Fuyao Group Glass Industries Co., Ltd. FY2011
Business Highlights
Financial Overview |
(million yuan) |
| FY2011 | FY2010 | Increases (%) | Factors | |
| Sales | 9,689.41 | 8,508.04 | 13.89 | The sales of automotive products increased due to: Enforcement on sales and promotion; Launch of new products; Shorten the delivery period. |
| Operating profit | 1,709.10 | 1,992.29 | (14.21) | The profit decreased due to: The increase of cost incurred by high cost of material and labour. |
| Ordinary profit | 1,772.33 | 2,011.83 | (11.90) | |
| Net profit | 1,512.61 | 1,787.76 | (15.39) |
Transfer of Shares
-Sanyi Development Co., Ltd., which is the largest shareholder of Fuyao Group Glass Industries Co., Ltd., and Yaohua Industrial Park, Ltd. Fujian Province, which is the second largest shareholder of Fuyao Group Glass, will donate part of the shares they have in Fuyao Group Glass to the Heren Charity Foundation. Sanyi Development will transfer 59 million shares, which account for 2.99 percent of all shares issued by Fuyao Group Glass Industries, while Yaohua Industrial Park will transfer 240 million shares, which make up 11.9 percent of all Fuyao Group Glass shares. When the transaction is completed, the Heren Charity Foundation will become the second largest shareholder of Fuyao Group Glass Industries by holding 300 million shares (14.98 percent ownership in the company). Sanyi Development will remain to be the biggest shareholder with a 19.5 percent ownership. Heren Charity Foundation was established in 2009 by Cao Dewang, chairman of Fuyao Group Glass. (From an announcement by the company, April 12, 2011)New Companies
-Fuyao Glass Industry Group Co., Ltd. will establish a wholly owned subsidiary in Kaluga, Russia to manufacture and sell automotive glass. The plan was decided at a board meeting held on June 7, 2011. The new company, China Fuyao (Russia Kaluga) Glass Industry Co., Ltd. (tentative name), will be capitalized at 60 million US dollars. It will be located within the Volkswagen Industrial Park. Investment in the new company is planned to reach 200 million US dollars.The construction will be carried out in 2 stages, the first is expected to be completed until July 2013 and the second until June 2015. (From an announcement by the company, June 8, 2011)
-The Company decided at the board meeting held on February 28, 2011 that it will establish a new subsidiary in Zhengzhou through a joint investment with Fuyao (Hong Kong) Limited, Fuyao's wholly owned subsidiary in Hong Kong. The new company will be capitalized at 200 million yuan, of which 75 percent (150 million yuan) will be provided by the Company. The Zhengzhou facility will invest 420 million yuan to establish a plant to make automotive safety glass at the Jindai Industrial Zone, Guancheng District, Zhengzhou. It has been also approved by the board members that Fuyao Glass (Chongqing) Co., Ltd. will spend 680 million yuan to add two new production lines to manufacture automotive float glass. (From an announcement by the company, March 2, 2011)
New Order
-Honda Motor’s new N-Box mini-vehicle scheduled for launch on December 16 will use a windshield produced by the Fuyao Glass Industry Group, a major glass manufacturer in China. This is the first time for Honda to choose a China-made windshield for its vehicles, which helps the automaker slash production cost. Fuyao’s windshields will be imported from China to be fed to Honda’s assembly lines in Japan. The products will be also installed on an N-Box-based new model to be released in the spring of 2012. Honda, which will put the N-Box into the highly price-competitive mini-vehicle market, is procuring 15 percent of its components outside Japan. The automaker is poised to adopt foreign products flexibly to offer more cost-efficient vehicles to the market. (From an article in the Nikkan Jidosha Shimbun on December 15, 2011)
Award
<Fuyao Group>
-the Excellent Quality Award for FY2011 From Chrysler
<Guangzhou Fuyao Glass Co., Ltd.>
-the AAA-class Supplier Award for FY2011 from FAW Haima
-the Excellent Supplier Award for FY2011 from BYD Auto
<Fuyao (Fujian) Bus Glass Co., Ltd.>
-the Excellent Supplier Award for FY2011 from Xiamen King Long
<Fuyao Group (Shanghai) Automobile Glass Co., Ltd.>
-the Excellent Supplier and Partnership Award from Changan Ford Mazda
<Fuyao Glass (Hubei) Co., Ltd.>
-the Excellent Supplier Award for FY2011 from Dongfeng Motor
<Fuyao Group Changchun Co., Ltd.>
-the Excellent Supplier Award for FY2011 from FAW Group, FAW Car
-the Excellent Quality Award for FY2011 from FAW Jilin
(From Company Website of 2011)
R&D
-2011, the Company applied and granted 48 patents, among which there are 7 for new invention.
Investment Activities
Capital Investment Projects |
(As of Dec. 31, 2011) |
| Projects | Planned amount of investment (million yuan) |
Amount invested in 2010(million yuan) | % so far invested of the total planned investment amount(%) |
Status |
| Constructing two new production lines to manufacture automotive float glass at Chongqing Wansheng Float Glass Co., Ltd. | 680.0 | 332.76 | 98% | Under construction |
| Improving a production line to manufacture automotive float glass at Fuqing | 116.48 | 29.59 | 90% | Under construction |
| Improving production line at Wanda Plant | 161.1 | 69.91 | 75% | Under construction |
| Production line for SAIC glass product | 237.7 | 98.43 | 91% | Under construction |
| Zhengzhou Fuyao Plant project | 420.0 | 33.63 | 8% | Under construction |
| Improving production line at Fuyao Changchu plant | 259.6 | 60.55 | 93% | Under construction |
| Improving production line at Shanghai fuyao coach plant | 94.85 | 37.39 | 97% | Under construction |
| Production line for BAIC glass product | 75.37 | 47.32 | 80% | Under construction |
| Production line for GAC glass product | 88.62 | 9.02 | 88% | Under construction |
| Improving production line at Fuyao hubei plant | 60.58 | 42.63 | 84% | Under construction |