IT/Telecom Service/Media: Shenzhen Visit Note

IT/Telecom Service/Media
Shenzhen visit note
IT industry in Shenzhen: Opportunities and risks
Shenzhen, China is home to 70% of global smartphone production. However, the
region is losing its competitiveness as a low-cost smartphone manufacturing
powerhouse due to recent increases in labor costs, which have prompted large
smartphone makers to increasingly pursue the adoption of automated facilities.
Notably, we believe demand for automated facilities will continue to rise over the
medium to long term.
On the other hand, a number of start-ups, including DJI, are taking advantage of
Shenzhen’s smartphone production ecosystem. With only a business plan, a startup
can attract investment from start-up accelerators (e.g., IngDan) and easily purchase
all necessary parts from local electronics markets (i.e., Huaqiangbei).
IOTE 2016 overview
We attended Asia’s largest Internet of Things (IoT) event, the Shenzhen
International IoT and Smart China Exhibition (IOTE), which took place August 18th
-
20th
. Highlights included smart homes, telecom service-linked wearables,
healthcare devices, robots, and virtual reality devices.
China already boasts the highest degree of IoT connectivity in the world. It is
expected that there will be 330mn IoT connections in the country by 2020, much
higher than the US level of 170mn. The Chinese government considers IoT
technologies essential for China’s future growth and provides proactive support to
nurture the industry. Indeed, the government believes that IoT will provide answers
to problems like traffic and air pollution. Furthermore, China’s major telcos,
including China Mobile, are shifting their focus to IoT, creating value chains based
on their networks and expanding their IoT businesses from B2B to B2C.
Market trends in Chinese media content
Korean media names are concerned over 1) a potential tightening of Chinese
regulations on foreign media content and 2) a slowdown at the Chinese box office.
At a meeting with Tencent, we confirmed that concerns exist among Chinese
companies as well. We were told that local internet companies have not yet been
provided with detailed guidelines, and that demand for Korean video content is
very high amid fierce competition for customers.
We believe the Chinese film market is poised for qualitative growth. Among Chinese
film plays, IMAX China is the only company posting solid share price gains. In
addition, Wanda Cinema Line is trying to boost its stock price by signing a deal to
build 150 additional IMAX theaters over the next six years.
Visits to Shenzhen-based Tencent and DJI
We visited Shenzhen-based companies Tencent and DJI. 1) Tencent holds a
dominant market share in the social media space, including messaging services. We
were able to confirm that the growth of the digital content market in China is being
supported by the government’s intellectual property rights enforcement system as
well as competition among the three BAT companies (Baidu, Alibaba, and Tencent).
Against this backdrop, we believe that Korean content companies will be presented
with opportunities. 2) DJI controls 70% of the global civilian drone market. In our
view, it is noteworthy that the company is expanding its business scope by
launching a camera brand and developing action cameras.
Overweight (Maintain)
Event Summary
August 23, 2016
Mirae Asset Daewoo Co., Ltd.
[Telecom Service / Media]
Jee-hyun Moon
+822-768-3615
jeehyun.moon@dwsec.com
Chuljoong Kim
+822-768-4162
chuljoong.kim@dwsec.com
Nu-ri Ha
+822-768-4130
nuri.ha@dwsec.com

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August 23, 2016
Mirae Asset Daewoo Research
C O N T E N T S
I. IT industry in Shenzhen 3
1. Opportunities and risks 3
2. Marriage of media and hardware 4
3. Easy payments to be part of daily life 5
II. IOTE 2016 overview 6
1. Overview and major market trends 6
2. Government support for IoT 8
3. Telecom-based IoT services and products 9
4. IoT devices 15
5. VR devices 16
III. China’s media content market 17
1. Outlook for Korean content/entertainment businesses in China 17
2. Drivers for IMAX China shares 19
Tencent 20
DJI 23

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I. IT industry in Shenzhen
1. Opportunities and risks
In 1982 Deng Xiaoping’s government decided to use Shenzhen as the starting point for its
experiment in capitalism. Currently, the city has a population of roughly 20mn, double the
2014 level. With 860,000 companies registered in the city as of 2014, the city boasts the
most businesses per capita in China. As the epicenter of start-ups, the average age of the
city’s population is just 33. It is said that 85% of global handsets are produced in China, and
that 80% of Chinese production comes from Shenzhen.
For smartphones specifically, Shenzhen is home to 70% of global production. However, the
region is losing its competitiveness as a low-cost smartphone manufacturing powerhouse
due to recent increases in labor costs, which have prompted large smartphone makers to
increasingly pursue the adoption of automated facilities. Notably, we believe demand for
automated facilities will continue to rise over the medium to long term.
On the other hand, a number of start-ups, including DJI, are taking advantage of Shenzhen’s
smartphone production ecosystem. With only a business plan, a startup can attract
investment from startup accelerators (e.g., IngDan) and easily purchase all necessary parts
from electronics markets (i.e., Huaqiangbei).
Figure 1. Monthly minimum wage on a sustained uptrend in
key Chinese cities
Figure 2. Shenzhen venture capital investment trends
Source: KOTRA, Mirae Asset Daewoo Research Source: Zero2IPO, Mirae Asset Daewoo Research
Figure 3. Start-up accelerator IngDan’s booth Figure 4. Huaqiangbei electronics market
Source: Mirae Asset Daewoo Research Source: Mirae Asset Daewoo Research
0
40
80
120
160
200
0
200
400
600
800
1,000
1,200
2011 2012 2013 2014 1H2015
(US$mn)
Total investments(L)
No. of investments(R)2,030 2,020
1,720
1,850
0
500
1,000
1,500
2,000
2,500
Shenzhen Shanghai Beijing Tianjin
(RMB)
2013 2014 2015

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2. Marriage of media and hardware
1) LeEco
LeEco (formerly LeTV) got its start as an online video platform company before expanding
into TV hardware business (set-top boxes in 2012; smart TV services in 2013). After
establishing a smartphone-producing subsidiary in 2014, the company released three
smartphone models in 2015. Just one year after entering the market, cumulative sales
exceeded 10mn units in May 2016.
We believe that investors should pay close attention to LeEco’s expansion into handsets
from media services. With the IoT era entering full swing, the company should be able to
comfortably enter emerging devices as well. Indeed, the company is steadily expanding into
new business areas such as virtual reality (VR) devices and electric vehicle (EV) technologies.
Figure 5. LeEco, which started out as an online video service, has expanded into device manufacturing
Source: Atlas Research, Mirae Asset Daewoo Research
2) PPTV
PPTV is the fifth-largest online video website in China. And PPTV also engages in the
smartphone business. (We found the King 7 model widely available on the shelves of
Huaqiangbei stores.)
One of PPTV’s key shareholders is electronics retailer Suning Commerce Group, which
attracted a W5tr investment from e-commerce leader Alibaba last year. Considering its ties
to Alibaba (operator of e-commerce and video service websites including Youku and Tudou)
and Suning (brick-and-mortar retailer), PPTV should enjoy smooth distribution and sales of
smartphones.
Figure 6. Online video service PPTV’s smartphone model Figure 7. PPTV sells its King 7 model for RMB 999

