January 13, 2016 COMPANY NEWS...COMPANY NEWS Analyst: Mark Po FDG Electric Vehicles Limited [0729.HK; HK$0.40 Not Rated] - Trial production kicked off Market Cap: US$999m; Free Float:

COMPANY NEWS

Analyst: Mark Po

FDG Electric Vehicles Limited [0729.HK; HK$0.40 Not Rated] -

Trial production kicked off

Market Cap: US$999m; Free Float: 63.6%; 3-month Average Daily Turnover: US$5.0m

The Company. FDG Electric Vehicles Limited [0729.HK] (FDG)

is currently engaged in 3 business lines including: a) Power

Battery/Energy Storage; (PB), b) Electric Vehicles (EV); and c)

Electric Vehicle Leasing (EVL).

We recently visited FDG production facility in Hangzhou and had

discussion with senior management regarding FDG’s strategy on

EV development and battery business. FDG, through acquisition,

entered into EV manufacturing in 2014. First phase of FDG

production facility in Hangzhou has designed annual capacity of

100,000 vehicles with a total investment of RMB2.6bn. The

production facility is highly automated and installed over 200 high-

end 7-axles robotic arms in different production processes such as

welding, assembling, painting and testing. The company’s

Hangzhou factory has designed annual capacity of 100,000

vehicles, mainly producing 2-seater pure electric passenger cars,

5-seater pure electric passenger cars, and 6-9 meter long electric

minibuses.

The Hangzhou production facility is now in trial production.

Utilization rate is still low at this moment as the company is fine

tuning production process to comply with standards set by in-house

industry experts. We also conducted a test-drive in FDG’s electric

luxury mid-size bus at a speed of over 100km. There is a 10”

multimedia panel installed for information display and control. The

luxury mid-size bus easily climbed up 35 degree slope during the

test drive. FDG has another production facility in Kunming, where

the designed capacity is 4,500 vehicles - 2,500 buses and 2,000

minibuses & commercial vehicles.

FDG subscribed to a US$2m note and promised subsequent

capital injections into Smith Electric Vehicles (SEV), a US-based

EV manufacturer. SEV has blue-chip partners including Fedex,

Pepsi Cola, Staples and Coca-Cola. Electric vehicles for SEV are

ready to ship in near term. Management believes that cooperation

with SEV will help expand FDG business to Europe, Middle East,

US and Asia.

FDG is now marketing its electric minibuses to local government agencies and departments. According to management, demand for electric minibuses is strong due to central government’s policy of supporting development of EV and reduction of PM2.5 emission. Especially management mentioned that the company had a strong presence in Hangzhou, where the Hangzhou government targets to replace all conventional buses for public transportation in 2016 and 2017. The cash production cost of each electric minibus is about RMB450,000-RMB500,000. With government subsidies, FDG can make a profit of about RMB300,000-RMB400,000 per minibus. FDG is also one of the 10 companies complied with MIIT’s

January 13, 2016

Source: Bloomberg, Company Data.

[FDG Electric Vehicles Limited]

standards to produce lithium batteries for EV.

FDG announced that CITIC Limited would subscribe 1,000,000,000 FDG shares at HK$0.465. The proceeds from placement is used for plant expansion in Hangzhou and production of EV. Completion of share placement to CITIC Limited will boost sentiment on FDG. FDG reported losses in last several financial years and share price movement may be volatile given the lack of track record in EV industry and weak market sentiment. Concerns on slowing shipment of EV in 1Q 2016 due to demand front loading in 4Q 2015 may cap near term upside for EV supply chain. However, long term outlook for the EV supply chain remains positive given government’s supporting policy.

Key risks for FDG include: a) change in government policy and b) car accident.

