Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE) Business Report FY ended Dec. 2017
|(in million yuan)|
|FY ended Dec. 31, 2017||FY ended Dec. 31, 2016||Rate of change||Factors|
-On March 31, 2016, the equity held by the company rose from 37.5% to 87.5%, and was included in the scope of the company's consolidated statements, which resulted in a significant increase in the company’s business income in auto parts and components.
-As the block of the EASTCO Shanghai Plant is to be relocated, the company decided to build a new production base in Changshu City, Jiangsu Province, and part of the production lines and products of the Shanghai plant have been relocated to the new plant for production. The total investment of the factory construction project is 169 million yuan, and it is capable of a product of 1.05 million cabin air-conditioning systems, 3.3 million HVAC heat exchanger cores, 150,000 engine cooling systems, and 2.45 million PTC heat exchanger cores. At the beginning of 2018, the main plant of the factory building in Changshu was completed and production conditions were met. In the same year, the production line relocation plan will be implemented and it is expected that all relocation will be finished by early 2020.
Acquisition of 70% stake in erae Automotive
-Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE) announced on October 21, 2017, a plan to increase capital in its wholly-owned subsidiary, Shanghai HT Holding Hongkong Limited, by USD 152 million. The subsidiary is going to use this additional capital for acquiring a 70% stake in a Korean automotive component supplier, erae Automotive Systems Co., Ltd. After the capital increase, Shanghai HT Holding Hongkong will have an increased registered capital of USD 210 million. Shanghai HT Holding Hongkong was established in 2011 as an investment company mainly in the areas of new energy, automotive components, and new materials. erae Automotive Systems produces electric components, brake systems, steering systems, air conditioning systems, and other automotive core components and modules. (From a corporate announcement on October 21, 2017)
-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)
Business Plan for Next Year
-In the year of 2018, the company plans to achieve an operating income of 8 billion yuan and a total profit of 10 million yuan.
It is estimated that ASD will have a consolidated operating income of 2.1 billion yuan and a total profit of 105 million (excluding overseas R&D and other inputs).
-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.
|FY ended Dec. 31, 2017
|FY ended Dec. 31, 2016
|FY ended Dec. 31, 2015
|Ratio of R&D expenses to operating income||4.10||3.62||5.14|
-In 2017, 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)