The company sold 253000 Xiali, Weizhi, Wheeler and Weizi sedans in 2011, up 1 per cent from a year earlier. In 2011, the company achieved operating income of 9.954 billion yuan, an increase of 1% over the same period last year, of which car sales were 8.162 billion yuan, down 2% from the same period last year. As the gross profit margin of the car business fell 0.78 percentage points to 2.68% year on year, the company's 2011 comprehensive gross profit margin fell 0.97 percentage points to 4.52%. Due to the rapid increase in R & D expenses, depreciation expenses and employee salaries, the company's 2011 management expense rate increased by 1.06 percentage points to 7.20% compared with the same period last year; this led to a 0.98 percentage point increase in the company's expense rate to 13.62%.

Tianjin FAW Toyota, which owns 30 per cent of the company, sold 499000 vehicles in 2011, up 3 per cent from the same period last year; operating income was 67.06 billion yuan, down 2 per cent from the same period last year; and net profit was 4.407 billion yuan, down 4 per cent from the same period last year. Affected by this, the company achieved an investment income of 1.232 billion yuan in 2011, down 5% from the same period last year.

In 2011, the company lost 1.123 billion yuan (excluding investment income), thanks to 131 million yuan more than in 2010. Due to the aggravation of losses in this part, the company's net profit in 2011 was 109 million yuan, down 64% from the same period last year, or 0.07 yuan per share. The company plans to hand out cash for every 10 shares. 20 yuan.

In the first quarter of 2012, the company's vehicle sales and revenue fell 30 per cent and 32 per cent respectively compared with the same period last year, and the gross profit margin fell 2.72 percentage points to 2.30 per cent; the company lost 332 million yuan in the first quarter. Due to the recovery of Tianjin FAW Toyota, the company realized investment income of 387 million yuan in the first quarter of 2012, an increase of 46% over the same period last year, or 0.24 yuan per share. The company realized EPS of 0.03 yuan in the first quarter of 2012. At present, the controlling shareholders of the company and FAW car have become FAW shares. We value the equity of Tianjin FAW Toyota and the assets of the company separately, and the reasonable price of the company should be more than 8 yuan and give a "recommended" rating.