DFG 2007 Annual Result
April 17th, 2008
Contents DFG Business OverviewDFG Financial Performance Outlook of DFG and PRC Auto Industry in 2008
Steady Growth of PRC Auto Industry575.7721.6879.2Unit:0,000Annual Growth Rate:20.22%31.04%68.96%28.27%71.73%28.37%71.63%64.49%35.51%507.2
Chart1
327.1180.1
397.1178.7
517.6204
629.8249.4
PV Sales
CV Sales
Sheet1
2004200520062007
PV Sales327.1397.1517.6629.8
CV Sales180.1178.7204249.4
Total721.6879.2
Sheet1
PV Sales
CV Sales
Sheet2
Sheet3
Rapid Growth of PRC CV IndustryCV Growth Higher than Industry Expectation, with Heavy Duty Truck Segment Recording Outstanding Increase HD Truck Sales Structure249.4204178.7Monthly Sales of HD Trucks Average Growth:11.86%
Chart3
18803116812762939968
15253183532421638714
37248359345350289558
318483346353929Apr
225032818950053May
192402518446423Jun
126342035439460Jul
115842068436267Aug
149942650040342Sep
158482669137762Oct
171732877038164Nov
186022956536660Dec
2005
2006
2007
2008
HD Monthly Sales
Sheet1
20079.3121.6617.7848.7520079.3121.6617.78
20065.515.959.2630.67
69%35.76%91.86%58.96%
25254040
20070.214.62.98
20060.1347.461.67
47%95.65%78.62%
JanFebMarAprMayJunJulAugSepOctNovDec
2005188031525337248318482250319240126341158414994158481717318602
2006116811835335934334632818925184203542068426500266912877029565
2007276292421653502539295005346423394603626740342377623816436660
2008399683871489558
Sheet1
000
000
000
000
&A
Page &P
2007
2006
Sheet2
0
0
0
2007
2007
, 21.66, 45%
, 17.78, 36%
, 9.31, 19%
Sheet3
000
000
000
&A
Page &P
2007
2006
&A
Page &P
2007
2006
2005
2006
2007
2008
Chart1
9.31
21.66
17.78
2007
2007HD Sales Structure(Unit 0,000')
21.66, 45%
17.78, 36%
9.31, 19%
Sheet1
HD TruckSemi-trailerTotalHD TruckNon-Complete HDSemi-trailer
20079.3121.6617.7848.7520079.3121.6617.78
20065.515.959.2630.67
69%35.76%91.86%58.96%
252540weight40tonton
20070.214.62.98
20060.1347.461.67
47%95.65%78.62%
Sheet1
000
000
000
000
&A
Page &P
2007
2006
Sheet2
9.31
21.66
17.78
2007
2007
, 21.66, 45%
, 17.78, 36%
, 9.31, 19%
Sheet3
000
000
000
&A
Page &P
2007
2006
000
000
000
&A
Page &P
2007
2006
Chart1
0.388
0.279
0.257
0.076
HD Truck Market Share on Horsepower
HD Truck Sales on Horsepower
Sheet1
330HP
HD Truck Market Share on Horsepower38.8%27.9%25.7%7.6%
Sheet1
0
0
0
0
HD Truck Market Share on Horsepower
07
Sheet2
Sheet3
Chart1
23.658619.432485.362423.340226.9152
30.720.295.129.128.9
48.823.7110.531.534.9
HD Truck
MD Truck
LCV
Mini Truck
Bus
Sheet1
200520062007
PV397.1517.6629.8
CV178.7204249.4
575.8721.6879.2
123456789101112
200536.631.958.253.746.951.643.341.8949.6145.1955.1462.39
