Bohai Automotive Systems Co., Ltd. Business Report FY ended Dec. 2020
Financial overview |
(CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | Rate of change | Factors | |
| Sales | 4,685.67 | 4,917.64 | (4.72) |
-Due to the spread of COVID-19 in Europe, the Company’s subsidiary in Germany temporarily ceased production. As a result, sales outside of China were lower. |
| Gross profit | 33.52 | 92.82 | (63.88) | |
| Pre-tax profit | 37.13 | 104.44 | (64.45) | |
| Net income | 21.52 | 73.44 | (70.69) |
Business situation
-In 2020, production and sales volumes of commercial vehicles increased in line with product orders placed by Weichai Power, Cummins, Guangxi Yuchai, Sinotruk Group, and Shanghai Diesel Engine. As a result, sales at the piston business significantly increased.
-With the China 6 exhaust-gas-emission standard coming into effect, sales of commercial-vehicle pistons that comply with China 6 were CNY 282.9 million, which was a year-on-year increase of 132.67%.
The BMG (certified design) and EMPB (initial prototype inspection report) passenger-car pistons for the FAW-Volkswagen 1.5LC6 were certified.
Sale of Stock in Clarios Bohai (Binzhou) Electric
-In August 2020, the Company sold 51% of the stock it held in Clarios Bohai (Binzhou) Electric, a subsidiary. The transaction was completed in December 28, 2020. The Company no longer holds any stock in Bohai Kereshi.
Patent Acquisitions:
In the year that ended in December 2020, 28 patents were obtained. A subsidiary, Taian Qicheng Wheel Co., Ltd., obtained seven patents. (From the FY2020 Annual Report)
R&D Expenditure
| FY ended Dec. 31, 2020 (CNY millions) |
FY ended Dec. 31, 2019 (CNY millions) |
FY ended Dec. 31, 2018 (CNY millions) |
|
| R&D Expenditure | 117.02 | 102.27 | 104.37 |
| Ratio of R&D expenses to operating income | 2.50 | 2.08 | 2.69% |
-As of the end of 2020, the Company has 236 R&D personnel, accounting for 2.50% of the total employees.
Plant
| Plant Name | Description |
| Binzhou Bohai Piston Co.,Ltd. | Largest China-based piston manufacturer, being the only piston manufacturer capable of producing pistons that meet Euro 5 and China 6 standards. In the fiscal year that ended in December 2020, the Company has the capacity to produce 2.8 million pistons a year and was operating at ratio of 82%. |
| Hainachuan (Binzhou) Lightweight Automotive Parts Co.,Ltd. | Develops, manufactures, and sells lightweight, aluminum-alloy automotive parts such as engine parts, transmission parts, body-structural parts, chassis parts, and electric-drive parts, focusing on high-end trucks and new-energy vehicles. In the fiscal year that ended on December 2020, the company had an annual production capacity to produce 250,000 units/8,605 tons. Actual production volume was 150,000 units/5,162 tons. |
| Taian Qicheng Wheel Co.,Ltd. | Established in February 2012. A subsidiary of Binzhou Bohai Piston Co.,Ltd.. It develops, manufactures, and sells high-performance wheel hubs. In the fiscal year that ended in December 2020, the company’s annual production capacity was 700,000 units, with an actual operating ratio of 85%. |
| Harzgerode Guss GmbH | The company develops and manufactures machining tools; manufactures molds; and conducts surface-finishing, machining, and assembly of cast-aluminum products. In the fiscal year that ended in December 2020, the company’s annual production capacity was 20,468 tons, with an actual operating ratio of 74%. |
| Sömmerda Guss GmbH | The company produces engine parts, control panels, valve plates, structural parts. In the fiscal year that ended in December 2020, the company’s annual production capacity was 4,583 tons, with an actual operating ratio of 64%. |
| Bohai Trimet Automotive Holding GmbH | The company produces mainly lightweight, aluminum-alloy drive parts, engine parts, chassis parts, and structural parts, delivering them to major OEMs based in Europe, such as BMW、VW、Audi、Daimler、Bentley、Ford、Kia、Magna. |