Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2022
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2022 | FY ended Dec. 31, 2021 | Rate of Change (%) | Factors | |
| Sales | 28,098.75 | 23,603.06 | 19.05 | -Sales and profits increased as a result of strengthening marketing activities and increasing the ratio of high-value-added products. |
| Operating income | 5,661.37 | 3,762.03 | 50.49 | |
| Ordinary income | 5,579.11 | 3,818.84 | 46.09 | |
| Net income | 4,752.80 | 3,142.98 | 51.16 |
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)
Investment outside China
-Fuyao Glass announced an additional investment of USD 650 million in its U.S. subsidiary, Fuyao Glass America Inc. USD 300 million will be used to build coated automotive glass production lines and tempered side window production lines, while the remaining USD 350 million will be invested in Fuyao Glass Illinois, Inc. (Fuyao Illinois), a subsidiary of Fuyao Glass America. Fuyao Illinois will build 1 kiln, 2 floating glass production lines, 4 solar back glass production lines, plants, as well as supporting infrastructure. (From a press release dated February 8, 2023)
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)
R&D expenditure |
(CNY millions) |
| FY ended Dec. 31, 2022 | FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | |
| R&D expenditure | 1,248.59 | 997.20 | 815.58 |
| Ratio of R&D expenses to Sales (%) | 4.44 | 4.22 | 4.10 |
-As of Dec. 31, 2022, the Company has 4,258 R&D staff, accounting for 14.69% 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. |
| Fuyao High Performance Glass Technology (Fujian) Co., Ltd. |
-Established in August 2021. |