Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2021
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of Change (%) | Factors | |
| Sales | 23,603.06 | 19,906.59 | 18.57 | -Although it was affected by the increase in transportation costs, sales and profits increased due to the recovery of the automobile market and the strengthening of sales promotion measures by the company. |
| Operating income | 3,762.03 | 3,266.63 | 15.17 | |
| Ordinary income | 3,818.84 | 3,109.60 | 22.81 | |
| Net income | 3,142.98 | 2,598.45 | 20.96 |
Trends in Russia
-According to media sources, Fuyao Glass via the Shanghai Stock Exchange's investor interactive platform disclosed that the revenue of Fuyao Glass's Russia plant in 2020 accounted for approximately 2.34% of Fuyao Glass’s consolidated revenue, and its revenue from January to September 2021 accounted for approximately 2.37% of Fuyao Glass's consolidated revenue. About 40% of the Russia plant’s orders are export orders. Fuyao Glass will reassign these orders to its China sites according to instructions from its clients, so that these orders will not be affected. Domestic orders in Russia accounted for 60% of this plant’s orders. These domestic orders mostly come from OEMs and automotive replacement glass (ARG) customers. There will be fewer OEM orders due to the tension between Russia and Ukraine, while there will be more ARG orders due to import restrictions. (From various media sources dated March 3, 2022)
Providing automotive glass solutions for BYD's flagship model "Han EV"
-As a glass solution supplier of BYD's 4WD high-performance flagship model "Han EV", the Company provides dedicated automobile glass solutions to provide a driving experience that achieves energy saving, sunshading, and quietness. The Low-E windshield installed in the "Han" blocks 99% or more of ultraviolet rays, 85% or more of infrared rays, and the solar energy shielding rate reaches 50% or more. The effect is more than double that of a typical windshield. This will reduce the power consumption of the air conditioner system and help extend the cruising range of the Han EV. Fuyao Group will also provide vehicle with sound insulation, heat insulation, UV protection double-layer glass for the front doors, and black privacy glass for the rear doors. (From a press release dated September 20, 2020)
Acquisitions
-The company signed a shareholder rights transfer agreement with China Intelligent and Connected Vehicles (Beijing) Research Institute Co., Ltd. (CICV) on December 7, 2020. The Company will acquire 4.55% of CICV's shares for CNY 58 million. CICV's main business includes engineering and technology research, testing, technology development, and software development. (From the 2020 Annual Report)
Strategic cooperation
-Fuyao Glass has signed a strategic cooperation agreement with BOE Technology Group Co., Ltd. (BOE). The companies will utilize their own advantages and cooperate in such fields as automotive dimmable glass and window glass display technologies. They aim to launch intelligent dimmable window glass that integrates touch and display functions. Additionally, the companies will work together to promote the application of HMI (Human-Machine Interface) technologies. (From a press release dated June 1, 2020)
-A signing ceremony for strategic cooperation between Fuyao Glass and BDStar Intelligent & Connected Vehicle Technology Co., Ltd. (BICV) was held in Shenzhen. The two companies will work together on innovative development and productizing of solutions integrating the GNSS high precision positioning and communication multimode smart antenna with automotive glass and push forward the commercial application of vehicle intelligent and connected technologies. In addition to BICV, other subsidiaries of Beijing BDStar Navigation Co.，Ltd., namely Harxon Corporation, Glead Electronics Co., Ltd. and Unicore Communications Inc. will also be involved in this cooperation. Based on cutting-edge technologies such as antenna and satellite high precision positioning, Fuyao Glass and BICV will devote themselves to the innovative R&D and commercialization of intelligent products incorporating automotive electronics and automotive glass. (From a press release dated July 1, 2020)
New products
-The company's pre-installed ETC (Electronic Toll Collection) solution passed the GB/T38444 certification test conducted by China Automotive Technology and Research Center Co., Ltd. (CATARC). The ETC solution includes OBU (on-board unit) modules and antenna glass that support ETC functions by means of coupling and FPC (flexible printed circuit) technologies. The product is now ready for production. It features antenna failure prevention technology and an ETC sensor module embedded inside the glass. (From a press release dated January 11, 2021)
-The company participated in the 3rd Digital China Summit held from October 12 to October 14, 2020 in Fuzhou, Fujian Province. At the summit, Fuyao Glass exhibited two pre-installation solutions for automotive windshields that feature RFID (Radio Frequency Identification) and ETC (Electronic Toll Collection) technologies. Other products exhibited by Fuyao Glass include a HUD (head-up display), a smart dimming window, a transparent window with image display functions, a sunroof with lighting system, and a smart pillar. Fuyao Glass also exhibited its achievements in promoting the application of intelligent technologies in large-scale production of customized products. (From a press release dated October 12, 2020)
Investment in China