200653.0147.9972.1567.2956.7555.7646.7152.8163.557.6368.975.86
200771.7155.3484.7280.8771.3672.6964.0967.1677.2869.2380.0983.93
200885.94
200520062007
HD Truck23.730.748.8
MD Truck19.420.223.7
LCV85.495.1110.5
Mini Truck23.329.131.5
Bus26.928.934.9
200520062007
278.7382.9472.7
MPV15.619.122.6
SUV19.623.835.7
83.191.898.8
1.0L1L1.6L1.6L2.0L2.0L2.5L2.5L3L3.0L4.0L4.0L
200725.12247.2140.945.32.71.20.08462.6
-31%28%55%55%43%1089%-2%
1.0L(1L,1.6L](1.6L,2.0L](2.0L,2.5L](2.5L,3L]Total PVMPVSUV
-31%28%55%55%43%21.68%18.30%50%
1.0L(1L,1.6L](1.6L,2.0L](2.0L,2.5L](2.5L,3L]3.0L
0725.12247.2140.945.32.71.28
5.43%53.45%30.46%9.79%0.58%0.28%
1.0L(1L,1.6L](1.6L,2.0L](2.0L,2.5L](2.5L,3L]3.0L
5.43%53.45%30.46%9.79%0.58%0.28%
07MPVSUV
472.722.635.798.8629.8
MPVSUV
75.06%3.59%5.67%15.69%
48.823.7110.531.534.9249.4
19.57%9.50%44.31%12.63%13.99%
19.57%9.50%44.31%12.63%13.99%
Sheet1
00
00
00
PV
CV
Sheet2
0000
0000
0000
0000
0000
0000
0000
0000
0000
0000
0000
0000
0000
2005
2006
2007
2008
Sheet3
00000
00000
00000
000
000
000
000
000
2005
2006
2007
0000
0000
0000
MPV
SUV
00
00
00
00
00
00
00
00
&A
Page &P
2007
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Continuous Growth of PV Sales, Upgrading Sales Structure Continuous Rapid Growth of PV BusinessPV Growth Structure in 2007Annual Growth:24.47
Chart3
-0.31
0.28
0.55
0.55
0.43
0.2168
0.183
0.5
YoY
Sheet1
200520062007
PV397.1517.6629.8
CV178.7204249.4
575.8721.6879.2
123456789101112
200536.631.958.253.746.951.643.341.8949.6145.1955.1462.39
200653.0147.9972.1567.2956.7555.7646.7152.8163.557.6368.975.86
200771.7155.3484.7280.8771.3672.6964.0967.1677.2869.2380.0983.93
200885.94
200520062007
23.730.748.8
19.420.223.7
85.495.1110.5
23.329.131.5
26.928.934.9
200520062007
278.7382.9472.7
MPV15.619.122.6
SUV19.623.835.7
83.191.898.8
1.0L1L1.6L1.6L2.0L2.0L2.5L2.5L3L3.0L4.0L4.0L
200725.12247.2140.945.32.71.20.08462.6
-31%28%55%55%43%1089%-2%
Contents DFG Financial Performance Outlook of DFG and PRC Auto Industry in 2008PRC Auto Industry Overview
59.575.195.0Unit:000041.01%58.99%34.09%65.91%32.84%67.15%DFG Sales Growth Higher than Industry Average Average Growth in the Past 3 Years:31.16%42.358.16%41.84%
Chart1
17.724.6
35.124.4
49.525.6
63.831.2
PV Sales
CV Sales
Sheet1
2004200520062007
PV Sales17.735.149.563.8
CV Sales24.624.425.631.2
Total42.375.195
Sheet1
PV Sales
CV Sales
Sheet2
Sheet3
Growth:33.59%Unit:0000Successful Launch of PV Models Drives Continuous Growth of PV Business Growth:2.98%Growth:100.32%In 2007PV sales of DFG reached 638,000 units, representing a YoY growth of 28.89%7 higher than industry PV average.
