China Zenix Auto International Limited
(NYSE: ZX)
Disclaimer
This presentation contains forward-looking statements, including statements about China Zenix Auto
International Limited (the “Company”)’s business outlook, strategy and market opportunity, and statements
that may suggest trends for its business. These statements are individually and collectively forward-looking
statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section
21E of the U.S. Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date of
this presentation and are based on estimates and information available to the Company at the time of this
presentation. These statements are not guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict and may be beyond the Company’s control.
Therefore, you are cautioned that actual results may differ materially from those set forth in any forwardlooking statements herein. You are urged to review the risk factors included in the Company’s filings with
the U.S. Securities and Exchange Commission, including its Registration Statement on Form F-1 related to
the Company’s initial public offering. In light of these risks and uncertainties, there can be no assurance
that the forward-looking statements made during this presentation will in fact be realized. Any forwardlooking statements and projections made by others in this presentation are not adopted by the Company
and the Company is not responsible for the forward-looking statements and projections of others. Except
as otherwise required by applicable securities laws, the Company disclaims any intention or obligation to
update or revise forward-looking statements, whether as a result of new information, future events or
otherwise.
1
Overview of China Zenix
China Zenix at a Glance
 Largest commercial vehicle wheel
manufacturer in China, with19.3%
market share in 2013
(1)
 Diversified product line with premium
“Zhengxing” brand
 Balanced exposure to China OEM, China
aftermarket and international market
 More than 84 OEM customers
 Most extensive network in China
aftermarket with and 4,700 distributors
Revenue
Balanced Customer Base
–
3Q2014 Revenue
(RMB MM)
International
5,000
4,000
3,200
2,139
China OEM
3,802
32.6%
3,738
2,820
3,000
2,000
15.0%
4,094
2,551
52.4%
China
Aftermarket
1,000
24 tier-one distributors across
nearly all provinces (except Hong
Kong and Macau)
 3Q 2014 results:
–
Revenue: RMB 694.9 MM
–
Net loss: RMB 12.3 MM
–
Loss per ADS: RMB 0.24
 Chairman exercised options; ownership
at 69.5%
0
Notes:
1. China Automotive Industry Yearbook for
2013
3
Financial Highlights
 NYSE ADS Symbol:
ZX
 ADS Price (Feb. 2, 2015)
$1.22
 52-Week Hi/Low:
$3.15-$1.01
 Cash and bank balances per ADS (9/30/2014):
$3.46
Shareholders’ Equity per ADS (9/30/2014):
$8.22
 Cash flow from operating activities (9M2014)
 Cash/Total liabilities (9/30/2014):
$47.9 mil
68.0%
 Long-term Debt (9/30/2014):
nil
4
Manufacturing Facilities and Production Capacity
Production Capacity (1)
(‘000 Units)
Langfang
10,000
Benxi
9,420
9,000
8,000
7,000
5,520
6,000
Chengdu
5,000
Hua’an
(Aluminum
wheel plant)
4,000
3,000
2,000
500
1,000
34
Zhangzhou
(Headquarters)
0
Tubed
steel
wheels
Tubeless Aluminum Off-road
steel
wheels
steel
wheels
wheels
Hefei
Note:
1. As of December 31, 2013
5
Industry Overview
Solid Performance in Challenging Environment
China Commercial Vehicle
Production Volume
China Zenix Revenue
(MM units)
(RMB MM)
5,000
6.0
4,094
4.8
5.0
4.0
4.6
3,738
4,000
4.4
3,200
4.0
3.7
3,802
3,000
2,139
3.0
2,000
2.0
1.0
930
1,000
0.8
695
0
0.0
2009
2010
2011
2012
2013
2009
3Q2014
1. Source: CAAM, 2009-2011 Frost & Sullivan Report
7
2010
2011
2012
2013
3Q2013 3Q2014
Sustainability of Commercial Vehicle Market
Total Freight and Highway Freight
Transport Turnover in China
Truck & Bus Sales
(Bn ton km)
(‘000 Units)
4,500
(Bn ton km)
17,380 16,801 6,000
5,953 5,574
15,932
5,400
5,137
20,000
4,000
18,000
3,500
16,000
14,184
4,339
3,000
14,000
4,200
12,213
3,719
11,030
3,287
10,142
2,500
12,000
2,000
10,000
8,000
3,600
3,000
8,884
8,026
1,500
1,000
4,800
2,400
6,945
6,000 5,386
1,800
500
1,135
4,000
710
0
2008
2009
2010
Total Bus Sales (,000 units)
2011
2012
2013
784
869 975
2,000
1,200
600
Total Truck Sales (,000 units)
0
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Highway Freight Turnover
Total Freight Turnover
Source: CAAM
Source: China Statistical Yearbook, National Bureau of Statistics of China
8
Chinese Commercial Vehicle Market Dynamics and Trends
1
Further urbanization in China continues to drive higher demand for commercial
vehicles to haul goods and carry people longer distances with more frequent
trips
2
3
Highway safety legislation raises the bar for safety-related auto components
More stringent anti-overloading measures present market opportunities for
OEMs to design lighter-weight trucks in medium- and heavy-duty range
4
New Government bus safety standards accelerates retirement of school buses
5
More stringent emission standards and forced retirement of older vehicles will
improve environment and strengthen demand for new commercial vehicles
9
Investment Highlights
6
1
Leading Commercial
Vehicle Wheel
Manufacturer in
China with Premium
Brand
Professional
Management
with Industry
Knowledge
2
Diversified
Commercial
Vehicle Wheel
Products
3
5
Strong Domestic
R&D Capability
4
Strategically-located
Manufacturing
Facilities
10
Most Extensive
Distribution
Network in
China
Aftermarket
1
Zenix is the Leading Commercial Vehicle
Wheel Manufacturer in China
• Largest Wheel manufacturer by sales with 19.3% market share
• Broadest product line – 644 wheel models
• Tubed, tubeless and off-road wheels
• Over 84 OEM customers
• More than 4,700 aftermarket sales distributors
• Exports steel wheels to more than 30 countries
• Developed China’s first domestic aluminum wheels
11
1 with Premium “Zhengxing” Brand…
Premium Brand with High Customer Recognition
Brand Awareness:

