Equity Research February 2, 2018

Hisense Kelon Electrical Holdings York ’s VRF business injected into

Company Update Maintain BUY

What's new Ticker 000921.SZ 00921.HK On February 1, Johnson Controls and Hisense Hitachi jointly CICC investment rating BUY BUY announced they will inject York China’s VRF business into Hisense Last close Rmb14.21 HK$10.44

Hitachi. CICC target Rmb19.11 HK$14.84

52wk price range Rmb18.08~10.56 HK$13.47~6.74 Comments Market cap (bn) Rmb17 HK$21

Hisense Hitachi is ’s most valuable asset: 1) Hisense Daily value (mn) Rmb189.12 HK$27.97 Shares outstanding (mn) 1,363 1,363 Kelon and Johnson Controls-Hitachi each hold 49% of Hisense Hitachi. Free float (%) 66 34 Johnson Controls-Hitachi is a joint venture between Hitachi and Daily volume (mn sh) 12.44 2.63 Johnson Controls split 40/60%). 2) Hisense Hitachi focuses on China's Business sector Home Appliances & Electronics VRF market, where it is second only to Daikin; although its market share is steadily improving. 3) In 2016, Hisense Hitachi’s revenue was 00921.HK HSCEI Rmb6.5bn and net profit was Rmb1.22bn; over 2011-16 its net profit 196 saw a >40% CAGR. 4) In 2016, investment income contributed by 172 Hisense Hitachi accounted for >55% of Hisense Kelon’s operating profit, which should increase to 70% in 2017. And, 5) according to 148 ChinaIOL, the sales revenue of Hisense Hitachi’s central AC was 124

Rmb8.108bn (+35.84% YoY). (%) Value Relative 100

76 The asset injection will help strengthen Hisense Hitachi's Feb-2017 May-2017 Aug-2017 Nov-2017 Jan-2018 competitiveness and layout in the VRF market, but will not significantly boost its performance in the short term. York's main (Rmb mn) 2016A 2017E 2018E 2019E competitiveness lies in large central air conditioners, but the injection is York's VRF business in China. 2016 HVAC statistics shows York’s Revenue 26,730 33,331 36,169 40,534 brand share was around 2%, vs. 17% Hisense and Hitachi combined. (+/-) 13.9% 24.7% 8.5% 12.1% Net profit 1,088 1,972 1,628 1,942 Its current A-/H-share valuation is 17.3x/10x 2017e operating EPS; (+/-) 87.4% 81.3% -17.5% 19.3% these will improve further, especially with the growing market cap of EPS 0.80 1.45 1.19 1.43 H-share Hisense Kelon. BPS 3.57 4.72 5.31 6.24 DPS 0.30 0.60 0.50 0.59

Valuation and recommendation CPS 2.15 0.99 0.67 0.88 Maintain 2017/18/19 EPS at Rmb1.45/1.19/1.43. 2017 operating EPS P/E 11.7 6.2 6.9 5.8 is Rmb0.82. For A-share, maintain BUY rating and target price of P/B 2.6 1.9 1.6 1.3 EV/EBITDA 5.6 3.1 2.8 1.9 Rmb19.11, implying 16x 2018e P/E; for H-share, maintain BUY rating and lift target price by 17.5% to HK$14.84, implying 10x 2018e P/E. Dividend yield 3.2% 6.7% 6.0% 7.2% ROAA 6.5% 9.2% 6.6% 7.2% ROAE 24.4% 34.9% 23.8% 24.7% Risks

Rising costs; market competition.

Source: Wind, Bloomberg, company data, CICC Research

Aaron Wei HE Xuefeng JIANG

Analyst Associate [email protected] [email protected] SAC Reg. No.: S0080512010001 SAC Reg. No.: S0080517060001 SFC CE Ref: BBH812

Please read carefully the important disclosures at the end of this report CICC Research: February 2, 2018

