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China Zenix Auto International Limited

China Zenix Auto International Limited. (NYSE: ZX). Disclaimer.

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China Zenix Auto International Limited

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  1. China Zenix Auto International Limited (NYSE: ZX)

  2. 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 forward-looking 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 forward-looking 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. • 2

  3. Overview of China Zenix #sam.asset.id#

  4. Balanced Customer Base Revenue China Zenix at a Glance • Largest commercial vehicle wheel manufacturer in China, with19.3% (1) market share in 2013 • 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 • 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% 3Q2014Revenue (RMBMM) International 15.0% China OEM 32.6% 52.4% China Aftermarket • Notes: • China Automotive Industry Yearbook for 2013

  5. 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) $47.9 mil • Cash/Total liabilities (9/30/2014): 68.0% • Long-term Debt (9/30/2014): nil • 2

  6. Manufacturing Facilities and Production Capacity Production Capacity (1) (‘000 Units) Langfang Benxi 9,420 5,520 Chengdu Hua’an (Aluminum wheel plant) 500 Hefei 34 Zhangzhou (Headquarters) • Note: • As of December 31, 2013 #sam.asset.id#

  7. Industry Overview #sam.asset.id#

  8. Solid Performance in Challenging Environment China Commercial Vehicle Production Volume China Zenix Revenue (MM units) (RMB MM) • Source: CAAM, 2009-2011 Frost & Sullivan Report 7 #sam.asset.id#

  9. Truck & Bus Sales Total Freight and Highway Freight Transport Turnover in China Highway Freight Turnover Total Freight Turnover Sustainability of Commercial Vehicle Market (‘000 Units) (Bn ton km) (Bn ton km) Source: CAAM Source: China Statistical Yearbook, National Bureau of Statistics of China

  10. 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 Highway safety legislation raises the bar for safety-related auto components 3 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

  11. Investment Highlights 1 Leading Commercial Vehicle Wheel Manufacturer in China with Premium Brand 6 2 Professional Management with Industry Knowledge Diversified Commercial Vehicle Wheel Products 3 5 Most Extensive Distribution Network in China Aftermarket Strong Domestic R&D Capability 4 Strategically-located Manufacturing Facilities

  12. Zenix is the Leading Commercial Vehicle Wheel Manufacturer in China 1 • 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 5

  13. 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: • Source: Frost & Sullivan 2011 Report • 34 #sam.asset.id#

  14. 1 … and Diversified End Markets and Customer Base Solid and Balanced Growth Across Diversified Customer Base Diversified End Markets Key OEM Customers China OEM Customers % of Revenue International Customers

  15. 1 Awards & Recognitions from Customers “2012 Excellent Supplier Award” “2012 Excellent Supplier Award” “2014 Quality Award” “2013 Quality Excellence Award” “Ten-year Excellent Supplier Award” “2012 Win-win Partner Award” “2013 Class B Supplier Award” Premium Quality Won High Customer Recognition

  16. Product Types – 644 + models Applications Tubed Steel Wheels 351Series Medium-duty & Heavy-duty Trucks Buses Tubeless Steel Wheels 263Series Light-duty Trucks Mini Trucks Off-road Steel Wheels 28Series Forklifts Loaders Wide Range of Product Offerings to Meet Customers Demand and Well Serve Aftermarket 2 Aluminum Wheels 2 series Buses • 36

  17. 2 Advanced Production Technologies to Ensure Quality • Wheel Steel with our Special Specifications • Advanced Spinning and Pressing Technology • Comprehensive Quality Management System • Rim-shaped Steel Production Technology

  18. Wheel Rims Wheel Discs Welding Testing Coating Packaging 2 Complex Production Process and High Barrier-to-Entry Commercial Vehicle Wheel Manufacturing Process Preparation of Raw Materials (1) Preparation of Raw Materials and Stamping PunchingHoles Rounding and Welding Spinning and Pressing Refining Punching Additional Holes Shaping(1) Refining Inspection and Testing Inspection and Testing Wheel Assembly Sophisticated Wheel Production Process requires substantial R&D investment and technical expertise and creates a high barrier-to-entry • Note: • Process is different for tubed and tubeless wheels

  19. Most Extensive Distribution Network in China Aftermarket 3 Tier-1 Distributors 24 (1) Non-exclusive Tier-2 Distributors1,651 (1) Exclusive Tier-2Distributors 3,102 (1) Maintenance Shops End-users 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: • As of December 31, 2013

  20. Strategically-located, Scaled and Vertically Integrated Production 4 Strategically Located Manufacturing Facilities Large-scaled Production and Partnership with Suppliers Vertical Integration • 10 yr+ supplier partner who provides customized steel • Low prices • Unique wheel rim steel and mold manufacturing capability • Shape steel wheel rim in-house to reduce production cost • Adjacent to: • Major steel plants Benxi Langfang Hefei • OEMs Chengdu Zhangzhou • Port Hua’an • Aluminum wheel • Reduce transportation costs • Quickly respond to customer needs • Ease labor cost pressure

  21. High Safety Strong Durability Low Pulsation Light Weight Fuel Efficiency & Weight Control Strong Durability 7% fuel saving on every 10% vehicle weight reduction (1) Durability: 3x China industry standard Strong R&D Capability and a Large Intellectual Property Portfolio 5 Research Achievements High Quality Products 4 Invention Patents 78 Utility Model Patents 20 Design Patents National Wheel Test Center 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) • Source: International Aluminum Institute

  22. Strong Management and Board with Proven Track Records 6

  23. Financial Overview • 54 #sam.asset.id#

  24. Revenue Gross Profit Revenue and Gross Profit (RMB MM) (RMB MM) (%) 2,551

  25. Operating Profit (1) Net Profit Operating and Net Profit (RMB MM) (RMB MM) • Notes: • Operating profit= Gross profit - Selling cost - R&D cost - Admin cost

  26. Condensed Consolidate Profit and Loss – Q3

  27. Condensed Consolidated Summary of Financial Position

  28. Strategies & Recent Development #sam.asset.id#

  29. Strengthen MarketLeadership Broaden Product Offerings Develop International Market Enhance Productivity Further Expand China Aftermarket Distribution Enhance R&D Capability Development Strategies

  30. Focus on R&D • Latest R&D projects: • 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 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 • Built 1st aluminum wheel plant in China

  31. 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

  32. Appendix • 72 #sam.asset.id#

  33. Return on Equity(2) EBITDA (1) EBITDA and ROE (RMB MM) (%) (%) (3) (3) • Notes: • EBITDA= Operating Profit + D&A • Return on equity= Net income/ (average equity) • 2010 and 2011 EBITDA/margin are including one-time IPO listing costs of RMB17 million and 10 million, respectively

  34. Operating Expenses Cost Structure Sales % 12.5% 13.7% 11.5% 12.9% 17.4% 10.7% 13.3% 10.1% % Total Revenue (RMB MM) 5.3% (1) (1) • Note: • 2010 and 2011 full-year administrative expense are adjusted for one-time listing costs of RMB17 million and 10 million, respectively • 62 #sam.asset.id#

  35. Operating Metrics Inventory Turnover Days (1) DSO (1) Accounts Payables Turnover Days (1) (Day) (Day) (Day) • Note: • Calculated on the basis of the average inventory/accounts receivables/accounts payables balance

  36. China Zenix Auto International Limited www.zenixauto.com/en • 72 #sam.asset.id#

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