Zhengxing is the best known commercial vehicle wheel brand by end-users. In a survey, 92% of
responded end-users ranked the brand “very familiar”, and additional 4% ranked “familiar” (1)
Brand Reputation:

Zhengxing is regarded as the best commercial vehicle wheel brand in China by 70% of
responded end-users (1)
Note:
1. Source: Frost & Sullivan 2011 Report
12
1 … and Diversified End Markets and Customer Base
Solid and Balanced Growth Across Diversified Customer Base
Diversified End Markets
Key OEM Customers
% of Revenue
15.4%
37.8%
46.8%
2009
16.7%
42.0%
41.3%
2010
13.8%
16.2%
37.7%
34.9%
48.5%
48.9%
7.8%
34.6%
50.7%
2011
2012
2013
China AM China OEM Export
China OEM
Customers
15.0%
32.6%
52.4%
International
Customers
3Q2014
13
1 Awards & Recognitions from Customers
“2012 Excellent
Supplier Award”
“2012 Excellent
Supplier Award”
“2014 Quality Award”
“2013 Quality
Excellence Award”
“2012 Win-win
Partner Award”
“2013 Class B
Supplier Award”
“Ten-year Excellent
Supplier Award”
Premium Quality Won High Customer Recognition
14
Wide Range of Product Offerings to Meet Customers
2 Demand and Well Serve Aftermarket
Product Types – 644 + models
Tubed Steel
Wheels
Applications
351
Series
Medium-duty &
Heavy-duty Trucks
Tubeless
Steel Wheels
Buses
263
Series
Light-duty
Trucks
Off-road
Steel Wheels
Mini
Trucks
28
Series
Forklifts
Aluminum
Wheels
Loaders
2
series
15
Buses
2 Advanced Production Technologies to Ensure Quality
 Wheel Steel with our Special Specifications
 Advanced Spinning and Pressing Technology
 Rim-shaped Steel Production Technology
 Comprehensive Quality Management System
16
2 Complex Production Process and High Barrier-to-Entry
Commercial Vehicle Wheel Manufacturing Process
Wheel Rims
Wheel Discs
Preparation of Raw Materials and Stamping
Preparation of Raw Materials (1)
Punching Holes
Rounding and Welding
Spinning and Pressing
Refining
Punching Additional Holes
Shaping (1)
Refining
Inspection and Testing
Inspection and Testing
Wheel Assembly
Welding
Testing
Coating
Packaging
Sophisticated Wheel Production Process requires substantial R&D investment and
technical expertise and creates a high barrier-to-entry
Note:
1.Process is different for tubed and tubeless wheels
17
3 Most Extensive Distribution Network in China Aftermarket
Tier-1
Distributors
24 (1)
Competitive Advantages
Easy Access to Customers
Quickly Penetrate New Markets and Expand Sales
Market Products at Low Sales Cost
Obtain Information Promptly to Satisfy Market Demand
Note:
1.As of December 31, 2013
18
4
Strategically-located, Scaled and Vertically Integrated
Production
Strategically Located
Manufacturing Facilities
Adjacent to:
Benxi
• Major
steel
plants
Large-scaled Production and
Partnership with Suppliers
• 10 yr+ supplier partner who
provides customized steel
• Low prices
Langfang
Chengdu
Hefei
Zhangzhou
Hua’an
• OEMs
• Port
• Aluminum
wheel
• Reduce transportation costs
• Quickly respond to customer
needs
• Ease labor cost pressure
19
Vertical Integration
• Unique wheel rim steel and
mold manufacturing capability
• Shape steel wheel rim
in-house to reduce production
cost
Strong R&D Capability and a Large Intellectual Property
5 Portfolio
Research Achievements
High Quality Products
High Safety
4 Invention Patents
78 Utility Model
Patents
Strong Durability
Low Pulsation
20 Design Patents
National Wheel Test Center
Light Weight
Fuel Efficiency &
Weight Control
7% fuel saving on
every 10% vehicle
weight reduction (1)
Strong Durability
Durability: 3x China
industry standard
R&D focuses on material science and aerodynamic design to improve fuel efficiency, reduce
product weight and prolong the lifespan of tires
(approximately 290 new models of steel wheels developed 2011 – 2013)
20
1. Source: International Aluminum Institute
6 Strong Management and Board with Proven Track Records
Name
Jianhui Lai
Junqiu Gao
Martin Cheung
Yuzhou Wang
Guohe Zhang
William Sharp
Position
Founder, Chairman & CEO
Relevant Experience

