Shanghai Automotive relocates commercial vehicles and invests in SAIC equity and SAIC buses

January 11, 2011 SAIC Motor held a board of directors passed three resolutions:

(1) Investment in the establishment of Shanghai Automotive Investment Co., Ltd. (tentative name); registered in Shanghai, China; registered capital of 500 million yuan, all funded by Shanghai Automotive.

(2) The company jointly invested with Tangshan Public Transport Corporation and Haixing (Tanghai) Investment Co., Ltd. to establish SAIC Tangshan Bus Co., Ltd. (tentative name); the registered capital is 170 million yuan, of which the company contributed 86.7 million yuan, accounting for the total The stock ratio is 51%.

(3) Agreed to the company's separation of wholly-owned subsidiary Shanghai Huizhong Automobile Manufacturing Co., Ltd. and the establishment of Shanghai SAIC Commercial Vehicle Co., Ltd. (tentative name).

After the separation of Shanghai Huizhong, the company name, registered place and business scope remained unchanged, and the registered capital was adjusted to 823 million yuan. The newly established Shanghai SAIC Commercial Vehicle Co., Ltd. is registered in Shanghai, China; registered capital is RMB 596 million.

The impact of investment projects on the company’s recent profits is basically negligible, but it can be speculated that the company began to re-plan the layout of the commercial vehicle business. Based on the company’s current company valuation, we still maintain the company’s Buy-B investment rating.