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3. Easy payments to be part of daily life
Upon arriving in Shenzhen, we noticed that the city’s two-year-old airport was clean and
spacious but featured fewer stores than other airports. Notably, throughout the structure,
there was a wide array of vending machines featuring the iconic WeChat speech balloon
logo.
Travelers seeking to buy earplugs, sleep masks, and beverages at the Shenzhen airport are
presented with WeChat Pay as a payment option (with QR codes dotting vending machines).
And we witnessed online-to-offline (O2O) food delivery electric bikes lining the streets of
Huaqiangbei. At stores, consumers seemed to prefer mobile payments to cash. Indeed,
WeChat Pay is expanding its presence in China, where credit card penetration is still low.
WeChat is an instant messaging service launched by Tencent in 2011. Currently, the number
of monthly active users (MAU) stands at around 800mn. Notably, QR code-based WeChat
Pay has been applied to various services such as business card exchange services,
bank/hospital appointment scheduling, and food delivery. Now, mobile WeChat Pay is the
most widely used simple payment service in China.
WeChat Pay will likely expand its presence in Korea. Tencent launched the service at limited
stores (e.g., duty-free shops, department stores) in April 2015. However, the company
announced a plan to expand Korean services starting in August 2016. Chinese tourists will
likely be able to use WeChat Pay at various locations through Tencent’s partners, including
Hana Card, Woori Bank, Shinsegae I&C, NICE Information and Telecommunication, NHN
KCP, KG Inicis, and Danal.
Figure 8. WeChat users can pay for vending machine items by
scanning QR codes
Figure 9. Vending machines at airport accept payment
WeChat Pay
Figure 10. Apple Pay accepted at touchscreen ordering kiosks
Figure 11. Huaqiangbei: O2O food delivery services and
payment via WeChat Pay
Source: Mirae Asset Daewoo Research Source: Atlas Research, Mirae Asset Daewoo Research

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II. IOTE 2016 overview
1. Overview and major market trends
IOTE is Asia’s largest Internet of Things (IoT) event. With roughly 400 participating
businesses from around the globe, the event normally attracts 30,000 people.
This year, the exhibition focused on IoT, RFID, smart cards, smart electronics, and future
experiences. We took notice of: 1) smart homes and wearables that could be linked with
telecom services, 2) healthcare devices and robots, and 3) VR devices that could be linked
with media services.
The busiest booths involved robots and VR devices. In particular, small robots featuring
speech-recognition technologies and the VR simulation booth attracted long lines.
Figure 12. Entrance to IOTE hall Figure 13. IOTE booths
Figure 14. Gowild’s speech-recognition robot drew serious
attention
Figure 15. Lenkewi’s VR/AR devices were also popular

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Table 1. Major IoT firms in China
Classification Company Business
IoT Xiaomi Creating anetworkofhealthcare, smarthome, and otherproducts
Smart home BroadLink
A smarthomesolutionsprovider; productsinclude remote controlled smartpower
plugs;developed BroadLinkDNA,aWi-Fisolutionfor existing home appliances;
Xiaomi’s smartWi-Fi routerfeaturessmart home solutionsprovided byBroadLink
Gizwits
Offers softwaredevelopmentplatformsand microcontrollerboardsfor smarthome
gadgets and home appliances
LifeSmart
A Hangzhou-based start-up developingsmart homegadgets, smart controlcenters,
smart sockets, surveillance cameras, and sensors
Yeelink
Designs/developsplatforms thathelp companies manufactureconnecteddevices
and app-enabled hardware
Landing Technology
A Shenzhen-based makerofsmarthome gadgetsand wearables; ownsbrandssuch
as Ivylink and Goldweb
MXChip A developer of short-distance wirelessnetworkproductsand technologies
Phantom
A smarthomesolutionsprovider focused on smartlighting and surveillance
equipment
ByunIOT
A smart city/home technologydeveloper manufacturing home securityappliances,
cloud smartbulbs, etc.
Orvibo
ManufacturesIoTand smarthomegadgets,includingdigitaldoorbells and cloud
platforms
Bestfu A smarthomesolutionsprovider focused on smart city/home/officesolutions
HeimanTechnology A smarthomesolutionsprovider focused on security/fire alarms
Healthcare Ospicon A Singapore/Hong Kong-based firmmanufacturing smartpillows andbabybedding
Sleepace
A sleeppatternanalysisdevicemaker;productsinclude Sleep Dot(sleep monitoring
devicethatattaches topillows), NoxSleep Light,and RestOn(flexible strip thatis
spread acrossthe mattressto monitorsleep patterns); resultsare sent to
smartphones;received aUS$7mninvestmentin2015.
Robots Shenzhen Gowild Robotics(Gowild)
Manufactures small-sized speech-recognition robots similartoJibo (controls air
conditioning,TV, etc.).
Lithops
Produces vacuum/windowcleaning robots, which canbe remotely controlled by a
smartphoneapp
LejuRobot
Manufactures small-sized robots(Aelos), which canbe remotelycontrolled by a
smartphoneapp or ajoystickover aWi-FInetwork
V-Cat
Makes small-sized robotsembedded with smart cameras (theheadcanrotate360
degrees); the robot can actas ababymonitor
VR Lenkewi
ManufacturesVR/ARgadgets(head-mounted deviceswithcontrollers);users can
enjoygames usingBluetooth-connected guns/smartphones
Blue Helmet A Shenzhen-based smartwearables maker
GuangzhouLongzeElectronics ProducesVR,4D filmsimulators
ShenzhenJingminDigitalMachine (JMDM) A Shenzhen-based VR simulatormaker
Wearables Doki
Headquartered in Hong Kong;develops/manufactures smartwatchesforchildren at a
factoryinShenzhen; received funding from Kickstarter, and saleswillstartatend-
Augustinpartnership withChinaUnicom
Design Innozen
A Shenzhen-based industrialdesignfirm; thefirm’sproductTouchjetturnsTVscreens
into touchscreens; major customers include Huawei,Tencent, Lenovo, and Haier.
Source: IOTE, TechNode, respective company data, Mirae Asset Daewoo Research
Figure 16. IoT industry in China
Source: KOTRA, Mirae Asset Daewoo Research
0
300
600
900
1,200
2010 2011 2012 2015 2020
(RMBbn)
ChinaIoTindustry

