Fawer Automotive Parts Limited Company Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million yuan)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of Change
Sales 5,010.01 5,227.80 - -The Company's sales declined due to commercial vehicles production volumn declined.
Operating profit 659.23 613.70 7.42% -
Ordinary profit 702.51 622.04 12.94%
Net profit 672.41 590.38 13.89%

Share Transfer

-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. In June 2014, the Company announced that it had signed an agreement with Chuo Spring Co., Ltd. and Tianjin Spring Manufacturing Co., Ltd. The agreement concerned the transfer of shares in their joint venture company, Tianjin Chuhatsu Fawer Spring Co., Ltd. Currently, Fawer Automotive Parts owns a 24% share in the joint venture. Under the agreement, the Company will transfer a 15.55% stake to Chuo Spring for CNY 8,441,700 and a 8.45% stake to Tianjin Spring Manufacturing for CNY 4,587,300. (From an announcement by the company on July 4, 2014)

Business Plan for Next Year

-In 2015, the Company plans to reach 5.26 billion sales and 600 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.

-The Company's R&D center and technology centers of 7 affiliated subsidiaries were named as "Provincial Enterprise Technology Center".

R&D Expenditure

FY ended Dec. 31, 2014
(million yuan)
FY ended Dec. 31, 2013
(million yuan)
R&D Expenditure 124.68 113.51
Sales 5,010.01 5,227.80
Ratio of R&D expenses to operating income 2.49% 2.17%

R&D Expenditure in 2014

(in million yuan)
Project Name R&D Expenditure in 2014
Air conditioner project for FAW-VW Audi "Q3" 7.37
Air conditioner project for FAW-VW "Jetta" 6.91
Battery assembly project for FAW new energy electric vehicles 6.36
Engine oil pump project for FAW-VW EA211 (TSI) 4.31
Mechanical steering project for FAW Car A-Class cars 1.94
Renesas motor controller platform optimization and new platforms (Freescale) R & D project 1.79
Hydraulic power steering project for FAW Mazda "CX-7" 1.73
Aluminum radiators and intercoolers for FAW Jiefang(J7/J6H/J6L) and FAW Jiefang (Qingdao) 1.66
Damper development project for FAW VW MQB platform 1.53
Valve localization project for Dongfeng Peugeot Citroen Automobile Peugeot "307" / Citroen "C4" 1.51
Electro-hydraulic four-wheel steering system project for FAW Hongqi "H7" 1.51
Rack and pinion power steering project for Beijing Automotive "C51E" 1.51
Electric water pump development project 1.45
Mechanical steering new project for Tianjin FAW Toyota "Corolla" 1.30
Others 83.81
Total 124.68


-As of Dec. 31, 2014, the Company has 20 patents, 10 Proprietary technologies for self-developed products.

Capital Investment Projects

(as of Dec. 31, 2014)
Projects Total Planned Investment
(in million yuan)
Investment Made in 2014
(in million yuan)
The follow-up project for second joint plant engineering construction 15.00 1.03 Subsequent construction
A-Class chassis module assembly line 8.45 2.54 Initial equipment installation