuhuayilu Branch Hangzhou Jiaogong Road Branch 18th Floor, 3 Corporate Avenue,No.168 Room 201, Annex Building 1st Floor, Euro American Center Hubin Road, Huangpu District, Shenzhen Duty Free Commercial Tower 18 Jiaogong Road Shanghai 200021, P.R. China 6 Fuhua 1st Road, Futian District Hangzhou 310012, P.R. China Tel: (86-21) 6386-1195 Shenzhen 518048, P.R. China Tel: (86-571) 8849-8000 Fax: (86-21) 6386-1180 Tel: (86-755) 8832-2388 Fax: (86-571) 8735-7743 Fax: (86-755) 8254-8243

Nanjing Hanzhong Road Branch Guangzhou Tianhe Road Branch Chengdu Binjiang Road (East) Branch Section C, 30th Floor, Asia Pacific Tower 40th Floor, Teemtower 1st & 16th Floors, Shangri-La Center 2 Hanzhong Road, Gulou District 208 Tianhe Road Block 9B, Binjiang Road (East) Nanjing 210005, P.R. China Guangzhou 510620, P.R. China Chengdu 610021, P.R. China Tel: (86-25) 8316-8988 Tel: (86-20) 8396-3968 Tel: (86-28) 8612-8188 Fax: (86-25) 8316-8397 Fax: (86-20) 8516-8198 Fax: (86-28) 8444-7010

Xiamen Lianyue Road Branch Wuhan Zhongnan Road Branch Qingdao Middle Hongkong Road Branch 4th Floor, Office Building, Paragon Center 4301-B, Poly Plaza 11th Floor, Shangri-La Center 1 Lianyue Road, Siming District 99 Zhongnan Road, Wuchang District Block 9, Hongkong Road (M), South District Xiamen 361012, P.R. China Wuhan 430070, P.R. China Qingdao 266071, P.R. China Tel: (86-592) 515-7000 Tel: (86-27) 8334-3099 Tel: (86-532) 6670-6789 Fax: (86-592) 511-5527 Fax: (86-27) 8359-0535 Fax: (86-532) 6887-7018

Chongqing Honghu Road (West) Branch Tianjin Nanjing Road Branch Dalian Gangxing Road Branch 1st & 10th Floors, Ourui Lanjue Center 10th Floor, Tianjin Global Trading Center 16th Floor, Wanda Center Block 9, Honghu Road (W), New North District 219 Nanjing Road, Heping District 6 Gangxing Road, Zhongshan District Chongqing 401120, P.R. China Tianjin 300051, P.R. China Dalian 116001, P.R. China Tel: (86-23) 6307-7088 Tel: (86-22) 2317-6188 Tel: (86-411) 8237-2388 Fax: (86-23) 6739-6636 Fax: (86-22) 2321-5079 Fax: (86-411) 8814-2933

Foshan Jihua 5th Road Branch Yunfu Xinxing Dongdi North Road Branch Changsha Chezhan Road (North) Branch 12th Floor, Trend International Business Building 2nd Floor, Service Building C1, Wens Science & 3rd Floor, Annex Building, Securities Tower 2 Jihua 5th Road, Chancheng District Technology Garden, Dongdi North Road 459 Chezhan Road (North), Furong District Foshan 528000, P.R. China Xincheng Town, Xinxing County Changsha 410001, P.R. China Tel: (86-757) 8290-3588 Yunfu 527499, P.R. China Tel: (86-731) 8878-7088 Fax: (86-757) 8303-6299 Tel: (86-766) 2985-088 Fax: (86-731) 8446-2455 Fax: (86-766) 2985-018

Ningbo Yangfan Road Branch Fuzhou Wusi Road Branch Xi’an Yanta Branch 11th Floor, Building Five, 999 Yangfan Road 38th Floor, Henglicheng Office Building 21th Floor, Capitaland West Tower, Hi-tech Industrial Development Zone No.128 Wusi Road, Gulou District No.64 Second Ring South Road West Section, Ningbo 315103, P.R. China Fuzhou 350001, P.R. China Yanta District, Xi'an 710065, P.R. China Tel: (86-574) 8907-7288 Tel: (86-591) 8625 3088 Tel: (+86-29) 8648-6888 Fax: (86-574) 8907-7328 Fax: (86-591) 8625 3050 Fax: (+86-29) 8648-6868