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2. Government support for IoT
1) An essential growth driver for China
China designated IoT as one of its key future growth drivers, and is providing substantial
support to the industry.
In 2009, the Chinese government established the Sensing China Center to aid in the
establishment of a nationwide IoT industrial network, and has sponsored the IOTE in
Shenzhen every year since. In 2010, the government invested RMB800mn to build a
machine-to-machine (M2M) communications center, and designated M2M as a top 10
promising technology. In 2012, an IoT development plan was included in the country’s 12th
five-year plan (2011-15). In the same year, the ITU officially adopted China’s IoT standards.
Moreover, smart city construction is underway, again led by the government. IoT
technologies are believed to hold the key to reducing the unwanted by-products of China’s
rapid economic development, such as traffic congestion and pollution. In 2014, China
selected 202 cities for its pilot smart city projects.
Figure 17. China’s IoT industry is showing strong growth thanks in part to policy support
Source: Atlas Research, Mirae Asset Daewoo Research
Table 2. Chinese IoT examples
Example Detail
ShanghaiPudong
International Airport
Implemented wirelesssensornetwork (30,000 sensornodes) tosetupanintrusiondetection
system
Yuanboyuan (Jinan) Adopted wirelessbulb system for streetlights (ZigBee technology)
Wuhan
Establishedcomprehensiveplatform for sewagetreatmentusing IoT and cloud computing
(smart cityproject)
Xinjiang Production and
ConstructionCorps
Reduced water usageby16% for 8,000hectares offarmland byimplementing a management
system
Lake Tai (Jiangsu) Waterquality control/floodprotection via intelligentmanagement system(blue-green algae)
Source: KOTRA, ChinaEconomic Net, KIET, Mirae Asset Daewoo Research

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3. Telecom-based IoT services and products
1) Smart home: Smart home solutions
Connectivity is the foundation of the IoT environment. As such, the development of smart
home platforms should provide telcos with opportunities to bundle wireless/wired services
and IPTV set-top boxes as well as collect monthly fee revenue. In addition to traditional B2C
businesses, telcos can also operate B2B businesses on the smart home platform (e.g.,
installing built-in telecommunication systems in partnership with construction firms).
Noteworthy smart home solutions providers among IOTE participants were Byun IOT,
Orvibo, Heiman Technology, and Bestfu.
Figure 18. Byun IOT’s smart home solutions exhibit Figure 19. Orvibo’s smart home solutions exhibit
Figure 20. Heiman Technology joined Z-Wave/ZigBee alliance
Figure 21. Bestfu provides smart home solutions through
alliance with ZTE Smart

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2) Smart home: Internet of Small Things
Once the infrastructure is put in place—including Wi-Fi connections, cloud platforms, and
device control solutions—a wide array of “small things,” i.e., small-sized smart devices, can
be connected to create a smart home. Notably, telcos will be able to produce gadgets
connected to their own telecom networks. China Unicom has already signed revenue-
sharing partnerships with several smart gadget manufacturers.
Xiaomi is the most prominent firm in the Internet of Small Things (IoST) category. At the
Shenzhen expo, lighting and social robot makers drew our attention in this segment.
Figure 22. Xiaomi’s MiJia smart home products
Source: Xiaomi, Atlas Research, Mirae Asset Daewoo Research
Figure 23. Byun IOT’s Cloud Magic Bulb (smart music light) Figure 24. V-Cat’s baby monitor robot

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3) Wearables: Telecom services and device sales
Wearables should no longer be viewed as novelties. Indeed, technological barriers have
been visibly lowered in the category. For telcos, however, wearables can still generate
additional revenue, as embedded 3G or LTE antennae enable data use. Carriers can also sell
wearable devices to generate handset revenue.
At the Shenzhen exhibition and the nearby electronics market, smartwatches for children
that feature voice calls caught our attention. In China, demand is particularly high for
smartwatches for children, due to the phasing out of the one-child policy and a high
number of missing child cases.
Doki has recently released a smartwatch model that supports video calls. It plans to
introduce call plans for this product in partnership with China Unicom. LeEco also launched
an LTE smartwatch for children, Kido. China’s LTE penetration has recently exceeded 50%,
according to China Mobile.
Wearables recently released by China’s electronics giants include Huawei’s TalkBand B3 (a
smartband that also functions as a Bluetooth headset), and Xiaomi’s Mi Band 2 (which
features an OLED display).
Figure 25. Doki’s smartwatch for children offers video calling Figure 26. LeEco’s smartwatch for children, Kido, is LTE-ready
Source: Doki.com, Mirae Asset Daewoo Research Source: Mirae Asset Daewoo Research
Figure 27. Huawei’s smartwatch TalkBand B3 can also be used
as a Bluetooth headset
Figure 28. Xiaomi’s Mi Band 2 features an OLED display
Source: Huawei.com, Mirae Asset Daewoo Research Source: Xiaomi-mi.com, Mirae Asset Daewoo Research

