Executive summary by Frank Enterprise GmbH

Chongqing - XTB (Xian Tao Big Data)

industrial park

13.12.2016

Chongqing is the world’s fastest growing industrial city

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“The fastest growing city in China”

- The World Bank

“Asia’s best city to invest, Chonqing beyond Tokyo ranks 7”

- The Financial Times

“One of best emerging global business environments”

- Fortune

Chongqing is one of China’s four municipalities directly under the central government,

but its structure is substantially different from the other three (Beijing, Tianjin,

Shanghai).

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Beijing & Tianjin

Shanghai

Chongqing

The area of Chongqing is 82,400 sq. kilometers, 12 times the size of Shanghai,

populated by 30.2 million* people.

As a comparison, Chongqing is about the size of Austria,

and has about 3.5 times its population.

* As for 2015

The city presents the fastest economic growth in China

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In 2015, the city's GDP totaled 15,8 trillion RMB (214,3 billion Euro),

up 10.2% from the previous year, always in high speed and stable growth.

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GDP development - Chongqing (Billion Euro)

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6+1 pillar industry:

Innovative undertaking:

Category of Enterprises Numbers of

Enterprises

up-scaled enterprise & groups 12,000

medium-sized enterprises 24,000

micro-enterprise 61,000

individual business 1,047,000

4.076

4.708

3.391

1.630

2.911

1.415

3.276

- 1.000 2.000 3.000 4.000 5.000

Electronic

Automobile

Equipment

Chemistry &Medicine

Material

Energy

Consumption

2015 GDP (100 milliom RMB)

Diversified industries in Chongqing

During 2015 only, Chongqing’s GDP has grown by 11%, reaching 1,572 billion RMB (214 billion

Euros). The growth is mostly driven by secondary and tertiary industries, which grew 11.3% and

11.5% respectively. Output of the region comes from the Motor vehicles industry (21.5%) and

Communication and electronic equipment (15.5%).

Chongqing is a global manufacturing leader

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One of every three laptops

61 Million PCs

170 million mobile phones

3 million Vehicles

By the end of 2015, over 240 enterprises from the world top 500 landed in

Chongqing (Fortune magazine)

• • • • • •

Figures released by Chongqing’s development zone suggest that every second notebook

computers in the world has its CPU packed and tested in the region.

Two-thirds of iPads produced around the world are manufactured in the Chengdu-Chongqing

district as well.

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Figures released by Chongqing’s development zone suggest that every second notebook

computers in the world has its CPU packed and tested in the region.

Two-thirds of iPads produced around the world are manufactured in the

Chengdu-Chongqing district as well.*

12%50%

76%

77%

74%

88%

50%

24%

23%

26%

30.9

94.9

153.6

228

295.4

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014

Sales value of Chongqing's Electronic Manufacturing Sector

Export delivery value Mainland sales value

*Source: Statistical Yearbook of China’s Electronic Information Industry

Largest production base of laptops

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It took 4 years for Chongqing to

build a 5+7+1,000 PC cluster.

PC production achieved 61.5 million

sets in 2015.

Displayer production achieved

4 million sets, ranking No. 3

nationally in 2015.

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1000+• • • • • •

55 Brand Enterprises

7 Foundries (including ODM and OEM)

1000+ Supporting Enterprises

The opportunity:

Chongqing invites technology companies to collaborate with their electronics industry,

especially for embedded systems, through e.g. licensing of intellectual property

and building up common R&D centers.

Chongqing – the founding city of Chang`an

Automobile (Group) Co. Ltd.

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10

1000+

1Leading enterprise

Key local whole-vehicle enterprises:

1000+ Supporting Enterprises

Chang´an is one of the leading Chinese

automotive enterprises.

It produces and sells more than 2.95

million vehicles annually, and has joint

ventures with global enterprises such

as Suzuki and Ford.

It unites 12 production locations,

32 automotive related plants

and 90,000 employees.

The second and third industry’s tiers

contain whole vehicles enterprises and

spare parts supporting companies,

such as tires, mirrors, radios, etc..