0

100

200

300

400

500

0

0.2

0.4

0.6

0.8

1

Jan15 Mar15 May15 Jul15 Sep15 Nov15

(HK$ million)(HK$)

Turnover (RHS) Price (LHS)

Key Financials

(in HK$ m)FY12 FY13 FY14 FY15

Revenue 59.4 53.9 84.0 307.4

Gross Profit 4.8 7.2 6.9 74.3

Gross Margin % 8.1 13.4 8.3 24.2

Net Profit (442.3) (324.4) (906.4) (409.8)

Net Margin % (744.2) (602.5) (1,079.6) (133.3)

EPS (Basic) (0.04) (0.03) (0.07) (0.02)

ROE (%) (86.2) (74.6) (87.4) (21.5)

Dividend Yield (%) - - - -

PER (x) (9.71) (13.79) (6.00) (16.95)

PBR (x) 8.31 14.41 3.92 3.45

Figure 1: Peer Comparisons

Source: Bloomberg

Sector Ticker Company

Price Market Cap 2015F 2016F 2017F 2015F 2016F 2017F 2014 2015F 2014 2015F 2014 2015F 2014 2015F 1M 3M 6M 12M

Lcy US$m x x x x x x x x % % % % % % % % % %

Automaker

PV 1211 HK Byd Co Ltd-H 36.45 18,495 37.9 33.2 27.2 20.7 17.8 16.3 3.0 2.5 1.8 7.9 0.6 2.3 0.0 0.0 -8.5 -21.1 -4.5 22.9175 HK Geely Automobile Holdings Lt 3.33 3,778 10.0 7.6 6.5 4.9 3.7 3.2 1.3 1.3 8.6 13.3 4.8 6.2 0.7 1.2 -21.3 -14.6 -7.0 14.42238 HK Guangzhou Automobile Group-H 6.40 15,040 9.7 8.2 7.1 82.8 67.3 57.3 0.9 0.9 9.3 9.9 5.9 5.1 n.n 3.4 -10.6 -5.9 3.6 -10.92333 HK Great Wall Motor Company-H 7.13 11,966 6.3 5.7 5.4 6.3 5.5 5.2 1.5 1.4 26.2 23.8 15.7 13.1 5.8 5.1 -24.9 -28.8 -43.7 -49.0600104 CH Saic Motor Corp Ltd-A 18.98 31,813 7.3 6.6 6.4 12.2 10.3 9.3 1.3 1.2 18.9 17.6 6.8 7.2 n.n 7.0 -7.0 6.8 -27.3 -22.9

Bus 600066 CH Zhengzhou Yutong Bus Co -A 19.08 6,422 12.8 11.0 9.7 8.6 7.4 6.8 3.8 3.4 25.8 27.4 15.3 14.7 n.n 4.1 -7.5 -3.6 -10.8 11.2000957 CH Zhongtong Bus & Holding Co-A 21.45 967 17.2 15.5 12.6 18.1 16.6 n.n 2.7 3.9 30.0 24.5 3.5 6.4 n.n 0.5 -10.3 -10.6 18.2 41.2000868 CH Anhui Ankai Automobile-A 6.81 720 n.n n.n n.n n.n n.n n.n 3.7 n.n 1.9 n.n 0.7 n.n n.n n.n -25.5 -15.4 4.4 18.0600166 CH Beiqi Foton Motor Co Ltd-A 5.72 2,900 57.2 47.7 40.9 n.n n.n n.n 1.0 n.n 3.1 7.1 0.9 n.n n.n n.n -5.5 -9.1 -12.1 -8.9476 HK China Dynamics Holdings Ltd 0.29 136 25.9 8.9 5.8 n.n n.n n.n 0.3 0.3 -2.2 1.1 -2.0 1.3 0.0 n.n -38.0 -27.8 -26.0 -59.3729 HK Fdg Electric Vehicles Ltd 0.40 999 n.n n.n n.n n.n n.n n.n 3.6 n.n -87.4 n.n -1.4 n.n 0.0 n.n -14.0 -27.3 -27.3 3.93836 HK China Harmony New Energy Aut 4.42 898 9.4 7.4 6.4 5.0 4.0 3.5 1.1 1.1 22.0 15.1 5.7 6.1 2.1 1.7 -18.3 -5.4 -35.5 -27.3Average 19.4 15.2 12.8 19.8 16.6 14.5 2.0 1.8 4.8 14.8 4.7 6.9 1.4 2.9 -15.9 -13.6 -14.0 -5.5600884 CH Ningbo Shanshan Co Ltd-A 27.83 1,738 16.1 21.8 16.2 11.7 15.2 n.n 2.7 2.3 9.3 17.7 10.0 8.2 n.n 0.6 -15.5 7.1 23.4 64.0300073 CH Beijing Easpring Material-A 25.79 718 175.4 50.3 31.8 122.7 34.8 16.7 3.8 4.6 -3.1 2.9 -1.8 1.7 n.n 0.4 -29.9 14.1 6.7 46.5000839 CH Citic Guoan Information-A 15.55 3,706 n.n n.n n.n n.n n.n n.n 3.7 3.6 3.1 4.4 2.9 n.n n.n n.n -34.0 -34.0 -34.0 46.1