Financial summary

Financial statement (Rmb mn) 2016A 2017E 2018E 2019E Financial ratios 2016A 2017E 2018E 2019E Income statement Growth ability Revenue 26,730 33,331 36,169 40,534 Revenue 13.9% 24.7% 8.5% 12.1% COGS -20,487 -26,737 -28,681 -32,117 Operating profit 239.3% 99.9% -16.2% 20.8% Selling expenses -4,641 -4,900 -5,425 -6,080 EBITDA 59.0% 32.6% -13.4% 16.8% Administrative expenses -947 -1,100 -1,230 -1,378 Net profit 87.4% 81.3% -17.5% 19.3% Other ops income (expense) -223 -133 -145 -162 Profitability Operating profit 1,065 2,129 1,783 2,155 Gross margin 23.4% 19.8% 20.7% 20.8% Finance costs 86 83 66 76 Operating margin 4.0% 6.4% 4.9% 5.3% Other income (expense) 747 1,724 1,181 1,442 EBITDA margin 7.4% 7.8% 6.3% 6.5% Profit before income tax 1,270 2,279 1,923 2,295 Net margin 4.1% 5.9% 4.5% 4.8% Income tax -129 -228 -231 -275 Liquidity Minority interest 54 79 65 78 Current ratio 0.97 1.09 1.14 1.20 Net profit 1,088 1,972 1,628 1,942 Quick ratio 0.77 0.87 0.92 0.98 EBITDA 1,970 2,612 2,261 2,640 Cash ratio 0.17 0.28 0.31 0.37 Recurrent net income 232 1,120 1,523 1,823 Liabilities / assets 72.1% 70.7% 69.4% 68.0% Balance sheet Net debt / equity net cash net cash net cash net cash Cash and bank balances 2,227 4,555 5,445 7,043 Return Trade and bill receivables 2,725 3,421 3,712 4,160 RoA 6.5% 9.2% 6.6% 7.2% Inventories 2,660 3,516 3,776 4,235 RoE 24.4% 34.9% 23.8% 24.7% Other current assets 5,389 6,421 6,862 7,545 Per-share data Total current assets 13,002 17,913 19,796 22,983 EPS (Rmb) 0.80 1.45 1.19 1.43 Fixed assets and CIP 3,555 3,545 3,517 3,470 BPS (Rmb) 3.57 4.72 5.31 6.24 Intangible assets and others 2,498 2,328 2,293 2,260 DPS (Rmb) 0.30 0.60 0.50 0.59 Total non-current assets 6,053 5,873 5,810 5,729 Cash flow per share (Rmb) 2.15 0.99 0.67 0.88 Total assets 19,055 23,786 25,605 28,712 Valuation Short-term borrowings 0 0 0 0 P/E 11.7 6.2 6.9 5.8 Trade and bill payables 9,595 12,522 13,433 15,042 P/B 2.6 1.9 1.6 1.3 Other current liabilities 3,766 3,936 3,975 4,134 EV/EBITDA 5.6 3.1 2.8 1.9 Total current liabilities 13,362 16,458 17,408 19,176 Dividend yield 3.2% 6.7% 6.0% 7.2% Long-term borrowings 0 0 0 0 Total non-current liabilities 370 362 360 355 Total liabilities 13,732 16,821 17,767 19,531 Share capital 1,363 1,363 1,363 1,363 Retained profit 3,490 5,054 5,861 7,126 Equity 4,867 6,431 7,238 8,503 Total liabilities & equity 19,055 23,786 25,605 28,712 Cash flow statement Pretax profit 1,142 2,051 1,693 2,020 Depreciation & amortization 697 443 363 380 Change in working capital 2,001 520 -55 160 Others -914 -1,668 -1,095 -1,359 Cash flow from operations 2,926 1,346 906 1,202 Capital expenditure 14 14 0 0 Others -1,211 1,301 741 1,002 Cash flow from investing -1,197 1,315 741 1,002 Equity financing 0 0 0 0 Bank borrowings 0 0 0 0 Others -1,949 -333 -757 -606 Cash flow from financing -1,949 -333 -757 -606 Foreign exchange gain (loss) 0 0 0 0 Net changes in cash -217 2,328 890 1,597 Source: Company data, CICC Research

Company description

Hisense Kelon is a second-tier leading player in and air conditioners. It is a white goods asset under Hisense Group. Brother company, Hisense Electric (600060.SH) is the bellwether in color TVs. Currently the company is operating dual air conditioner Hisense and Kelon, dual brands Hisense and Ronshen. The company holds 49% stake of Hisense Hitachi, a joint venture majored in central air-conditioning business, which is a highly profitable bellwether in the VRV (variable refrigerant volume) central market.