Over 20 years of management and operation experience in the commercial vehicle
wheel industry

Awarded “the Outstanding Private Entrepreneur” in China and “the Outstanding
Individual of China Automotive Industry”
Director, Deputy-CEO & Chief 
Sales and Marketing Officer
CFO

Over 13 years of accounting and finance experience

Certified Public Accountant in U.S.

Master’s in Accounting from Curtin University of Technology; Master of Science from
Hong Kong University of Science and Technology
Vice President of Finance and 
Controller

11 years of experience with Deloitte and PwC (7 years in auditing and internal control)
Certified Public Accountant in China

Over 40 years of R&D experience in the commercial vehicle wheel and machinery
industry

Senior engineer and won “Jiangsu New Product Development Golden Bull Award”

Over 45 years of experience in the tire manufacturing industry

Former president of Goodyear North America; board director of Ferro Corp.
Chief Technology Officer
Independent Director
22 years of marketing and sales and management experience in the commercial vehicle
wheel and machinery industry
21
Financial Overview
Revenue and Gross Profit
Revenue
Gross Profit
(RMB MM)
(RMB MM)
(%)
1,100
5000
942
4000
3,738
3,802
880
2,820
3000
791
660
593
2,551
477
2000
440
25.2%
21.0%
20.8%
1000
18.7%
220
23.6%
0
0
2012
2013
9M2013
2012
9M2014
23
2013
9MQ2013
9M2014
Operating and Net Profit
Operating Profit (1)
Net Profit
(RMB MM)
(RMB MM)
600
500
461
400
400
320
276
300
362
233
217
240
178
200
160
103
100
93
80
0
0
2012
2013
9M2013
9M2014
2012
Notes:
1. Operating profit= Gross profit - Selling cost - R&D cost - Admin cost
24
2013
9M2013
9M2014
Condensed Consolidate Profit and Loss – Q3
(’000, except EPS and EPADS,
Unaudited)
Revenue
Cost of Sales
Gross Profit
2013 Q3
RMB' 000
2014 Q3
RMB' 000
930,136
733,136
197,000
694,937
593,240
101,697
2014 Q3
US$' 000
112,952
96,423
16,393
Other Operating Income
Net Exchange Loss
Selling and Distribution Costs
Research and Development
Administrative Expenses
Finance Costs
Profit (loss) Before Tax
Income Tax Expense (Credit)
Profit (Loss) and Total
Comprehensive Income (Loss)
9,559
1,554
67,217
24,041
36,060
5,534
72,153
(11,236)
10,183
177
56,019
27,817
37,001
4,833
(13,967)
1,683
1,659
29
9,127
4,532
6,028
787
(2,275)
274
60,917
(12,284)
(2,100)
EPS
EPADS
Shares
ADS
0.29
1.18
206,500
51,625
(0.06)
(0.24)
206,500
51,625
(0.01)
(0.04)
206,500
51,625
25
Condensed Consolidated Summary of Financial Position
(unaudited)
ASSETS
Inventories
Trade and other receivables and
prepayments
Pledged bank deposits
Fixed bank deposits with maturity
period over three months
Bank balances and cash
Total current assets
December 31
2013
RMB'000
Sept. 30
2014
RMB'000
Sept. 30
2014
US$' 000
394,758
400,554
65,104
971,809
76,600
716,260
65,100
116,418
10,581
160,000
748,744
2,361,336
260,000
836,828
2,288,167
42,259
136,014
371,907
Property, plant and equipment
Prepaid lease payments
Total non-current assets
Total assets
1,494,847
404,724
1,942,476
4,303,812
1,461,809
397,650
1,932,329
4,220,496
237,596
64,632
314,072
685,980
EQUITY AND LIABILITIES
Trade and other payables and
