Development History of SAIC Motor's Financial Business
SAIC Motor is not only a leader in automobiles manufacturing but also a major player in automotive finance.
As the largest automotive group in China in terms of output and sales, SAIC Motor has been focusing on vehicle manufacturing, making every effort to provide quality automotive products for consumers. Moreover, it has been deeply involved in automotive finance for over two decades, exploring possible ways to meet the diverse financial needs of users throughout the entire industrial chain.
SAIC Motor's financial business is deeply integrated with its automotive operations, achieving a seamless blend of industry and finance and promoting value realization. It provides specialized, market-oriented, and comprehensive financial services for users across the entire industrial chain. Centering on the financial needs of the industrial value chain and users, SAIC Motor's financial business has integrated the group's advantages, coordinated operating capabilities and launched innovative businesses to offer comprehensive services.
Recognizing the immense demand for financial services within the automotive industry chain, SAIC Motor established its first financial institution in 1994 and founded China's first automotive finance company in 2004. Over the course of more than 20 years, SAIC Motor's financial business has expanded into corporate finance, automotive finance, equity investment, and automotive insurance, repeatedly setting industry records.
In June 2015, SAIC Motor's Financial Business Division was established to function as the department responsible for the centralized management of SAIC Motor's financial sector businesses.
In June 2016, SAIC Financial Holdings was established, with a clear management model from the outset, operating in an integrated manner with the SAIC Motor's Financial Business Division under the principle of "two brands, one team".
Leveraging SAIC Motor's extensive resources in the automotive industry and its forward-thinking innovation strategy, the Financial Business Division/SAIC Financial Holdings works closely with enterprises in the financial sector to strengthen the integration of industry and finance. By concentrating on automotive financial services, it enhances "value realization" for the industry through capital market operations and industrial financial investments.
SAIC Motor's Financial Members
SAIC Motor currently has a financial holding management company and over 10 specialized financial service enterprises. These entities provide a range of services such as automotive finance (including corporate finance, auto finance, financial leasing, insurance sales, factoring, and overseas finance), industrial financial investments (including private equity investment, private securities investment, and overseas investment), and capital market operations (including group-level capital operations, assisting affiliated enterprises with market-based financing, and spin-off listings). By leveraging the capital market, SAIC Motor accelerates industrial innovation.
SAIC Financial Holdings,a wholly-owned subsidiary of SAIC Motor, was established on June 6, 2016, with a paid-in registered capital of 10.05 billion yuan ($1.39 billion). As the industrial financial investment and financial business management platform of SAIC Motor, SAIC Financial Holdings consistently deepens the integration of industry and finance. It focuses on the industrial chain, explores new avenues, fosters synergy and empowerment, promotes value realization, and is committed to creating win-win partnerships and contributing to the innovative transformation and development of the group.
As the industrial financial investment platform of SAIC Motor, the company actively advances SAIC Motor's industrial financial investment business. In January 2021, SAIC Motor pioneered an innovative business model in the automotive industry by launching strategic direct investment operations. This initiative, characterized by "industry-investment linkage, vertical linkage, and internal-external linkage", increases the group's direct investment efforts, and is operated directly by SAIC Financial Holdings. In May of the same year, SAIC Motor optimized its investment business structure, with SAIC Financial Holdings taking on the role of managing primary market coordination, promoting a dual approach of strategic direct investment and market-oriented funds. By the end of June 2023, the scale of industrial financial investment management assets had exceeded 57 billion yuan, with strategic direct investment management assets surpassing 15 billion yuan, and 10 enterprises successfully listed.
In addition, as the financial business management platform of SAIC Motor, the company is also responsible for managing automotive financial services and coordinating capital market operations.
