1)
-Influenced by macro-control of the State in 2011 and the withdrawal of encouragement policies of automobile consumption, sales of the Company's major customers Hafei Auto and Changhe Auto decreased a lot. Therefore, the sales of the Company reduced accordingly. In 2011, the Company sold 233,000 engines and sold 4953 transmissions.

-In 2011, the proportion of products sold to companies other than Changan Automobile Group increased 13.3%. The Company started to supply its products to Shaanxi Tongjia Automobile Co., Ltd. in bulk and developed business relationship with Southeast Asia counties and exported some products.

-The Company planned to sell 280,000 powertrain assemblies in 2012 and achieve sales of 1.75 billion.(From the Company's 2011 annual report)

Reorganization

-In December 2009, Aviation Industry Corporation of China agreed to transfer the shares of stock it has in the Company to China Changan Automobile Group Holdings Co., Ltd. Based on this agreement, Aviation Industry Corporation of China and the China Changan Automobile Group signed a stock transfer report on March 20, 2011 according to a voluntary transfer system for state-owned shares. When the transaction is completed, the Company will be owned 54.51 percent by China Changan Automobile Group Holdings, and the remaining 45.49 percent will be outstanding. The stock transfer project has been approved by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). (From an announcement by the company, March 20, 2011)