Shanghai Aerospace Automobile Electromechanical Co., Ltd. Highlights 2007

Business Highlights

(In million yuan) 2007 2006 Difference(%) Factors
Sales 1,350.83 2,162.88 (37.5) Sales and profit decreased year-on-year due to the following factors:
- Removal of two subsidiaries (See Note below) from the Company's consolidated statements
- A shortage in materials, which stalled production of high-pressure tanks and solar energy products
- Rising materials costs and prices for business related items
Operating profit
53.87 140.20 (61.6)
Ordinary profit 67.25 143.34 (53.1)
Net profit 57.07 126.93 (55.0)
Note: Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd.; and Air-conditioner International (Shanghai) Co., Ltd. were removed from the Group's consolidated statements in 2007.


R&D structure
The Company conducts R&D activities for air conditioners, solar energy, and composite materials at respective research centers specially designed to cover each area.

Investment Activities

Capital Investment Projects for 2007
Project Amount invested in FY2007
(in million yuan)
Expanding facility to produce CNG tanks 7.0 Almost completed
Expanding R&D facility 21.0 Under construction
Constructing a new plant in Pujiang Town, Minhang District, Shanghai 25.4 Under construction

- In May 2007, the Company decided to raise additional capital in the amount of 30 million yuan at Shanghai Composite High-Tech Development Co., Ltd., one of its subsidiaries. Shanghai Composite High-Tech Development was established in January 2006 to manufacture clean-energy products such as automotive CNG tanks and LPG tanks. The plan this time to increase capital is part of the 70 million yuan capital increase project that the Company originally approved in May 2006. Having already raised 40 million yuan by December 2006, the company will complete the project with the remaining 30 million yuan. The subsidiary has completed the majority of the construction work at the new plant site in Pujiang Town, Minhang District, Shanghai. Its sales of high-pressure tanks reached 63.9 million yuan in 2007.

The majority of the following projects were completed in 2007:
- Transferring production of high-pressure tanks at Shanghai Composite High-Tech Development Co.,Ltd.; and
- expanding the facility making helium tanks at Shanghai CNG Automotive System Co., Ltd.