-The Company’s subsidiary Fukuya Group Changchun Co., Ltd. has obtained a permit to construct an aluminum alloy trim production plant for high-end automobiles. The total investment of this plant is about CNY 350 million. The total land area and total floor area are both 24,000 square meters. The existing factory building will be used to introduce equipment such as anodizing, punch press, and machining. The annual production capacity after completion is 13 million aluminum alloy trims for high-end automobiles. This includes 10.5 million aluminum alloy trims and 2.5 million aluminum alloy luggage racks. (From the release of the Jilin Provincial Development and Reform Commission dated January 22, 2021)
-In order to meet the production and operation needs of the German FYSAM Auto Decorative GmbH (FYSAM) automotive trim project and help the company better provide automotive manufacturers with high-quality integrated products and services, the company intends to increase investment capital by EUR 65 million in Fuyao (Hong Kong) Co., Ltd. to supplement FYSAM's working capital. After the completion of this capital increase, the company will continue to hold 100% of the equity of Fuyao Hong Kong. Up to now, the company’s cumulative investment has reached EUR 190 million in Fuyao Hong Kong (including EUR 58,827,566.19 for the purchase of SAM assets). (From an announcement by Fuyao Glass Shanghai Stock Exchange on June 6, 2020)
-In order to provide better integrated products to automakers, to increase added value of products and at the same time to expand the scale of the Company’s automobile trim production, the Company and Fuyao Hong Kong have increased the capital of Fuyao Group Changchun Co., Ltd. from CNY 300 million to CNY 600 million based on the equity ratio. (From the 2020 Annual Report)
Investment outside China
-On January 6, Fuyao Glass America Inc., the U.S. subsidiary of Fuyao Glass Industry Group Co., Ltd. (Fuyao), announced that it will invest USD 46 million in the Ohio-based Dayton plant for new equipment purchases. The investment is expected to create 100 jobs in the state of Ohio. In 2014, Fuyao acquired the former General Motors Moraine Assembly plant in Moraine, Ohio and transformed it into a 180,000-square-meter plant for glass design and manufacturing. The plant began operations in 2015 and currently has more than 2,300 local employees. (From various media sources on January 8, 2020)
Research and Development
-Fuyao Glass announced that it has established an intelligent industrial internet research center with Tsinghua University. This move aims to enable enterprises to think, deduce and demonstrate “proactively” ahead of actual production through digital virtualization, and to utilize cross-domain and multi-dimensional big data, intelligent models and super computing power to design process and scheduling solutions. At the same time, trial-and-error with simulation in a virtual reality and iterate to produce better solutions at near zero cost. Thus, industrial production will enter the "Digital-First" stage, which will significantly improve design and production efficiency, reduce losses, and strengthen the intelligent manufacturing capabilities of enterprises. (From a press release dated March 24, 2022)
-The company along with several leading companies in the telecommunications and electronics industries has released a new generation of connected smart glasses, including "built-in ETC solutions" and "built-in RFID solutions". The Company will develop technology research such as full-band multi-mode hidden smart glass antenna and 5G glass antenna, and provide technology for smart transportation so that vehicles can perform stable and high-quality communication interaction even when moving at high speed. With Fuyao's "built-in RFID solution," the windshield could become a "connected car digital license plate ID" in the future. "Built-in ETC solution" adopts antenna failure prevention technology, and by embedding the ETC sensor inside the glass, it can play the role of a glass antenna and at the same time solve the signal block issue caused by the metal film of high-end glass, maintaining the stability of the signal. Its functions can be extended to mobility services such as stopping and refueling, indicating a new direction for ETC application. (From a press release dated November 26, 2020)
R&D expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D expenditure | 997.20 | 815.58 | 813.13 |
| Ratio of R&D expenses to Sales (%) | 4.22 | 4.10 | 3.85 |
-As of Dec. 31, 2021, the Company has 3,847R&D staff, accounting for 14.50% of the Company's employees.
R&D Facilities
| Name | Overview |
| Fuyao Technical Center | -The technical center currently conducts its R&D activities in 10 divisions: the automotive glass research center; construction glass research center; float glass research center; the research center for cutting-edge technology; CAE/CAM application research division; technical information and patent division; inspection and testing center; planning and project management division; production equipment technology center; and dies and jigs research and development center. -The center was certified as a national level research facility in September 2006. |
| Fuyao Technology Development (Suzhou) Co., Ltd. | -Established an R&D facility on August 15, 2019, which is engaged in developing intelligent manufacturing and industrial robotics systems, antennas, thin films, sensors, simulation technologies, and optoelectronic technologies. |
| China Intelligent and Connected Vehicles (Beijing) Research Institute Co.,Ltd. |
-Established on March 19, 2018, it consists of 23 companies and scientific research organizations in the fields of complete vehicles, components, and IT. It is engaged in the research of related policies, industries, markets and product technologies in the connected car field. |