Shanghai Aerospace Automobile Electromechanical Co., Ltd.(SAAE) Business Report FY2010

Business Highlights

Financial Overview

(In million yuan) 2010 2009 Difference(%) Factors
Sales 2,488.50 1,310.29 89.92%

-The sales of auto parts reached 714.32 million yuan, increased 40.70% year-on-year.

Operating profit
149.71 89.69 66.92%

-The parent company sold 1500 million shares of Guotai Junan Securities Co., Ltd., which resulted in a gain on investment of 138.55 million yuan.
-the profit of Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd increased.

Ordinary profit 167.65 112.63 48.85%
Net profit 133.67 93.79 42.52%


-The Company will purchase 37.5 percent of the shares in Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. from Shanghai Automobile Air-conditioner Factory. Shanghai Delphi Automotive Air Conditioning Systems is a joint-venture company between Delphi and Shanghai Automobile Air-conditioner Factory. When the transaction is completed, the company will be owned 50 percent by Delphi, 37.5 percent by SAAE, and 12.5 percent by Shanghai Automobile Air-conditioner Factory. SAAE will obtain the ownership right for the period ending on December 31, 2016. (From an announcement by the company, November 26, 2010)


-Shanghai Xinguang Automotive Electrical Equipment Co., Ltd. a subsidiary of the Company, was designated as a supplier of AP-12 fuse boxes by Shanghai Automotive. The company will start producing them at the end of October.The company is looking forward to this business becoming a steppingstone to its continued activities in developing body control modules (BCMs). (From a press release, April 9, 2010)

-BMW, which commissioned the Company to develop ABS sensors for the F3 series vehicles, has sent a special team to SAAE to conduct a screening on the development project. The team spent four days visiting the production facilities such as plant and testing laboratory, exchanging opinions with SAAE on areas including quality control, product development, and management of Tier 2 suppliers. The team also checked the status of the testing being done on the ABS sensors used in its F30 and F35 vehicles. (From a press release, April 29, 2010) 


New plant

-On October 21, Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd., a subsidiary of the Company, held a ceremony to celebrate the operation launch of its new plant in the Huishan Economic Development Zone in Shenyang City. The 12,000-square-meter facility has the capacity to produce 500,000 to 600,000 sets of car air conditioner systems for automakers in the northeastern part of China. The plant is fully owned by Shanghai Delphi Automotive Air Conditioning Systems. (From new releases issued by multiple sources on October 22, 2010)


-The Company,which had announced establishment of a new company, Automotive Electronics Branch Company, by consolidating its three existing subsidiaries(Sensor Branch, which produces ABS sensors; Shuhang Electric Equipment Branch, which produces automotive-air-conditioner evaporator blowers; and Shanghai Xinguang Automotive Electrical Equipment Co., Ltd., which produces electronic parts.)in Jinqiao, Shanghai, has now decided to make Shanghai Xinguang Automotive Electrical Equipment, one of the three subsidiaries, its wholly owned subsidiary prior to the integration. Based on negotiations between SAAE and Shanghai Liuli Enterprise Development Co., Ltd., which currently holds a 30 percent share in Shanghai Xinguang Automotive Electrical Equipment, Shanghai Liuli Enterprise Development has agreed to withdraw from the joint venture business, reducing its capital. (From an announcement by the company, February 17, 2011)


-The Company will sell all its shares in Shanghai Automobile Air-conditioner Factory, which is now included in the company's consolidated financial statements, and pull out of the business conducted at the subsidiary. (From an announcement by the company, November 26, 2010)

-The Company will pull out of the business operated by Shanghai CNG Automotive System Co., Ltd., liquidating the 60 percent shareholding it has in the company. Shanghai CNG Automotive System manufactures gas cylinders for compressed natural gas. It has been plagued with financial difficulties due to soaring prices of natural gas and the shrinking gas cylinder market in China. (From an announcement by the company, October 19, 2010)


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.

-The Company will establish a state-level facility to conduct research and development of automotive technology. The company is intending to spend more than 70 million yuan in research and development activities at the new R&D center each year, planning to develop electronic power steering systems and oxygen sensors, starting in 2011. (From a press release, November 19, 2010)

 Product Development

-The prototype of EPS developed by the company has finished and was put into the test stage in 2010.

-The development of prototype of the automotive oxygen sensor has completed in 2010.
-The junction box for Passat B5 and  air conditioner motors  passed the technological assessment of Germany VW in 2010.

Investment Activities

Capital Investment Projects for 2010

Project Amount invested in FY2010 
(in million yuan)
EPS power steering 8.94 Under construction

Developing automotive air conditioner  tubes(for Shanghai VW Bora)

1.67 Finished

Developing junction boxes

3.94 Finished

Automotive oxygen sensor

6.53 Under construction