HK000I5DChina Industry Primer August 18, 2004CONFIDENTIALHK000I5X8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D1Total Market Size and PerformanceNo. of Players / Total Production CapacityUnit Price / Units SoldIndustry Primer Market Overview1.Break down to province / region and subsector as appropriate2.Include as much detail as appropriate / possible 3.Footnote all your sources!_Source: Data to comeData to comeData to come8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D2Industry Primer Key Industry CharacteristicsnFragmented marketnState-ownershipnImport or export drivennSegmentation of market spacenInnovation driven ?nCyclical ?nDemographic-drivennProtected sectornLow penetrationnLacking certain expertisenScale-playnBrand-drivennHigh barrier of entrynHigh R&DRecent DevelopmentsnIntroduction of certain technologynOpening of certain marketsnCutting import tariff1.Rely on news run, industry sector reports, discussions in company annual reports8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D3Industry Primer Key Industry TrendsnCertain product type popularnPrice cutsnIntensifying competitionnMargin compressionnCoupled with financing electronics for examplenDomestic consolidationnDiversification of customer basenInter-provincial expansionnDeclining import tariffnGovernments stance and positionnFunding more private sector capitalnShift in distribution channel1.Rely on news run, industry sector reports, discussions in company annual reports8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D4Industry Primer Key DriversnStrong overall economic performancenInfrastructure expansionnIncreasing consumer awarenessnIncrease in construction worknIncrease in disposal incomeTie back to the Industry Characteristics and Trends_Source: Driver 1Driver 2Driver 3Driver 4Source: Industry reports, equity research on profiled companies8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D5Key Players and Market ShareIndustry Primer Competitive Landscape_Source: List key domestic or foreign players and respective market shareSource: Industry reports, equity research on profiled companies, news runs8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D6Industry Primer Regulatory EnvironmentKey Regulations and Licensing RequirementsForeign Ownership RestrictionsnCurrent situationnWTO commitmentsnFavorable treatment for HK companies?nDistribution? Manufacturing? Marketing?nInvestment restrictionsKey Regulatory AgenciesRelevant Tax RegulationsnFavorable tax treatment for operation in certain region nTo come_Source: Source: Industry reports, equity research on profiled companies, news runs; lawyers websites8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5DOverview of Multinationals Presence7Industry Primer Foreign Participation to dateMarket Share Breakdown Year?UNDER NO CIRCUMSTANCES SHOULD YOU CONTACT THE REGIONAL RMs_Source: Source: Industry reports, equity research on profiled companies, news runs; SDC M&A runs8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D8Cross-Bordered M&ADomestic M&AM&A Activity to DateIndustry Primer _Source: Key Transactions_(#) represent no. of deals_(#) represent no. of deals(10)(10)(10)(10)(10)(10)(10)(10)(10)(10)(10)(10)to cometo comeSizable, notable transactionsSource: SDC M&A runs and news runs8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D9Ranking by ROARanking by ROESummary of PlayersIndustry Primer _Source: to cometo comeSource: SDC M&A runs and news runsRanking by Valuation Ranking by EBITDA Marginto comeEV/EBITDA or P/E or P/B8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D10Company Profile - Stock Market PerformanceRecent DevelopmentsBusiness OverviewKey ManagementIndustry Primer nTo comenNo. of employeesnGeographic coveragenProduct rangenRevenue breakdownnKey brandsnKey strategy_Source: 8/26/2024HK000I5D_ML_ChinaOpportunities_0804.pptHK000I5D11Key Operating MetricsSWOT AnalysisFinancial OverviewOwnership / AvailabilitynTo comenTo comeCompany Profile - (Contd)Industry Primer +Other operating data: ie. No of outlets / production capacity_Source: 8/26/2024HK000I5D_ML_ChinaOpportunities_0804.ppt