Mahle Technology Investment (China) Co., Ltd. Business Report FY ended Dec. 2017

New Plant

-On May 16, 2017, Mahle held an opening ceremony for its new compressor plant in the Changshu New & Hi-tech Industrial Development Zone, Jiangsu. The plant originates from an existing facility in Suzhou. With the move to the larger facility in Changshu, the plant's capacity has doubled. Construction began in August 2015, and CNY 180 million has been invested in production facilities. Currently, around 330 employees work at the plant. Mahle plans further investments for this site in the years to come. (From news releases issued by multiple sources on May 17, 2017)

-Dongfeng Behr Thermal Systems Co., Ltd. opened its new plant in Shiyan on May 18, 2016. Plant construction began in the beginning of 2015 and was completed at the end of April 2016. The company invested CNY 35 million in the first phase of the construction project, in which a 12,000-square-meter plant was set up on approximately 33,000 square meters of land. The plant is capable of producing 180,000 sets of engine cooling systems per year. (From news releases issued by multiple sources on May 20, 2016)

-In Jul. 2015, the Company's subsidiary, Behr-Hella Thermo Control (Shanghai) Co., Ltd. Shenfu Plant was established. It mainly produced automotive air-conditioningcontroller.

-Chengdu Behr Thermal System Co., Ltd. began operating on June 18, 2015. The company was established as a wholly owned subsidiary of Shanghai Behr Thermal System Co., Ltd. in February 2013, with an investment of CNY 170 million. The subsidiary mainly produces heaters and air conditioners for OEMs such as FAW, Volvo, Ford, and Changan Suzuki. (From news releases issued by multiple sources on June 19, 2015)

-In May 2015, MAHLE Compressor (Suzhou) Co., Ltd. was established. It mainly produced air-conditioning.

Selling a Subsidiary

-In March 2018, the Bosch Group and the Mahle Group announced that they have completed the sale of Bosch Mahle Turbo Systems, their joint venture, to FountainVest Partners. The Bosch Mahle Turbo Systems was established in 2008, which has bases in Stuttgart, German, Blaichach, St. Michael, Austria and Shanghai, China. This company has approximately 1,300 employees, its main business is the development and manufacture of turbochargers for passenger cars, commercial vehicles and off-road vehicles. With the completion of acquisition, the Bosch Mahle Turbo Systems will be renamed as BMTS Technology, and the new parent company, the FountainVest Partners, is the private equity investment fund, whose headquarters is located in Hong Kong. (From a press release on March 12, 2018)

Cooperation

-In March 2015, Mahle and Land Tourer signed a contract to collaborate on the production of small engines. The two companies will construct a new plant in the Shangrao Economic and Technological Development Zone, Jiangxi. Investment in this facility is expected to reach CNY 300 million. (From news releases issued by multiple sources on March 10, 2015)