Please read carefully the important disclosures at the end of this report 2 CICC Research: February 2, 2018

Figure 1: Revenue breakdown Rmb mn 2014A 2015A 2016A 2017H1 2016H2 2016H1 2015H2 2015H1 2014H2 2014H1 Revenue Washing machines 11,864 11,556 12,779 6,669 4,065 6,041 5,419 6,137 5,576 6,288 and refrigerators Air conditioners 11,343 8,986 10,381 8,525 3,817 5,417 3,193 5,793 4,128 7,215 Others 1,164 1,262 1,511 795 2,145 703 704 558 635 530 GPM Washing machines 21.9% 23.3% 24.8% 19.4% 20.4% 25.8% 24.2% 22.4% 22.4% 21.5% and refrigerators Air conditioners 24.0% 20.6% 24.8% 20.1% 21.8% 22.7% 20.6% 20.6% 24.0% 24.0% Others 25.0% 23.4% 24.5% 23.5% 20.9% 28.1% 23.0% 23.9% 21.1% 29.5% YoY Washing machines 17% -3% 11% 10% -25% -2% -3% -2% 16% 18% and refrigerators Air conditioners 23% -21% 16% 57% 20% -6% -23% -20% 157% 43% Others -59% 8% 20% 13% 205% 26% 11% 5% -21% -63%

Revenue Domestic 17,179 14,267 16,209 9,957 8,091 7,533 5,863 8,404 7,065 10,114 Overseas 7,192 7,537 8,462 6,032 1,935 4,628 3,453 4,084 3,274 3,918 GPM Domestic 28.1% 27.2% 29.6% 27.8% 26.4% 29.8% 27.6% 26.9% 28.1% 28.1% Overseas 11.0% 12.7% 15.5% 7.0% -1.5% 16.1% 14.9% 10.9% 11.9% 10.1% YoY Domestic 10% -17% 14% 32% 38% -10% -17% -17% 114% 23% Overseas 10% 5% 12% 30% -44% 13% 5% 4% 45% 10% Source: Company announcement, CICC Research

Figure 2: P/E and P/B

P/E Band P/B Band Hisense Kelon 3x 6x 9x 12x Hisense Kelon 1x 2x 3x 4x 25 35 30 20 25 15 20

10 15 10 5 5 0 0 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018

Source: Wind, CICC Research

Please read carefully the important disclosures at the end of this report 3 CICC Research: February 2, 2018