Chart4
2.52
6.34
12.7
Sheet1
200520062007
2.526.3412.7
Sheet1
0
0
0
Sheet2
Sheet3
Chart2
15.75
20.35
27.19
Sheet1
200520062007
15.7520.3527.19
Sheet1
0
0
0
Sheet2
Sheet3
Chart3
14.04
20.13
20.73
Sheet1
200520062007
14.0420.1320.73
Sheet1
0
0
0
Sheet2
Sheet3
Improved CV Market Position, with Adjusted and Upgraded Product Port Folio Market Share 21.8% 18%Market Share 24.8% 27%Market Share 10.6% 10.6%Unit:0000
Chart1
6.78.8HD Truck
56.4MD Truck
10.111.7LCV
2006
2007
Sheet1
20062007
HD Truck6.708.8
MD Truck5.006.4
LCV10.1011.7
Sheet1
000
000
000
2006
2007
Sheet2
Sheet3
Contents Outlook of DFG and PRC Auto Industry in 2008PRC Auto Industry OverviewDFG Business Overview
Steady Sales Revenue Growth in 2007Strong Sales Revenue Growth in the Past 3 YearsStable Sales Revenue StructureUnit:RMB mn
Chart1
41735
48264
59318
Sheet1
200520062007200520062007
279.2342.2450417354826459318
129.9132.214027.52%15.62%24.32%
8.38.210
417.4482.6600
200520062007
66.89%70.91%75.00%
31.12%27.39%23.33%
1.99%1.70%1.67%
Sheet1
0
0
0
Sheet2
Sheet3
Chart2
0.7090758392
0.2739328637
0.0169912971
2006
2006 Revenue Structure
Sheet1
Revenue Structure200520062007200520062007
PV279.2342.2450Sales Revenue417.4482.660007
CV129.9132.2140Growth Rate27.52%15.62%24.32%
Others8.38.210
Total417.4482.6600
20062007
Revenue Structure200520062007PV70.91%PV75.00%
PV66.89%70.91%75.00%CV27.39%CV23.33%
CV31.12%27.39%23.33%others1.70%1.67%
Others1.99%1.70%1.67%
Sheet1
Sales Revenue
Sheet2
2006
2006Revenue Structure
Sheet3
Chart3
0.7022320375
0.2849219461
0.0128460164
2007
2007Revenue Structure
Sheet1
200520062007200520062007
279.2342.2416.55417.4482.660007
129.9132.2169.0127.52%15.62%24.32%
8.38.27.62
417.4482.6593.18
20062007
200520062007PV70.91%PV70.22%
66.89%70.91%70.22%CV27.39%CV28.49%
31.12%27.39%28.49%1.70%others1.28%
1.99%1.70%1.28%
Sheet1
Sheet2
CV
2006
2006
Sheet3
2007
Stable Growth of Gross ProfitStable Growth of Gross ProfitEBIT & EBIT Rate in Recent 3 YearsUnit:RMBmn
Chart4
6096
8206
9815
Gross Profit
Sheet1
200520062007200520062007
279.2342.2450417.4482.6598.7807
129.9132.214027.52%15.62%24.32%
8.38.210
417.4482.6600
20062007
20052006200770.91%75.00%
66.89%70.91%75.00%27.39%23.33%
31.12%27.39%23.33%1.70%1.67%
1.99%1.70%1.67%
200520062007
Gross Profit609682069815
Sheet1
0
0
0
Sheet2
0.7090758392
0.2739328637
0.0169912971
2006
2006
Sheet3
0.75
0.2333333333
0.0166666667
2007
01
00
00
&A
Page &P
Gross Profit
#REF!
