Guizhou Guihang Automotive Components Co., Ltd. Business Report FY ended Dec. 2017

Business Results

(in million yuan)

	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016	Rate of change	Factors
Sales	3,391.14	3,361.21	0.89%	-Continuously exploring markets; obtained additional purchase orders of CNY 2.564 billion; strengthened budget management.
Operating profit	227.41	194.27	17.06%	-
Ordinary profit	240.41	216.73	10.92%
Net profit	210.29	190.84	10.19%

Equity Adjustment

-Guizhou Guihang Automotive Components Co., Ltd. said on November 6, 2017, that the company acquired shares in its three subsidiaries. Specifically speaking, the company bought a 47% stake in Guizhou Huayang Automotive Parts Co., Ltd. from its wholly-owned subsidiary, Guizhou Huayang Electronics Co., Ltd., to raise its shareholding ratio to 85% from 38%. The company also purchased all shares in Chengdu Wanjiang Automotive Components Co., Ltd. in which another wholly-owned subsidiary, Guiyang Wanjiang Aviation Electromechanical Co., Ltd., holds, to make it a wholly-owned subsidiary of the company. Also, the company purchased 80% shares in Shanghai Wanjiang Automobile Parts Co., Ltd. to hold an 80% stake from Guiyang Wanjiang. (From a corporate announcement on November 6, 2017)

Contracts

-Got the supply agreements of key related products with Changan commercial vehicles.

-Developed locks for BAIC Group platform, and supplied in batch to part of models.

-Supplied in batch to BAIC New Energy.

-Supplied locks of GAC Group GS4.

Business Plan for Next Year

-In 2018, the Company plans to reach 3.4 billion sales, increased by 0.26% on year-over-year basis; and plans to reach 0.26 billion profits, increased by 8.15% on year-over-year basis. (From the Company's 2017 annual report)