Business results for FY2007

( in million yuan)	2007	2006	Difference (%)	Factors
Sales	484.02	445.64	8.6	Sales increased year-on-year, thanks to strong sales of heavy-duty trucks in China. Above all, a significant increase was seen at Changchun Yidong Automobile Components Manufacturing Co., Ltd., which manufactures cab tilting systems. The year-over-year growth rate at this subsidiary reached 347 percent.
Operating profit	13.69	12.27	11.6
Ordinary profit	13.95	10.95	27.4
Net profit	11.62	8.16	42.4

The Jinlin Dongguang Group's reorganization plans
- In September 2007, Jinlin Dongguang Group Co., Ltd., which is the parent organization of the Company, announced that it will hand over the following assets in the automotive business to the Company. In exchange, Changchun Yidong Clutch Co., Ltd. will issue a total of between 27 million and 40 million unquoted common shares. These yuan-denominated A-shares will be transferred to Jinlin Dongguang Group Co., Ltd: 

	Company name	Products	Assets to be transferred from Jinlin Dongguang to the Company
1.	Jilin Dahua Machine Manufacturing Co., Ltd.	Flywheel ring gears	89.52 percent share in this subsidiary
2.	Jilin Dongguang Ruibao Auto Lamp Co., Ltd.	Lamps	100 percent share in this subsidiary
3.	JiLin Autommobile Brake Factory	Brake products	All the assets and liabilities of this subsidiary
4.	Changchun Dongguang Tools Factory	Manufactured products, repair works	All the assets and liabilities of this subsidiary

These assets, which are tentatively estimated at 400 million yuan in total, will be evaluated at the State-owned Assets Supervision and Administration Commission.

R&D activities
- In FY2007, the Company developed 24 new products and remodeled eight. 
- In FY2007, the Company directly invested a total of around 3 million yuan in R&D activities.

Capital investment for FY2007
- In 2007, the Company completed the first phase of an investment project to augment its production lines in order to make clutches for use in FAW-VW vehicles.  

Capital investment plans for FY2008
- The Company plans to move its operations to Wuxi Changchun High-New Tech Industrial Development Zone.  
- The Group will expand its production facility at Shenyang Yidong Four Rings Clutch Co., Ltd.