Shang Qi Capital, established in 2012, completed its mixed-ownership reform in 2017. As a private equity investment institution under SAIC Financial Holdings, the financial platform of SAIC Motor, the company leverages the overall industrial advantages of SAIC Motor and the efficient synergy and empowerment of SAIC Financial Holdings. This gives it the dual advantage of an automotive industry background and a market-oriented operating mechanism. Shang Qi Capital focuses on investing in the automotive industry ecosystem, particularly in the areas of intelligent driving, new energy, and smart manufacturing. As of the end of June 2023, it managed assets exceeding 37 billion yuan, with 26 companies successfully listed.。
Hengxu Capital, established in 2019, aims to become a respected industrial capital firm and a trusted first-class investment institution. As a private equity investment institution under SAIC Financial Holdings, the financial platform of SAIC Motor, the company leverages the overall industrial advantages of SAIC Motor and the efficient synergy and empowerment of SAIC Financial Holdings. Its equity investment segment focuses on maximizing returns by investing in strategic emerging industries such as green mobility, mobility ecosystems, and health ecosystems. The alternative investment segment primarily targets investment opportunities in the photovoltaic and energy storage sectors, aiming to provide investors with sustainable and stable returns while contributing to the development of SAIC Motor's innovative industrial chain and the enhancement of its mobility ecosystem. As of the end of June 2023, the total assets under its management exceeded 37 billion yuan, with nine companies successfully listed.
SAIC Motor Venture Capital Co., Ltd., established in June 2001, is a wholly-owned subsidiary of SAIC Financial Holdings. The company closely aligns with SAIC Motor's "New Four Modernizations" strategy, focusing on strategic areas such as new energy, intelligent connectivity, and automotive semiconductors. It serves the group's strategic initiatives by investing in cutting-edge fields related to the "New Four Modernizations", thereby supporting the group's innovative transformation and the establishment of its unique competitive advantages. As of the end of June 2023, the company managed assets exceeding 15 billion yuan.
SAIC Capital Company Limited, established in 2011 with a registered capital of 4.5 billion yuan, transitioned in 2021 to focus on secondary market investment. The company primarily provides securities asset management services, with an emphasis on equity investments.
SAIC QiZHEN, established in 2018, is a private securities investment fund manager with more than 10 billion yuan in assets under management, registered with the Asset Management Association of China (AMAC). The company holds AMAC membership, investment advisory qualifications, and membership in the Shanghai Asset Management Association. Adhering to a value investment philosophy and an absolute return approach, SAIC QiZHEN has developed a unique advantage in stock investments, particularly within the automotive industry chain. The company aims to help clients achieve capital appreciation, strategic investments, and optimized asset allocations.
SAIC Motor HK Investment Ltd, established in June 2009 with a registered capital of $296.9 million, serves as SAIC Motor s overseas investment holding and financing management platform. SAIC HK International Finance Ltd, funded by SAIC Motor HK Investment Ltd in August 2020, acts as SAIC Motor's overseas financial center. It provides services such as payment and receipt agency, foreign exchange settlement, and trade financing to the group's enterprises. Additionally, it handles the centralized management of the group's overseas funds and engages in capital preservation and appreciation activities, supporting the group's internationalization strategy.
SAIC Capital Management, LLC, established in Silicon Valley in 2014, serves as SAIC Motor's gateway in North America. Leveraging the group's industrial background, the company explores innovative technologies and supports the growth of startups. It focuses on new technologies in key overseas automotive industry regions, paying particular attention to areas such as autonomous driving, intelligent connectivity, new energy, artificial intelligence, next-generation electrical architecture, IoT and robotics, and disruptive business models. As of the end of June 2023, SAIC Capital Management manages assets totaling approximately $280 million, with three companies having successfully gone public.
SAIC Finance, established in May 1994 with a registered capital of 15.38 billion yuan (including $10 million), operates three core businesses: automotive finance, corporate finance, and investment and financing. The company provides specialized and customized corporate financial services to SAIC Motor's member enterprises. It also offers efficient automotive financial services to over 3,400 group brand dealers in more than 300 cities nationwide. By the end of 2022, the company had issued approximately 7.2 million retail consumer loans.
