Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2012
Business Highlights
Financial Overview |
(million yuan) |
| FY2012 | FY2011 | Increases (%) | Factors | |
| Sales | 10,247.39 | 9,689.41 | 5.76 |
The sales of automotive products increased due to: -Enforcement on sales and promotion; -Strengthen the customer relationship management and the development of functional products and high value-added products. |
| Operating profit | 1,811.34 | 1,709.10 | 5.98 |
The profit increased due to: Cost control, technology breakthrough and internal control of risk prevention. |
| Ordinary profit | 1,862.58 | 1,772.33 | 5.09 | |
| Net profit | 1,524.64 | 1,512.61 | 0.80 |
New Companies
-The Company said it is planning to invest in the following projects:
1. The company and its wholly owned subsidiary, Fuyao Group (Fujian) Engineering Glass Co., Ltd., will establish a joint-venture company in Jiangyin Town, Fuqing City, Fujian. The new company will be capitalized at 700 million yuan, of which 80 percent will be invested by Fuyao Group (Fujian) and the remaining 20 percent by Fuyao Glass Industry. The joint venture facility will conduct production of clear glass, colored glass and special glass, as well as development and processing of sheet glass.
2. The company will establish a new plant at the Dadong District, Shenyang City, Liaoning to manufacture automotive safety glass. It is going to invest approximately 230 million yuan for this construction project in response to moves made by global automakers, including General Motors, BMW, and Nissan, to strengthen their operations in Shenyang. (From an announcement by the company, November 19, 2012)
-On April 18, 2012, Chongqing Wansheng Float Glass Co., Ltd., a subsidiary of the Company, began operations on its second production line to make high-quality float glass for automobiles. The company has invested 500 million yen in this new operation, construction of which started in January 2010. With the addition, the Company now has eight float glass production lines in total. Melting capacity on the new production line is 450 tons. The expansion will allow the company to supply automotive glass not only to its customers in southwest China, but also those across the country and outside China as well. (From a press release, May 8, 2012)
-Chongqing Wansheng Float Glass Co., Ltd. and Xupu Silicon Industry Chemical Co., Ltd. will establish a joint venture, Fuyao Xupu Silica Sand Co., Ltd.(tentative name) in Huaihua , Hunan
Dissolution
-The Company will dissolve Fuhui Trading (-The Company decided to dissolute and liquidate its subsidiary, Hong Kong Miao Xin Investment Co., Ltd. The cancellation of registration was completed on October 26, 2012. (From the Company's 2012 annual report)
Award
-On March 13, 2012, the Company has received the Excellent Global Supplier Award from General Motors for 2011. High scores were given to the stable supply system, high-quality levels, and excellent customer services for of the glass products used in the J300 Chervolet Cruze platform. This is the third time that the company received an award from General Motors since 2008 when it delivered its products to General Motors for the first time. (From a press release, May 8, 2012)
R&D
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 certified as a national level research facility in September 2006. -The total investment in 2009 was 87.4 million yuan; and that in 2010 reached 155.17 million yuan. -The total R&D expenditure in 2012 was 236.46 million yuan. |
-Application for establishment of new standards for automotive heat reflecting, front-sealed laminated glass by The Company and other organizations has gained an approval from the Ministry of Industry and Information Technology of the P.R. of China in the 2012 first quarter planning audit. Demand for heat reflecting, front-sealed laminated glass is growing for its high levels of translucency and heat insulating properties, low reflectivity, and durable coating contribute to ensuring driving safety and comfort. The company has formed a dedicated project group, aiming to establish the new industry standards by the end of this year. (From a press release, September 25, 2012)
-2012, the Company applied and granted 86 patents, among which there are 18 for new invention.
-The Company can design automotive glass with automobile plants synchronously and sets up four design centers in the world's major automobile production and sales area.
Investment Activities
Capital Investment Projects |
(As of Dec. 31, 2012) |
| 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. | 800.0 | 332.76 | 99 | Under construction |
| Zhengzhou Fuyao Plant project | 420.0 | 33.63 | 76 | Under construction |
| Improving production line at Russia plant | 661.12 | 12.13 | 40 | Under construction |
Investment
-The board members of the The Company voted on the following projects on April 23, 2012.
1. The Company, its wholly owned subsidiary, Fuyao (
2. Fujian Wanda Automobile Glass Industry, which is the Company’s subsidiary, and Meadland Limited will raise 25 million yuan in capital at Guangzhou Fuyao Glass Co., Ltd.
3. The Company and its wholly owned subsidiary, Fuyao (
4. The Company and its wholly owned subsidiary, Fuyao (