Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2015
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Increases (%)||Factors|
|Sales||13,573.50||12,928.18||4.99||The sales of automotive products increased due to:
-The increase of the sales of automotive glass;
|Operating profit||3,051.24||2,591.60||17.74||The profits increased due to:
-Putting quality management into practice with continuous improvement;
-The Company announced that its revenues from the sale of automotive glass in 2015 reached CNY 13,137.76 million, 5.61 percent up from those of 2014. Sales outside China increased 4.13 percent year-on-year. Sales in China also grew year-on-year, up 12.46 percent. The company's share all over the world continues increasing.
-The Company announced that it will establish Tianjin Fuyao Glass Co., Ltd., a wholly owned subsidiary for the automotive glass business. The new company will be located in the Zhangjiawo Town, Xiqing District, Tianjin. It will be capitalized at CNY 400 million. Fuyao plans to invest CNY 1 billion in this project. The new subsidiary will develop, design, produce, and sell automotive glass and related products. It plans to establish a plant that can produce 4 million sets of automotive safety glass per year. (From an announcement by the company on April 13, 2015)
-The Company announced that it will begin producing automotive glass at the Moraine Plant in Ohio, U.S.A., which it had acquired from General Motors. Fuyao will supply the glass initially to Hyundai Motor's plant in the U.S. General Motors' Moraine Assembly Plant was closed in 2008, and was acquired by Fuyao Glass for USD 200 million in 2014 with a plan to begin new operations at the end of 2015. The plant's annual production volume is expected to reach glass for 4 million vehicles per year by 2016. (From news releases issued by multiple sources on November 17, 2015)
-The Company announced that Fuyao Automotive North America fired the furnace of its new automotive float glass line at the Mt. Zion Plant. Fuyao acquired the plant’s two production lines from PPG Industries of the U.S. in July 2014. It has been working on revamping the lines since the end of 2014. The refinement of the cold-end equipment on the second line is expected to be completed by around April 2016. When both lines become operational, the company will be able to produce 600 tons of molten glass per day. It expects to produce 260,000 tons of automotive glass per year. (From news releases issued by multiple sources on July 31, 2015)
-In March 2015, the Company was listed on the Main Board of The Stock Exchange of Hong Kong Limited.
-In June 2015, the Company sold the 49% stake it had in Fujian Fuyao Automobile Parts Co., Ltd. by transferring a 24% share to Ningbo Hongxie Clutch Co., Ltd. and a 25% share to Hongxie (Hong Kong) Limited. Related registration procedures were completed at the State Administration for Industry & Commerce in July 2015. The transaction was conducted based on a previous announcement made on June 3, 2015. (From a press release on August 17, 2015)
Pass the Test
-Guangzhou Fuyao Glass Co., Ltd., a subsidiary of the Company, passed the final pre-production testing on the production line to make products for Guangzhou Toyota’s new Highlander in January 2015. (From a press release in January 2015)
-The Company announced that it has received the 2015 Best Supplier Award from Volvo. The company is one of the only five companies in the Asia Pacific region that received this award. In 2014, Fuyao Glass (Chongqing) Co., Ltd. received Volvo's Outstanding Contribution to Local Production Award, and this is the second time that Fuyao was awarded by the automaker. (From a press release on February 1, 2016)
-The Company received the Excellent Supplier Award 2014 from Beijing Benz on August 28, 2015. Fuyao was the sole company that has earned this award. (From a press release on September 18, 2015)
-The Company won the International Supplier Award 2015 from Webasto on June 24, 2015. Fuyao Glass is the only company that received this award among over 250 Webasto suppliers. (From a press release on June 30, 2015)
|FY ended Dec. 31, 2015
|FY ended Dec. 31, 2014
|FY ended Dec. 31, 2013
|Ratio of R&D expenses to operating income||4.37%||4.01%||3.38%|
-In 2015, the Company has 2,712 R&D staff, accounting for 12.42% of the total employees.
|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 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.
-The Company announced that Fujian Wanda Automobile Glass Industry Co., Ltd., it subsidiary, has received the 17th Excellent Chinese Patent Award for its Low-E glass that had obtained the patent of invention. (From news releases issued by multiple sources on December 17, 2015)
Capital Investment Projects
|(As of Dec. 31, 2014)|
|Projects||Planned amount of investment
|Amount invested in 2015
|% so far invested of the total planned investment
|Automotive glass project in Russia||1,296.32||26.30||74%|
|Renovating two automotive float glass production lines in U.S.||1,231.94||683.80||86%|
|Fuyao Automotive North America's automotive glass project||2,526.62||1,360.57||54%|
Investment in China
-The Company is constructing a new plant in Zhangjiawo Town, Xiqing District, Tianjin. The company will invest CNY 1 billion in this facility built on 270,000 square meters of land. Plant construction is expected to be completed by June 2016. Approximately 70 percent of the plant's manufacturing equipment will be developed in-house by the company. Products made at this plant will be supplied to the car assembly plants of FAW-VW, Toyota, Hyundai, and Mercedes-Benz in China. They will be also exported outside China for use on luxury vehicles from Audi, Mercedes-Benz, and BMW. The company plans to hire 2,000 people at the plant, and aims to generate CNY 3 billion in sales each year. (From news releases issued by multiple sources on September 28, 2015)