Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE) Business Report FY ended Dec. 2018
Financial Overview |
(in million yuan) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | Rate of change | Factors | |
| Sales | 6,700.89 | 6,657.15 | 0.66% |
-The Company successfully completed the 51% equity transfer of erea Auto (included in the consolidated statements) and realized profitability. |
| Operating profit | 26.52 | (279.78) | - | |
| Ordinary profit | 44.78 | (320.66) | - | |
| Net profit | 31.92 | (348.29) | - |
Parent Company
-Shanghai Aerospace Automobile Electromechanical Co., Ltd. announced that its largest shareholder, Shanghai Aerospace Industry (Group) Co., Ltd., and Shanghai Academy of Spaceflight Technology signed a memorandum of a share transfer agreement. Under the agreement, Shanghai Aerospace Industry will transfer 26.45% of shares in Shanghai Aerospace Automobile Electromechanical to Shanghai Academy of Spaceflight Technology for CNY 1.55 billion. Once the transaction is completed, Shanghai Academy of Spaceflight Technology will have a 26.45% stake in Shanghai Aerospace Automobile Electromechanical to become the largest shareholder. Shanghai Aerospace Industry will still have a stake of 1.89%. Shanghai Academy of Spaceflight Technology (SAST) is a research institute located in Minhang District in Shanghai. It’s involved in space technology research, development and manufacturing of satellite application equipment, development and production of communication equipment, development of computer-related technology, as well as technology transfer and technical consulting. (From a press release on December 28, 2018)
New Factory
-A subsidiary of Shanghai Aerospace Automobile Electromechanical Co., Ltd., SDAAC Automotive Air-Conditioning Systems Co., Ltd. Shanghai, announced a plan to set up a subsidiary, SDAAC (Changshu) Automotive Air-Conditioning Systems Co., Ltd. The total registered capital in the new company is CNY 198 million. It will be built in the Changshu Hi-tech Zone in Jiangsu as a wholly-owned subsidiary of SDAAC Automotive Air-Conditioning Systems. It will be a supplier of parts and components for automotive air conditioners, evaporators, condensers, heater cores, connecting pipes, and radiators. The land-use classification of the current location of SDAAC Automotive Air-Conditioning Systems’ plant in Shanghai was changed from industrial to non-industrial, so the company decided to move the production facilities from Shanghai to Changshu to continue the production in Changshu. (From a press release on December 27, 2018)
Acquisition
-Shanghai Aerospace Automobile Electromechanical Co., Ltd. announced on March 5, 2019, that its subsidiary, Shanghai Aerospace Holding (HongKong) Co., Ltd., will acquire 19% shares in erae Automotive Systems Co., Ltd. erae Automotive Systems was established in 1984. Located in the Daegu city, South Korea, it works on production and sales of automotive air conditioning systems, breaks, steering, electronics parts, and engine components. It has a total asset of Korean won (KRW) 2.03 billion, sales of KRW 2.21 billion, and a net profit of KRW 57 million. After the share transfer, erae Auto will be owned 70% by Shanghai Aerospace Holding (HongKong) and 30% by erae cs Co., Ltd. (From a press release on March 6, 2019)
Contract
-In early 2019, Shanghai Kangbasaite Technology Development Co., Ltd., the Company's subsidiary, received commission from Hawtai Motor to provide brushless EPS products for Hawtai's B35 platform. Production of the model underpinned on the B35 platform will start in the second half of 2019. The annual production capacity of the component will be 30,000 sets. (From the Company's press release on March 26, 2018)
Business Plan for Next Year
-In the year of 2019, the Company plans to achieve an operating income of CNY 6.5 billion and a total profit of CNY 80 million.
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, 2018 (million CNY) |
FY ended Dec. 31, 2017 (million CNY) |
FY ended Dec. 31, 2016 (million CNY) |
|
| R&D Expenditure | 357.31 | 273.09 | 197.35 |
| Ratio of R&D expenses to operating income | 5.33 | 4.10 | 3.62 |
Capital investment project |
(As of Dec. 31, 2018) |
| Projects | Planned amount of investment (million yuan) |
Amount invested in 2017 (million yuan) |
so far invested of the total planned investment amount (%) |
| NEV Production & Research Facility Construction Project | 498.66 | 48.50 | 20 |
| CS Plant Establishment | 34.40 | 11.81 | 35 |
| Poland Lab Construction Project | 10.55 | 10.15 | 95 |
| MQB AO HVAC | 12.94 | 9.44 | 75 |
| SDAAC Changsu BOP Furnace | 11.50 | 3.09 | 100 |
| Wet Black Silicon 200MW Battery Technology Transformation Project | 8.10 | 3.85 | 100 |