CITIC Dicastal Co., Ltd. Business Report FY ended Dec. 2015
Financial Overview |
(in million CNY) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of Change | Factors | |
| Sales | 16,198 | 15,190 | 7% | -The sales increase was driven by the increase in aluminium wheel sales. |
| Net profit | 725 | 638 | 14% | -With improved manufacturing technology, production cost was reduced. As a result, net profit is up by 14% over 2014. |
| Total assets | 14,150 | 12,719 | 11% | - |
-In 2015, the Company sold 37.54 million aluminium wheels, representing a 9% increase over last year. Sales of aluminium castings decreased 5% from 2014 to 69,000 tonnes. (From CITIC Limited's 2015 annual report)
Recent Development
-The Company announced that it will construct an aluminum wheel plant in Michigan, U.S.A. Operations are scheduled to begin in 2016, and the plant will be able to produce 3 million units per year. (From a press release on June 2, 2015)
Off the Line
-The Company completed the construction of machining lines and painting lines at its new plant in Michigan, U.S. The Michigan facility is capable of producing 3 million aluminum wheels per year, and began production on February 1. This project is the largest investment in the U.S. made by a Chinese auto parts supplier. (From a press release on February 4, 2016)
Strategic Alliance
-The Company announced that it held a signing ceremony for its new strategic alliance with Siemens in January, 2015. Siemens will be CITIC Dicastal's strategic partner in carrying out its intelligent technology project. With the support of the global engineering company, CITIC Dicastal will work on introducing digitalized systems in auto parts development, production, and lifecycle management. (From a press release on January 20, 2015)
R&D Structure
-The Company conducts development activities at its technical center, which was established in February 1993. The technical center has been recognized as a national R&D center by the National Development and Reform Commission since October 2005.
-The Company has established overseas R&D centers in Europe and North America and a technical center in Japan. Due to its overseas technical centers, the Company is the first wheel manufacturer which can provide synchronous development together with global automakers. The Company's synchronous development projects have been extended to 2015.
-The Company's Wheel Testing Center is the largest one in Asia. (From news releases issued by multiple sources on February 3, 2015)
Patents
-Recently, the Company carried out more than 50 R&D activities with research institutions and universities and obtained more than 300 patents.
Investment Project
|
(in million CNY) |
| Project | Investment budget | Project status | Annual capacity |
| Michigan manufacturing facility | US$150 million | Construction began in 2014, and the facility is scheduled to become operational by the end of 2016. |
3 million wheels |
| KSM (China) Phase Ⅱ | - | Construction began in March 2015, and this facility is targeted to become operational in 2016. |
- |
| KSM (Chengdu) Manufacturing Base | CNY 1 billion | Construction is scheduled to begin in the first half of 2016, and the facility is targeted to become operational by 2018. |
- |
| Qinhuangdao Mould Centre | - | Construction began in 2015, and the new plant will become operational in early 2017. |
2,700 sets of moulds |
Investment in China
-The Company is constructing a new testing laboratory at its automotive wheel testing center located in the Qinhuangdao Economic & Technological Development Zone in January, 2015. The new laboratory will have a floor area of 12,050 square meters.It is expected to take 11 months to complete. The Company plans to invest CNY 22.44 million in this project.The new laboratory will test and inspect some major components such as steering knuckle brackets and steering linkage brackets. (From news releases issued by multiple sources on February 3, 2015)
Investment Outside China
-The Company announced that it is planning to establish a plant in Romania in order to boost production and establish a strong presence in the Central and East Europe. (From news releases issued by multiple sources on December 17, 2015)