Fuyao Group Glass Industries Co., Ltd. FY2008
Business Highlights
Financial Overview (million yuan)
New Joint-venture companies
- In fiscal year 2008, the Company and Ningbo Chifei Automobile Parts Co.,Ltd. jointly established Ningbo Fuyao Automobile Parts Co.,Ltd. to manufacture moldings, with the Company investing 49 percent and Ningbo Chifei investing 51 percent of the needed capital.
At the same time, the Company transferred the 51 percent of its equity share in Fuyao Fujian Automobile Fittings Co., Ltd. to Ningbo Chifei, reorganizing it as another joint-venture company with Ningbo Chifei. Fuyao Fujian Automobile Fittings was established in 2006 as a wholly owned subsidiary of the Company.
Production stoppage
- In order to cope with a sharp fall in glass demand due to the impact of the worldwide financial crisis, the Company halted four out of its nine float glass production lines in November and December 2008: one line at the Fuqing Plant; one line at the Shuangliao Plant; and two lines at the Hainan Plant. Following the stoppages, the Company posted an impairment loss on fixed assets of 418.42 million yuan.
| FY2008 | FY2007 | Increases (%) | Factors | |
| Sales | 5,716.97 | 5,165.72 | 10.7% | - Despite the worldwide slowing economy, sales rose as a result of increased marketing efforts. |
| Operating profit | 281.03 | 962.07 | (70.8%) | Profit plunged from the previous year mainly due to the following factors: - Increased materials costs - The Company posted an impairment loss on fixed assets of 418.42 million yuan due to having discontinued operations of four of its float glass lines. - Loss incurred from strong yuan |
| Ordinary profit | 314.89 | 979.59 | (67.9%) | |
| Net profit | 246.05 | 917.21 | (73.2%) |
New Joint-venture companies
- In fiscal year 2008, the Company and Ningbo Chifei Automobile Parts Co.,Ltd. jointly established Ningbo Fuyao Automobile Parts Co.,Ltd. to manufacture moldings, with the Company investing 49 percent and Ningbo Chifei investing 51 percent of the needed capital.
At the same time, the Company transferred the 51 percent of its equity share in Fuyao Fujian Automobile Fittings Co., Ltd. to Ningbo Chifei, reorganizing it as another joint-venture company with Ningbo Chifei. Fuyao Fujian Automobile Fittings was established in 2006 as a wholly owned subsidiary of the Company.
Production stoppage
- In order to cope with a sharp fall in glass demand due to the impact of the worldwide financial crisis, the Company halted four out of its nine float glass production lines in November and December 2008: one line at the Fuqing Plant; one line at the Shuangliao Plant; and two lines at the Hainan Plant. Following the stoppages, the Company posted an impairment loss on fixed assets of 418.42 million yuan.
R&D
<R&D Facility>
Recent Development
Major R&D achievements in 2008 included the following products:
- Low-E coating for automotive windshields
- New float glass materials containing ultraviolet rays protection ingredient
| 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. |
Major R&D achievements in 2008 included the following products:
- Low-E coating for automotive windshields
- New float glass materials containing ultraviolet rays protection ingredient
Investment Activities
Capital investment projects (as of Dec. 2008)
| Projects | Planned amount of investment (million yuan) |
Amount invested in 2008 (million yuan) | % so far invested of the total planned investment amount(%) |
Status |
| Constructing a new facility to manufacture automotive safety glass at Fuyao Glass (Hubei) Co., Ltd. | 250.0 | 231.7 | 95 | This facility is under construction |
| Setting up two new production lines to make high-end float glass at Fuyao Hainan Float Glass Co., Ltd. | 830.0 | 34.4 | 98 | -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 | 88.1 | 95 | 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 | 66.5 | 98 | Commercial operations began in Aug. 2007 |