Figure 3: Valuation table

Price Mkt cap Net profit (Local currency mn) Net profit YoY EPS （Local) P/E Ticker Company (Local) (USD mn) 2016A 2017E 2018E 2016A 2017E 2018E 2016A 2017E 2018E 2016A 2017E 2018E FY/16/17 FY/17/18 FY/18/19 FY/16/17 FY/17/18 FY/18/19 FY/16/17 FY/17/18 FY/18/19 FY/16/17 FY/17/18 FY/18/19 A-Share 000651.SZ 55.58 53,097 15,421 22,164 25,504 23% 44% 15% 2.56 3.68 4.24 21.7 15.1 13.1 000333.SZ 59.34 61,438 14,684 17,294 21,872 16% 18% 26% 2.25 2.65 3.35 26.3 22.4 17.7 002508.SZ Robam 52.85 7,965 1,207 1,609 2,063 45% 33% 28% 1.27 1.70 2.17 41.6 31.2 24.3 002035.SZ Vatti 32.95 3,044 328 496 713 58% 52% 44% 0.56 0.85 1.22 58.5 38.6 26.9 002032.SZ 43.87 5,722 1,078 1,278 1,535 21% 19% 20% 1.31 1.56 1.87 33.4 28.2 23.5 002242.SZ Joy oung 17.59 2,144 698 714 803 13% 2% 13% 0.91 0.93 1.05 19.3 18.9 16.8 603355.SH Kingclean 33.63 2,142 501 413 623 38% -18% 51% 1.25 1.03 1.55 26.9 32.6 21.6 603868.SH Fly co 66.12 4,574 613 864 1,047 22% 41% 21% 1.41 1.98 2.40 47.0 33.4 27.5 002705.SZ Xinbao Electric 11.30 1,460 431 438 507 52% 2% 16% 0.53 0.54 0.62 21.3 21.0 18.1 002403.SZ Aishida 10.65 592 137 158 191 21% 15% 21% 0.39 0.45 0.55 27.2 23.6 19.5 600060.SH Hisense 15.48 3,217 1,759 1,136 1,582 18% -35% 39% 1.34 0.87 1.21 11.5 17.8 12.8 000100.SZ TCL Group 3.40 7,297 1,602 2,709 3,291 -38% 69% 21% 0.12 0.20 0.24 28.7 17.0 14.0 300403.SZ Idear Hany u 13.69 728 192 182 211 30% -5% 16% 0.57 0.54 0.63 23.9 25.2 21.7 000921.SZ Hisense Kelon 14.21 3,075 1,088 1,972 1,628 87% 81% -17% 0.80 1.45 1.19 17.8 9.8 11.9 600983.SH Whirlpool (China) 6.89 839 372 -53 10 -16% NA NA 0.49 -0.07 0.01 14.2 -99.6 528.1 600839.SH 3.22 2,361 555 409 478 NA -26% 17% 0.12 0.09 0.10 26.8 36.3 31.1 002543.SZ Vanward 22.95 1,604 431 443 545 35% 3% 23% 0.98 1.01 1.24 23.4 22.8 18.5 603515.SH Opple 43.36 3,990 506 674 880 16% 33% 30% 0.87 1.16 1.52 49.6 37.3 28.6 603579.SH Rongtai Health 65.51 1,456 207 230 332 45% 11% 44% 1.48 1.64 2.37 44.4 39.9 27.6 000418.SZ Little Swan 71.85 7,217 1,175 1,472 1,809 28% 25% 23% 1.86 2.33 2.86 38.7 30.9 25.1 A-share average 24.7 19.4 16.2 H-Share 1169.HK Electronics 26.80 9,603 2,786 3,350 3,941 3% 20% 18% 0.99 1.20 1.41 22.9 19.1 16.2 0751.HK Sky worth 3.74 1,464 2,170 1,310 458 -31% -40% -65% 0.71 0.43 0.15 5.3 8.7 25.0 1070.HK TCL Multimedia 3.67 1,094 183 712 690 603% 290% -3% 0.08 0.31 0.30 46.8 12.0 12.4 0921.HK Hisense Kelon 10.44 1,819 1,088 1,972 1,628 87% 81% -17% 0.80 1.45 1.19 11.1 6.1 7.4 H-share average 16.4 13.8 14.9 US WHR US Whirlpool 181.42 13,037 888 350 971 13% -61% 178% 12.36 4.87 13.52 14.7 37.2 13.4 UTX US United Technology 138.01 110,211 5,055 4,552 5,987 -34% -10% 32% 6.33 5.70 7.50 21.8 24.2 18.4 AOS US A.O.Smith 66.78 11,481 327 297 443 15% -9% 49% 1.90 1.72 2.58 35.2 38.7 25.9 IR US Ingersoll-Rand plc 94.63 23,645 1,476 1,303 1,275 122% -12% -2% 5.91 5.21 5.10 16.0 18.2 18.5 HELE US Helen of Troy Ltd 93.15 2,512 141 24 171 39% -83% 626% 5.22 0.87 6.34 17.9 106.7 14.7 CREE US Cree, Inc 34.51 3,450 -22 -98 -37 -67% 356% -62% -0.22 -0.98 -0.37 -160.2 -35.2 -93.0 IRBT US IROBOT 88.75 2,474 42 53 82 -5% 27% 53% 1.50 1.91 2.92 59.0 46.4 30.4 GPRO US GPRO 5.47 798 -419 -186 -78 NA -56% -58% -2.87 -1.27 -0.54 -1.9 -4.3 -10.2 FIT US FIT 5.15 1,219 -103 -250 -109 NA 143% -56% -0.43 -1.05 -0.46 -11.9 -4.9 -11.2 US Average 22.9 27.9 19.4 Europe ELUXB.SS 279.10 10,937 4,494 5,745 5,493 187% 28% -4% 14.55 18.60 17.78 19.2 