Changchun FAWAY Automobile Components Co., Ltd. （Formerly Changchun FAW Sihuan Automobile 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 | |
| Sales | 20,537.41 | 19,519.98 | 5.21 |
| Operating income | 1,099.03 | 1,102.08 | (0.28) |
| Ordinary income | 1,096.14 | 1,102.79 | (0.60) |
| Net income | 976.06 | 969.24 | 0.70 |
Fiscal 2021 results
-Automotive components accounted for 95.44% of total sales in 2021, up 4.45% from the previous year. The positive effects of improving the product mix and developing new customers outweighed the impact of reduced production at major customers due to semiconductor shortages.
-By product, sales of interior trim were 61.36% (up 0.48% from the previous year), bumpers 20.47% (up 2.17%), stamped parts 7.23% (up 17.15%), and lamps 5.78% (up 27.66%). Sales of interior parts and bumpers remained at about the same level as the previous year. The business income of stamped parts increased mainly due to the impact of the increase in customer output. Sales of lamps increased due to an increase in shipments to existing large customers and the effect of developing new customers.
- The Company's main product markets are Northeast China, North China, South China, and East China. The Northeast region is the main market, with major customers in the region including FAW-VW, FAW Hongqi, FAW Jiefang, FAW-Toyota, and FAW Passenger Vehicles. Customers in North China include FAW-VW and FAW- Toyota, and in South China and East China, FAW-VW.
-In 2021, the Company's largest customer was FAW-VW. Sales for FAW-VW was CNY 10.752 billion, accounting for 52.35% of total sales in 2021.
Outlook for 2022
-The company plans to reach USD 20 billion in sales in 2022.
Strategic alliance
-The Company announced that it will form a strategic alliance with FAW Car Co., Ltd. (FAW Bestune). The company will supply high-quality, low-cost parts to FAW Bestune. The two companies will jointly cooperate in commercialization of new technologies and product/technical innovation. In addition, based on FAW FAWAY's track record of supplying customized and modified products, the two companies will jointly develop business in the automobile customization and modification market. (From a press release dated December 15, 2021)
-The company announced that one of its group companies, Changchun FAWAY Tong Yang Automobile Plastic Components Co., Ltd. (FAWAY Tong Yang), has signed a strategic alliance agreement with Changchun Sanyou Zhizao Technology Development Co., Ltd. (Sanyou Zhizhao). Under the agreement, the two parties have opened a strategic base that focuses on weight reduction. They will focus on weight reduction, new materials, and new product development while enhancing core technologies in product development, product design, process analysis, and production. Through industry-academia-research cooperation, they intend to gain a competitive edge in intellectual property rights. They also aim to provide optimal solutions for reducing the weight of commercial vehicles and passenger cars. (From a press release on July 24, 2021)
-The company announced that its subsidiary Changchun Hella FAWAY Automotive Lighting Co., Ltd. formed a partnership with Danyang ENOR Photoelectric Technology Co. Ltd. (ENOR) in terms of intelligent vision. The two companies built a joint venture named FAWAY Hainuo Automotive Technology (Changzhou) Co., Ltd. in the West Taihu Lake Science and Technology Industrial Park, Wujin District, Changzhou City, Jiangsu Province. With a floor area of 20,000 square meters, the joint venture has received a total investment of CNY 85 million and will mainly develop, manufacture, assemble and sell products such as automotive lighting modules, PCBA (printed circuit board assembly), and control modules. (From a press release dated June 10, 2021)
Industrial park construction
Started construction of the Changchun FAWAY Innovation R&D Center
-The company announced that it has started construction of the Changchun FAWAY Innovation R&D Center. The facility will cover an area of 34,000 square meters, with the first phase of construction covering a total floor area of 13,000 square meters. Through this center, Changchun FAWAY will share management resources with its subsidiaries to build a safe, comfortable, convenient, healthy and intelligent cockpit platform that meets the demands of the connected car market with smart cockpit as the carrier. (From a press release dated July 18, 2021)
Construction of FAWAY Adient's Changchun factory
-The plant construction project (Phase 1) has a site area of 181,400 ㎡ and a construction area of 85,200 ㎡. Construction will begin on May 9, 2021 and is scheduled to be completed in August 2022. The annual production capacity is expected to be 1.7 million seat assemblies and 1.1 million seat frame assemblies.
FAW Toyota tire assembly project
-FAWAY Tianjin Wheel Branch will supply tires to FAW Toyota. It is scheduled to start operation in June 2022, and by then it is expected to achieve a production capacity of 200,000 tires per year.
Changchun FAWAY Tong Yang's Anhui base project
-The company's subsidiary, Changchun FAWAY Tong Yang Automobile Plastic Components Co., Ltd. plans to build an injection molding plant with an annual capacity of 400,000 units in East China. The base will consist of painting and assembly lines.
New company
-The company acquired 60% of the shares of Changchun MEKRA Lang FAWAY Vehicle Mirror Co., Ltd. A share transfer agreement was signed on April 19, 2021, and the company name was changed to Changchun FAWAY Automobile Mirror System Co., Ltd. on July 1, 2021.
-The company's subsidiary, Changchun Hella FAWAY Automotive Lighting Co., Ltd. and Danyang ENOR Photoelectric Technology Co. Ltd. established FAWAY Hainuo Automobile Technology (Changzhou) Co., Ltd. in Changzhou City, Jiangsu Province. The paid-in capital is CNY 85 million. Changchun Hella FAWAY owns 61% and ENOR holds 39%. The business registration was completed on June 8, 2021.
-The company Established Subsidiary FAWAY Yuangu Technology (Jilin Province) Co., Ltd. with a capital of 10 CNY million. Business registration was completed on January 7, 2022.
Tire joint venture with Shangdong Zhengshang etc.
-The project will be implemented jointly with Jilin Hongzhan Industrial Co., Ltd. and Shangdong Zhengshang Wheel Technology Co., Ltd.
R&D Expenditure
| FY ended Dec. 31, 2021 (CNY millions) |
FY ended Dec. 31, 2020 (CNY millions) |
FY ended Dec. 31, 2019 (CNY millions) |
|
| R&D Expenditure | 335.91 | 268.66 | 179.66 |
| Ratio of R&D expenses to sales | 1.64 | 1.38% | 1.01% |
-As of the end of 2021, the Company had 621 R&D staff, accounting for 4.2% of the total staff.
R&D facilities
| Name | Company |
| Wheel R&D Center | Changchun Faway Automobile Components Co., Ltd. Wheel Company |
| Faway Adient Technical Center | Changchun Faway-Adient Automotive System Co., Ltd. |
| Shanghai Huashi Automotive R&D Branch | Changchun FAWAY Tong Yang Automobile Plastic Components Co., Ltd. |
| Changchun Automotive Leading Innovation Company | Jointly established by 13 companies including China FAW, FAWAY and Fawer |