Introduction to Hawtai Motor Group

(2014)

1

Founded in 2000, Hawtai Motor Group (Abbr. : Hawtai) engages in vehicle, powertrain production

and financial services. Hawtai has nearly 100,000 employees, with an asset so far over 20

billion RMB.

Upholding the principle Green supply network and Quality vehicle, Hawtai commits to

providing the global customers with energy-saving, environment-friendly, powerful auto by its

diversified product spectrum of diesel engine, automatic transmission and series of passenger

cars (SUV, sedan, MPV and the electric vehicle).

01 Overview

Hawtai

Motor Group

VehicleFinancial

ServicesPowertrain

Manufact

ureAuto

RentalEngine AT Bank of

Beijing

Auto

Finance

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02 Business Outline

As a multinational group, Hawtai owns two R&D center, seven production bases, with an annual output

of 300,000 clean diesel engines, 450,000AT and 950,000 vehicles, its sale network covering more than 30

countries.

Two R&D center：Beijing in China & Munich in Germany

Seven Production Bases：China（Tianjin,Shandong,Inner Mongolia）&Overseas（Russia,Angola,North

Korea,Myanmar）

Sale Network

R&D Center

Production Base

Global Layout of Hawtai Motor Group

3Tianjin, Export Base

Beijing, Headquarters

Erdos ,Inner Mongolia factory

RongCheng, Shandong vehicle factory

02 Business Outline

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03-1 Erdos Factory

Advantages:

1: Largest auto manufacturing plant in western China

Established in 2004, Erdos factory covers an area of about 6,000 acres. It’s the

largest passenger car production base and the largest auto manufacturing plant

in western China.

2: Adoption of international leading technology

Erdos factory imports more than 2,000 sets of state-of-art equipment from

Germany to ensure that the quality of Lusheng E70 is consistent with German

auto standard.

3: Four production workshops with advanced equipment

-Stamping workshop has seven production lines with a total area of 27,317

sq.m.

-Welding workshop, with an area of 55,104 sq.m, operates fully automated

welding robots of FANUC of the United States.

-Painting workshop is a three-storey plant of reinforced concrete

covering 47,940 sq.m.

-Assembly workshop covers an area of 66,000 sq.m and the compounding line

can produce four models with 20 colors.

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03-1 Erdos Factory

Advantages:

1: Leader in low-carbon diesel engines and powertrain in China

With the introduction of clean diesel engine of VM and AT production

line of ZF, OED powertrain production base becomes the sole Chinese

auto enterprise who puts these two technologies into mass production.

2: Leading low-carbon diesel powertrain production in Asia

OED covers an area of about 66,000 sq.m, and the gearbox plant an area

of approximately 58,000 sq.m, with the capacity of 300,000 clean diesel

engines and 450,000 AT.

3: Award-winning brand & Supplier for famous auto companies

home and abroad

-To put the technical advantages into Hawtai products.

-In good relationship with Peugeot, India's Tata, GAC Group, SAIC and

Lifan, etc.

- In 2013, OED483Q ( 2.0L )(diesel engine) is awarded Engine of the

Year.

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|HAWTAI MOTOR| >>>>

03-2 Rongcheng Factory

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03-2 Rongcheng Factory

Advantages:

1: First production base of Hawtai Motor Group

Founded in July 2000, Rongcheng factory covers an area of 430,000 sq.m,

with the capacity of 150,000 and being the top 30 Machinery Industry of

Shandong Province. It is the state-designated vehicle manufacturer and the

key manufacturing enterprise with small car directory in Shandong

province.

2: Continuous improvement

-Pass the ISO900 in Oct, 2001 and employ AUDIT assessment

-Pass the CCC in April, 2003

-Introduce an advanced assembly line from Germany and the United States

3: Efficient Management Control

Rongcheng factory learns from Hyundai the advantages in manufacturing,

quality supervision and management to control the details and to optimize

the process.

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03-3 Tianjin Factory

03-3 Tianjin FactoryAdvantages:

1: Auto Industry Complex

-Tianjin Factory covers an area of 2,900 acres, planning to build the headquarters, manufacturing part and export part.

