Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2013
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Increases (%)||Factors|
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.
The profit increased due to:
Cost control and investment income.
Restructuring-The Company announced that it will transfer a 75 percent share in Fuyao Group Shuangliao Co., Ltd. to Shuangliao Jinyuan Glass Manufacturing Co., Ltd. for CNY 280 million. (From an announcement by the company on October 29, 2013)
-The Company said that it will dissolve Fuyao Hainan Float Glass Co., Ltd., and will conduct liquidation procedures for the subsidiary, starting on December 7, 2013. Its deregistration has not be completed as of December 31, 2013.
-The Company announced that Fuyao (Fujian) Bus Glass Co., Ltd. has received a bronze medal in Caterpillar (China) Machinery Components' Excellent Supplier Awards 2012. (From a press release, October 22, 2013)
-The Company announced that it received the GM Supplier of the Year Award for 2012 during General Motors’ 21st annual Supplier of the Year awards ceremony. The automaker recognized 83 of its best global automotive suppliers, including three Chinese companies. For Fuyao, it is the fourth time in five years that it was given the award. (From a press release May 20, 2013)
-The Company announced that Fuyao Automobile Parts Co., Ltd., its subsidiary, has received the Supplier Award Sliver Prize from Caterpillar. (From a press release on August 26, 2013)
Annual Sales Plan for Next Year-The Company plans to reach 12,683.90 million yuan sales for next year.
|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 R&D expenditure in 2013 was 389 million yuan, 64.41 percent increase over last year.
-The Company announced that its testing center has obtained a national certification from the China National Accreditation Service for Conformity Assessment (CNAS) on November 29, 2012. The company started preparing for the program, which is based on the ISO/IEC 17025:2005 standards. Acquisition of the CNAS certification means the company’s products are accredited in 67 countries and from 81 certification bodies, thereby eliminating the needs to be checked by a third-party organization. This will reduce production cost, while improving Fuyao’s brand image in the global market. （From a press release, January 16, 2013）
-In 2013, the Company applied and granted 91 patents, among which there are 16 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.
Capital Investment Projects
|(As of Dec. 31, 2013)|
|Projects||Planned amount of investment
|Amount invested in 2013
|% so far invested of the total planned investment
|Zhengzhou Fuyao Plant project||420.00||173.18||96%||Under construction|
|Fuyao Group Tongliao's two float glass production lines upgrading project||830.00||292.10||36%||Under construction|
|Improving production line at Russia plant||661.12||316.91||93%||Under construction|
-The Company announced that Fuyao (Shenyang) Automobile Glass Co., Ltd., its subsidiary, will invest CNY 200 million in the second phase of a plant construction project, which is scheduled to be completed by the end of 2014. The new plant will have the capacity to produce safety glass for 1.5 million vehicles per year. The subsidiary has already constructed factory buildings in the first phase of the project by investing CNY 230 million. The second phase of the project will include purchasing and installing new production equipment. (From an announcement by the company on February 25, 2014)
-Yantai Fuyao Glass Co., Ltd., a sub-subsidiary of the Company, has broken ground for its automotive glass plant on a 26,000-square-meter-plot at the Yantai Economic & Technological Development Zone in Shandong Province. Yantai Fuyao Glass, established in 2013, will invest CNY 150 million in the construction project scheduled to be completed in July 2014. It will manufacture automotive glass worth CNY 100 million per year and supply these products to Shanghai GM Dongyue Motors and other automakers operating in the region. (From news releases issued by multiple sources on December 12, 2013)
-The Company announced that its board members agreed on an additional 830 million yuan investment project at Fuyao Group Tongliao Co., Ltd., its subsidiary in Inner Mongolia. The purpose of the investment is to switch the functions of its two float glass production lines now manufacturing products for the construction industry to production of glass for the automotive industry. On the new production line, float glass produced using the next-generation technology will undergo secondary processing to make automotive glass such as tempered glass, double-glazed glass and laminated glass. After launching new operations, Fuyao is expecting to achieve 739 million yuan in sales and 174 million yuan in after-tax profit a year. (From an announcement by the company, March 19, 2013)
-The Company announced that it will invest approximately USD 200 million to establish a wholly owned subsidiary in at General Motors’ former factory site in Ohio, U.S.A to produce automotive safety glass. The new company will be capitalized at USD 60 million. Glass produced at this plant will be supplied to North American facilities of automakers such as General Motors, Toyota, Honda and the Hyundai-Kia Group. (From an announcement by the company October 22, 2013)
-The Company announced that it has decided to make additional investments in Fuyao Automotive North America, Inc., its wholly owned subsidiary in the U.S.. Over the next two years, the company will invest 10 million dollars to increase the subsidiary’s capital from 6 million dollars to 16 million dollars. Fuyao Automotive North America handles installation of glass accessory products, inventory management, sales and after-sales services, with its revenues reaching approximately 2.88 million dollars and net profit totaling 136,000 dollars in the first quarter of 2013. The amount added to its capital will be used to expand the company’s facility making injection molded plastic parts and enhance the group business in North America. (From an announcement by the company, April 18, 2013)
-The Company announced that it will establish a wholly owned subsidiary in Kaluga, Russia to produce float glass. Products manufactured at the new company will be supplied to Fuyao’s existing automotive glass plant in Kaluga, which opened just recently. Fuyao will invest USD 220 million in the float glass production business, which will allow the Group to reduce material cost. The new subsidiary will be capitalized at USD 80 million. (From a press release, October 22, 2013)
-The Company has completed the first phase of its plant construction project in Kaluga, Russia. A total of 200 million dollars was invested in the first phase of the project that was launched in June 2011. The company has already started production at the new plant, which is capable of producing automotive safety glass for 1 million vehicles per year. The plant’s yearly production capacity is expected to be raised to glass for 2 million vehicles when the second phase of the project is completed. Its workforce will be increased to 1,000 people by then. (From a press release, September 9, 2013)