CIMC Vehicles Announces Proposed Listing on the Main Board of the Hong Kong Stock Exchange

CIMC Vehicles plans to offer 265,000,000 H Shares (assuming the Over-allotment Option is not exercised) under the Global Offering, of which 238,500,000 H Shares will be International Offer Shares (including 16,666,000 Reserved Shares under the Preferential Offering) (subject to adjustment and the Over-allotment Option), representing 90% of the initial offer shares; the remaining 26,500,000 H Shares will be Hong Kong offer shares (subject to adjustment), representing 10% of the initial offer shares. Maximum Offer Price is HK$8.08 per H Share (plus brokerage of 1.0%, SFC transaction levy of 0.0027% and the Stock Exchange trading fee of 0.005%). Pursuant to the Over-allotment Option, the Company may be required to allot and issue up to an aggregate of 39,750,000 additional H Shares, representing 15% of the number of Offer Shares initially available under the Global Offering, at the Offer Price, to cover over-allocations in the International Offering, if any. CIMC Vehicles will open for Hong Kong Public Offering in Hong Kong at 9 a.m., 27 June 2019 (Thursday), and close at 12:00 noon, 3 July 2019 (Wednesday). Dealings in H Shares of CIMC Vehicles on the Main Board of the Hong Kong Stock Exchange is expected to commence on 11 July 2019 (Thursday). The shares will be traded in board lot of 500 shares each. The Company's stock code will be 1839.

- Haitong International Capital Limited is the Sole Sponsor.- Haitong International Securities Company Limited is the Sole Representative.- Haitong International Securities Company Limited, ICBC International Capital Limited, and Nomura International (Hong Kong) Limited are the Joint Global Coordinators.- Haitong International Securities Company Limited, ICBC International Capital Limited, Nomura International (Hong Kong) Limited, and ING Bank N.V. are the Joint Bookrunners.- Haitong International Securities Company Limited, ICBC International Securities Limited, Nomura International (Hong Kong) Limited, ING Bank N.V., GoldBridge Hong Kong Securities Limited, and Futu Securities International (Hong Kong) Limited are the Joint Lead Managers.

Vehicles Group is a leader in the global semi-trailer industry with well-recognized brands in the principal markets where it operates. According to Frost & Sullivan, Vehicles Group had been the world's largest semi-trailer manufacturer for five consecutive years since 2013, with a 10.3% market share in 2017 by sales volume of semi-trailers. In China, Vehicles Group ranked first in the semi-trailer industry by sales volume of semi-trailers, with a market share of 15.7% in 2017; and in North America, Vehicles Group's principal overseas market, it ranked among the top five semi-trailer manufacturers in 2017 in terms of sales volume of semi-trailers, according to Frost & Sullivan.

Vehicles Group primarily engages in the manufacture and sale of semi-trailers and truck bodies for specialty vehicles. The semi-trailers mainly include five product lines, comprising chassis and flatbed trailers, fence trailers, tank trailers, refrigerated trailers and van trailers. In 2017, Vehicles Group launched its center-axle car carriers in China. Vehicles Group's truck body products includes dump beds for dump trucks, mixers for mixer trucks and a wide range of other truck bodies for specialty vehicles. Besides, Vehicles Group markets and sells an extensive range of semi-trailers and truck bodies in China, North America, Europe and other regions, covering over 40 countries. It markets and sells its products in China under the "CIMC", "CIMC Tonghua," "CIMC Huajun," "Ruijiang Vehicles," "Dongyue Vehicles" and "Lingyu Vehicles" brands, which are recognized names in the global semi-trailer industry. Vehicles Group possesses strong research and development capabilities and advanced technologies for manufacturing semi-trailers. Vehicles Group focuses on production facility improvement and product research and development to enhance production efficiency and improve product quality and capabilities. As a leading global manufacturer of semi-trailers, as of 18 June 2019, Vehicles Group owned over 800 registered patents across multiple countries. Vehicles Group also played a leading role in setting 14 national and industry standards in China. Through its research and development efforts, it has been able to develop and launch new product lines, both independently and through cooperation with third parties. For example, in 2017, Vehicles Group launched the first generation of curtain-side trailers and center-axle car carriers in China.

CIMC Vehicles has demonstrated a track record of revenue and profit growth. In 2016, 2017 and 2018, the revenue amounted to RMB14,555.6 million, RMB19,367.0 million and RMB24,168.2 million, respectively. In 2016, 2017 and 2018, the profit for the year of Vehicles Group amounted to RMB752.8 million, RMB1,011.5 million and RMB1,232.0 million, respectively, representing a CAGR of 27.9%.

As a leader in the global semi-trailer industry, Vehicles Group enjoys strong brand recognition worldwide, and has received numerous awards and recognition for the quality and reliability of its products, its research and development capability and the quality of its after-sales services. In 2018, Vehicles Group received "The 16th China Top Ten Management Practices of 2018" award from World Manager Magazine, and also was awarded the "China's Leading Specialty Vehicle Enterprise" by China Automotive Technology and Research Center Co., Ltd.. In 2017, Vehicles Group was awarded the "China Road Freight Transportation Industry Gold Awar" by China Federation of Logistics & Purchasing.

