Investment Summary

H1 Sales Volume Decreased by 15%, and the MGMT Cut Sales Target by 10% Because of the depression in the car market caused by the downturn in the economic boom, the sales volume potential of new models not fully exploited, the great challenge for its old models posed by the falling prices of the joint venture brand competing products and the increasing base, Geely Auto`s strong double-digit yoy growth rate for 10 consecutive quarters has been interrupted since the fourth quarter of last year, and the overall decline is gradually expanding. In the fourth quarter of 2018/the first quarter of 2019/the second quarter of 2019, the sales volume of the Company dropped 13%/5%/25% yoy, respectively. In H1 of 2019, the cumulative total sales volume of the Company is about 651,700 units, a decrease of about 15% yoy, reaching 43% of the original target of 1.51 million units. The Company lowered its sales volume target for the whole year by about 10%, from 1.51 million to 1.36 million, meaning that the total sales volume in H2 accounts for 42% of the new target, with a sharp yoy decrease to 3.5% and an average monthly sales volume of 118,000
units.