Fuyao Group Glass Industries Co., Ltd. FY2007

Business Highlights

Financial Overview (million yuan)

  FY2007 FY2006 Increases (%) Factors
Sales 5,165.72 3,934.62 31.2 Sales and profit increased due to the following factors:
-growth in the automotive industry in China;
-an increase in exports (up 25.79 percent on a year-over-year basis);
-greater production volume at car manufacturers at home and abroad.
-surging OEM sales outside China (130.06 percent year-on-year increase);
-increased sales as a result of the Company's developing new products;
-production launch at its new facilities in Guangdong, Beijing, and Hainan, which were completed in 2006.
Operating profit 962.07 669.74 43.6
Ordinary profit 979.59 671.12 46.0
Net profit 917.21 613.96 49.4

New Contracts
-In November 2006, the Fuyao Group Changchun Co., Ltd. passed the screening conducted by Beijing Benz-DaimlerChrysler, and thus won a contract to supply glass for use in the 300C.  
-In 2007, the Company won a contract from Bentley Motors to supply automotive glass.

New subsidiaries
-In 2007, the Company continued to expand its product line by establishing the following three subsidiaries to make special glass used in large buses, window trims, and safety glass.

Company name City Year established  Product
Shanghai Fuyao Coach Glass Co., Ltd. Anting Automobile City, Shanghai March 2007 Special glass used in large buses
Fuyao Automotive Trim (Shanghai) Co., Ltd. May 2007 Window trims
Fuyao Glass (Hubei) Co., Ltd. Jingmen Development Zone, Hubei Nov. 2007 Automotive safety glass

Production launch at new plants
-The Fuyao Group Tongliao Co., Ltd.'s Plant No. 2 began producing float glass in February 2007.

-The Fuyao Group Beijing Futong Safety Glass Co., Ltd. started making safety glass in August 2008.

-Guangzhou Fuyao Glass Co., Ltd. launched production of safety glass in October 2007.

-In August 2007, Fuyao Hainan Float Glass Co., Ltd. launched commercial production on its float glass production line No.1 in August 2007; and that on its line No. 2 in October 2007. The construction project was included as one of Hainan Province's 47 important projects for the year 2007. The facility, which will use silica sand mined in the province and hire local workers for the new production lines, is expected contribute to the development of the local economy.

-In November 2007, Fuyao Group (Hong Kong) Limited acquired all shares in SCHE35 Verwaltungsgesellschaft mbH held by Zehner Industriebeteiligungs-Gmbh. After the shares were acquired, SCHE35 adopted a new name, Fuyao Europe GmbH. (The shares were valued at 1,025,000 euros.) The new subsidiary supplies automotive glass such as bonded windshields and glass hinges used in vehicle front and rear areas to Audi, Volkswagen, Mercedes Benz, and Porche. This transaction will give Fuyao an edge in the complete automotive glass chain in the European market.


<R&D Facility>
Name Fuyao Technical Center
Overview -The technical center currently conducts its R&D activities in 10 divisions: the automotive glass research center; construction glass research center; float glass research center; the research center for cutting-edge technology; CAE/CAM application research division; technical information and patent division; inspection and testing center; planning and project management division; production equipment technology center; and dies and jigs research and development center.
-The center was certifies as a national level research facility in September 2006.
-The total investment in 2005 was 157 million yuan; and that in 2006 reached 210 million yuan. 

Recent Development
Coated glass
-In April 2007, The Fuyao Group Shuangliao Co., Ltd. developed dark gray, coated privacy glass and launched mass production of this proprietary product.

Investment Activities

-The Company built three automotive glass plants, one each in Guangdong, Beijing, and Hainan by investing a total of 1,650 million yuan between 2006 and 2007. The new manufacturing facilities  will supply automotive glass to Beijing Benz, Beijing Hyundai, FAW Haima, and other automakers.

Capital investment projects (as of Dec. 2007)
Projects Planned amount of investment
(million  yuan)

Amount invested in 2007 (million yuan)
% so far invested of the total planned  investment
Setting up two new production lines to make high-end float glass at Fuyao Hainan Float Glass Co., Ltd. 830.0 623.9 94 -The first production line started commercial operations in August 2007
-The second production line also started mass production, in Oct. 2007
Constructing a new facility to manufacture automotive safety glass at Guangzhou Fuyao Glass Co., Ltd. 600.0 397.8 80 Commercial operations began in Oct. 2007
Constructing a new facility to manufacture automotive safety glass at the Fuyao Group Beijing Futong Safety Glass Co., Ltd. 476.6 190.9 85 Commercial operations began in Aug. 2007
Constructing a new facility to manufacture automotive safety glass at Fuyao Glass (Hubei) Co., Ltd. 250.0 5.4 2 This facility is under construction
Constructing a new facility to manufacture window trims at Fuyao Automotive Trim (Shanghai) Co., Ltd. 172.9 109.8 81 This facility was completed in Nov. 2007
Second-phase of an expansion project at Fuyao Group Changchun Co., Ltd. 84.7 39.6 90 This facility is under construction
Revamping existing float glass production lines at Fuyao Group Tongliao Co., Ltd. in Inner Mongolia. 50.0 11.7 100 Commercial operations  began in December, 2007. 
Constructing a new facility to manufacture special glass used in large buses 19.3 12.2 63 Commercial operations began in 2007.