Sales for FY2012

(million yuan)

	FY2012	FY2011	Rate of change	Factors
Sales	7,859.17	6,547.27	20.04%	- Sales increased year-on-year as a result of increase of market share by developing new products and cooperating with car maker in new projects, and improved quality of product and expand capacity.
perating profit	294.78	282.09	4.50%	-
Ordinary profit	393.63	352.18	11.77%
Net profit	293.78	258.33	13.72%

-The revenue of auto parts manufacturing and after-sales service in 2012 reached 5,024 million yuan, increased 19.66% year-on-year and the net profit readed 156 million yuan.

Supply Agreement

-Shanghai Jiaoyun Auto Power Components Co., Ltd., which is a wholly owned subsidiary of the Company, will invest 118.83 million yuan in its existing plant in Jinqiao, Pudong, Shanghai to increase production capacity. The facility will supply F6 automatic transmission systems for installation on 680,000 Changan Ford Mazda vehicles.

Rename
-Shanghai Jiao Yun Co., Ltd. has adopted a new corporate name, the Shanghai Jiao Yun Group Co., Ltd. The company received a new operating license from the Shanghai Administration for Industry and Commerce on June 15, 2012. The stock name and the security code number remain unchanged. (From an announcement by the company, June 28, 2012)

R&D Activities
- The expenditure on R&D  in 2012 reached 80.79 million yuan, increased 17.91% year-on-year.

- The Company applied for 27 patents.
- Model C14/B12 rods and a number of new products are being implemented orderly.
- Yantai Zhongrui Automobile Parts Co., Ltd is identified as Yantai Enterprise Technology Center. Shanghai Intier Jiaoyun Automotive Parts Co has passed the assessment of Shanghai municipal enterprise technical center.(From the Company's 2012 annual report)

Investment Activities in FY2012

(million yuan)

Project	Planned amount of investment	Amount invested in 2012	% so far invested of the total planned investment amount	Remarks
CF6 automatic transmission system project for Shanghai GM	340.20	9.17	95%	Adding production equipment at Shanghai Jiaoyun Auto Power Components Co., Ltd.
Expand capacity of GF6 automatic transmission shift systems	113.27	46.14	80%
Capacity increase project for stamping and welding operations	457.93	0	5.40%	Adding production equipment at Automobile Parts Branch Company
New plant project in Yantai to support Shanghai GM Dong Yue	189.70	16.78	100%	Adding production equipment at Automobile Parts Branch Company
New plant project in Shenyang to support Shanghai GM (Shenyang) Norsom	173.17	27.83	97.13%	Adding production equipment at Automobile Parts Branch Company
GEN3 Project (supply Shanghai GM Dongyue)	79.30	2.56	93.19%	Adding production equipment at Shanghai Jiaoyun Auto Power Components Co., Ltd.
Project of connecting rod assemblies for small-displacement engines	80.57	0.73	90%	-
Project of connecting rod assemblies in Yantai Plant	176.42	133.93	79.58%	Adding production line at Yantai Zhongrui Automobile Parts Co., Ltd.
Ford Project (supply for Ford)	103.25	15.52	15%

 

Investment to increase production capacity
- The Company has acquired a 54,356.3-square-meter site at the Pudong new area, Shanghai for 84.90 million yuan. It is going to establish a new plant to produce automotive body parts. The company received confirmation of the contract from the district authorities on August 9, 2012. (From an announcement by the company, August 9, 2012)

-Shanghai Jiaoyun Auto Power Components Co., Ltd., which is a wholly owned subsidiary of the Company., will invest 118.83 million yuan in its existing plant in Jinqiao, Pudong, Shanghai to increase production capacity. The facility will supply F6 automatic transmission systems for installation on 680,000 Changan Ford Mazda vehicles, expecting sales of 24.64 million yuan. The new business is expected to open up opportunities for the company to gain more business in the southwest region of China. (From a press release, July 18, 2012)

-The Company decided on the following investment projects at a board meeting held on April 27, 2012: 
1) the company will invest 265.64 million yuan in Shanghai Jiaoyun Automobile Fine Blanking Co.,Ltd., its subsidiary making seat adjusters and other vehicle parts, to establish an automatic high-speed casting line to make vehicle body parts. Sales are expected to reach 648.15 million yen when the new production line is fully operated.
2) the company will invest 281.6 million in establishing a new auto parts plant on 54,000 square meters of land at the Jianqiao Development Zone in Pudong, Shanghai. Sales are expected to reach 740.74 million yuan when the new production lines are fully operated. (From an announcement by the company, May 7, 2012)

- To meet the need of Shanghai GM for BC series engine, Yantai Zhongrui Automobile Parts Co., Ltd. will invest totally 114.84million yuan to expand its producing capability of connecting rod assemblies for small-displacement engines and rebuild its production line to adapt to flexible production. 26 sets of euipments will be newlly added. the project is expected to start construction from 2012 and start operation in July, 2013 and be fully operational in 2016 with an annual producing capability of 1.76million pieces (at 3 shifts basis). (From a press release, Jan 19, 2012)