Fawer Automotive Parts Limited Company Business Report FY ended Dec. 2015
Financial Overview |
(in million yuan) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of Change (%) |
Factors | |
| Sales | 4,331.51 | 5,010.01 | - | -The Company's sales declined due to commercial vehicles production volumn declined. |
| Operating profit | 522.77 | 659.23 | - | - |
| Ordinary profit | 536.15 | 702.51 | - | |
| Net profit | 524.95 | 672.41 | - |
New Company
-The Company announced that it had officially decided to established a joint-venture with Zhejiang VIE Science & Technology Co., Ltd. in Changchun, Jilin Province in April 2015.The two companies signed a letter of intent regarding this project in August 2014. The new company will be called Fawer VIE Control System (Changchun) Co., Ltd., and will develop and produce automotive brake systems and related components. It will be capitalized at CNY 50 million, of which CNY 20 million (40 percent) will be invested by Fawer Automotive Parts, and CNY 30 million (60 percent) will be invested by Zhejiang VIE. (From an announcement by the company on April 29, 2015)
Acquisition
-The Company announced that the company and Sumitomo Corporation have signed an agreement, under which Fawer will acquire the entire 20% of Fawer Y-Tec Chassis Parts (Changchun) Co., Ltd. shares owned by Sumitomo for CNY 36 million. In addition, Fawer will spend CNY 18 million to acquire 10% of the joint venture's shares from Y-Tec, which currently owns 40% of the JV. When these transactions are completed, Fawer Y-Tec Chassis Parts (Changchun) will be owned 70% by Fawer and 30% by Y-Tec. (From an announcement by the company on November 20, 2015)
-The Company announced that the company and Tower Automotive have signed an agreement, under which Fawer will acquire an additional 40% of the shares in Changchun Tower Golden Ring Automotive Products Co., Ltd. from Tower Automotive for CNY 38.05 million. Fawer also intends to purchase the 10% ownership in the joint venture currently held by Changchun Faway Automobile Components Co., Ltd. Other shareholders that have preferential subscription rights to the JV have waived their rights. (From an announcement by the company on November 20, 2015)
Business Plan for Next Year
-In 2016, the Company plans to reach 4.90 billion sales and 500 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, 2015 (million CNY) |
FY ended Dec. 31, 2014 (million CNY) |
FY ended Dec. 31, 2013 (million CNY) |
|
| R&D Expenditure | 116.22 | 124.68 | 113.51 |
| Sales | 4,331.51 | 5,010.01 | 5,227.80 |
| Ratio of R&D expenses to operating income | 2.68% | 2.49% | 2.17% |
R&D Expenditure in 2015 |
(in million CNY) |
| Project Name | R&D Expenditure in 2015 |
| Hollow shock absorber piston rod design and development | 5.40 |
|
FAW new energy electric vehicle battery assembly |
4.36 |
| A class car project |
4.07 |
| Jetta project |
3.45 |
| Shock absorber development project for FAW VW MQB platform | 2.60 |
| Chassis-piece construction process analysis | 2.04 |
| Turbo car shock absorber development for Tianjin FAW Toyota "Corolla" | 1.98 |
Capital Investment Projects |
(as of Dec. 31, 2015) |
| Projects | Budget | Investment in 2015 | Project Progress |
| FAW Landi new factory coating line | 20.68 | 16.34 | Installation and commissioning stage |
| Joint plant expansion and renovation | 29.73 | 11.39 | Under construction |
| A-Class project front subframe weld lines | 4.07 | 3.46 | Project delay |
| A-Class chassis module assembly line | 8.45 | - | Installation and commissioning stage |
| Volkswagen MQB platform front subframe mold | 3.80 | 1.14 | Installation and commissioning stage |