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4) Telcos’ IoT businesses
China is currently taking the lead in the IoT space. At end-2014, China’s IoT device
connections exceeded 70mn, accounting for one-third of the global total. According to the
GSMA (which represents the interests of mobile operators worldwide), IoT device
connections will reach 330mn in China, 170mn in the US, and 40mn in Japan by 2020.
Of note, major Chinese telcos, including China Mobile, China Unicom, and China Telecom,
are playing pivotal roles in IoT development. In addition to providing connectivity, they are
evolving to create value chains via service/system integration. In addition, they are
expanding their business scope from B2B business models to include B2C models through
partnerships with manufacturers (including B2B2C models with automakers).
Table 3. Major Chinese telcos’ IoT businesses
Company IoTbusinesses
ChinaMobile
- Launched M2M services in2007
-IoTservicesincludeCarServiceLink,Elevator Guardian, and FireControlSystem
- Advanced intothecar marketbysetting up anInternetofVehicles (IoV)withDeutscheTelekom
-IoTconnectionsexpected togrowby 60%over thenext five years
ChinaUnicom
- Projects that the market for connected consumer goods will grow more sharply than the traditional
M2M market
- Aiming tobecome amajor smarthome solutionsprovider
-Currently collaborating withinternetfirms and hardware manufacturers
-Inrevenue-sharing partnerships withhardwaremanufacturers
ChinaTelecom
- Aggressivelyinvesting inIoV technology
- Launched thesmarthomeserviceYueMe in2014
-YueMe offershome videos,healthcare services, onlineeducation,TVhome shopping, etc.
- Partnering with contentproviders, TVmakers, chipset manufacturers,handset makers,TV
channels, and mobile app developers
Source: GSMA, Mirae Asset Daewoo Research
Table 4. China Mobile’s M2M applications
Applications Details
Emergencycare
- Sharepatients’treatmentdata and contactnumberswithdispatch centers
- Allowhospitalstotreatpatientsmoreefficiently and contact theirfamilymembers moreswiftly
Noise
monitoring
- Anoise monitoring system automaticallycollectsnoisedataviasensors/wireless telecomnetworks
-Used bythe Xiamengovernmentto monitor constructionsites
-Currentlyused in46 areas;lowered the noise complaint rateby 77%
-Inplacein24residentialareas
Smart farming -Developed IoTappstoboostfarmers’productivityand income
Health
monitoring
-Doctors are able tomonitorthe conditionsofpatientsafterdischarge
- Monitorpatients’ conditions and notifydoctorsof anyproblems
Real-time
transportation
information
- Real-timetransportationinformationfor drivers;Access tobusroutes, schedules, and locations
- Alreadyinplace inJiangsu,Guangxi,Guizhou, and Hainan
Smart mining
- Developed an electronic coal mine information system for Zhengzhou Coal Industry’s subsidiary
Xinzheng Coaland ElectricCompany
- Efficiently arranges manpower by providing access to real-time operation information, such as gas
density,ventilation, and equipment conditions
Smart oilfields
-Quickanalysis,remoteinstructions, and automated control
-Increase yield and oilrecoveryrateby2-4% and2-7%, respectively
- Alreadyinplace inKaramay,Daqing,and Shenglioil fields
Travel safety
- Warnings sent viaCarGuardian, anapp connected topolicesystems
- Alreadyinplace inJiangsu,Fujian, Shanghai,and Jiangxi;used by morethan500,000 subscribers
Smart forestry
- Monitoring the riskofforestfire in realtime and collecting weather/temperature informationinFujian
- Prevented lossofRMB770mnby averting forestfires on 325occasionsthus far
- Provided protection to aShandong forest viaa mobileforestpatrolplatform
Safer cities
- Supporting real-timetransportationand securityservicesaspartofa safe cityproject
- Development of a smart safety system to alert residents and district offices in the event of thefts, fires,
gasleaks, etc., in Guangxi
Tackling the
digitaldivide
- Established apubliceducationmaterial serviceplatformtoreduce regionalgapsineducationservices
-Currentlyinplace in more than900 schools
-Distributionof1,000 tablet PCsto more than20 schoolsinBeijing andGuangdong
Source: GSMA, Mirae Asset Daewoo Research

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Korean telcos are expanding their smart home businesses. They have been launching a
variety of smart home devices and services in collaboration with other firms. In addition,
they have already rolled out monthly plans exclusively for tablets/wearables. In 2H16, telcos
will likely launch low-power wide-area network (LPWAN) services (including remote
metering) and IoT-specific plans, backed by government support and a network dedicated
to IoT services (completed in 1H).
In the short term, IoT services should have only a minimal impact on telcos’ earnings.
However, we note that IoT gives telcos opportunities to: 1) expand into new businesses with
relatively small investments, 2) seek quantitative subscriber growth amid the saturation of
the core market, and 3) leverage first-mover advantages (given the integral role they play).
Table 5. Korean telcos’ smart home businesses
SK Telecom KT LG Uplus
Smart
home/
IoST/services
Plugs, switches,doorsensors,gasvalve
lockout,doorlocks,
United Objectbrand (Smart
Beam/Speaker/Petfit/Linkage/Albert),
T Outdoor,TPet, Health-On,T-Car, Smart
AutoScan,humidifiers,
rice cookers, refrigerators,smartfarming,
Smart CashBox,
air filters,boilers,gas ranges, a/c,washing
machines, ovens,
robot vacuumcleaners, waterpurifiers,home
blackboxes, etc.
Yodoc (diagnostic tool), SafeZone(children
seniors),
Yodoc-m (diagnostic toolforchronicdisease),
home cameras,boilers,
plugs,gasvalvelockout,doorsensors,locks,
smart farming,
GigaIoT Health(bike/golf/weight
management),
lifetechjackets, a/c, air filters, refrigerators,
TVs, washing machines,
cleaners, ovens, etc.
Home CCTV MomCa,homefitness, sixtypes
ofIoT@home
(switches/gasvalvelockout/energy
meters/doorlocks/hubs/plugs),
thermostats,LTE MagicMirror,ricecookers,
IoTCaps,doorlocks,
PetSTATION, StarWalk,kitchenfire
extinguishing equipment,
FESCO care, refrigerators,a/c,washing
machine, helmets,
dehumidifiers, robotvacuum cleaners,ovens,
smart farming, etc.
Services/fee
structure
- SmartHomeOne, Smart HomeUnlimited.
etc.
-Variesbased onnumber/type ofdevices
-Othertelcos’subscribers areable to
subscribe
- Noseparatemonthlyplanbutdiscounts
based ondevice counts
-Diversifying sales channels/rental system for
healthdevices
subscribeviaseparate line
- 1by1plan,IoTunlimited plan,bundled plan,
etc.
-Configurable regarding type and number of
devicesneeded
subscribeviaseparate line
Platforms/
brands
ThingPlug (oneM2M)/SmartHome IoTMakers/GiGAIoT IoT@home
Technologies
Both LTE-M (standardized)and LoRa(non-
standardized)
-Utilizes existing LTEnetwork
-Facilitates real-time management and
mobility
- LoRaneedsseparatenetworkwith
unlicensed band (920MHz)
- Lowvolume,lowpower,price
competitiveness
LTE-M (standardized)
mobility
LTE-M (standardized)
mobility
Partnerships
LH (home), Livart (home),HyundaiE&C
(home),Commax(home),
Gobiz (home),Cisco (platform),Hanyang
Construction (home),
Iran(solutions), Indonesiapublictelco
(comprehensive IoT), etc.
TaerimConstruction (home),Hanssem
(home), SHCorp. (home),
KISTEC (security), Gyeryong Group
(construction),BBB(healthcare),
SaemaulFitness (health),ChinaMobile (total
IoT),etc.
K Weather (home), Honeywell (home),
DaewooE&C (home),
AhouConstruction (home), ADD Information
Tech. (solutions)
ADTCaps (security), Paratech (security), Jibo
(robots), etc.
Business
plan
overview
- World congress forIoT(LoRa)
- Establishment of firstnationwideIoT
network service
-Funding arrangementtosupport and find
IoTstart-ups
- Establishment of smartstadium
- Launching 30 services in ayear; 0.5mn
connected devices
- Targeting 4mnconnected devicesonIoST in
2018
-InvestingW150bninnarrowband IoT
(standardizationinMar. 2017)
- World’s firstnationwidenarrow-band IoT
network
- Aiming for 0.5mnhome IoTsubscribers ina
year
- Providing homeIoTproducts/servicesto
largehousing complexes
- Helping SMEs commercializeIoTproducts
- ApplyingintelligentIoT services (remote
control)
Numberof
connections
- 1.89mn
(broadcasting 0.58mn, wearables0.48mn)
- M/S45%
- 1.21mn (vehicles 0.40mn,tabletPC 0.30mn)
- M/S28%
- 1.13mn
(broadcasting 0.51mn, other0.13mn)
- M/S27%
Source: Company data, mediareports, Mirae Asset Daewoo Research