Up to 70% of automotive parts can be

locally supplied, other parts are

imported.

The opportunity:

Chongqing supports the progression of their

automotive industry in terms of intelligent production,

such as automation and usage of industrial robots.

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0

2

4

6

8

10

12

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Foreign Direct Investments (US$ billion)

FDI in Sichuan FDI in Chongqing

2005 – 2015 average

annual growth rate

Sichuan 27.4%

Chongqing 22.5%

National average 7.7%

Chongqing and it’s region attract heavy investments

Along with its neighboring Chengdu, Chongqing is home to the largest industrial cluster in the

western region. The Chengdu-Chongqing district attracts the most capital from companies

operating in coastal regions, as well as from foreign firms.

Much of this investment is funneled into high-tech industries, such as those involving

semiconductors, computers, communications equipment and automobiles.

Sources: HKTDC Research

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Industry fund in Chongqing

There are about 14.3 billion RMB (1.9 billion Euro) in reserve for industry fund in Chongqing.

Investment directions: Artificial intelligence, internet of things, renewable energy, big data,

energy saving, environmental protection, health care, intelligent manufacturing &

automatization, etc..

Investment usage: over 200 projects, of which 34 enter the multi-level capital market for

financing (11 enter the main board and 19 into the new three board // Chinese high tech

stock market).

Fund Case

Local projects:

E.g. smart wearables and

the connected home.

Oversea projects:

E.g. drone technology,

virtual Reality and artificial

intelligence.

Contribute 500

million RMB

(68 million Euro)

Contribute 500

million RMB

(68 million Euro)

Innovation Fund

To invest into

Talents of Chongqing

380,000 students graduate from colleges each year

CQUniversity

Graduates of

university

Vocational

school

Graduates of vocational

schoolWastage rate

72 180,000 221 200,000 ＜5%

60,000 electronic related major students graduate each year

Average monthly income of an electronical engineer

with 3-5 years work experience – 8.800 RMB (1.200 Euro)

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Unlike other Chinese metropolises, Chongqing

has a high life quality and an supportive environment

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Supporting your business Healthy environment

Creative service system integrates industrial

& commercial tax, legislative, finance, HR, IP

protection and other operation services,

along with health care, housing

management and others.

- Days with good air quality: >300

- Green coverage rate: >60%

- Negative oxygen ions in the air:

<1000/cubic centimeter

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XTB (Xian Tao big data) industrial park

The Xian Tao big data industrial park was approved by the Chongqing municipal government

in April 2014. It exceeds an land area of over 1.770.000m².

The goal is to adopt the rising development of industries related to big data and intelligent

hardware and to provide them an innovative ecosystem, with the goal to foster and bolster

companies and startup´s to enhance their international competiveness.

Due to it´s strategic position and unlifted potentials, Chongqing and XTB is the place to locate

and expand into mainland China.

Modell of XTB –

Xian Tao big data

industrial park

XTB - Website

Platforms and Services

Talents training

Robot graphic chip design

platform

Smart voice recognition

systemMobile computing solution

platform

3D printing equipment & service

Product design platform

Smart prototype platform Marketing and network

Wide range of support, equipment and services are planned to be provided to the

participating companies in the industrial park, including:

Consumer behavior

analysis

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Working with Frank Enterprise GmbH

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Globally connected and locally rooted, we help you to:

- Identify opportunities & risks

- Analyse threats & possibilities

- Evaluate potential partners, clients & networks

Chengcheng Gao & Simon Frank, from Frank Enterprise GmbH

holding a speach, in XTB, on the topic „How to attract foreign talents?“

Our goal is, to reduce complexity

and optimize our clients’ success

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A Journey to Chongqing 2017

In this trip, we will bring you to Chongqing,

mainland China, to show you a glimpse

„behind the curtain“.

You will be able to experience and witness, with

your own eyes, where innovation, in China, occurs.

If you got curious about Chongqing, we would like to invite you to come with us on a trip in 2017

XTB – Xin Tao big data valley industrial park - Chongqing

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Thank you for your interest!

We are looking forward to hear from you.

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