Cathode materials 000009 CH China Baoan Group-A 13.05 3,159 n.n n.n n.n n.n n.n n.n 4.6 n.n 9.4 n.n 4.7 n.n n.n n.n -22.8 9.6 22.0 2.0600390 CH Kingray New Materials Sci -A 11.05 758 n.n n.n n.n n.n n.n n.n 3.3 n.n -3.1 n.n -3.0 n.n n.n n.n -27.6 -9.8 9.0 -7.4002056 CH Hengdian Group Dmegc -A 21.29 1,330 23.1 22.2 20.7 n.n n.n n.n 2.5 2.4 12.2 10.3 7.7 7.3 n.n 0.1 -15.4 -2.1 -1.7 -2.3002176 CH Jiangxi Special Electric -A 14.14 2,658 n.n n.n n.n n.n n.n n.n 8.3 n.n 2.8 n.n 1.4 n.n n.n n.n -8.5 22.2 103.7 122.4002091 CH Jiangsu Guotai Int Group -A 18.87 1,033 26.6 23.6 n.n 21.3 18.9 n.n 4.0 3.6 14.2 14.5 7.7 8.4 n.n 0.6 -28.0 -28.0 -28.0 23.5

Anode material 000009 CH China Baoan Group-A 13.05 3,159 n.n n.n n.n n.n n.n n.n 4.6 n.n 9.4 n.n 4.7 n.n n.n n.n -22.8 9.6 22.0 2.0600884 CH Ningbo Shanshan Co Ltd-A 27.83 1,738 16.1 21.8 16.2 11.7 15.2 n.n 2.7 2.3 9.3 17.7 10.0 8.2 n.n 0.6 -15.5 7.1 23.4 64.0000973 CH Fspg Hi-Tech Co Ltd -A 13.00 1,912 n.n n.n n.n n.n n.n n.n 6.2 n.n 4.0 n.n 1.0 n.n n.n n.n 9.8 67.5 83.4 111.4

Li-ion battery separator 002389 CH Zhejiang Nanyang Technolog-A 15.60 1,684 97.5 70.9 48.8 n.n n.n n.n 3.3 n.n 2.6 n.n 2.5 n.n n.n n.n -15.1 -4.9 13.5 68.1002168 CH Shenzhen Hifuture Electric-A 8.81 1,035 n.n n.n n.n n.n n.n n.n 5.8 n.n -8.2 n.n 3.0 n.n n.n n.n -20.5 -10.1 -23.9 -13.0002108 CH Cangzhou Mingzhu Plastic -A 13.54 1,273 38.0 29.2 22.8 25.3 21.6 n.n 4.8 4.3 12.1 12.2 8.0 8.8 n.n 1.1 -19.5 -19.5 26.8 45.0002091 CH Jiangsu Guotai Int Group -A 18.87 1,033 26.6 23.6 n.n 21.3 18.9 n.n 4.0 3.6 14.2 14.5 7.7 8.4 n.n 0.6 -28.0 -28.0 -28.0 23.5300037 CH Shenzhen Capchem Technolog-A 39.92 1,117 55.1 42.3 n.n 44.5 37.1 n.n 3.8 3.7 10.2 7.9 5.8 6.7 n.n 0.6 -11.7 36.2 20.5 23.1