15.0 15.7 DLG.IM De'Longhi 27.40 5,092 167 183 194 12% 10% 6% 1.12 1.23 1.30 24.5 22.3 21.1 SK.FP SEB 168.60 10,515 259 376 434 26% 45% 16% 5.15 7.49 8.65 32.7 22.5 19.5 RAA GY Rational 569.00 8,043 127 141 160 4% 11% 14% 11.18 12.42 14.11 50.9 45.8 40.3 OSR GR OSRAM 70.58 9,186 397 220 248 139% -45% 13% 3.79 2.10 2.36 18.6 33.6 29.9 PHIA.NA 33.18 38,810 1,448 1,657 1,397 124% 14% -16% 1.54 1.76 1.48 21.6 18.8 22.3 AMC PW WRONKI SA 127.20 296 109 160 127 12% 47% -21% 13.96 20.58 16.33 9.1 6.2 7.8 METN SW Metall zug 3,720.00 8,808 85 76 78 49% -11% 3% 38.48 34.39 35.36 96.7 108.2 105.2 Europe Average 27.8 24.2 23.9 Japan 6367.JP Daikin Industries 13,305 35,550 153,938 172,784 192,705 12% 12% 12% 525 589 657 25.3 22.6 20.2 6752.JP 1,642 36,706 149,360 184,319 237,815 -10% 23% 29% 61 75 97 27.0 21.8 16.9 6758.JP 5,385 62,129 73,289 393,241 418,093 -50% 437% 6% 58 311 330 93.0 17.3 16.3 6501.JP Hitachi 896 39,478 231,261 336,657 387,612 34% 46% 15% 48 70 80 18.7 12.9 11.2 6503.JP 2,020 39,528 210,493 258,812 273,908 -8% 23% 6% 98 121 128 20.6 16.8 15.8 5943.JP Noritz 2,223 1,029 4,654 5,500 6,167 NA 18% 12% 92 108 121 24.3 20.5 18.3 5947.JP Rinnai 10,300 4,846 22,322 23,776 25,116 -2% 7% 6% 432 461 487 23.8 22.4 21.2 7965 JP Corp 1,356 897 7,299 5,338 5,912 16% -27% 11% 101 74 81 13.5 18.4 16.7 6753.JP Sharp 3,940 17,898 -24,877 71,878 70,602 -90% NA -2% -50 144 142 -78.9 27.3 27.8 6755 JP GENERAL LTD 2,189 2,181 10,031 15,350 16,800 -43% 53% 9% 92 140 154 23.8 15.6 14.2 Japan average 31.0 18.0 16.1 Korea 066570.KS LG Electronics 103,500 15,795 76,879 1,725,774 1,832,408 -38% 2145% 6% 470 10,546 11,197 220.3 9.8 9.2 005930.KS 2,491,000 299,888 22,415,655 41,344,600 47,298,923 20% 84% 14% 173,632 320,256 366,379 14.3 7.8 6.8 021240.KS Coway 95,800 6,684 243,647 357,250 396,636 -29% 47% 11% 3,257 4,775 5,301 29.4 20.1 18.1 192400 KS CUCKOO 97,200 482 81,092 76,568 91,972 9% -6% 20% 15,255 14,404 17,301 6.4 6.7 5.6 Korea average 16.4 8.4 7.0 Others FPH NZ Fisher & Pay kel 13.20 5,538 169 189 219 18% 12% 16% 0.30 0.33 0.38 44.6 39.9 34.5 CIC PM Conception Industrial 63 491 912 1,030 1,154 37% 13% 12% 2.25 2.54 2.84 27.8 24.6 22.0 ARCLK.TI Arcelik 19 3,496 1,300 843 1,185 46% -35% 41% 1.92 1.25 1.75 10.1 15.6 11.1 VESBE TI 10 504 325 168 191 98% -48% 14% 1.71 0.88 1.01 5.8 11.3 9.9 9911 TT TAIWAN SAKURA 39 298 701 687 756 36% -2% 10% 3.17 3.11 3.42 12.4 12.7 11.5 PMM MK PANASONIC MALA 35 540 127 138 153 -13% 9% 11% 2.09 2.27 2.52 16.6 15.3 13.8 SINGER BD SINGER BANGLADESH LTD 189 174 546 731 901 48% 34% 23% 7.12 9.52 11.75 26.5 19.8 16.1 BRG AU GROUP LTD 12 1,269 54 60 67 7% 11% 13% 0.41 0.46 0.52 29.5 26.6 23.6 SODA US SODASTREAM INTERNATIONAL LTD 79 1,722 44 67 77 268% 52% 14% 2.03 3.08 3.52 38.7 25.5 22.3 Others Average 17.2 23.1 18.9 Source: Bloomberg, CICC Research. Note: Companies highlighted in grey are covered by CICC. data; other firms are based on Bloomberg consensus

Please read carefully the important disclosures at the end of this report 4 CICC Research

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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 Trade 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 Tianhe Road Branch 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) 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 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 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