Chart6
26700.064
30290.063
41310.07
EBIT
EBIT Rate
Sheet1
200520062007200520062007
279.2342.2450417.4482.660007
129.9132.214027.52%15.62%24.32%
8.38.210
417.4482.6600
20062007
20052006200770.91%75.00%
66.89%70.91%75.00%27.39%23.33%
31.12%27.39%23.33%1.70%1.67%
1.99%1.70%1.67%
200520062007
Gross Profit6096820610000
GP Margin14.60%17.00%16.54%
200520062007
EBIT267030294131
EBIT Rate6.40%6.30%7.00%
Sheet1
0
0
0
Sheet2
0
0
0
2006
2006
Sheet3
2007
00
00
00
&A
Page &P
&A
Page &P
EBIT
EBIT Rate
Enhanced Operation Efficiency and Increased ProfitabilityNet Profit and NP Margin Recent 3 YearsImproved ROE in Recent 3 YearsUnit:mnRMB
Chart7
16010.0383610878
20810.043117023
37700.064
Net Profit
Net Profit Margin
Sheet1
200520062007200520062007
279.2342.2450417.4482.6598.7807
129.9132.214027.52%15.62%24.32%
8.38.210
417.4482.6600
20062007
20052006200770.91%75.00%
66.89%70.91%75.00%27.39%23.33%
31.12%27.39%23.33%1.70%1.67%
1.99%1.70%1.67%
200520062007
609682069904
GP Margin14.60%17.00%16.54%
200520062007
EBITA267030304378
Profitability6.40%6.30%7.31%
200520062007
Net Profit160120813770
Net Profit Margin3.84%4.31%6.40%
Sheet1
0
0
0
Sheet2
0.7090758392
0.2739328637
0.0169912971
2006
2006
Sheet3
0.75
0.2333333333
0.0166666667
2007
60960.146
82060.17
99040.1654
&A
Page &P
00
00
00
&A
Page &P
EBITA
Profitability
00
00
00
&A
Page &P
Net Profit
Net Profit Margin
Chart1
122070.131
142880.157
177130.236
Shareholders Equity
ROE
Sheet1
200520062007200520062007
279.2342.2450417.4482.6598.7807
129.9132.214027.52%15.62%24.32%
8.38.210
417.4482.6600
20062007
20052006200770.91%75.00%
66.89%70.91%75.00%27.39%23.33%
31.12%27.39%23.33%1.70%1.67%
1.99%1.70%1.67%
200520062007
609682069904
14.60%17.00%16.54%
200520062007
267030304378
6.40%6.30%7.31%
200520062007
Net Profit160120813406
NP Margin3.84%4.31%5.69%
200520062007
Shareholders Equity122071428817713
ROE13.10%15.70%23.60%
Sheet1
0
0
0
Sheet2
0
0
0
2006
2006
Sheet3
0.75
0.2333333333
0.0166666667
2007
00
00
00
&A
Page &P
00
00
00
&A
Page &P
16010.0383610878
20810.043117023
34060.0569
&A
Page &P
00
00
00
&A
Page &P
Shareholders Equity
ROE
ROE
Contents PRC Auto Industry OverviewDFG Business OverviewDFG Financial Performance
Growth Prospect of PRC Auto IndustryIn recent years, PRC auto industry maintains steady growth, first 3 months industry sales in 2008 was also positive;We expect PRC auto industry to continue the rapid development momentum in 2008, but due to macro economy tightening policy, auto growth is likely to slow down. If auto industry grows by a conservative 15%, total auto sales in 2008 will reach 10.1 million units; if it grows by an optimistic 20%, then total industry sales will reach 10.54 million units.
Chart2
36.653.0171.7185.94
31.947.9955.3466.35
58.272.1584.72105.65
53.767.2980.87Apr
46.956.7571.36May
51.655.7672.69June
43.346.7164.09July
41.8952.8167.16Aug
49.6163.577.28Sep
45.1957.6369.23Oct
55.1468.980.09Nov
62.3975.8683.93Dec
2005
2006
2007
2008
Sheet1
200520062007
PV397.1517.6629.8
CV178.7204249.4
575.8721.6879.2
JanFebMarAprMayJuneJulyAugSepOctNovDec
200536.631.958.253.746.951.643.341.8949.6145.1955.1462.39
200653.0147.9972.1567.2956.7555.7646.7152.8163.557.6368.975.86
200771.7155.3484.7280.8771.3672.6964.0967.1677.2869.2380.0983.93
200885.9466.35105.65
Sheet1
PV
CV
Sheet2
2005
2006
2007
2008
Sheet3
Growth Prospect of DFG In 2008, DFG will launch a variety of new PV models to broaden its PV product port folio; in CV segment, DFG will further optimize the product structure of Kinland series to cater to the market demand; meanwhile, the Group will launch another HD truck serial:D530 to enhance the competitive edge of commercial vehicles in the domestic market.In 2008, the Group sets the annual sales target between 1.1mn units to 1.15 mn units, with a 7:3 sales breakdown between PV and CV.In 2008, faced with such challenging factors as raw material price hike, increase of labor cost, declining auto price, DFG management will spare no efforts to maintain the Groups profitability through launch of new products, further increase scale of economy, improvement of local content ratio and enhancement in cost management capabilities.