Electrolytic solution 002407 CH Do-Fluoride Chemicals Co-A 61.49 2,349 246.0 69.6 40.9 65.7 23.9 17.9 9.3 9.4 0.3 3.5 0.7 1.8 n.n 0.3 -8.6 46.7 260.4 229.7002411 CH Jiangsu Jiujiujiu Technolo-A 13.60 2,593 n.n n.n n.n n.n n.n n.n 5.8 n.n 3.3 n.n 0.5 n.n n.n n.n -26.5 7.1 25.6 38.9600884 CH Ningbo Shanshan Co Ltd-A 27.83 1,738 16.1 21.8 16.2 11.7 15.2 n.n 2.7 2.3 9.3 17.7 10.0 8.2 n.n 0.6 -15.5 7.1 23.4 64.0002190 CH Sichuan Chengfei Integrat -A 31.27 1,641 46.0 39.1 n.n n.n n.n n.n 6.5 n.n 2.6 n.n 2.3 n.n n.n n.n -19.2 -11.5 -11.4 0.4

Power core 300068 CH Zhejiang Narada Power Sour-A 14.68 1,350 44.4 29.4 20.6 23.4 17.2 13.5 3.0 3.2 3.8 6.7 2.5 3.6 n.n 0.3 -17.0 1.9 0.7 49.2000049 CH Shenzhen Desay Battery Tec-A 41.35 1,290 25.3 22.4 18.3 18.3 14.8 13.6 9.7 8.5 36.8 32.3 7.4 6.7 n.n 0.3 -32.5 -3.7 -10.4 28.8300207 CH Sunwoda Electronic Co Ltd-A 22.78 2,235 40.5 25.3 17.4 28.9 19.3 13.8 8.6 7.9 12.3 20.0 6.3 7.0 n.n 0.5 -15.4 -15.7 4.7 99.1

BMS 002139 CH Shenzhen Topband Co Ltd -A 17.23 688 n.n n.n n.n n.n n.n n.n 4.6 n.n 12.3 n.n 7.0 n.n n.n n.n -26.8 -8.2 13.3 25.9600699 CH Ningbo Joyson Electronic -A n.n n.n n.n n.n n.n n.n n.n n.n n.n n.n 14.7 14.6 5.0 7.2 n.n n.n n.n n.n n.n n.n002460 CH Jiangxi Ganfeng Lithium Co-A 44.82 2,575 137.5 101.2 78.2 74.2 57.8 45.5 11.4 9.8 6.3 7.7 4.6 6.6 0.2 0.3 -25.2 62.3 182.2 170.3

Lithium materials 000762 CH Tibet Mineral Development-A 18.26 1,321 n.n n.n n.n n.n n.n n.n 5.3 n.n -5.3 n.n -2.2 n.n n.n n.n -33.2 35.4 49.3 34.6000792 CH Qinghai Salt Lake Industry-A 18.83 5,317 23.1 19.3 16.8 23.7 19.6 24.3 1.7 1.6 7.6 5.3 1.7 1.3 n.n 0.4 -18.1 1.5 6.3 -17.2002466 CH Sichuan Tianqi Lithium Ind-A 111.00 4,412 201.1 75.2 55.3 39.4 24.0 19.4 10.0 8.6 4.3 3.7 2.4 1.4 n.n 0.0 -29.1 56.8 142.7 144.5