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Figure 29. IoT ecosystem: Telcos can provide applications, platforms, and networks
Source: SK Telecom, ITU, Mirae Asset Daewoo Research
Figure 30. IoT market as viewed by telcos and manufacturers: Remote network connections vs.
connections between neighboring devices
Source: SK Telecom, Mirae Asset Daewoo Research
Figure 31. Expecting LPWAN services to begin in earnest after establishment of nationwide IoT
network in 1H
Source: SK Telecom, Mirae Asset Daewoo Research

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4. IoT devices
1) Healthcare
In the healthcare segment, many IoT devices perform sleeping pattern analysis. For
example, Ospicon’s sleeping mat checks a baby’s sleeping data and sends it to their parents’
smartphones. Sleepace, often cited as a successful case for the start-up accelerator IngDan,
also offers sleeping pattern analysis devices, including Sleep Dot (attached to a pillow), Nox
Sleep Light, and RestOn (mattress band). Of note, Sleepace attracted a US$7mn investment
in 2015.
Figure 32. Ospicon’s sleeping mat and pillow Figure 33. Sleepace’s Nox Sleep Light and RestOn
Source: Mirae Asset Daewoo Research Source: Sleepace, Mirae Asset Daewoo Research
2) Robots
The robots on display at IOTE were mainly linked to smartphone platforms. Gowild
exhibited an intelligent robot that can control home appliances, including TVs and air
conditioners, via speech-recognition technology. The robot went on sale for RMB1,900
(W320,000) in January. In addition, Leju Robot (recreational robots) and Lithops (robot
vacuum cleaners) participated in the event.
Figure 34. Gowild’s intelligent robot Figure 35. Recreational robots from Leju Robot

16
August 23, 2016
5. VR devices
VR booths drew a lot of attention at IOTE. Many people waited in line for access to booths
offering test runs on VR simulators. Shenzhen-based VR/AR device manufacturers, including
Lenkewi, Blue Helmet, and JMDM, as well as Guangzhou-based VR and 4D movie simulator
makers, including Longze, are worth keeping an eye on.
Figure 36. China’s VR market Figure 37. Lenkewi exhibiting VR/AR devices
Source: iiMediaResearch, Mosaic Partners, Mirae Asset Daewoo Research Source: Mirae Asset Daewoo Research
Figure 38. Longze’s VR simulator Figure 39. JMDM’s VR simulator
0
75
150
225
300
0
15
30
45
60
2015 2016F 2017F 2018F 2019F 2020F
(%)(RMBbn) ChinaVRmarket (L)
YoYgrowth(R)

17
August 23, 2016
Research
III. China’s media content market
1. Outlook for Korean content/entertainment businesses in China
1) Tencent IR: Despite concerns, demand remains robust
According to a Tencent IR officer, Korean actors and musicians could see shrinking
opportunities in China due to political issues surrounding the deployment of the Terminal
High Altitude Area Defense (THAAD) system in Korea. Indeed, at the government level, there
are growing calls for stricter regulations on the commercial activities of Korean celebrities.
However, no detailed measures have been drawn up yet. Our Tencent contact said that
demand for Korean content is unlikely to decrease sharply despite a potential tightening of
regulations, in light of the strong popularity of Korean dramas and artists.
The Tencent official noted that Korea’s entertainment industry is highly developed. Tencent
recently signed an agreement with a Korean video content producer and won government
approval to air Korean TV programs via its platform. The company has made investments in
YG Entertainment to participate in the digital distribution of Big Bang’s albums and the
production of music entertainment programs. It also premiered CJ E&M’s online reality
show New Journey to the West in China.
Of note, Korean content is increasingly being used as a tool to boost monthly subscriptions
to digital content services. Indeed, Baidu’s online video streaming subsidiary iQiyi sharply
pushed up paid monthly subscriptions by making the first and second episodes of
Descendants of the Sun available only to paid subscribers at first. (The series was broadcast
simultaneously in Korea and China.)
Tencent is also making efforts to boost the number of monthly subscribers to its digital
music and video services. The company charges RMB15 per month for a music subscription
and RMB20 for a video content subscription. Tencent’s music streaming service QQ Music is
strengthening its dominance in the market via the exclusive digital distribution of music
from YG Entertainment artists such as Bing Bang, G-Dragon, and Black Pink as well as
through the recent acquisition of China’s leading digital music distributor China Music
Corporation.
In our view, any tightening of regulations on Korean entertainment firms and content will
be aimed at protecting homegrown artists and content in addition to expressing anxiety
over THAAD deployment. In addition, it is also worth noting that China is stepping up the
screening of content produced in other countries besides Korea.
Figure 40. Korean dramas distributed by Tencent
Figure 41. Big Bang’s music is exclusively distributed by
Tencent’s QQ Music in China
Source: V.QQ.Com, Mirae Asset Daewoo Research Source: Y.QQ.Com, Mirae Asset Daewoo Research

