Changchun Yidong Clutch Co., Ltd. FY2008
|( in million yuan)||2008||2007||Difference
|Sales||520.60||484.02||7.6%||Sales increased year-on-year because of the following factors:
- Development and production of clutches for use in heavy-duty vehicles to meet new emissions requirements in China.
- After discussing with customers, the Company raised product prices by 5 percent.
|Operating profit||13.92||13.09||6.3%||- Secured profit through an all-out effort to reduce costs.|
Changchun High Technology Development Zone HQ transfer project
- In July 2008, the Company announced its project to establish a new plant in the Changchun High Technology Development Zone and move its headquarters there. The Company has already acquired 100,000 square meters of land in the Zone. The total amount of spending on this project is expected to reach 160 million yuan. When operations fully begin, the company's production capacity is expected to go up from the current 1.3 million sets to 1.6 million sets. (From an official announcement by the company on July 23, 2008)
Strategic alliance with Baotou Beiben Heavy-Duty Truck
In November 28, the Company and Baotou Beiben Heavy-Duty Truck Co., Ltd. formed a strategic partnership. Both companies are members of the China North Industries Group.
Reorganization project cancellation
In May 2008, the Company decided to cancel its reorganization plan, which called for the acquisition of the auto parts subsidiary of Jinlin Dongguang Group, its parent company. Based on the agreement made in August 2007, the Group had intended to transfer its production operations for brakes, ring gears and lamps to the Company, aiming to make the clutch supplier a comprehensive, autoparts supplier.
Major product development in FY2008 included the following:
- four new products
- five remodeled products
- nine products through product development projects since 2007
- two upgraded products
- two products destined for export
(in millions of yuan)
|Project||Capital||Budgeted amount||Amount invested in FY2008||Ratio of amount already invested||Status|
|and acquisition for new plant in the Changchun High Technology Development Zon||Funds raised||10.60||10.60||100%||Completed|
|Construction of a new plant in the Changchun High Technology Development Zone and transfer of operations there||Own funds||128.02||65.42||51.1%||The company launched a transfer project following the completion of the new plant.|