[Gen-AI Analysis] Fawer Automotive Parts Limited Company Business Report FY ended 2012 - MarkLines Automotive Information & Gen-AI Platform

Fawer Automotive Parts Limited Company Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million yuan)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of Change (%)	Factors
Sales	4,828.32	5,155.86	(6.35)	-
Operating profit	523.48	521.66	0.35	With the rose of the economic situation and the increase in production of major customers, the 2012 annual profit increased.
Ordinary profit	570.66	550.36	3.69
Net profit	532.66	520.13	2.41

Joint Venture

-In April 2012, FAWER Visteon Climate Control System (Changchun) Co., Ltd. (FVCC) opened a plant in Chengdu, Sichuan Province to produce aluminum radiators.The new plant is a wholly owned subsidiary of FVCC, a joint venture of Visteon Corporation and the Company. The facility will support the FAW-Volkswagen manufacturing base in Chengdu, as well as other automakers in southwest China. The 3,700-square meter (39,800-square foot) plant is expected to have an annual production capacity of 500,000 units by 2013. (From a press release on April 9, 2012)

-In February 2012, Fawer Pump Branch Company, which is a subsidiary of the Company, and Dayco Products, LLC of the U.S. signed an agreement to establish a joint venture business to manufacture water pumps and electromagnetic transmissions. The two companies intend to expand their presence in the global market by improving their technological capabilities and product competitiveness through the joint venture. The new facility aims to manufacture products that not only meet the needs of customers in China, but also the needs of international customers. Fawer Pump Branch and Dayco Products also expressed their intentions to collaborate in the areas of electromagnetic compressors for air conditioning compressors as well as water pumps for the U.S. aftermarket. (From a press release, March 8, 2012)

New Plant

-In April 2012, FAWER Visteon Climate Control System (Changchun) Co., Ltd. (FVCC) opened a plant in Chengdu, Sichuan Province to produce aluminum radiators. The new plant is a wholly owned subsidiary of FVCC, a joint venture of Visteon Corporation and FAWER Automotive Parts Company Ltd. The facility will support the FAW-Volkswagen manufacturing base in Chengdu, as well as other automakers in southwest China. The 3,700-square meter (39,800-square foot) plant is expected to have an annual production capacity of 500,000 units by 2013. (From a press release on April 9, 2012)

Merger with Guangdong Sunrise
-Guangdong Sunrise Holdings Co., Ltd. announced on December 2 that it has received an approval from China Securities Regulatory Commission for its project to absorb Fawer Automotive Parts Limited Company through a stock swap of new shares. (From news releases issued by multiple sources on December 3, 2012)

-Fawer planned reorganization with Guangdong Sunrise On March 9, 2012. The Company said it has gained an approval from the Assets Supervision and Administration Commission of Jilin Province on its business reorganization project with Guangdong Sunrise Holdings Co., Ltd. Guangdong Sunrise Holdings is planning to absorb Fawer Automotive Parts after conducting stock swap of new shares. The company said its application for the business reorganization has been accepted by the China Securities Regulatory Commission on April 10. (From an announcement by the company, April 10, 2012)

R&D

R&D Facilities

-The Company owns Fawer Automotive Parts Co., Ltd. Technology Center, an R&D center.

-The Company has R&D centers in several of its joint ventures, including Faw-Valeo Climate Control Systems CO., Ltd., FAW-Tokico Shock Absorber Co., Ltd., FAW-Koyo Steering Systems Co., Ltd..

-The Company has independently developed various key products, including body control modules, machine controllers for new energy vehicles, battery control management systems, battery pack modules, and controllers for new energy vehicles.

-The Company has 496 employees working in research and development.

Investment Activities

Capital Investment Projects

(as of Dec. 31, 2012)

Projects	Total Planned Investment (in million yuan)	Investment Made in 2012 (in million yuan)	Status
Construction of new plant	57.42	38.16	Under construction
Construction of Chengdu Tower plant in Industrial Park	25.05	15.42	Under construction
Technological transformation project	29.97	21.42	Under construction
Construction of Phase II Liao pump plant in Chengdu Industrial Park	20.00	8.94	Under construction
Construction of R&D center	104.15	7.77	Under construction
Others	-	124.85
Total	236.59	214.45