Fuyao Group Glass Industries Co., Ltd. FY2006
Performance for FY2006 (million yuan)
FY2006 FY2005 Factors Sales 3,934.62 2,911.16 Sales and profit increased from the previous year thanks to the following factors:
- Sales grew in line with the rapid development of the Chinese auto industry.
- Operations started smoothly on the three new float glass lines completed in Fuqing City, China in 2005. The total daily capacity of these lines is 600 tons.
- Sales of automotive glass to the OEM market increased globally. The Company's OEM based exports jumped 103.18 percent year-on-year.
Net profit 613.96 391.72
- The float glass industry, which had continuously posted losses since the second half of 2005 picked up. In line with the recovery, the float glass division at the Company returned to profitability in May 2006, supported by rising vehicle sales in China. Fuyao has also increased its market presence in the global market leveraging its high cost competitiveness.
- The Company will invest a total of 1,650 million yuan to build three automotive glass plants in Guangdong, Beijing, and Hainan over the period of 2006-2007. The new manufacturing facilities will manufacture automotive glass for Beijing Benz, Beijing Hyundai, FAW Haima, and other automakers. The Company has also established three new production companies near its headquarters in Fuqing City, Fujian Province, further expanding its business structure.
- The Company, which had been focusing on window glass, established four new production subsidiaries, and started making roof windows and window frames in fiscal 2006:
|Company Name||City||Year Established||Products|
|Guangzhou Fuyao Glass Co., Ltd.||Zengcheng, Guangdong||June 2006||Safety glass|
|Fuyao Fujian Automotive Parts Co., Ltd.||Fuqing, Fujian||July 2006||Roof windows,
|Fuyao Fujian Encapsulated Glass Co., Ltd.||July 2006||Encapsulated glass|
|Fuyao (Fujian) Bus Glass Co., Ltd.||Oct. 2006||Windshields for large buses|
- In November 2006, the Company passed a plant screening by Beijing Benz-DaimlerChrysler Co., Ltd., and won a contract award for the 300C glass.
- In June 2006, the Company passed a product audit by TATA of India and won supply agreements to provide 23 kinds products. It delivered the first lot to the Indian automaker in early July the same year. It is likely that the deal between the two companies will greatly expand in 2007.
Encapsulated glass for sunroofs
In October 2006, the Company's Shanghai production unit successfully made prototypes of the encapsulated glass to be used for the M1 roof systems. The achievement paved the Company's way into the roof glass market in China, which had essentially been dominated by foreign manufacturers .
- The Company will invest a total of 1,650 million yuan to build three automotive glass plants in Guangdong, Beijing, and Hainan over the period of 2006-2007. The new manufacturing facilities, due completion in the second half of 2007, will supply automotive glass to Beijing Benz, Beijing Hyundai, FAW Haima, and other automakers.
Major Investment Projects (as of Dec. 2006)
|Company Name||Planned amount of investment (in million yuan)||Actual Investment by Dec. 2006 (in million yuan)||Project|
|Beijing Futong Safety Glass Co., Ltd.||370.0||283.7||Constructing a new facility to manufacture automotive safety glass in Tongzhou District, Beijing. (The plant is now under construction.)|
|Guangzhou Fuyao Glass Co., Ltd.||600.0||130.0||Constructing a new facility to manufacture automotive safety glass in Zengcheng City, Guangdong Province. (The plant is now under construction.)|
|Hainan Float Glass Co., Ltd.||700.0||240.3||Setting up two new production lines to make upscale float glass in Chengmai Prefecture, Hainan Province. (The lines are now under construction.)|
|Fuyao Group Tongliao Co., Ltd.||50.0||56.6||Revamping existing float glass production lines in Inner Mongolia. (The lines are now under construction.)|