CHANGZHOU NRB CORPORATION Business Report FY ended Dec. 2017

Financial Overview

(in million CNY)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change Factors
Sales 1,460.62 1,112.32 31.31%

Reasons for the decline in net profit:
-goodwill impairments;
-rise in price of raw materials
-large initial investment for new projects and new products development
-increase in expedited transportation costs caused by urgent increment in the market
-decrease in government subsidies

Operating profit 15.83 63.81 (75.18%)
Ordinary profit 24.24 78.82 (69.25%)
Net profit 12.06 64.36 (81.26%)

Strategic Partnership Agreement

-The Company signed a strategic alliance framework agreement with SKF on July 20, 2017. Within this framework, the Sweden-based global manufacturer will use its existing third party supply chain to expand the supply of needle roller bearings, and Guangyang Bearing will provide needle roller bearings to the customers of SKF. The two companies will explore the new opportunity in the electric vehicle (EV) and new energy car market in the U.S., Europe and Asia. (From a corporate announcement on July 25, 2017)


-The Company announced on April 14, 2018, that the company is going to develop and manufacture ten kinds of bearings and components of Scania GW transmissions for SKF as a designated supplier of the Swedish company. Changzhou NRB will start developing the products while initiating preparatory work following SKF's detailed product development progress and original samples. (From a corporate announcement on April 17, 2018)

R&D Expenditure

(in million CNY)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
R&D Expenditure 54.61 46.05 27.41
Ration of total sales (%) 3.74 4.14 5.04

R&D Structure

-As of 2017, the Company had 364 R&D staff.

R&D Facilities

-The Company has provincial engineering and technology center, the “Jiangsu Needle Roller Bearing Engineering Research Center” and “Jiangsu Province Enterprise Technology Center”. The Technology Center consists of six departments including Product Research Institute, Technology Research Institute, Equipment Research Institute, Information Research Institute and Test Center, in which the Test Center gets the certificates of China National Accreditation Service for Conformity Assessment (CNAS).

R&D Activity

-In 2017, a total of 49 scientific research projects (including 34 cross-year projects) and 2 produce-learn-research projects were carried out.


-In 2017, the Company newly increased 53 patents, including 22 invention patents and 31 utility model patents. Up to now, the Company has 263 valid patents, including 75 invention patents, 186 utility model patents and 2 appearance patents

Capital Investment Projects

(As of Dec. 31, 2017)
Projects Planned amount of investment
(million yuan)
Amount invested in 2017
(million CNY)
Project progress
Automotive Precision Bearing Construction 306.20 0.13 49.77%
Laboratory Furniture 2.45 - 51.94%
Precision Forging Workshop 38.50 - 1.38%