1 Part 1 . Overall Mobile Phone Market in China December domestic mobile phone shipments reached 35.7 million units, down 16.3 percent year over year. 42 new models were released in the month, down 53.3 percent year-over-year (y/y). Over the past year, domestic mobile phone shipments reached 414.2 million units and number of new model release reached 764, down 15.6 percent and 27.5 percent y/y respectively. Chart 1: Domestic mobile phone shipments from December 2017 to December 2018 Part 2 . Development of 4G Mobile Phones December domestic 4G mobile phone shipments were 33.6 million units, down 16.8 percent y/y, and represented 94.3 percent of the total shipments. 37 new 4G models were released in the month, down 35.1 percent y/y, accounting for 88.1 percent of the total new models this month. Over the past year, domestic 4G mobile phone shipments were 391.5 million units, down 15.3 percent y/y, and represented 94.5 percent of the total shipments. The total number of new model release reached 590 down 27.2 percent y/y, accounting for 77.2 percent of the total new model release. 43 39 18303438 37 373339 3935 36 5.1% 6.9%3.2%6.9%4.6% 4.7% 4.1%6.8% 6.1% 5.1% 5.2% 4.9% 5.7%0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.2% 0.1%94.8% 93.0%96.8%93.0%95.4%95.3% 95.9%93.2% 93.9% 94.8% 94.5% 94.9% 94.3% 0%20%40%60%80%100%120% 01020304050 17M12 18M1 18M2 18M3 18M4 18M5 18M6 18M7 18M8 18M9 18M10 18M11 18M12 Shipments(Unit: Million) 2G Share 3G Share 4G Share 2 Part 3 . Local and MNC Brands of Mobile Phones December mobile phone shipments by the local brands reached 32.2 million units, down 9.6 percent y/y, accounting for 90.2 percent of the domestic mobile phone shipments. Number of new model s released by the local brands (38 units) decreased by 54.2 percent y/y, and represented 90.5 percent of the total number of new model release in the month. Mobile phone shipment volume for year 201 8 by the local brands reached 370.8 million units, down 14.9 percent y/y, and accounted for 89.5 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 695 units) decreased by 29.4 percent y/y, and represented 91.0 percent of the total number of new model release in the domestic market. Chart 2: December 2018 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones December smart phone shipments were 33.5 million units, down 17. 0 percent y/y, and accounted for 94.0 percent of the domestic mobile phone shipments in the month. Over the past year, smart phone shipments were 389.9 million units, down 15.5 percent y/y, and repres ented 94.1 percent of domestic mobile phone shipments. In December , 36 new smart phone models were released, down 37.9 percent y/y, and accounted for 85.7 percent of the number of new release. Over the past year, 587 new smart phone models were released, down 26.5 percent y/y, and accounted for 76.8 percent of the number of new release. Local Brands 90.2%MNC Brands 9.8%