18
August 23, 2016
2) Popularity of Korean artists and dramas remains strong
During our visit, we confirmed that the popularity of Korean artists and content remains
strong in China and Hong Kong. At the Huaqiangbei electronics market, we saw photos of
the actor Song Joong-ki, a spokesperson for Chinese smartphone maker Vivo, everywhere.
And Vivo’s billboard at the entrance to the duty-free area at the Shenzhen Bao’an
International Airport, also featured the actor. In addition, Vivo TV commercials starring Song
were aired on CCTV during Olympic broadcasts. Song Joong-ki has emerged as the most
popular Korean celebrity in China following the release of Descendants of the Sun via iQiyi
earlier this year.
As of 2Q16, Vivo is the third-largest smartphone maker in China by market share. Oppo, a
sister brand of Vivo under the umbrella of BBK Electronics, is the second-largest player.
Backed by the strong market shares of Vivo and Oppo, BBK is leading the Chinese
smartphone market. Notably, in 2009, the company succeeded in enhancing the awareness
of the Oppo brand in Asia by hiring Super Junior, a Korean boy band, to endorse its
products. And on the back of the popularity of Song Joong-ki, Vivo achieved 75% YoY growth
in sales volume in 2Q in China, outpacing the growth of major peers, including Huawei,
Xiaomi, and Apple.
On the subway heading to Hong Kong, we observed a multitude of passengers using
smartphones to watch Korean dramas, including SBS’s Doctors, which has yet to air in
China. The drama is expected to be available on China’s online streaming sites (distributed
by SBS Contents Hub) after the series concludes in Korea. The fact that Chinese viewers are
willing to watch Korean programs through illegal means suggests that demand for Korean
content is still strong.
Figure 42. Outdoor ads in Huaqiangbei
Figure 43. Song Joong-ki is a
spokesperson for Vivo
Figure 44. Life-sized cardboard cutouts
featuring Song Joong-ki
Figure 45. Large ad featuring Song
Joong-ki in the airport
Figure 46. Commercial during the
Olympics (CCTV broadcast)
Figure 47. Chinese commuter watching
SBS drama Doctors on a smartphone
Source: Mirae Asset Daewoo Research

19
August 23, 2016
Research
2. Drivers for IMAX China shares
We also visited an IMAX China theater in Shenzhen. The company has been displaying
relatively robust share performance recently, while China’s largest multiplex chain, Wanda
Cinema Line, and largest private producer, Huayi Brothers, have seen their shares plunge
by around 40% from early-year levels.
The theater’s tickets are priced at RMB60-160 (W10,000-27,000) on weekends, with a
popcorn and drink combo for two people priced at RMB30 (W5,000) and a pair of 3D glasses
at RMB10-30 (W1,700-5,000). The theater also charges RMB30 to play a VR game. If a family
of three visits the theater on a weekend, the family will likely spend around RMB280
(W48,000) on a move ticket, concessions, and the VR game.
After signing a deal with Shanghai Aurora Movie to install 10 IMAX theaters, the company
also forged an agreement with Wanda Cinema Line to add 150 IMAX theaters in China over
a six-year period, marking the largest deal in the company’s 50-year history. Wanda Cinema
Line acquired Legendary Entertainment, the producer of Jurassic World, at the beginning of
this year, and is now in talks with Viacom for the acquisition of a 49% stake in Paramount
Pictures. Wanda’s moves could be viewed as signs of a shift in China’s film industry from
quantitative to qualitative growth. The company is pursuing vertical integration of its value
chain by acquiring major film studios capable of producing blockbuster films while building
IMAX theaters to raise average ticket price.
Figure 48. IMAX box office in Shenzhen
Figure 49. IMAX China is the only Chinese film player
performing well
Source: Mirae Asset Daewoo Research Source: Thomson Reuters, Mirae Asset Daewoo Research
Figure 50. IMAX film ticket prices:
RMB60-160
Figure 51. Snacks (popcorn and
beverages) for two people cost RMB30
Figure 52. 3D glasses costs RMB10-30
Source: Mirae Asset Daewoo Research Source: Mirae Asset Daewoo Research Source: Mirae Asset Daewoo Research
50
60
70
80
90
100
110
1/16 2/16 3/16 4/16 5/16 6/16 7/16 8/16
(1/16=100)
IMAXChina
WandaCinemaLine
Huayi Brothers

20
August 23, 2016
Tencent
Founded in Shenzhen in 1998; The largest internet firm in China
Earnings surprise in 2Q on the back of rapid growth in mobile games
Ongoing robust investment in digital content distribution (e.g.,
games, music, video)
Overview
Tencent is an internet company with a focus on messaging services and game
publishing. As of now, it is the largest internet firm in China by market cap
and 1H earnings. Tencent was founded by Ma Huateng and Zhang Zhidong in
1998, and its largest shareholder is the South African media company
Naspers. In 2Q, 72% of its revenue came from value-added services (i.e.,
messaging services and games), 18% from online advertising, and 10% from
other sources. Tencent is comparable to US-based Facebook in that its
strengths lie in the messaging and social networking service segments.
Among Korean firms, we believe Kakao is the closest analog to Tencent given
that messaging services and games are its core strengths.
Recent issues and risks
Tencent’s 2Q earnings significantly beat the market consensus, with revenue
and net profit growing 52% YoY and 47% YoY, respectively. Of note, mobile
game revenue drove earnings by generating more than a quarter of overall
earnings. 2Q16 mobile game revenue was equivalent to 50% of 2015 mobile
game revenue. Recently, the company acquired Finnish game maker
Supercell (developer of Clash of Clans), and China Music Corporation (China’s
largest music distributor). Meanwhile, we see risks such as high volatility in
the advertising segment (which is in the initial phase of growth) and losses at
the online video business.
Strong relationships with Korean content producers
Tencent has built close relationships with Korean content producers, internet
firms, and ad agencies. The company is third-largest shareholder of
Netmarble Games (subsidiary of CJ E&M), and has published online games in
China for Korea’s leading developers (e.g., NCSOFT, Nexon, and Smilegate). In
addition, Tencent has forged an online video content distribution contract
with CJ E&M, and invested in drama producer HB Entertainment via a joint
venture with Huayi Brothers. It is a major shareholder of YG Entertainment
and Kakao, and has forged online ad partnerships with PengTai (Chinese
subsidiary of Cheil Worldwide) and Nasmedia.
Major institutions’ ratings and target prices
Rating Targetprice
Buy/Hold/Sell 38/3/0 (HK$mn)
ICBC International Research Buy 233
Credit Suisse Overweight 232
Goldman Sachs Buy/Neutral 214
Source: Bloomberg, Mirae Asset Daewoo Research
Summary
2013 2014 2015 2016F 2017F
Revenue 60,437 78,932 102,863 148,504 192,365
EBITDA 20,568 30,738 42,941 64,027 79,903
Margin (%) 34.0% 38.9% 41.7% 43.1% 41.5%
Net Income 15,502 23,810 28,806 44,738 57,941
Margin (%) 25.6% 30.2% 28.0% 30.1% 30.1%
Diluted EPS 1.7 2.5 3.1 4.8 6.2
TEV/EBITDA 35.1 29.1 31.0 30.8 25.6
P/E 48.4 38.1 42.8 44.5 36.3
P/B 13.6 11.0 10.8 10.8 10.6
Note: Basedon localcurrency (mn)
Source: S&P CapitalIQ, Mirae Asset Daewoo Research
China
Internet
Share price (/8/16/22) 204.8
Recommendation(Average) Buy
Market cap (HK$mn) 1,938,701
Free float (%) 57.6
Dividend yield (%) 0.2
52-weekhigh 205.0
52-weeklow 124.0
Ownership (%)
MIH TC Holdings 33.3
Ma Huateng 8.7
JP MorganChase 6.7
(%) 1M 6M 12M
Absolute 5.7 40.3 36.3
Relative 3.4 30.1 57.4
50
70
90
110
130
150
170
190
15.8 15.10 15.12 16.2 16.4 16.6
SEHK:700 Hang Seng Index
0
10
20
30
40
50
60
0
1
2
3
4
5
6
7
2013 2014 2015 2016E 2017E
Diluted EPS P / E
(배)
21%
53%
20%
58%
28%
0%
10%
20%
30%
40%
50%
60%
70%
2013 2014 2015 2016E 2017E
EPS Growth