Mr. Li Guiping, Executive Director, Chief Executive Officer and President of CIMC Vehicles (Group) Co., Ltd., said, "The PRC semi-trailers industry is undergoing an upgrade. Vehicles Group is building a new generation of the semi-trailer platform to continuously develop new semi-trailer products and improve product features, providing new growth momentum for the upgrading of China's semi-trailers. Capitalizing on Vehicles Group's outstanding manufacturing and research and development capabilities, proven track record of successful worldwide acquisitions and investments, comprehensive portfolio of brands and products targeting different regional markets and customers, as well as experienced and visionary management team and solid corporate governance, Vehicles Group has confidence to strengthen our leading position in the global semi-trailer market."

"Global Operation, Local Knowledge" has been Vehicles Group's' most valued competitive advantage and the key to its continued growth and leading position in the global semi-trailer industry. Vehicles Group attributes the success of global operations to its strong capabilities in terms of cross-over design, inter-continental production and global supply chain. Besides, "Local Knowledge" is the other pillar of Vehicles Group's core competitiveness. To drive long-term growth and capture local market opportunities more efficiently, the Company leverages the knowledge and experience of localised management teams to better understand local customer preferences and regulatory requirements. What is more, Vehicles Group has expanded the geographical coverage of its production. It has established 31 manufacturing and assembly plants located in China, the US, the UK, Belgium, Poland, Australia, Thailand, and South Africa. In addition to expanding the global coverage, Vehicles Group also has been upgrading and improving its manufacturing practices and processes, focusing on modularised designs and automated production. In 2014, Vehicles Group launched its "Light Tower" plants in China, under which Vehicles Group transformed the traditional labor-intensive production into an automated process. Furthermore, since Vehicles Group began to manufacture and sell semi-trailers in 2002, it has strategically expanded its product portfolio and established geographic coverage in China, North America and Europe through a series of selective and worldwideacquisitions and effective integrations afterwards.

To strengthen the leading position in the global semi-trailer market, Vehicles Group will deepen its global operations and enhance its presence in selected markets. To achieve this goal, Vehicles Group plans to focus on its efforts on expanding and upgrading its manufacturing and assembly capabilities. Also, Vehicles Group will explore opportunities across regions actively, to create synergies with local brands in terms of design, manufacturing and sales support. Additionally, with the successful implementation of its "Light Tower" plants to automate the manufacturing and assembly plants, Vehicles Group believes its products' quality, efficiency and flexibility can be further enhanced by digitalizing its production process. Vehicles Group's planned digitalized manufacturing and assembly plants represent an upgrade from its automated production facility to a fully connected and flexible one, which is capable of utilizing data from connected operations and production systems for resource control and optimization, and which can adapt its existing automated manufacturing process to accommodate new products.

Mr. Li Guiping concluded, "In the future, Vehicles Group will strengthen our global operations with comprehensive local knowledge, further digitalize our production process, continue to develop new products and improve product features, promote an agile organization adaptive to digitalized manufacturing and operation as well as capture emerging business opportunities with growth potential. We are ready to make full use of Hong Kong's unique financing platform and competitive advantages to generate the greatest value for our shareholders."

Fact SheetInformation on the Shares Offering:Number of Offer Shares under the Global Offering: 265,000,000 H Shares (subject to the Over-allotment Option))Number of Hong Kong Offer Shares: 26,500,000 H Shares (subject to adjustment)Number of International Offer Shares: 238,500,000 H Shares (including 16,666,000 Reserved Shares under the Preferential Offering) (subject to adjustment and the Over-allotment Option)Maximum Offer Price: HK$ 8.08 per H Share, plus brokerage of 1.0%, SFC transaction levy of 0.0027% and the Stock Exchange trading fee of 0.005% (payable in full on application in Hong Kong dollars and subject to refund)Board Lot: 500 SharesStart of the Hong Kong Public Offering: 9:00 a.m., 27 June 2019 (Thursday) End of the Hong Kong Public Offering: 12:00 noon, 3 July 2019 (Wednesday)Expected Price Determination Date: 3 July 2019 (Wednesday) Announcement of Allotment Results: 10 July 2019 (Wednesday) Expected Listing Date: 11 July 2019 (Thursday)Stock Code: 1839

Use of Proceeds:Assuming an Offer Price of HK$7.23 per H Share (being the mid-point of the Offer Price range stated in the prospectus), after deducting the underwriting commissions, the maximum amount of incentive fee and discretionary bonus, and estimated expenses paid or payable in relation to the Global Offering and assuming that the Over-allotment Option is not exercised, Vehicles Group estimates it will receive net proceeds from the Global Offering of approximately HK$1,791.9 million. Vehicles Group intends to use the net proceeds for the following purposes:

Use of Proceeds: Approximate Amount(HK$ million) / As a Percentage ofTotal Amount (%)to develop new manufacturing or assembly plants in the US and Europe: 1,254.3 / 70%to research and develop new products: 179.2 / 10%to repay the principal amount and interests on certain bank borrowings: 179.2 / 10%for working capital and general corporate purposes: 179.2 / 10%

Financial Summary:

Year ended December 312016 2017 2018(RMB in millions)Revenue 14,555.6 19,367.0 24,168.2Gross profit 2,205.7 2,848.3 3,159.3Profit before income tax 1,023.2 1,271.7 1,552.8Profit for the year 752.8 1,011.5 1,232.0

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