-Closely working together with Tianqi Motor, Hawtai plans to move its R & D center, procurement center, domestic and overseas

sales companies, and some management departments to Tianjin considering the advantages of human resources, spare parts cluster

and sea port of Tianjin.

2: Introduction of Advanced Technologies

-To ensure the efficiency, creativeness, reliability and high quality, Hawtai purchases more than 2000 sets of equipment from Italy,

Germany, Japan, the United States, South Korea and etc., to equip its products..

-An annual output is of 450,000 after SOP.

3: Long-term Investment & Sustainable Development

-Hawtai Tianjin project is divided into two phases with the total investment amount of 12.4billion RMB. In Phase One, 8.4billion

RMB(incl. 7.1billion for construction fee & 1.3 billion yuan for cashflow) is invested for the construction of headquarters, with the

capacity of 150,000. 4 billion RMB(Incl. 3.2billion yuan for construction & 0.8billion for cashflow) is invested in Phase Two for

the establishment of vehicle manufacturing base with an annual output of 300,000.

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SUV Passenger car

B CA A00 B

HAWTAI MOTOR

A35

A25 T12

Savy

Lusheng E90

Lusheng E70

AA0 C

MPV

A32

A21

A11

B35-2 C25

C36

C

C11

Pickup

B57

Pickup

C35

Santafe

Boliger

Terracan

04 Product Spectrum

Diversified products of SUV, Sedan, MPV, Pickup, etc

Synchronization of R&D and Product release

• Models of 2014

• Models of 2015 & 2016

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A B

1.5L 2.0L 2.5L 2.8L 3.0L 1.0L 1.2L 1.4L

Power68/40

00Torqu

e200/2000

Power110/4000

Torque

310/2000

Power115/3800

Torque

360/1800

Power120/3800

Torque

400/1800

Power184/3800

Torque

550/1800

Power53/42

00Torqu

e148/2200

Power65/42

00Torqu

e175/2200

Power76/42

00Torqu

e205/2200

4FA24-Torque330N.M

Four Speed Four Speed

Six Speed

4FA33-Torque240N.M

6RA38-Torque380N.M

AT

Power

92/6300Torque

150/4500

Power

104/6300Torque

170/4500

Power

116/6300Torque

190/4500

Power

122/6300Torque

210/4250

Power

147/6300Torque

250/4250

Petrol Engine

B

2.4L2.0L1.8L1.4T

A

1.2T

Diesel Engine

04 Product Spectrum

More than 10 products of Clean diesel engine, petrol engine and AT.

Keeping with the European technology development, Hawtai fully owns the intelligence right.

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04-1 Boliger

Doule-T Engine

Luxurious Appearance

Intelligent Safety Measures

Comfortable Drive

Choice Warranty of 5 years or 150,000 km

Attractive Points

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04-2 Santafe

Prestigious Classics

Well-known Powertrain

Luxurious Configuration

Manifold & Practical Design

Key Advantages

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04-3 Lusheng E70

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04-4 Terracan

Manly Appearance

Exquisite Design

Powerful Performance

Spacious Interior

Terracan— Flagship of Chinese SUV& Leader of Fashion

Appealing Points

>

>

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04-5 A25

A25 — Speaker of Fashion, High Performance, and New Trend of A-level SUV market

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>

>

>

>

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04-5 A25

International Quality

Smart Appearance

Double T Engine & 6-speed AT

Flexible Control: Multi-Link Independent Rear

Suspension

Choice Warranty of 5 years or 150,000Km

Major Selling Points

Hyundai ix35

Brand-new

Santafei

KIA SportageFord Escape

GWM Hover H6Chery Tiggo 5JAC S5

Comparison with

Auto JV

Surpassing Chinese

independent auto

companies

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Advanced

Design &

Manufactu

re of Powe

rtrain Syst

em

(Diesel)

Passenger

car’s

Powertrain

Integration

Advanced

Manufactu

ring

Systems

Sophisticat

ed

Platform

for Vehicle

& New

Energy car

05 Core Competitiveness

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2013 2014 2015 2016 2020

General Planning

2013-2014

Fast Growing

2015-2017

Overall Boosting

2018-2020

2017

The Developing Phases of Hawtai Motor Group

To build up high-end Chinese auto brand, to improve product quality, to better after-sale service

and to highlight energy-saving and environmental-friendly capacity .