Anji Leasing Company Limited was established in April 1993 with a registered capital of 2.664 billion yuan. In 2006, it obtained approval from the Ministry of Commerce and the State Administration of Taxation to qualify for financial leasing, becoming one of the first 20 domestic financial leasing pilot enterprises. Since 2016, the company has integrated group resources in three areas—people, vehicles, and scenarioses—at the travel end to create a business closed loop. It provides comprehensive financial solutions to its partners and is committed to developing unique products. The company has opened 119 branches across 28 provinces, municipalities, and autonomous regions, with business operations covering the entire country.
Dongzheng AFC, established in March 2015 with a registered capital of 2.139 billion yuan, is one of the 25 automotive finance companies approved by the former China Banking Regulatory Commission (now renamed the National Financial Regulatory Administration). In August 2022, SAIC Motor completed the equity change registration process and became the controlling shareholder of Dongzheng AFC. Dongzheng AFC consistently strives to enhance customer experience and is dedicated to providing professional financial services to the automotive industry. Its product portfolio covers both new and used car sectors, focusing on creating a unique and multi-dimensional automotive finance product system.
SAIC GMAC, established in August 2004 with a registered capital of 9.2 billion yuan, is China's first and largest automotive finance company. Since its inception, the company has been dedicated to providing comprehensive automotive financial services to both car dealers and customers. It has served over 10 million retail customers and maintains strong partnerships with nearly 10,000 dealers across more than 330 cities nationwide. With a credit asset scale exceeding 100 billion yuan, the company continues to lead the industry.
SAIC GMF, established in June 2018 with a registered capital of 2 billion yuan, is a Sino-foreign joint venture leasing company jointly funded by SAIC Financial Holdings, SAIC GMAC, and Shanghai GM. The company aims to bring more diversified automotive financing and leasing products and services to the Chinese automotive market and further promote the development of the used car business. Its main business models are direct leasing and leaseback, offering extensive financing and leasing services for car purchases and usage to individuals and businesses, providing comprehensive financial solutions.
Wuling Finance, established in September 2018 in Jakarta, Indonesia, is a joint venture formed by SAIC Motor HK Investment Ltd, SGMW Indonesia, SAIC GMAC, and Sinar Mas Financial Services. With a registered capital of 6 trillion Indonesian rupiah (approximately 300 million yuan), the company received a multi-finance company business license from the Indonesian Financial Services Authority in March 2019. It became SAIC's first overseas financial company and also the first professional overseas automotive finance company based in China. The company currently has 146 sales outlets in Indonesia, covering the automotive consumer loan business for Wuling and MG brands, forming an operational model centered on the SAIC brand with diversified financial support.
SAIC Motor Insurance Sales Company Limited, established in April 2015, is a professional insurance sales platform jointly formed by SAIC Motor, Shanghai GM, and SAIC Volkswagen. Since its establishment, the company has set up 25 branches and three wholly-owned subsidiaries nationwide. It has built the industry's first intelligent management platform "insaic.com", which connects OEMs, insurance companies, automotive finance companies, and dealers. Focusing on customer value, the company strives to create exclusive brand insurance for key models and innovative non-automotive insurance products, leveraging the synergies of SAIC's financial sector to provide a one-stop service platform for automotive insurance and automotive finance.
SAIC Anji Factoring Co., Ltd, established in May 2020 with a registered capital of 100 million yuan, is a joint venture formed by SAIC Financial Holdings and SAIC Anji Logistics. It is an important innovative outcome of the synergy between the group's financial, mobility, and service sectors, integrating finance and industry. The company is positioned as SAIC's supply chain financial service platform, offering a wide range of professional supply chain financial service products for the group's supply chain enterprises.
EnergieX, established on Sept 21, 2022, with a registered capital of 4 billion yuan, is a joint venture focused on power battery leasing, co-invested by SAIC Motor, Sinopec, PetroChina, CATL, and Shanghai International Auto City Group. The company engages in battery swapping technology research and promotion, battery operation management, and big data services, aiming to build a complete ecosystem for vehicle-battery separation. It strives to create a standardized platform and provide universal, neutral, and technologically advanced comprehensive smart energy solutions for the industry, delivering a safe, reliable, convenient, and efficient quality travel experience for new energy vehicle owners
