Exhibit 1: 30-city daily property transaction volume in the primary market fell over the last two weeks and remained below last year's level Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. c45a43530f604d12bcb9a82b5aa6b9f6 12 December 2025 | 8:55PM HKT Economics Research China Economic Activity and Policy Tracker: December 12 In thi ...

Sales of Chinese-made vehicles, including exports, rose by almost 9% year-on-year to 3.322 million units in October 2025, up from 3.053 million units a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM). Domestic sales increased by almost 6% to 2.656 million units, while exports surged by 23% to 666,000 units. In the first ten months of 2025, total sales of China-made vehicles increased by over 12% to 27.687 m ...

Core Insights - Indian and Chinese investors are actively seeking collaboration opportunities with existing automakers in South Africa, focusing on enhancing local production and exports [1][2][4] - The South African government is prioritizing investments in new energy vehicles (NEVs) and electric mobility to counter declining export prospects and competition from cheaper imports [3][9] - Mahindra & Mahindra plans to upgrade from semi-knocked-down (SKD) to complete-knocked-down (CKD) production, aiming to establish South Africa as a regional export hub [5][9] - Tata Motors is re-entering the African market through a partnership with Motus Holdings Limited to improve vehicle distribution [9] Industry Developments - The South African automobile sector is undergoing a revitalization effort, with a focus on attracting global automakers and enhancing local manufacturing capabilities [2][9] - The government is in discussions with major global players like Toyota and Ford to sustain automotive production amid challenges such as tariff risks and rising competition from China [7][9] - The transition from SKD to CKD manufacturing is expected to strengthen local production and reduce reliance on imports [4][9] Strategic Initiatives - The South African government is responding to external pressures, including U.S. tariffs and EU regulations on internal combustion engine vehicles, by promoting investments in clean mobility [3][9] - Mahindra & Mahindra is also exploring opportunities for electric vehicle assembly operations in Durban, supported by government policies [6][9] - The collaboration between Tata Motors and Motus Holdings Limited is aimed at enhancing market presence and distribution efficiency in the region [9]

Core Insights - The Belt and Road Initiative (BRI) has entered a new phase of cooperation between China and Malaysia, focusing on infrastructure, digital economy, and green transformation, with significant potential for future collaboration [1] - In 2024, bilateral trade between China and Malaysia surpassed 1.5 trillion yuan ($212 billion), with China being Malaysia's largest trading partner for over a decade [2] - The "Two Countries, Twin Parks" model, featuring the Kuantan and Qinzhou Industrial Parks, is highlighted as a successful example of bilateral industrial collaboration [3] Infrastructure Development - The East Coast Rail Link, a flagship BRI project, is nearing completion and is expected to be operational by late 2026 or early 2027, with hopes for more large-scale infrastructure projects in Malaysia [4] - Ongoing large-scale projects in Penang, including a new international airport, are actively involving Chinese enterprises, indicating a strong foundation for infrastructure cooperation [5] New Energy Vehicles (NEVs) and Digital Economy - NEVs are identified as a key area for future cooperation, with China being a leader in NEV production and Malaysia having a mature automotive industry, creating a complementary industrial ecosystem [6] - Malaysian market conditions are favorable for absorbing Chinese technologies and production capacity, positioning Malaysia as a launchpad for Chinese NEV brands in Southeast Asia [7] Trade and Economic Outlook - Despite geopolitical uncertainties affecting global trade, Malaysia's youthful demographics and rising purchasing power provide strong internal demand [8] - The complementary nature of industries between China and Malaysia can help ASEAN economies mitigate external volatility and support stable long-term growth [9] SME Cooperation and Bilateral Relations - The Malaysian Chamber of Commerce has facilitated bilateral exchange programs to connect Chinese companies with the Malaysian market, enhancing practical BRI cooperation [10][11]