accruals
Bank borrowings
Total current liabilities
1,132,173
558,000
1,701,150
960,692
558,000
1,525,972
156,147
90,695
248,025
Total non-current liabilities
Total liabilities
89,827
1,790,977
88,741
1,614,713
14,424
262,448
Total equity attributable to
owners of the company
Total equity and liabilities
2,512,835
4,303,812
2,605,783
4,220,496
423,532
685,980
26
Strategies & Recent Development
Development Strategies
Strengthen Market Leadership
Broaden Product Offerings
Develop International Market
Enhance Productivity
Further Expand China Aftermarket Distribution
Enhance R&D Capability
28
Expansion Plan Will Capture Market Demand
Solid Production Capacity Growth
Strong Distribution Network Outlook
(MM Units)
 Continue to grow our distribution network,
currently with over 4,700 tier-2 distributors and
the most extensive in China
20
14.9
15.4
15
12.5
10
Focus on R&D
5
 Latest R&D projects:
0
2010
2012
2014
 Built 1st aluminum wheel plant in China
29
–
Introduced first domestic-made aluminum
wheel
–
To design new advanced steel wheels with
improved durability, lighter weight, and
better heat dissipation that results in
superior life-cycle cost savings
–
Developed approximately 290 new models
of steel wheels between 2011 – 2013
Development of Aluminum Wheels
Aluminum Wheels
– New facility started operations in Hua’an (part of
Zhangzhou)
– Small batches produced
– Aluminum wheels continue to be field-tested by
potential customers
– Applying for product certification under US DOT
standard and EU standard
– Annual capacity of 500K units
Lighter weight, greater fuel efficiency and more
competitive pricing to replace imported aluminum
wheels and drive new demand from existing steel
wheel users
30
Appendix
EBITDA and ROE
EBITDA (1)
Return on Equity (2)
(RMB MM)
(%)
800
(%)
746
40
37.1
610
598
600
33.2
30.8
30
417
400
353
20
200
17.2
9.7
10
109
15
0
0
2009
2010
(3)
2011
(3)
2012
2009
2013 3Q2013 3Q2014
2010
Notes:
1. EBITDA= Operating Profit + D&A
2. Return on equity= Net income/ (average equity)
3. 2010 and 2011 EBITDA/margin are including one-time IPO listing costs of RMB17 million and 10 million,
respectively
32
2011
2012
2013
Cost Structure
Operating Expenses
Sales %
10.7%
10.1%
11.5%
12.9%
3.2%
3.7%
2.1%
2.4%
6.3%
6.7%
13.7%
13.3%
17.4%
% Total Revenue
(RMB MM)
500
3.8%
400
300
200
2.6%
2.4%
1.4%
3.3%
1.3%
100
7.3%
3.4%
2.1%
4.0%
7.0%
8.1%
3Q2013
3Q2014
6.2%
6.2%
5.3%
0
2009
2010
(1)
2011
Selling & Dist. Expenses
(1)
2012
R&D Expenses
2013
Administrative Expenses
Note:
1. 2010 and 2011 full-year administrative expense are adjusted for one-time listing costs of RMB17 million and 10 million,
respectively
33
Operating Metrics
Inventory
Turnover Days
(1)
(Day)
Accounts Payables
Turnover Days (1)
DSO (1)
(Day)
100
93
(Day)
61
90
60
80
54
73
48
60
42
62
128
53
53
120
51
73
70
146
150
66
95
114
115
101
90
52
36
50
30
40
60
24
30
18
20
30
12
10
6
0
2009
2010
2011
2012 3Q2014
0
0
2009
2010
2011
2012 3Q2014
Note:
1. Calculated on the basis of the average inventory/accounts receivables/accounts payables balance
34
2009
2010
2011
2012 3Q2014
China Zenix Auto International Limited
www.zenixauto.com/en