Battery 1043 HK Coslight Technology Intl Gp 2.79 144 n.n n.n n.n n.n n.n n.n 0.5 n.n 1.8 n.n 0.4 n.n 0.0 n.n -14.9 -10.3 1.5 -43.1819 HK Tianneng Power Intl Ltd 5.38 793 9.5 7.2 6.0 7.2 5.5 4.7 1.7 1.6 -10.7 18.8 -0.9 6.8 0.8 3.3 -19.2 7.4 59.6 169.0951 HK Chaowei Power Holdings Ltd 4.55 601 9.5 7.5 6.1 7.2 5.8 5.3 1.6 1.2 -1.3 14.3 -0.2 4.6 0.0 0.0 -11.0 8.9 6.1 40.9378 HK Ciam Group Ltd 1.00 662 n.n n.n n.n n.n n.n n.n 4.2 n.n -3.7 n.n -15.5 n.n 0.0 n.n 47.1 -28.6 -47.9 249.7

Super Capacitor 894 HK Man Yue Technology Holdings 0.64 39 n.n n.n n.n n.n n.n n.n 0.2 n.n 2.8 n.n -1.3 n.n 1.6 n.n -8.6 -30.4 -36.0 -48.4Average 63.7 36.2 27.0 32.8 21.5 17.5 4.7 4.5 5.8 12.3 3.0 5.9 0.4 0.6 -17.5 5.0 27.5 56.2

Permanent magnetic material 000970 CH Beijing Zhongke Sanhuan Hi-A 11.13 1,802 38.1 30.2 19.3 20.5 17.7 12.8 3.1 3.0 8.2 8.0 4.7 5.2 n.n 0.7 -22.9 -20.4 -9.1 -26.0600360 CH Jilin Sino-Microelectronic-A 6.97 782 92.9 43.6 24.0 n.n n.n n.n 2.6 2.6 1.8 2.8 1.1 1.5 n.n 1.6 -36.8 9.1 15.2 42.2002249 CH Zhongshan Broad Ocean Moto-A 10.67 2,795 52.3 35.4 28.2 37.0 22.4 16.4 5.4 4.4 9.6 8.8 4.7 7.6 n.n 1.7 -14.0 -8.6 0.4 75.53898 HK Zhuzhou Csr Times Electric-H 35.95 5,447 13.1 11.5 10.2 10.7 9.3 8.3 3.1 2.7 23.9 22.5 15.5 15.3 1.3 1.9 -19.9 -33.9 -35.0 -19.6300124 CH Shenzhen Inovance Technolo-A 37.18 4,470 34.2 27.4 22.6 35.9 27.3 21.3 7.7 7.4 20.4 22.0 16.3 16.6 n.n 1.5 -17.2 -10.9 -23.2 17.8

Motor driver 002196 CH Zhejiang Founder Motor Co -A 23.48 947 119.2 43.7 33.7 85.1 30.6 26.4 4.8 5.2 1.4 2.8 1.9 2.5 n.n 0.6 -20.6 -10.7 6.6 51.0000970 CH Beijing Zhongke Sanhuan Hi-A 11.13 1,802 38.1 30.2 19.3 20.5 17.7 12.8 3.1 3.0 8.2 8.0 4.7 5.2 n.n 0.7 -22.9 -20.4 -9.1 -26.0000799 CH Jiugui Liquor Co Ltd-A 14.55 719 n.n n.n n.n n.n n.n n.n 2.7 n.n -5.7 n.n 1.9 n.n n.n n.n -10.4 -29.9 -29.9 -16.8002176 CH Jiangxi Special Electric -A 14.14 2,658 n.n n.n n.n n.n n.n n.n 8.3 n.n 2.8 n.n 1.4 n.n n.n n.n -8.5 22.2 103.7 122.4600366 CH Ningbo Yunsheng (Group) Co-A 16.24 1,374 24.7 21.7 24.6 18.6 16.8 n.n 2.5 2.6 6.5 10.5 7.5 8.1 n.n 1.6 -20.4 -10.6 -53.7 -4.6600580 CH Wolong Electric Group Co L-A 11.63 1,963 24.0 17.5 15.5 n.n n.n n.n 3.3 3.5 12.1 12.7 4.0 n.n n.n n.n -15.1 -6.1 8.2 11.0002664 CH Xinzhi Motor Co Ltd-A 31.77 1,932 55.5 41.6 32.2 43.9 33.4 25.5 8.9 8.1 14.9 13.9 10.7 10.2 n.n 0.6 19.0 15.6 -13.4 102.5Average 49.2 30.3 23.0 34.0 21.9 17.6 4.6 4.3 8.7 11.2 6.2 8.0 1.3 1.2 -15.8 -8.7 -3.3 27.4

