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.