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Investor Presentaiton

A-share IPOs: sector analysis 2020: Top 5 sectors - by number of IPOs Total number of IPOS = 383 ■A-share (traditional market) ■New ChiNext Board ■STAR Market 45% 40% 35% 13% 30% 25% 6% 14% 20% 15% 4% 1% 10% 21% 8% 3% 1% 1% 5% 10% 1% 6% 1% 3% 3% 0% Industrials TMT Healthcare / Consumer ENR 4% Others Life Sciences Markets Source: Wind and KPMG analysis Industrials Industrials continued to lead the market in terms of the number of new listings, backed by a strong pipeline of 321 companies currently seeking a listing, of which half are attributed to the ChiNext board. We expect the sector to remain a major contributor to the total number of new listings in the coming year. 'Industrial internet' remains a focal point as China continues to strive for high-quality economic development over the long run. This can be achieved through the integration of physical equipment with big data, artificial intelligence and the Internet of Things (IoT). Among the 58 companies listed on the ChiNext board under the registration-based system, 22 companies are from the industrials sector, which raised a total of RMB 13.8 billion. 2019: Top 5 sectors - by number of IPOS Total number of IPOS = 201 A-share (traditional market) STAR Market 40% 35% 30% 10% 14% 25% 20% 15% 25% 10% 19% 1% 8% 5% 6% 6% 6% 0% Industrials TMT 2% Healthcare/Life Consumer Sciences Markets Financial Services Others Note: All analysis is based on a combination of data as at 6 December 2020 and KPMG estimates, unless otherwise stated. Excludes listings by introduction. KPMG 3% Source: Wind and KPMG analysis Technology, Media & Telecoms The TMT sector continued its lead in terms of funds raised and placed second in the number of new listings. Three out of the top 10 companies are from the TMT sector and all of them were listed on the advanced-technology and innovation-focused STAR Market. Buoyed by ongoing government support for science and technology firms, we expect the sector to continue being a driving force of the A-share market, with a significant number of technology companies seeking to list through the STAR Market and the new ChiNext board. The need for digital transformation is even greater under COVID-19, where connectivity plays a vital role in the evolution of digital. Incredible opportunities are ahead for 5G and software development companies, playing a key role in the global economic recovery. © 2020 KPMG, a Hong Kong partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. 8
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