Fawer Automotive Parts Limited Company Business Report FY ended Dec. 2016
Financial Overview |
(in million CNY) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of change | Factors | |
| Sales | 5,856.94 | 4,331.51 | 35.22% | -The Company emphasis on research and development and customer base is stable and extensive. |
| Operating profit | 649.34 | 522.77 | 24.21% | - |
| Ordinary profit | 705.83 | 536.15 | 31.65% | |
| Net profit | 676.62 | 524.95 | 28.89% |
New Company
-The Company said on June 30, 2017, it signed a memorandum of understanding with NBTM New Materials Group Co., Ltd. on new investment in a new joint company tentatively named Changchun Tongmuo Fawer New Materials Co., Ltd. in Changchun, Jilin. The new company’s registered capital will be Chinese yuan (CNY) 28 million. It will be owned by 30% (CNY 8.4 million) by Fawer Automotive Parts and 70% (CNY 19.6 million) by NBTM New Materials Group. The joint company will supply sintered components, automotive components (excluding engines), home electrical appliances and new materials. (From a corporate announcement on June 29, 2017)
Strategic Cooperation
-Dongfeng Motor Parts And Components Group Co., Ltd. and the Company signed a strategic cooperation framework agreement on June 14, 2017, in Changchun, Jilin. The two companies will jointly develop technologies and share resources to expand their businesses. (From a press release on June 19, 2017)
Award
-Pump Branch Company has received the Excellent Global Supplier Award 2015 from General Motors. (From news releases issued by multiple sources on September 21, 2016)
Business Plan for Next Year
-In 2017, the Company plans to reach 5.55 billion sales and 700 million net profits.
Production Facilities
-Toshanhe Company has 5 production facilities in Changchun, Tianjin, Shandong (Penglai and Qingdao), Chengdu and Foshan.
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.
-As of December 31, 2016, the Company's R&D center and technology centers of 10 affiliated subsidiaries were named as "Provincial Enterprise Technology Center".
R&D Expenditure
| FY ended Dec. 31, 2016 (million CNY) |
FY ended Dec. 31, 2015 (million CNY) |
FY ended Dec. 31, 2014 (million CNY) |
|
| R&D Expenditure | 125.21 | 116.22 | 124.68 |
| Ratio of R&D expenses to operating income | 2.14% | 2.68% | 2.49% |
R&D Expenditure in 2016 |
(in million CNY) |
| Project Name | R&D Expenditure in 2016 |
| CDC shock absorber process development | 6.43 |
| Passenger car aluminum radiator module research and development | 4.37 |
| Chassis product CAE analysis capacity upgrade | 4.04 |
| A-class car air-conditioning system | 2.90 |
| Motor driver and motor connection verification | 0.68 |
| SUV mechanical steering | 2.24 |
| SDN mechanical steering | 2.24 |
| MQB-A project | 2.09 |
| Mechanical steering | 2.05 |
| R020 steering gear with rod assembly | 2.05 |
Capital Investment Projects |
(as of Dec. 31, 2016) |
| Projects | Budget | Investment in 2016 | Project Progress |
| Qingdao Industrial Park | 96.71 | 16.72 | Under construction |
| Guangyang second plant expansion | 41.49 | 13.86 | Under construction |
| MQB-A welding production line | 28.30 | 13.24 | Installation and commissioning stage |
| MQB assembly line | 26.40 | 9.27 | Installation and commissioning stage |
| Bora NF welding production line | 8.90 | 6.25 | Installation and commissioning stage |
| 2200T and 800T press machine at Qingdao plant | 22.90 | 5.36 | Installation and commissioning stage |
| MQB-A coating line | 22.00 | 5.15 | Installation and commissioning stageInstallation and commissioning stage |
| MTS hydraulic test system | 5.40 | 4.77 | Installation and commissioning stage |
| MQB-A rear axle machine station | 8.18 | 2.87 | Installation and commissioning stage |