1 Part 1 . Overall Mobile Phone Market in China July domestic mobile phone shipments reached 34.2 million units, down 7.5 percent year over year. 52 new models were released in the month, down 43.5 percent year -over-year (y/y). Over the past 7 months, d omestic mobile phone shipments reached 220.3 million units and number of new model release reached 298, down 5.5 percent and 39.1 percent y/y respectively. Chart 1: Domestic mobile phone shipment s from July 2018 to July 2019 Part 2 . Development of 4G Mobile Phones July domestic 4G mobile phone shipments were 32.9 million units, down 4.5 percent y/y, and represented 96.3 percent of the total shipments. 32 new 4G models were released in the month, down 50.8 percent y/y, accounting for 61.5 percent of the total new models this month. Over the past 7 months, domestic 4G mobile phone shipments were 210.8 million units, down 4.3 percent y/y, and represented 95.7 percent of the total shipments. The total number of new model r elease reached 229, down 39.1 percent y/y, accounting for 76.8 percent of the total new model release. -14.1% -20.9%-11.7%0.9% -18.2%-16.3%-12.8% -19.9%-6.0%6.7% 1.2% -6.3%-7.5% -25%-20%-15%-10%-5%0%5%10% 051015202530354045 M7 M8 M9 M10 M11 M12 M1 M2 M3 M4 M5 M6 M7 2018 2019 shipments(million) YoY 2 Part 3 . Local and MNC Brands of Mobile Phones July mobile phone shipments by the local brands reached 31.9 million units, down 9.2 percent y/y, accounting for 93.4 percent of the domestic mobile phone shipments. Number of new model s released by the local brands (43 units) decreased by 46.3 percent y/y, and represented 82.7 percent of the total number of new model release in the month. Mobile phon e shipment volume for year 201 9 by the local brands reached 204.4 million units, down 3.1 percent y/y, and accounted for 92.8 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 264 units) decreased by 40.9 percent y/y, and represented 88.6 percent of the total number of new model release in the domestic market. Chart 2: July 2019 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones July smart phone shipments were 33.0 million units, down 3.5 percent y/y, and accounted for 96.4 percent of the domestic mobile phone shipments in the month. Over the past 7 months, smart phone shipments were 210.5 million units, down 4.2 percent y/y, and represented 95.6 percent of domestic mobile phone shipments. In July, 36 new smart phone models were released, down 44.6 percent y/y, and accounted for 69.2 percent of the number of new release. Over the past 7 months, 228 new smart phone models were released, down 39.4 percent y/y, and accounted for 76.5 percent of the number of new release. Local Brands 93.4%MNC Brands 6.6%

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