Changchun Faway Automobile Components Co., Ltd. Business Report FY ended Dec. 2017
Financial Overview |
(in million yuan) |
FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change | Factors | |
Sales | 12,732.78 | 11,992.48 | 6.17% |
In 2017, sales increased as the following reasons: |
Operating profit | 606.81 | 554.81 | 9.37% | |
Ordinary profit | 622.82 | 566.02 | 10.03% | |
Net profit | 580.83 | 525.40 | 10.55% |
New Company
-The Company announced on February 13, 2018, a plan to set up a new company, Faway Benteler Automobile Components (Tianjin) Co., Ltd., jointly with Benteler Automotive (China) Investment Limited. The joint company is going to be a strategic partner of FAW Group and help the car manufacturer develop solutions to make lighter vehicles including high-strength steel, thermoforming, and aluminum alloy. The new company is going to have a registered capital of Chinese yuan (CNY) 120 million, CNY 90 million or 75% from Changchun Faway Automobile Components and CNY 30 million or 25% from Benteler Automotive (China) Investment. It requires a total of CNY 180 million to construct a new plant, which is slated to start operating fully in 2021. At full operation, it’s expected to generate sales of CNY 366.73 million and a pre-tax profit of CNY 26.96 million a year. (From a corporate announcement on February 14, 2018)
Business Plan for Next Year
-In 2018, the Company plans to reach CNY 12,437.97 million sales, a 2.36% y/y decline.
Awards
-Chengdu FAW Faway Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd., the Company's subsidiary, got "Supplier Award" from FAW-Volkswagen. (From a press release on January 19, 2017)
R&D Expenditure
FY ended Dec. 31, 2017 (million CNY) |
FY ended Dec. 31, 2016 (million CNY) |
FY ended Dec. 31, 2015 (million CNY) |
|
R&D Expenditure | 82.02 | 104.87 | 96.55 |
Ratio of R&D expenses to operating income | 0.64% | 0.87% | 0.98% |
R&D Structure
-As of 2017, The Company's accumulated R&D investment was up to CNY 82.02 million. It had a R&D team with about 125 staff, accounting for 2.82% of all staff.
R&D facilities
Name | Company |
Wheel R&D Center | Changchun Faway Automobile Components Co., Ltd. Wheel Company |
Faway Adient Technical Center Formerly: Faway-Johnson Technical Center |
Changchun Faway-Adient Automotive System Co., Ltd. Formerly: Changchun Faway-Johnson Controls Automotive Systems Co., Ltd. |
-The Company has two provincal-level technical centers, involving the automotive wheels and the interior components.
Projects Under Construction |
(in million CNY) |
Project | Budget | Investment in 2017 | Project progress | Start of Production | Supplier |
Faway Tianjin Industrial Park | 117.14 | 157.66 | 65.78% | - | - |
Faway Qingdao Industrial Park | 315.74 | 121.41 | 86.88% | March 2018 | FAW-VW Qingdao Plant |
Faway Dongyang Tianjin Plant | 195.92 | 65.10 | 33.23% | June 2018 | FAW-VW Tianjin Plant |
Faway Dongyang Qingdao Plant | 170.61 | 48.47 | 37.63% | March 2018 | FAW-VW Tianjin Plant |
Faway-Huawei Joint Station | 6.00 | 0.03 | 90.00% | - | - |
Cheng Hella vehicle lamp project | 357.31 | 31.28 | 50.00% | - | - |
Faway Dongyang Foshan Plant II Phase | 14.97 | 8.99 | 100.00% | March 2017 | - |
Yanfeng G14FYTZ1 II Painting Line | 14.00 | 6.01 | 100.00% | - | - |
Foshan tire identification and monitoring project | 13.00 | 12.94 | 100.00% | - | - |
Yanfeng production capacity expansion project | 4.00 | 0.02 | 100.00% | - | - |
Major Investments |
(in million CNY) |
Project | Amount of Investments | Start of Production | Supplier |
Faway Qingdao tire assembly project | 35.30 | March 2018 | FAW-VW Qingdao Plant |
Faway Tianjin component project | 379.43 | June 2018 | FAW-VW Tianjin Plant |
Faway Tianjin tire assembly project | 40.95 | June 2018 | FAW-VW Tianjin Plant |
Faway Foshan tire assembly production expansion project | 21.08 | March 2017 | FAW-VW Foshan Plant |
Faway Tianjin welding plant | 72.07 | June 2018 | Tianjin Toyota |