The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of BEIJING DELTAPHONE TECHNOLOGY CO., LIMITED 北京德風新征程科技股份有限公司 (the "Company") (A joint stock company incorporated in t ...

Automation & Manufacturing Trends - China is rapidly automating its factories with low-cost solutions, boosting production and lowering prices [1] - The "Made in China 2025" plan and other initiatives are supporting advanced manufacturing [1] - China installs approximately 280,000 industrial robots annually, accounting for 50% of global installations [1] Economic Impact - Aggressive automation may explain China's ability to retain low-end manufacturing despite rising wages [2] - Chinese factory workers earn about three times more than their Indian counterparts [2] - China increased its global export share in labor-intensive industries (small manufactured goods, furniture, toys) from 2019 to 2023 [2]

Core Insights - Chinese electric vehicle manufacturers are expanding internationally to capture market share amid domestic price competition [1] - Exports of Chinese-made electric vehicles have surged, with a 51% increase in the first eight months of the year [2] - The industry projects overseas deliveries of Chinese-made cars to reach 5.46 million in 2024, a 14% increase from the previous year [3] Industry Trends - The push for international expansion aligns with the "Made in China 2025" strategy, aiming for top domestic EV makers to sell over 10% of their vehicles abroad [5] - Vehicle ownership in China is currently at 250 cars per 1,000 people, indicating significant growth potential compared to developed economies [6] Company Strategies - BYD aims for up to one million sales outside mainland China this year, representing about 20% of total deliveries [3] - Xpeng has begun production in Europe through a partnership with Magna Steyr, indicating a strategic move to enhance its presence in the European market [4] - Dreame is exploring opportunities for a car plant in Germany, showcasing its commitment to international expansion [4]

Group 1 - JD.com, Inc. is considered one of the best safe stocks to buy currently, with Exchange Traded Concepts LLC increasing its position by 42.6% in Q2, acquiring 34,585 shares, totaling 115,817 shares valued at nearly $3,780,000 [1] - China's accommodative policies, particularly the "Made in China 2025" strategic plan, aim to enhance domestic content and improve local brand quality, which positions JD.com to benefit from the country's economic growth [2] - The company's strong financials, improving performance metrics, and healthy valuation support a positive long-term outlook, especially with potential international expansion [3] Group 2 - JD.com operates in supply chain-based technology and services, founded in 2006, and has three main segments: JD Retail, JD Logistics, and New Businesses [4]

Summary of Key Points from J.P. Morgan Perspectives: Made in China 2025 Industry Overview - The report focuses on the **"Made in China 2025" (MIC25)** initiative, which aims to transform China's manufacturing sector and enhance its global competitiveness. [7][14] Core Insights and Arguments 1. **Mission Accomplished with Unintended Consequences**: The MIC25 initiative has largely met its goals, particularly in increasing China's global market share in manufactured value-added sectors, but has also led to structural overcapacity and other unintended consequences. [9][13] 2. **US-China Strategic Competition**: The current dynamic between the US and China is characterized as "transactional stabilization," with ongoing competition in technology and trade. Despite high tariffs, China's trade dominance has increased. [31][34] 3. **Commitment to Trade Multilateralism**: China continues to advocate for multilateral trade practices, contrasting with the US's unilateral approach. China's share of global exports has increased despite trade tensions. [39][42] 4. **Investment in AI**: There is a renewed wave of investment in AI technologies, driven by successful innovations and government support, indicating a shift in China's economic focus. [45][46] 5. **Common Prosperity Goals**: The goal of achieving "Common Prosperity" remains unfulfilled, with projected growth rates slowing to 3-4% from 2025 to 2030. [5][49] 6. **Three-Arrow Approach**: The Chinese government has implemented a coordinated approach involving fiscal stimulus, monetary easing, and structural rebalancing, but this is not seen as a "whatever it takes" moment akin to the 2008 stimulus. [62][63] 7. **Structural Rebalancing**: The focus on structural rebalancing is critical to address excess capacity and restore balance between supply and demand. [70][71] 8. **Boosting Service Consumption**: There is a non-consensus view that China should prioritize boosting service consumption to enhance economic growth, as current levels are significantly lower than in other countries. [72][76] Additional Important Insights - **Self-Sufficiency in Technology**: While some sectors have achieved self-sufficiency, such as new energy vehicles, many key technologies remain reliant on foreign sources, particularly in semiconductors and high-tech equipment. [19][21] - **Economic Challenges**: China faces significant economic challenges, including a declining growth trend, high debt levels, and a need for policy adjustments to stimulate domestic demand. [56][63] - **Policy Coordination Issues**: There are complexities in policy coordination that hinder the effective implementation of economic strategies, particularly in the housing market and service sectors. [51][85] This summary encapsulates the critical themes and insights from the J.P. Morgan Perspectives report on China's economic strategy and the implications of the Made in China 2025 initiative.