Three ‘500,000’ in Production & Marketing Plan to 2015：500,000 vehicles,500,000 engines, and

500,000transmissions.

01 Strategic Target

Sa

le

Period

Key-points

• To perfect product chain,

including production、marketing

and production base, etc.

•Brand upgrading, rapid market growth

and fast expansion of revenue

• Total enhancement of financial indicators,

technical capabilities and the management

level of Hawtai Motor Group.

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02 Strategic Target

To build KD production base and sales & after-sales service network

By 2015, 30% of the sales is from overseas market and 50% to 2020.

Output of technology, product & management, personnel training and localization

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Hawtai cooperates with the Russian company——Derways in CKD, with the annual

output of 50,000.

Boliger/C9/Lusheng E70 has obtained OTTC.

02-1 Overseas Production Base----

Russia

Bird’s view of Russian Factory

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Hawtai SKD plant, with the annual output of 50,000, is established in Luanda, capital of Angola,

and is the only auto manufacturing plant in Angola.

Angola government offers a lot of preferential policies on land, tax and energy.

Via the factory in Angola to spread into the members of ECCAS.

02-2 Overseas Production Base----

Angola

General Layout

First phase construction

involves the workshop

of SUV, sedan,, pickup,

and passenger car, office

building and 4S store.

View of Angola Factory

23

Hawtai works with KKG, the North Korea's largest state-owned enterprises, for joint

development in the auto market.

SOP of CKD plant with the annual output of 50,000 will be achieved in 2015.

02-3 Overseas Production Base----North

Korea

Customized taxis (Lusheng E70) in PyongyangView of North Korean Factory

24

Hawtai Auto Industry Park, with the capacity of 300,000, is under way in Myanmar.

The Park will help to quickly open up the auto market in Myanmar, and meanwhile cover

the neighboring countries as well .

Training

baseDevelopment

reserved land 2、Vehicle Zone

1 R&D and

Training Zone

4、Components

Zone

3、Residential

Zone

02-4 Overseas Production Base——Auto Industry Park in Myanmar

R&D and trial

production

centre

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Profit

of Auto

production

base

--To improve industrial production value: Ratio between

auto industry, upstream industry and downstream

industry is 0.65:1:0.65. The appreciation of RMB1 will

bring along the increase of RMB 0.65 of the upstream

industry of appreciation and RMB 2.63 to the

downstream industry. Calculated supposedly by 50,000

vehicles, Hawtai auto project will bring along industrial

output of $3.5 billion.

--Increase of tax revenue: Hawtai auto project puts in

motion the increase enterprises of the upstream and

downstream industrial chain, which will boost the tax

revenue.

--Increase of foreign exchange income: Through exports

to foreign countries besides KD factories, the foreign

exchange income grows.

Economic

--Stimulation in employment: Since one job vacancy of

the auto industry will bring along 10 to 15 jobs for the

upstream and downstream industries, the operation of

Hawtai’ s 50,000-vehicle project of a personnel of

1,000 will provide the upstream and downstream

industries with 10,000 job vacancies.

--Improvement of industrial competitiveness: The auto

industry is intensive in technology, capital and labor. It

will play a stronger role in motivating the development

of the machinery, metallurgy, electronics, rubber,

petrochemicals and other industries.

--Talent cultivation: a lot of R&D personnel and skilled

workers will be cultivated in Hawtai auto project.

Social

03 Principle of Overseas Development

Hawtai establishes overseas production bases aiming at reciprocal economic and

social benefits

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04 Target of Overseas Development

Hawtai Motor is willing to work with members of IOSSC to develop the auto industry,

to improve the national income and to better people's lives.

We hope to build KD factories in the countries which can meet the following

requirements:

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2

3

4

Good auto market

Good industrial development

Good investment environment

Willingness of long-term and sincere cooperation

华泰控股集团

地 址：北京市朝阳区立水桥甲9号

服务热线：400-810-2066

邮 编：102218

网 址：www.hawtaimotor.com

HAWTAI HOLDING GROUP

Address: A9 Lishuiqiao,Chaoyang District,Beijing,China.

Service Hotline: 400-810-2066

Post Code: 102218

Website: www.hawtaimotor.com