Summary of Key Points from the Investor Presentation Industry Overview - **Industry Focus**: The presentation centers on the **autos and auto parts industries** in Japan, highlighting global competition, trends in electric vehicles (EVs) and automation, and supply chain transformations [1][2][3]. Core Insights - **Competition**: - There is **intensifying competition** within China, with Chinese OEMs expanding into overseas markets such as ASEAN, Europe, and South America [8][11]. - The competitive landscape in the US is also changing due to **US tariffs**, which are impacting market dynamics [8][11]. - **Electrification Trends**: - The penetration of **New Energy Vehicles (NEVs)** is increasing in China, with vehicles equipped with **Navigation on Autopilot (NOA)**, equivalent to Level 2+, becoming mainstream [8][11]. - Despite a temporary plateau in EV adoption in the US due to easing environmental regulations, the trend towards electrification and intelligent technologies remains strong [8][11]. - **Collaboration and Cost Management**: - There is a growing likelihood of **collaboration among OEMs** to manage development costs associated with electrification and intelligent technologies [8][11]. - The ability to pass on uncontrollable cost increases to OEMs is a critical consideration for the industry [8][11]. Risks and Challenges - **Emerging Local Competitors**: Local Chinese firms are emerging in advanced technology areas, posing a risk to established players [8][11]. - **Cost Burden**: The auto parts industry faces risks related to the cost burden of electrification, which may impact profitability [12][120]. Market Dynamics - **Sales and Market Share**: - Japanese OEMs are experiencing a significant decline in sales, with local Chinese companies gaining traction in advanced technology fields [120]. - The easing of US environmental regulations is delaying the decline in internal combustion engine (ICE) demand, affecting market dynamics [120]. Company-Specific Insights - **Valuation and Price Targets**: - Price targets and ratings for major Japanese OEMs were discussed, with Honda rated as Overweight (OW) with a price target of ¥2,000, indicating a 20% upside [12]. - Other companies like Nissan, Subaru, and Mazda have varying ratings and price targets reflecting their market positions and challenges [12]. Conclusion - The presentation emphasizes the need for Japanese OEMs to adapt to the rapidly changing competitive landscape, particularly in light of the expansion of Chinese manufacturers and the ongoing shift towards electrification and advanced technologies [8][11][120].

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.

Investment Rating - The report assigns a Buy rating to BYD Co. and a Sell rating to SAIC Motor [9][13]. Core Insights - The China NEV industry is experiencing a slowdown in capacity expansion, with net additions expected to be 2.5 million units in 2025, a 13% year-over-year increase, followed by further declines in subsequent years [1]. - Capital expenditure (capex) expectations for 2025 have increased due to stronger demand driven by trade-in subsidies, while 2026 capex remains stable [2]. - The cost curve has steepened between different groups of OEMs, with group 1 players managing better EBITDA margins compared to groups 2 and 3 amid intensified competition [3]. - Demand for NEVs is projected to rise by 11% in 2024 compared to previous expectations, with significant contributions from trade-in subsidies [6]. - Utilization rates are expected to improve in 2025-2026 but may decline in 2027-2028, leading to potential consolidation in the industry [7][8]. Summary by Sections Industry Capacity and Capex - NEV capacity in China is still expanding but at a slower pace, with net additions of 2 million and 1.5 million units expected in 2026 and 2027, respectively [1]. - Market expectations for capex have increased due to positive outlooks from OEMs, driven by trade-in subsidies [2]. Cost and Profitability - OEMs are facing lower EBITDA margins due to increased competition, with group 1 players showing better cost control compared to groups 2 and 3 [3]. - The cash conversion cycle is tightening, indicating deteriorating cash flow for many players [5]. Demand and Market Dynamics - Domestic NEV demand is expected to reach 10.9 million and 14.1 million units in 2024 and 2025, respectively, with a portion stimulated by trade-in subsidies [6]. - The NEV market is highly competitive, with transaction prices declining by 6% year-over-year in early 2025 [7]. Future Outlook - A potential decline in retail PV volume is anticipated in 2027, leading to a 1% decrease in NEV volume demand despite higher penetration [7]. - The report suggests that consolidation in the industry may begin in 2027-2028, with a positive turnaround expected post-consolidation starting from 2029 [8].