【正文】 GfK, field interview 9 6 . 09 5 . 79 5 . 48 8 . 78 6 . 38 5 . 5North West East China Although indirectcooling refrigerator is frostfree, it tends to dry up the food. As a result, it is particularly unpopular in less humid areas such as Northern China North East North China South West Central West Market share of direct cooling refrigerators in major cities, 2023 14 aaaaaa010807BJrefrigerator CHANNEL STRUCTURE FOR REFRIGERATORS IS FLAT, ESPECIALLY FOR LOCAL PLAYERS Source: Interview Manufacturers First tier distributors Retailers Local manufacturers = 7080% MNC manufacturers = 3050% Department stores Hypermarkets Specialty stores Others Local manufacturers = 2030% MNC manufacturers = 5070% 15 aaaaaa010807BJrefrigerator AMONG ALL RETAIL CHANNELS, HYPER MARKETS AND SPECIALTY STORES ARE EXPECTED TO GROW FAST IN THE NEAR FUTURE Sales distribution by channel white goods Percent 604030303840510121218Hyper markets Specialty stores* Department stores Others 5 1998 2023 2023E * Includes electronic chains such as Guomei and Dazhong Source: Saaaaaa 16 aaaaaa010807BJrefrigerator DISTRIBUTION STRUCTURE FOR SIDEBYSIDE REFRIGERATORS DIFFER BY TIER CITIES Tier 1 cities Manufacturers 1st tier distributors Retailers 2nd tier distributors 20% 70% End users 10% Manufacturers 1st tier distributors Retailers 100% Tier 2 cities Source: Field interview 17 aaaaaa010807BJrefrigerator KELON39。S PROFIT SUFFERED OVER THE PAST FEW YEARS AND ARE EXPECTED TO REMAIN LOW Source: Man Stanley Dean Witter report, annual reports Meiling 1997 2023E 2023E 1999 1998 19181245Kelon 107500 . 4EBIT margin Percent 27 aaaaaa010807BJrefrigerator MARKET ASSESSMENT Market assessment Supply (petitor) analysis Demand (customer) analysis Overall environment analysis Market definition ? Evaluation criteria, weight and rating ? Assessment of market attractiveness 28 aaaaaa010807BJrefrigerator Evaluation criteria Weight Percent Attractive ness rating Market assessment MARKET ASSESSMENT NONSIDEBYSIDE REFERIGERATOR Overall environment analysis ? China environment attractiveness Demand (customer) analysis ? China (related) market size ? China (related) market growth rate Supplier (petitor analysis) ? Industry profitability in related markets 20 20 20 20 6% RMB 7 10 1 Evaluation basis ? Profitability trend 20 Moderate decline 4 4% 4 29 aaaaaa010807BJrefrigerator Evaluation criteria Weight Percent Attractive ness rating Market assessment MARKET ASSESSMENT SIDEBYSIDE REFERIGERATOR Overall environment analysis ? China environment attractiveness Demand (customer) analysis ? China (related) market size ? China (related) market growth rate Supplier (petitor analysis) ? Industry profitability in related markets 20 20 20 20 7% 74 MRMB 7 1 7 Evaluation basis ? Profitability trend 20 Sustain 7 31% 4 30 aaaaaa010807BJrefrigerator APPENDIX 31 aaaaaa010807BJrefrigerator DEFINITION OF GEOGRAPHIES Chengdu Beijing Wuhan Shenyang Dalian Guangzhou Tianjin Shijiazhuang Taiyuan Ji’nan Nanjing Shanghai Ningbo Hefei Nanchang Fuzhou Xiamen Kunming Changsha Xi’an Lanzhou Haerbin Changchun Wulumuqi Haikou Northeast North Northwest East Central South Southwest Huhehote Qingdao Hangzhou Zheng zhou Shenzhen Nanning Guiyang Chongqing Xining Yinchuan 32 DEFINITION OF TIER