Changzhou Guangyang Bearing Co., Ltd. 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 543.93 622.17 - -The bearing industry entered the slow development stage.
-In 2015, the sales and production volume of commercial vehicles went down in China, which influenced the terminal customers' demands for the Company's products.
Operating profit 35.09 66.77 -
Ordinary profit 42.58 73.36 -
Net profit 36.50 62.98 -

Strategic Cooperation

-In August 2015, the Company announced that the company and U.S.-based General Bearing Corporation (GBC) have signed a framework agreement to collaborate on the designing and development of needle roller bearings. In accordance with this agreement, Changzhou Guangyang Bearing will offer GBC with its products for sale in the North American Free Trade Agreement (NAFTA) region. GBC will aid Changzhou Guangyang Bearing in designing and developing new products, which are expected to help GBC boost its sales in the NAFTA market. Products jointly developed by the two companies will be sold under the brand name of HYATT-CTC. GBC is owned 100 percent by SKF, which is the world’s largest bearing supplier. GBC develops, produces, and sells tapered roller bearings, ball bearings, and other bearing products. Changzhou Guangyang Bearing expects that its sales to GBC based on this agreement will reach USD 25 million by 2020. (From an announcement by the company on August 17, 2015)

-The Company announced that the company and the Suzhou Automotive Research Institute, Tsinhua University have agreed to enter a strategic collaboration agreement. The two organizations will make joint efforts to develop technologies related to new energy vehicles, intelligent vehicles, NVH, weight saving, new materials, Industry 4.0, logistics and supply chain management, and aftermarket products. Changzhou Guangyang Bearing also signed an agreement to become a partner of Suzhou Huayan Equity Investment Partnership (LLP), an investment company for the Suzhou Automotive Research Institute, Tsinhua University. In accordance with this agreement, the company will invest CNY 30 million to help promote the development and commercialization of new technologies related to automobiles. (From an announcement by the company on July 13, 2015)

R&D Expenditure

(in million yuan)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
R&D Expenditure 27.41 21.83 18.88
Ration of total sales (%) 5.04 3.51 3.25

R&D Structure

-As of 2015, the Company had 177 R&D staff.

R&D Facilities

-The Company has two provincial engineering technology centers – Jiangsu Province Needle Roller Bearings Engineering Technology Research Center and Jiangsu Province Enterprise Technology Center. The technology center has six departments, namely, products research institute, technology institute, equipment research institute, information institute and test center. Test center has passed China National Accreditation Service for Conformity Assessment (CNAS).

Product Development

-In 2015, the key wheel hub bearing projects:

  • Front wheel hub bearing for one SUV model entered the road test stage. The mass production was predicted in the fourth quarter in 2016.
  • Gen 3 front and rear wheel hub bearing for new energy vehicle got the PSW recognition from the customer, and entered the mass production stage.
  • Gen 3 front and rear wheel hub bearing for SUV passed the ET stage test of the customer. The mass production was predicted in the third quarter in 2016.

-In 2015, the key bearing projects for AT:

  • Borgwarner DCT bearing project passed the test. It would enter the PPAP stage, and was predicted to enter SOP in September 2016.
  • Getrag's several DCTs project finished the development of prototype, would enter SOP from May 2016.
  • SAIC transmission DCT360C project entered PPAP, and was predicted to enter SOP in the third quarter of 2016.
  • Dongan Mitsubishi AT project finished the test of A prototype, and was at the stage of testing of B prototype. It would enter PPAP at the beginning of 2017.
  • Shengrui 8AT project passed the test and entered SOP at the end of 2015.
  • 8AT for Hybrid power project finished the development of prototype and was at the stage of testing.

-In 2015, the key bearing projects for MT:

  • SAIC GM NMT project passed the PPV test. It will enter PPAP and was predicted to enter SOP in 2017.
  • GAC transmission bearing project entered pre-SOP, and was predicted to enter SOP officially.
  • Tangshan Aisin F621A project was in the test stage, and was predicted to enter PPAP in June 2016.
  • Chongqing Tsingshan MR623、 MR630 projects was in the test stage, and was predicted to enter SOP at the end of 2016.

-In 2015, the key clutch bearing (hydraulic) projects:

  • The development of hydraulic clutch release bearing was completed, the prototype passed the test, and will be commercialized in the second half year of 2016.

Patents

-As of 2015, the Company had have 75 valid patents in total, 5 of them were invention patents, 68 practical new type patents, and 2 patents of design. (From the Company's 2015 annual report)

Capital Investment Projects

(As of Dec. 31, 2015)
Projects Planned amount of investment
(million yuan)
Amount invested in 2015
(million yuan)
Auto precision bearing production line construction 306.20 1.71
Equipmensto be installed - 11.17
Restructuring of machine tools - 3.87