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Oct. – Nov. 2007 , Europe. HK000KL3. I 、 PRC Auto Industry Overview in the First 9 Months of 2007. II 、 DFG Business Overview in the First 9 Months of 2007. III 、 DFG Financial Performance in IH 2007 . I. PRC Auto Industry Features in the First 9 Months of 2007.
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Oct. – Nov. 2007 , Europe HK000KL3
I、PRC Auto Industry Overview in the First 9 Months of 2007 II、DFG Business Overview in the First 9 Months of 2007 III、DFG Financial Performance in IH 2007
I. PRC Auto Industry Features in the First 9 Months of 2007 • Rapid Growth of PRC Auto Industry • Strong Long-term Growth Potential for PRC Auto Industry • Production Utilization Rate of Major PRC Auto Manufacturers • Improving Industry Profitability • Rapidly Rising Local Brands Which Target at Low –Medium End Market • 6、Further Expanding Auto Export Business
1.Rapid Growth of PRC Auto Industry PRC Total Vehicle Sales Volume PRC Total PV Sales Volume1 000’ units 000’ units Growth Rate: 23.84% Growth rate: 24.46% PRC Total CV Sales Volume 000’ units Growth Rate: 26.01% China Association of Automobile Manufactures (CAAM) Note1:According to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUVand cross-over vehicles
2、Strong Long-term Growth Potential for PRC Auto Industry Rising Wealth of Chinese Consumers Constantly Increasing PRC Per Capita GDP
3、Production Utilization Rate of Major PRC Auto Manufacturers PV Production Utilization Rate of PRC Major Auto Manufacturers Source:CICC
4、 Improving Industry Profitability Improved Industry Overall Profitability Stabilized Industry Profitability • Downward price pressure still exists due to such factors as manufacturers compete for larger market share, but irrational price cut is unlikely to happen thanks to comparatively balanced demand and supply situation. • We believe auto manufacturing cost will further decline due to rising productivity, increasing local content ratio and improving economies of scale. Source: CAAC
5、Rapidly Rising Local Brands Which Target at Low-Medium End Market EnhancedMarket Position of Self-owned Brands Market Share of Different Brands Source:CICC Auto Industry Statistics
6、Further Expanding Auto Export Business Further Expanding Auto Export Volume
II、DFG Business Overview in the first 9 months of 2007 • DFG Group Structure • Stable Growth of DFG Business in the First 9 Months of 2007 • Steady Production Capacity Expansion Plan
Dongfeng Motor Corporation Public Share Holders 66.86% Dongfeng Motor Group Dongfeng Motor Company Ltd Dongfeng Peugeot Citroen Automobile Co.,Ltd 50% 50% PSA Peugeot Citroën Dongfeng Honda Automobile Co.,Ltd Dongfeng Honda Engine Co.,Ltd 50% 50% 1、DFG Group Structure 33.14%
2、Stable Growth of DFG Business in the first 9 Months of 2007 Steady Growth of Auto Sales Steady Growth of PV Sales 000’ units Growth: 33.1% DFG’s total sales reached 695,000 units in the first 9 months of 2007, representing a YoY growth of 30.5%, Among which, PV sales grew by 33.1%, and CV sales grew by 25.8%. 000’units Growth : 30.5% Rapid Growth of CV Business 000’ units Growth: 25.8%
3、 Steady Production Capacity Expansion Plan Steady Production Capacity Expansion Plan Steady Growth of Local Content Ratio 000’units
III. DFG Financial Performance in 1H2007 • Stable Growth of Major Business • Steady Growth of Gross Profit • Ever Enhanced Profitability and Operation Capability
23.7% 1、Stable Growth of Major Business Sales Revenue Breakdown Sales Revenue Growth Million RMB
2、Steady Growth of Gross Profit DFG Gross Profit and GP Margin PV GP Margin Million RMB CV GP Margin
3、Ever Enhanced Profitability and Operation Capability Improved ROE Improved Net Profit & NP Margin Million RMB Decreased Inventory Days