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HK000KL3_Short DONGFENG MOTOR GROUP CO., LTD Nov. 14, 2006, Singapore DONGFENG MOTOR GROUP CO., LTD Nov. 14, 2006, Singapore Global Change: Pls note 1.

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Presentation on theme: "HK000KL3_Short DONGFENG MOTOR GROUP CO., LTD Nov. 14, 2006, Singapore DONGFENG MOTOR GROUP CO., LTD Nov. 14, 2006, Singapore Global Change: Pls note 1."— Presentation transcript:

1 HK000KL3_Short DONGFENG MOTOR GROUP CO., LTD Nov. 14, 2006, Singapore DONGFENG MOTOR GROUP CO., LTD Nov. 14, 2006, Singapore Global Change: Pls note 1 decimal for all percentages Whole file clone from HK000KDQ HK000KL3 As request by the client, all the project should include the legend

2 HK000KL3_Short - 2 - Group Structure 50% 44% Dongfeng Motor Corporation Public Shareholders 66.68% 33.32% 96% 95% 35.2% 50% 20% 10% 40% 36.44%

3 HK000KL3_Short - 3 - Xinjiang Auto Liuzhou Auto Shanghai Hangzhou Dongfeng Honda Auto Parts Shiyan Base Xiangfan Base Wuhan Base Guangzhou Base Layout of Major Production Facility Four Major Production Facilities Shiyan Base: CV, Auto Parts, Auto Manufacturing Equipments Wuhan Base: Headquarter, PV Xiangfan Base: LCV, Engines, PV Guangzhou Base: PV, Engines, Auto Parts and Components

4 HK000KL3_Short - 4 - Highlights in the First Nine Months of 2006 Aggregate auto sales volume amounted to 532,000 Units PV sales volume reached 345,000 units, representing 34.75% Y0Y growth, which is higher than industry average(31.39%) Several newly launched models, including new Dongfeng Nissan Teana, Dongfeng Peugeot 206, Dongfeng Citroen C-Triomphe and Dongfeng Honda Civic were well received by the market and the recently launched Nissan Sylphy also became a new growth driver for the Group. In IH2006 sales volume broke through 100,000 units, recording a YoY increase of 38% and a profit of RMB190 ml, operational level remarkably improved 注 1 : 2004 年可比口径的净利润为 13.2 亿人民币,具体参见本报告第 16 页 Sales revenue YoY increased 9.8% Net porfit YoY increased68.75% Gross profit margin YoY increased 47.65% Net ROE YoY increased 7.2% Remarkable Market Performance of Newly Launched Products PV Growth Rate Higher than Industry Average from January to September of 2006 Favorable Financial Performance in 1H Turning Around of DPCA, with Remarkably Improved Operation

5 HK000KL3_Short 1. 1.Chinese Auto Industry Continues to Maintain Strong Growth Momentum 2. 2.Well Positioned PV Business Entered a Fast Development Stage 3. 3.Production Capacity Expansion Projects Steadily Pushed Forward I. Business Performance

6 HK000KL3_Short - 6 - 1.PRC Auto Industry Maintains a Good Growth Momentum from January to September PRC Total Auto Sales unit :,000 PRC Total PV Sales unit :,000 PRC Total CV Sales unit:,000 资料来源:中国汽车工业协会 注 1 :按照中国汽车工业协会的分类方法,乘用车包括基本型乘用车(轿车)、 MPV 、 SUV 和交叉型乘用车 Growth Rate: 31.39% Growth Rate: 11.6% Growth Rate: 25.01%

7 HK000KL3_Short - 7 - Sales of PV- Dongfeng Honda Automobile Sales of PV- Dongfeng Peugeot Citroën Sales of PV - Dongfeng Motor Co. Ltd Total sales of PV - Dongfeng Motor Group Source: Forcast of China Association of Automobile Manufactures (CAAM) Each JV strategically launched competitive new models directed at each sub-segment, which fastly pushed forward the Group’s PV industry. 2. Well Positioned PV Business Entered a Fast Development Stage Growth rate: 19.7% Growth rate: 125% Unit:,000 Growth rate: 37.65% Unit:,000 PSA Peugeot Citroën Growth rate: 34.78%,ooo units 47,071 177,136

