SAIC releases annual report for 2016
SAIC Motor Corporation Limited (SAIC Motor) reported revenue of 756.42 billion yuan ($111.27 billion) in 2016, a record year-on-year increase of 12.82 percent, according to the company’s annual report for 2016 released on April 6, 2017.
Meanwhile, the net profit for shareholders topped 32.01 billion yuan, up 7.43 percent annually. The cash bonus for every 10 shares amounted to 16.5 yuan (tax included).
In 2016, SAIC Motor maintained stable development on self-brand products, technologies and sales, with a focus on innovation.
Despite the fluctuating auto market, SAIC Motor kept its leading position as it sold 6.49 million vehicles, up 9.9 percent from the previous year, occupying 22.6 percent of the domestic auto market. Overseas sales totaled 129,000, rising 50 percent.
SAIC’s self-brand vehicles reaped a harvest year in 2016 as the sales volume of passenger cars hit 322,000, increasing 89.2 percent while the sales of SAIC Maxus reached 46,000, a year-on-year growth of 31.6 percent. Brought about by the best sellers – Roewe e550 and e950, the sales of new energy cars climbed 85 percent to 25,000 units.
Meanwhile, its joint brand cars continued to achieve last year. SAIC Volkswagen sold more than 2 million vehicles, up 10.5 percent year-on-year, becoming China’s first passenger vehicle company whose sales topped 2 million. SAIC Maxus saw sales hit 1.89 million, an increase of 7.7 percent year-on-year. SGMW continued to be the first in terms of sales for a single brand as its sales rose 4.4 percent year-on-year to 2.13 million units.
Sales in the overseas market also hit record highs, with MG sales growing 20 percent and Maxus sales rising 53 percent. A new factory in Thailand has broken ground while the industrial park in Indonesia is operating smoothly.
More importantly, SAIC actively worked in the fields of electric vehicles, internet connection, intelligent technology and solutions for sharing, to seek industrial transformation and build new competitiveness.
New energy vehicles
Currently, SAIC is capable of mass-producing the first-generation EDU intelligent electric power transmission, and has made key technological breakthroughs in the second-generation EDU. Its self-owned battery management system has entered mass-production. The 200B fuel cell technology has been adopted in Roewe brand, with the 300B technology now under R&D.
The world’s first internet-connected car - Roewe RX5 has hit the market, marking SAIC’s first step to build self-owned internet vehicle brand.
Intelligent driving car
SAIC has completed the development of intelligent vehicle platforms, as well as the Internet of Cars platform based on 5G communications technology, realizing the vehicle-to-everything communication, or V2X. It has also conducted research in algorithm software for self-driving products and the control platform for smart cars.
SAIC has set up a new subsidiary - Global Car Sharing & Rental Co Ltd by combining its car sharing and rental resources. The company is stepping up efforts to seize strategic resources and accelerating its expansion to other Chinese cities and even the world.
SAIC also launched the website “chexiang.com” – an OTO e-commerce platform. Its registered users increased by 3 million in 2016 and the number of Chexiangjia outlets increased to 700. The online sales volume reached 30,000.
In terms of financial business, SAIC unveiled financial products for internet cars, launched an approval system for consumer credit and boosted construction of the management platform of insurance sales, to offer professional and comprehensive financial services.
To stimulate its staff, SAIC implemented the profit sharing scheme and tried to build an incentive and restraint mechanism, including equity incentive. At the beginning of 2017, 2,207 employees joined the employee stock ownership plan (ESOP), purchasing 1.11 billion yuan.
SAIC aims to lift its image and improve its “soft power” through enhanced branding with the help of sports and cultural platforms. In 2016, the group carried out strategic cooperation with the Shanghai SIPG Football Club, and renamed the Shanghai Culture Square into the “SAIC Shanghai Culture Square”.
In the future, SAIC will continue to seize new opportunities and adhere to innovation-driven transformation. In 2017, it plans to sell 6.74 million vehicles to bring consumers more comfortable, convenient and safer auto products and services.