Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE) Business Report FY ended Dec. 2016

Financial Overview

(in million yuan)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 Rate of change Factors
Sales 5,448.47 4,039.94 34.87%

-From March 31, 2016, the Company's shares in SDAAC Automotive Air-Conditioning Systems Co., Ltd., Shanghai rose from 37.5% to 87.5% and SDAAC merged into the Company's consolidated statement, thus, the Company's automotive sales increased.

Operating profit 225.83 152.86 47.74%

-

Ordinary profit 250.07 195.65 27.81%
Net profit 213.26 180.17 18.37%



Contract

-Brushless motors produced by the Company's Automotive Electronics Branch for electric power steering system for new models of Zotye International Automobile Trading Co., Ltd. have passed the customer’s off tooling sample (OTS) road tests. Accordingly, the supplier has won an official OTS certificate and signed a technical agreement and a product supply agreement. (From a press release on June 21, 2017)

-SDAAC Automotive Air-Conditioning Systems Co., Ltd., Shanghai, the Company's subsidiary, started to supply HVAC air conditioning box assemblies for Roewe "E950" from 2016; to develop HVAC air conditioning box assemblies for SAIC GM "SGMK 226/227" (internal code), is expected to start mass production from the fourth quarter of 2018. (From the Company's 2016 annual report)

Business Plan for Next Year

-In 2017, the Company plans to reach CNY 6.0 billion sales and CNY 60 miliion ordinary profit . (From the Company's 2016 annual report)

R&D Structure

-The Company has a National Delphi Automotive Air Conditioning R&D center (SDAAC Automotive Air-Conditioning Systems Co., Ltd., Shanghai) and Shanghai municipal-level Automotive Electronics Technology Center.



R&D Expenditure

FY ended Dec. 31, 2016
(million CNY)
FY ended Dec. 31, 2015
(million CNY)
FY ended Dec. 31, 2014
(million CNY)
R&D Expenditure 197.35 207.56 123.44
Ratio of R&D expenses to operating income 3.62% 5.14% 3.26%



Patents

-In 2016, the Company was awarded 79 patents in total, 99 of them is patents of invention. The Company had 45 new authorized patents, 10 of them is patents of invention. (From the Company's 2016 annual report)

Capital Investment Projects

(As of Dec. 31, 2016)
Projects Planned amount of investment
(million CNY)
Amount invested in 2016
(million CNY)
Construction status
The establishment of the assembly line of brush motors for EPS system 29.96 1.48 100%
The establishment of the production line of brushless motors for EPS system 126.14 36.76 100%
New energy automobile production base construction project 498.66 14.16 4%