OREANDA-NEWS. July 23, 2012. SAIC Motor Corporation Limited (Securities code: 600104; hereafter “SAIC Motor” for short) released 2011 Annual Report. The data shows that gross trading income of company in 2011 is 434.804 billion yuan with Y-to-Y increase of 18.89%; the net income belong to shareholders of listed company is 20.222 billion yuan with Y-to-Y increase of 23.38%; basic earnings per share is 1.834 yuan; every 10 shares represent 1.5 per cash dividend. In 2011, the production and sales of vehicles steps to a new stage. Not only had the business performance increased rapidly, but also the restructuring and holistic listing of company has been accomplished. Self-owned brand is enhanced which builds a solid foundation for sustainable development in the future.

In 2011, the development speed largely decelerates. Facing this serious condition, company judges the trend of market in advance and adopts corresponding measures in order to match the production with sales. Meanwhile, all subordinated companies have successfully promoted various kinds of new products and implemented effective marketing activities. Main products are in leading positions of each subdivided market. This adds new power to the increase of vehicle sales. In 2011, the sales volume of vehicles of SAIC Motor is more than 4 million with a Y-to-Y increase of 12%. The increasing speed is 9.5% higher than national average level. The subordinated joint-venture vehicle company continues to play important role. The annual vehicle sales volume of SGM and SVW takes the first two positions in the list of company sales volume of national passenger vehicles. SAIC-GM WULING continues to lead the market of micro-cars.

After restructuring, the listed project of SAIC Motor is approved in September, 2011. Relevant work is finished in one year. The development of company enters a brand new stage. The main businesses of company cover vehicle, components, car service trading and auto finance which has formed a powerful value chain. This value chain has not only benefited the improvement of sales scale, but also emphasized the requirement of connotative development and extended to the high end of value chain of car industry; it has benefited the accelerated development of car service trading and enlarged the profit space in the future in order to strengthen the leading position of company in China Car Industry and enlarge the influence on international car industry.

In 2011, the self-innovative work had been further promoted. The group of self-owned brand has been enlarged. In terms of self-owned brand in passenger car, two brand new models MG3 and Roewe W5 is released. From then on, the layout of products at the first stage is accomplished which covers main and distributed markets. According to the plan, the new flagship model Roewe 950 and “skip-level British Sports Car” MG5 will be released to the market. In terms of commercial vehicle of self-owned brand, the first product V80 of MAXUS is successfully released in September, 2011. This product firstly introduced the quality and various configuration of passenger car into the production of commercial vehicle which is a benchmark in the field of energy consumption, safety and environmental protection about commercial vehicle. In terms of self-owned brand of joint-venture, the first product Baojun 630 of self-owned brand of SAIC-GM WULING is released in August, 2011. It rapidly built up good reputation among target consumer group. Until the end of 2011, the sales volume is over 20,000 vehicles within 4 months.

Industrializing new energy vehicles are an important part of SAIC Motor’s independent innovation endeavor. Last year Roewe New 750 Hybrid, which is capable of saving fuel by more than 20%, has been launched into the market successfully. This year SAIC Motor will launch two new cars – Plug-in Hybrid and Full Electric Car - with self-owned brand that are of the globally advanced level and capable of saving fuel by 50% on the average. By fostering the core technological competence for electrical motor, electrical controls and vehicle batteries and by setting up the key components industrial chain, SAIC Motor is continuously accelerating the new energy vehicle industrialization on the basis of the safe and smooth running of 1125 new energy vehicles during the 2010 Expo Shanghai. The development of industrialization of new energy vehicles of SAIC Motor continues to accelerate.

In addition, SAIC Motor announces company incentive fund planning and exposes the resolution of the change of board of directors and board of supervisors.

The analyzing institute estimates that the vehicle market in China will have “lower beginning and higher end”. The national estimated sales volume is around 20.1 million vehicles with a Y-to-Y increase of 7%.Based on stable development, SAIC Motor tightly traces the trend of market, accelerates the reflection rate of market, improves the independent innovation ability, cultivates and improves international business capacity and strengthens coordinated development among all business modules in order to further improve the economic operation quality and ensure the stable operation and successful beginning after restructuring. It makes effort to realize the sales volume of 4.3 million vehicles.