21
August 23, 2016
1. Chinese digital content market
1) Growth supported by government policies and BAT competition
Considering Tencent’s significant role in distributing digital content for
Korean firms, an analysis of the Chinese digital content market appears
worthwhile.
First and foremost, it is important to note that China’s intellectual property
protection policies have been effective for two years. And fierce competition
among the BAT companies (Baidu, Alibaba, and Tencent) is helping a wide
array of digital business models take root.
With regard to the game market, the mobile segment is growing rapidly,
more than offsetting the stagnation of the PC online segment and driving up
the overall market. Of note, with Chinese mobile LTE proliferation exceeding
50%, the mobile game market has been gaining momentum.
We see the music market as relatively healthy. While competition is easing,
sales of monthly fixed-rate plans are growing stronger. Recently, Tencent
acquired China Music Corporation, China’s largest music streaming service.
Once the service is combined with Tencent’s QQ Music (the second-largest
service) the merged entity will boast market share in excess of 50%. This level
of relative market leadership is comparable to that of Loen Entertainment,
which operates the Melon service in Korea. The monthly fixed-rate fee for QQ
Music is roughly RMB15 (W2,500).
The online video market is characterized by intense competition. While games
and music streaming services enjoy a certain degree of loyalty, video viewers
frequently switch from platform to platform. As such, the top three Chinese
online giants are forced to pursue aggressive content buying and marketing
activities, leading to losses at their video businesses. IQiyi, an online video
platform owned by Baidu, won exclusive rights to the smash Korean drama
Descendants of the Sun earlier this year. In addition, Tencent recently signed
an exclusive Chinese broadcasting contract for NBA games. Notably, pre-roll
ads are proving to be a major revenue source. In addition, fixed-rate monthly
payment plans for VIP customers are being introduced gradually. Tencent
charges RMB20 (W3,400) for its fixed-rate monthly plan.
2) Digital ad market: Mobile growth offers opportunities to Tencent
In the Chinese digital ad market, social media and mobile advertising are
displaying accelerating growth backed by increasing LTE penetration, offering
opportunities to Tencent. In the PC era, the ad market was driven by search
ads. In the mobile era, the rising popularity of social media and messaging
services has been driving up advertisers’ interest in WeChat and Weixin, a
cross-platform instant messaging service developed by Tencent. Of note,
Tencent is expanding joint ad sales with Cheil Worldwide’s Chinese subsidiary
PengTai as well as Nasmedia.
Earlier this year, a college student died after clicking through a misleading
healthcare-related search ad on Baidu, which has resulted in a tightening of
government regulations on search ads. The tragedy has cast a negative light
on Baidu, which should benefit Tencent.
Table6.Tencentrecordedstrongest1H16earningsamongBATplayers (RMBmn)
Baidu Alibaba Tencent
Mainbusinessareas Search, cloud E-commerce,payments Messaging,games
Founding date Jan.2000 Apr.1999 Dec. 1998
Headquarters Beijing Hangzhou Shenzhen
1H16 revenue 34,084 56,338 67,686
1H16netprofit 4,381 12,456 20,148
Note: Net profit is attributable to controllingandnon-controllinginterests
Source: Company data, Mirae Asset Daewoo Research

22
August 23, 2016
2. Current businesses and outlook
1) Short-term growth driver: Mobile games
We believe Tencent’s short-term growth driver is mobile games, as: 1) global
game publishing channels, including Google Play, are blocked in China; and 2)
the company will be able to leverage WeChat’s existing user base.
To distribute quality mobile game content, Tencent will likely continue to
strive to secure intellectual property from across the globe. A case in point is
its recent acquisition of Supercell. In addition, the company is expected to
deliver revenue growth via in-house development as well as licensing.
2) Medium/long-term growth drivers: Games, mobile ads, payments
Smartphone games are expected to drive up Tencent’s growth over the
medium to long term. Of note, the company is steadily pursuing genre
diversification, moving beyond the casual space into player-vs.-player (PvP)
role playing games (RPGs) and hardcore gaming. These efforts should help
the company attract more players, and generate higher ARPU.
The mobile ad business, which is still in its initial growth stage, holds huge
potential. And leveraging its dominance over its BAT rivals in the messaging
and social media segments, Tencent should benefit greatly from rising
interest in social marketing campaigns. To mitigate user resistance, the
company will increase ad inventory only gradually.
The payments business also holds great potential. Due to the low penetration
of credit cards in China, smartphone-based payment services are rapidly
becoming popular. Tencent has aggressively expanded its foothold in the
payments market via its mobile messenger app WeChat. Currently, WeChat
Pay leads China’s O2O payment service market. In addition, Tencent’s
investment in and cooperation with JD.com, the second largest e-commerce
firm in China, will likely provide a boost to the business.
Figure 53. Tencent is China’s topsocial media company
(including QQ, WeChat, etc.)
Figure 54. Tencent increasing its dominance through active
partnerships and investments
Source: Tencent, Mirae Asset Daewoo Research Source: Tencent, Mirae Asset Daewoo Research