8 HK000KL3_Short - 8 - 3.Production Capacity Expansion Projects Steadily Pushed Forward In 2006, the Group steadily pushed forward its capacity expansion projects, which laid a solid foundation for its future sustainable development Continue to Push Forward Production Capacity Expansion Projects in a Timely Manner On March 26, Dongfeng Honda 120,000 units Capacity put into production. On February 28, DFL’s PV engine production base completed construction and went into production. As of June 30 2006,DFL has formed a total annual PV production capacity of 285,000 units. Push Forward PV Production Capacity Expansion Projects DPCA progressively push forwarded its 2nd phase capacity expansion project. By the end of June, an annual production capacity of 220,000 units was formed. Last month, its second plant was broken ground for construction. By 2009, total annual capacity will reach 450,000 units.

9 HK000KL3_Short 1. 1.Steady Revenue Growth 2. 2.Continuous Growth of Gross Profit Margin 3. 3.Robust Profit Growth 4. 4.Turning Around of DPCA in 1H2006 5. 5.Continuous Improvement of Operation Efficiency 6. 6.Further Reduction of Liability Level II. Financial Performance

10 HK000KL3_Short - 10 - 1.Steady Revenue Growth Sales Revenue 9.9% RMB million Composition of Revenue Rapid sales growth as well as a steady pricing policy guaranteed a continuous and steady growth of the Group’s sales revenue

11 HK000KL3_Short - 11 - 2. Continuous Growth of Gross Profit DFG’s Overall Gross Profit and Gross Profit Margin CV Gross Profit Margin PV Gross Profit Margin RMB million Significant growth of the Group’s PV gross profit and gross profit margin guarantees the steady increase of the Group’s gross profit margin

12 HK000KL3_Short - 12 - 3.Robust Profit Growth DFG’s Total Net Profit Sales Growth RMB Million Fast growth of PV sales volume and steady pricing policy guaranteed a continuously steady growth of the Group’s sales revenue 000’ units

13 HK000KL3_Short - 13 - 4. Successful Turning Around of DPCA in 1H 2006 Strong Growth of Sales Volume 38% Reduce Cost and Improve Efficiency Unit Net Profit Robust sales and constant cost reduction and improvement of efficiency contribute to DPCA’s successful turning around RMB Million Constant increase of localization rate and cost reduction through technology advancement Cost reduction through centralized procurement Cost reduction through improvement of management

14 HK000KL3_Short - 14 - 5.Continuous Improvement of Operational Efficiency Improvement of operation efficiency led to steady growth of the Group’s ROA and ROE Net Profit Margin Return on Equity

15 HK000KL3_Short - 15 - 6. Further Reduction of Liability Level Net Debt / Capital Total Liabilities / Total Assets Significant drop of net debt makes the Group’s capital structure more flexible and healthier

16 HK000KL3_Short III. Future Prospect 1. 1.Prospect of PRC Auto Industry in 2H 2006 2. 2.Outlook of DFG

17 HK000KL3_Short - 17 - 1. Prospect of PRC Auto Industry in 2H 2006 At the beginning of 2006, CAAM estimated that PRC automobile industry annual sales growth for 2006 would reach 13% 13% 000’ units Source: Forcast of China Association of Automobile Manufactures (CAAM)

18 HK000KL3_Short - 18 - 2.Outlook of DFG Specific Measures 000 ’units Passenger Vehicles :   In the 2H, Dongfeng Nissan Sylphy, Geniss and Dongfeng Citroen T21 successively launched to the market.   Further improve localization rate and reduce cost through advancement of technology, management and central procurement, so as to improve competitive edge of our products in the market. Commercial Vehicles :   Strengthen marketing of newly launched products   Safeguard competitiveness of old products   Promote export and expand overseas market share Sales Planning

19 HK000KL3_Short - 19 - ` ` Thanks!


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