Charging equpment 002227 CH Shenzhen Auto Electric Pow-A 29.73 992 60.7 43.4 n.n n.n n.n n.n 8.6 n.n 11.4 n.n 6.4 n.n n.n n.n -30.1 -14.5 38.0 42.9600406 CH Nari Technology Co Ltd-A 15.08 5,568 32.9 26.0 22.0 38.9 24.1 18.4 5.2 4.7 19.4 12.1 6.9 6.1 n.n 0.8 4.1 -5.5 -3.3 -3.1002028 CH Sieyuan Electric Co Ltd-A 12.45 1,183 19.8 14.8 n.n 13.2 9.9 n.n 2.1 2.0 13.5 10.5 6.9 6.7 n.n 0.7 -17.7 -6.3 -26.6 -7.0600680 CH Shanghai Potevio Co Ltd - A 35.87 1,611 n.n n.n n.n n.n n.n n.n 10.2 n.n 0.7 n.n -0.5 n.n n.n n.n -29.9 20.7 146.4 117.7002518 CH Shenzhen Kstar Science And-A 24.80 1,119 35.3 25.8 19.8 31.9 22.0 17.5 4.6 4.3 10.3 12.3 8.7 8.3 0.6 0.6 -21.5 -5.2 21.7 55.0300141 CH Suzhou Industrial Park Hes-A 17.59 446 97.7 27.9 15.4 77.2 20.5 9.5 4.3 4.2 7.8 4.3 5.0 3.2 0.6 0.3 -33.9 -9.6 15.0 37.02188 HK China Titans Energy Technolo 1.40 167 n.n n.n n.n n.n n.n n.n 2.4 n.n -10.2 n.n -5.9 n.n 0.0 n.n -23.9 0.0 53.8 89.23393 HK Wasion Group Holdings Ltd 6.91 915 9.7 8.0 6.6 8.0 6.6 5.5 1.5 1.4 15.8 16.1 8.5 9.7 3.3 4.2 -10.7 -23.1 -33.3 -5.0763 HK Zte Corp-H 14.20 9,421 13.4 11.7 10.3 11.9 10.3 9.3 1.4 1.6 11.1 13.1 3.4 2.8 n.n 1.9 -15.4 -21.5 -10.7 -3.71366 HK Jiangnan Group Ltd 1.26 662 5.1 4.4 3.8 7.6 6.3 5.4 1.0 0.9 22.7 20.2 6.9 8.1 4.7 4.6 -14.9 -25.9 -36.7 -13.7Average 34.3 20.3 13.0 26.9 14.2 10.9 4.1 2.7 10.2 12.7 4.6 6.4 1.8 1.9 -19.4 -9.1 16.4 30.9HSI Index -8.2 -13.3 -20.8 -18.0HSCEI Index -9.3 -19.9 -28.8 -29.8SHCOMP Index -12.0 -8.1 -22.0 -6.4

ROE ROA Div yield Share Price PerformanceP/BPE EV/EBITDA

Figure 2: Heavy Stamping Machine

Source: CGIS Research

Figure 3: Assembling Line


Figure 4: Assembling Line With Robotic Arms


Figure 5: Battery Assembling Line

Source: CGIS Research.