23
August 23, 2016
DJI
Civilian drone maker established in Shenzhen in 2006
Controls 70% of the global civilian drone market; Valued at
US$10bn in 2015
Launched Phantom 4; Expanding its business scope by
launching a camera brand and developing action cameras
Company overview
DJI is a Chinese drone manufacturer founded by Frank Wang in 2006. The
company got its start by developing flight control systems for radio-controlled
helicopters. In 2013 the company ventured into the civilian drone market by
launching its first Phantom model. It now controls 70% of the global civilian
drone market and generated revenue of US$1bn in 2015 (vs. US$130mn in
2013). Last year, DJI received US$75mn in funding from Accel Partners. The
company is currently valued at around US$10bn.
China’s drone industry
China’s drone industry has grown rapidly thanks in large part to the country’s
status as the largest smartphone component supplier in the world. Indeed,
drone makers, including Ehang, Xaircraft, Syma as well as DJI, have formed a
cluster in Shenzhen, a major smartphone parts production base, which allows
for easy sourcing of parts used in both handsets and drones.
Issues
DJI’s latest model, the Phantom 4, was unveiled early this year. Its battery
boasts a capacity of 5,350mAh (vs. 4,480mAh for the previous model), but
total flight time still falls short of 30 minutes. Sunwoda Electronics (300207
CH) is believed to be the firm’s battery supplier.
The Phantom 4’s vision positioning system enables obstacle avoidance. And
the model features wider-range obstacle detection compared to the previous
model as well as a Sony 12MP 4K camera.
DJI has recently branched out into aerial zoom cameras (Zenmuse Z3) and
action cams (Osmo), launching flagship stores at home and abroad to
improve brand value.
Figure 55. DJI revenue trend Figure 56. DJI flagship store in Shenzhen
ChinaChinaChinaChina
Drone ManufacturingDrone ManufacturingDrone ManufacturingDrone Manufacturing
((((UnlistedUnlistedUnlistedUnlisted))))
4
26
130
500
1,000
0
200
400
600
800
1,000
1,200
2009 2010 2011 2012 2013 2014 2015 2016
Revenue
(US$mn)
1/13
Phantom1
4/15
Phantom3
- Recorded NArevenueof
US$5.6mn
- EstablishedUSaffiliate
3/16
Phantom4

24
August 23, 2016
Figure 57. Phantom 4 is the most popular model Figure 58. Phantom 4 packaging (including accessories)
Figure 59. Phantom 4 features higher-capacity battery
Figure 60. Vision positioning sensor is located on the
underside of the Phantom 4
Figure 61. Zenmuse Z3 Figure 62. Osmo camera

25
August 23, 2016
APPENDIX 1
Important Disclosures & Disclaimers
Disclosures
As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates do not have any special interest with the subject company and do not own 1%
or more of the subject company's shares outstanding.
Analyst Certification
The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to
Korean securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws and regulations
thereof. Opinions expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts
primarily responsible for this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their
households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or
advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any
other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. No part of
the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report
but, like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is impacted by overall firm profitability, which includes
revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the
time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or
Mirae Asset Daewoo except as otherwise stated herein.
Disclaimers
This report is published by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange.
Information and opinions contained herein have been compiled from sources believed to be reliable and in good faith, but such information has
not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness,
accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean
language. If this report is an English translation of a report prepared in the Korean language, the original Korean language report may have been
made available to investors in advance of this report. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents do not
accept any liability for any loss arising from the use hereof. This report is for general information purposes only and it is not and should not be
construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The intended recipients of
this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws
and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject Mirae Asset
Daewoo and its affiliates to registration or licensing requirements in any jurisdiction should receive or make any use hereof. Information and
opinions contained herein are subject to change without notice and no part of this document may be copied or reproduced in any manner or form
or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo. Mirae Asset Daewoo, its affiliates and
their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a
purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or
otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into,
business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted
under applicable laws and regulations. The price and value of the investments referred to in this report and the income from them may go down
as well as up, and investors may realize losses on any investments. Past performance is not a guide to future performance. Future returns are not
guaranteed, and a loss of original capital may occur.
Distribution
United Kingdom: This report is being distributed by Daewoo Securities (Europe) Ltd. in the United Kingdom only to (i) investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth
companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons
together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should
not act or rely on this report or any of its contents.
United States: This report is distributed in the U.S. by Daewoo Securities (America) Inc., a member of FINRA/SIPC, and is only intended for major
institutional investors as defined in Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934. All U.S. persons that receive this document by
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to effect a transaction in any securities discussed herein should contact and place orders with Daewoo Securities (America) Inc., which accepts
responsibility for the contents of this report in the U.S. The securities described in this report may not have been registered under the U.S.
Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable
exemption from the registration requirements.
Hong Kong: This document has been approved for distribution in Hong Kong by Daewoo Securities (Hong Kong) Ltd., which is regulated by the
Hong Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This
report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong
Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.
All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact
Mirae Asset Daewoo or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations
and not subject Mirae Asset Daewoo and its affiliates to any registration or licensing requirement within such jurisdiction.

26
August 23, 2016
Mirae Asset Daewoo International Network
Mirae Asset Daewoo Co., Ltd.(Seoul) Daewoo Securities (Hong Kong) Ltd. Daewoo Securities (America)Inc.
Head Office
34-3 Yeouido-dong, Yeongdeungpo-gu
Seoul 150-716
Korea
Two International Finance Centre
Suites 2005-2012
8 Finance Street, Central
Hong Kong, China
320 Park Avenue
31st Floor
New York, NY 10022
United States
Tel: 82-2-768-3026 Tel: 85-2-2845-6332 Tel: 1-212-407-1000
Daewoo Securities (Europe) Ltd. Daewoo Securities (Singapore)Pte., Ltd. Tokyo Representative Office
41st Floor, Tower 42
25 Old Broad St.
London EC2N 1HQ
United Kingdom
Six Battery Road #11-01
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2-3-2 Marunouchi, Chiyoda-ku
Tokyo 100-0005
Japan
Tel: 44-20-7982-8000 Tel: 65-6671-9845 Tel: 81-3- 3211-5511
Beijing Representative Office Shanghai Representative Office Ho Chi Minh Representative Office
2401A, 24th Floor, East Tower, Twin Towers
B-12 Jianguomenwai Avenue
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China
Room 38T31, 38F SWFC
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China
Suite 2103, Saigon Trade Center
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Dist. 1, Ho Chi Minh City,
Vietnam
Tel: 86-10-6567-9299 Tel: 86-21-5013-6392 Tel: 84-8-3910-6000
DaewooInvestment Advisory(Beijing)Co., Ltd. Daewoo Securities (Mongolia)LLC PT. Daewoo SecuritiesIndonesia
2401B, 24th Floor, East Tower, Twin Towers
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