Fawer Automotive Parts Limited Company Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million yuan)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of Change (%) Factors
Sales 5,227.80 4,828.32 8.27%


Operating profit 613.70 523.48 17.23% With the rose of the economic situation and the increase in production of major customers, the 2013 annual profit increased.
Ordinary profit 622.04 570.66 9.00%
Net profit 590.38 532.66 10.84%

Transfer of Shares

-The Company announced it will sell the entire 24 percent share it holds in Tianjin Chuhatsu Fawer Spring Co., Ltd. After the transfer is completed, Fawer Automotive Parts will completely withdraw from this joint-venture company. Tianjin Chuhatsu Fawer Spring was established in October 15, 2003, and produces suspension springs and other automotive components. It is capitalized at CNY 40 million, of which 24 percent is owned by Fawer Automotive Parts, 46 percent by Chuo Spring, 25 percent by Tianjin Spring Manufacturing, and 5 percent by Toyota Tsusho. The joint venture generated CNY 100.08 million in sales during 2013. (From a press release on April 3, 2014)

Start Operation

-In November 2013, Chengdu ThyssenKrupp Fawer Spring Co., Ltd., a joint venture between the Company and ThyssenKrupp Fawer Spring Co., Ltd., started operating. The new company is owned 60 percent by ThyssenKrupp, which invested approximately 150 million yuan, and 40 percent by Fawer Automotive Parts. The facility built on a 14,000 square meter plot is capable of producing 3 million springs and 1.5 million stabilizers per year. Plant construction started in 2012. (From news releases issued by multiple sources on December 2, 2013)

Business Plan for Next Year

-In 2014, the Company plans to reach 5,332.06 million sales and 560.50 million net profits.


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.

R&D Expenditure
-In 2013, the Company's R&D expenses is CNY 113.51 million, 2.17% of the Company's total sales.

R&D Expenditure in 2013

(in million yuan)
Project name R&D Expenditure in 2013
Mechanical steering project for VW "Baro" 9.25
Air conditioning project for VW "Jetta" 5.98
Electrical project 3.47
Air conditioning project for VW "Lavida" 3.42
Shock absorber development projects for FAW-VW MQB platform 2.20
Water pump project for GM 2.08
Auto battery module 1.94
Mechanical steering 1.89
B50 steering project 1.89
B70 steering project 1.89
Air conditioning project for Audi 1.86
Automobile cabin layout and components development project 1.79
Others 75.83
Total 113.51

Investment Activities

Capital Investment Projects

(as of Dec. 31, 2012)
Projects Total Planned Investment
(in million yuan)
Investment Made in 2013 (in million yuan)
Chengdu industrial park construction
190.72 20.08 Main body has finished construction, the follow-up project is under construction
Electric dynamometer system 3.75 3.75 In the stage of inspection and debugging
The follow-up project for second joint plant engineering construction
11.86 1.01 the follow-up project is under construction

Investment in China
-Mudanjiang Foton Automotive Air Conditioner Co., Ltd., which is a subsidiary of the Company, announced that it started trial production on a new compressor production line. The company is spending approximately CNY 100 million on constructing the new line, which began in November 2011. It has invested CNY 70 million to introduce automated production equipment from Korea Delphi. The new automated assembly line will be capable of producing 400,000 compressors for automotive air conditioners per year. Commercial operations are scheduled to begin in 2014. (From news releases issued by multiple sources on December 6, 2013)