Zero 2 IPOChina MA and IPO Trends Zero

Zero 2 IPO_China M&A and IPO Trends Zero 2 IPO Research Center research@zero 2 ipo. com. cn

China M&A Market Trends 2

Total M&As Surge up 61. 2% and Transaction Amount Involved Soars 91. 1% Total Number of M&As of Chinese Enterprises in 2006 -H 1’ 11 Total Transaction Value of M&As of Chinese Enterprises in 2006 -H 1’ 11 3

Domestic M&As Surge up 68. 4% and Transaction Amount Involved Soars 50. 3% Comparison of Transaction Value of Domestic and Overseas M&As of Chinese Enterprises in 2006 -H 1’ 11 Comparison of Number of Domestic and Overseas M&As of Chinese Enterprises in 2006 -H 1’ 11 600 25000 23 642 521 500 20000 19 389 18 669 17 543 400 16 099 389 15 414 14 455 15000 300 10 237 10000 223 9 088 200 100 8 354 101 70 117 6 167 109 101 84 33 0 8 685 No. of Domestic 2006 2007 M&As 2008 5000 80 38 No. of M&As 2009 Cross-border 2010 2011 H 1 0 of Domestic M&As (US$M) 2006 Transaction 2007 Value 2008 2009 2010 2011 H 1 4

VC/PE-related M&As Hit New High with Year-on-year Increase of 140% Comparison of VC/PE-backed Enterprises’ M&As in 2006 -H 1’ 11 （By No. of M&As） Year-on-year Comparison: +140% Comparison of VC/PE-backed Enterprises’ M&As in 2006 -H 1’ 11 （By M&A Value, US$M ） Year-on-year Comparison：+50% 5

China IPO Market Trends 6

Chinese Enterprises Claim Most IPOs among Global Total of 339 Comparison of No. and Financing Amt. of Chinese Enterprises’ IPOs in 2006 H 1’ 11 Comparison of No. of Domestic and Cross-border IPOs in H 1’ 11 105 354 476 120 000 500 104 834 450 100 000 400 350 80 000 300 61 111 60 000 250 54 652 242 207 21 830 40 000 151 113 176 35 010 200 150 100 20 000 50 0 0 Raised (US$M) 2006 Amt. 2007 2008 2009 No. of IPOs 2011 H 1 2010 7

Overseas IPOs and Financing Amount Steadily Climb up Year-on-year While Domestic IPOs and Amount Raised Drop A Bit Comparison of No. of Domestic and Overseas IPOs of Chinese Enterprises in 2006 -H 1’ 11 500 347 Year-on-year Comparison of 450 Domestic IPOs: -4. 6% Year-on-year Comparison of 400 Overseas IPOs: +8. 1% Comparison of Financing Amt. of Domestic and Overseas IPOs of Chinese Enterprises in 2006 -H 1’ 11 Year-on-year Comparison of Domestic IPOs: -16. 2% Year-on-year Comparison of Overseas IPOs: +151. 3% 350 300 250 124 167 200 99 65 150 100 50 129 76 118 77 86 40 37 0 2006 2007 2008 No. of Overseas IPOs 2009 2010 2011 H 1 No. of Domestic IPOs 8

IPOs of VC/PE-backed Chinese Enterprises Remain Active Comparison of No. and Financing Amt. of IPOs of VC/PE-backed Chinese Enterprises in 2006 -H 1’ 11 45000 39 512, 29 40000 221 35000 Comparison of No. of Domestic and Overseas IPOs of VC/PE-backed Chinese Enterprises in H 1’ 11 250 34053 200 31524 30000 150 25000 20000 16 642 94 15625 15000 94 3419 35 10000 5000 100 77 50 39 0 0 2006 2007 2008 Financing Amt. (US$M) 2009 2010 2011 H 1 No. of IPOs 9

Domestic IPOs of VC/PE-backed Chinese Enterprises Climb up 20% Year-on-year Comparison of No. of Domestic and Overseas IPOs of VC/PE-backed Chinese Enterprises in 2006 -H 1’ 11 Comparison of Financing Amt. of Domestic and Overseas IPOs of VC/PE-backed Chinese Enterprises in 2006 -H 1’ 11 35000 30000 31 225 26 652, 21 25000 19100 20000 15000 12 860 14 954 13 576 10 813 10000 4811 5000 3 066 299 0 2 078 1341 Raised by Overseas IPOs (US$M) 2006 Amt. 2007 2008 2009 2010 2011 H 1 10

Average ROI of VC/PE-backed Chinese Enterprises in Different Markets Varies from Each Other Comparison of Book ROI of Domestic and Overseas IPOs of VC/PE-backed Chinese Enterprises in 2006 -H 1’ 11 Comparison of Book ROI of Domestic and Overseas IPOs of VC/PE-backed Chinese Enterprises in H 1’ 11 Listing Market Domestic Market Overseas Market Shanghai Stock Exchange 6. 18 Chi. Next 8. 55 SMEB 8. 95 Average 8. 48 NYSE 8. 90 HKMB 2. 24 FWB 0. 69 NASDAQ 5. 74 Average ROI（X） 6. 46 8. 15 Note: Average Book ROI is calculated without the involvement of the deal of SINOVEL. 11