Dear Shareholders:

On behalf of the board of directors, I hereby present the annual results of Brilliance China Automotive Holdings Limited for the year ended 31st December, 2010.

2010 signified another year of significant growth in the Chinese auto industry. According to the China Association of Automobile Manufacturers (“CAAM”), China’s vehicle sales increased by 32% in 2010 as government stimulus measures and rising affluence helped the nation to maintain its status as the world-largest auto market for the second consecutive year. Total auto sales in China exceeded 18 million units during the year, with passenger vehicles accounting for 13.8 million or an increase of 33% compared to the previous year.

For the Group, the year 2010 represents the first year of operation post disposal of the loss-making Zhonghua sedan business, with the true potential of our remaining businesses reflected in the major turnaround in profits generated during the year. Contribution from the BMW joint venture has risen by 152%, as a result of a 57% increase in sales volume and cost savings achieved through scale and continuous localization effort. As for the minibus business, despite a highly competitive environment, the Group has continued to maintain its market leading position and generated a 20% volume growth with stable profits.

Looking into 2011, CAAM has forecasted that sales and production in China will grow at a steadier pace of between 10% and 15% this year, after the government raising purchase taxes for small cars and Beijing slashing the number of new registrations. Therefore, despite the strong growth experienced in 2010, an overall industry slowdown remains a risk.

After years of close cooperation between the Group and BMW AG, we believe our BMW joint venture has a sound understanding of the Chinese premium auto market and has established a business model which specifically caters to the demands of the Chinese customers. The launch of our brand new 5-series long version sedan in August 2010 had been a successful one, and sales momentum on this product continues to be strong in 2011. We are continuously extending our sales network coverage and aftersales service support into new geographic areas in order to expand our reach and provide the best services to our customers. We have also developed various campaigns for marketing and brand building to increase market share. Benefitting from the increase in scale, we continue to work relentlessly to further localize our component sourcing and seek opportunities to drive down our costs.

The joint venture is currently undergoing a major capacity expansion which will bring our production capability up to 300,000 units by 2013. In line with this expansion, we are also assessing our product strategy alongside a review of our long range strategic plan to take into account developments in both the local and global markets. Current plans include the introduction of the X1 and the new generation 3 series models starting 2012 to satisfy the demands in the Chinese market, the addition of engines for domestic production, and local development and production of new energy vehicles. Furthermore, rather than viewing the joint venture as a captive operation for just the Chinese market, we have taken it one step further by working with BMW AG towards expanding our horizon and integrating our joint venture’s operation into the BMW Group global network via potential exports of existing and new models produced in China.

As for the minibus business, with its established track record and strong brand recognition, we expect it to continue to be a stable profit contributor to the Group. We continue to work on improving product quality while at the same time develop new product variations based on our existing platforms. In addition, we are in the process of formulating a plan for a brand new platform based on which a new chassis, products and models will be developed with technical support from international strategic partners. Our goal is to enrich our product portfolio and to strengthen our brand name by introducing high end products so as to increase volume and market share. Along this plan we are also assessing the feasibility of gaining further control of the minibus business so as to increase our influence and to enjoy additional contributions from this business in the future.

Aside from the BMW joint venture and the minibus operation, we are also seeking both upstream and downstream expansion opportunities along the auto value chain, in an effort to enhance sales of our existing products and establish another income source for the Group. Furthermore, we are also contemplating other strategic moves to better position the Group as a strong player in the auto industry in China.

Last but not least, I would like to take this opportunity to express my sincere appreciation to our shareholders, business partners, management team and all other employees for their continued support and dedication to the Group.