Figure 6: Luxury Mid Size Bus


Figure 7: Test Drive


Disclaimer

This research report is not directed at, or intended for distribution to or used by, any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation or which would subject China Galaxy International Securities (Hong Kong) Co., Limited (“Galaxy International Securities”) and/or its group companies to any registration or licensing requirement within such jurisdiction.

This report (including any information attached) is issued by Galaxy International Securities, one of the subsidiaries of the China Galaxy International Financial Holdings Limited, to the institutional clients from the information sources believed to be reliable, but no representation or warranty (expressly or implied) is made as to their accuracy, correctness and/or completeness.

This report shall not be construed as an offer, invitation or solicitation to buy or sell any securities of the company(ies) referred to herein. Past perfor-mance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regard-ing future performance. The recipient of this report should understand and comprehend the investment objectives and its related risks, and where necessary consult their own independent financial advisers prior to any investment decision.

Where any part of the information, opinions or estimates contained herein reflects the personal views and opinions of the analyst who prepared this report, such views and opinions may not correspond to the published views or investment decisions of China Galaxy International Financial Holdings Limited and any of its subsidiaries (“China Galaxy International”), directors, officers, agents and employees (“the Relevant Parties”).

All opinions and estimates reflect the judgment of the analyst on the date of this report and are subject to change without notice. China Galaxy Interna-tional and/or the Relevant Parties hereby disclaim any of their liabilities arising from the inaccuracy, incorrectness and incompleteness of this report and its attachment/s and/or any action or omission made in reliance thereof. Accordingly, this report must be read in conjunction with this disclaimer.

Disclosure of Interests

China Galaxy International may have financial interests in relation to the subjected company(ies) the securities in respect of which are reviewed in this report, and such interests aggregate to an amount may equal to or more than 1 % of the subjected company(ies)’ market capitalization.

One or more directors, officers and/or employees of China Galaxy International may be a director or officer of the securities of the company(ies) men-tioned in this report.

China Galaxy International and the Relevant Parties may, to the extent permitted by law, from time to time participate or invest in financing transac-tions with the securities of the company(ies) mentioned in this report, perform services for or solicit business from such company(ies), and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto.

China Galaxy International may have served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the last 12 months, significant advice or invest-ment services in relation to the investment concerned or a related investment or investment banking services to the company(ies) mentioned in this report.

Furthermore, China Galaxy International may have received compensation for investment banking services from the company(ies) mentioned in this report within the preceding 12 months and may currently seeking investment banking mandate from the subject company(ies).

Analyst Certification

The analyst who is primarily responsible for the content of this report, in whole or in part, certifies that with respect to the securities or issuer covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject, securities or issuer; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by the analyst in this report.

Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the securities covered in this research report within 30 calendar days prior to the date of issue of this report; (2) will deal in or trade in the securities covered in this research report three business days after the date of issue of this report; (3) serve as an officer of any of the Hong Kong-listed companies covered in this report; and (4) have any financial interests in the Hong Kong-listed companies cov-ered in this report.

Explanation on Equity Ratings

Copyright Reserved

No part of this material may be reproduced or redistributed without the prior written consent of China Galaxy International Securities (Hong Kong) Co., Limited.

China Galaxy International Securities (Hong Kong) Co. Limited, CE No.AXM459

Room 3501-3507, 35/F, Cosco Tower, Grand Millennium Plaza, 183 Queen’s Road Central, Sheung Wan, Hong Kong. General line: 3698-6888.

BUY share price will increase by >20% within 12 months in absolute terms :

SELL share price will decrease by >20% within 12 months in absolute terms :

HOLD no clear catalyst, and downgraded from BUY pending clearer signal to reinstate BUY or further downgrade to outright SELL :

January 13, 2016 COMPANY NEWS...COMPANY NEWS Analyst: Mark Po FDG Electric Vehicles Limited [0729.HK; HK$0.40 Not Rated] - Trial production kicked off Market Cap: US$999m; Free Float:

Documents