Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2017
Financial Overview |
(million yuan) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Increases (%) | Factors | |
| Sales | 18,715.61 | 16,621.34 | 12.60 | The sales of automotive products increased due to: -The increase of the sales of automotive glass; |
| Operating profit | 3,669.93 | 3,839.86 | (3.99) | The profits increased due to: -RMB foreign exchange |
| Ordinary profit | 3,679.72 | 3,919.63 | (6.12) | |
| Net profit | 3,148.24 | 3,142.72 | 0.18 |
-The Company announced that its revenues from the sale of automotive glass in 2017 reached CNY 17,868.12 million, 10.67 percent up from those of 2016.
Acquisition
-Fuyao Glass Industry Group Co., Ltd. announced on June 26, 2018, a plan for its wholly-owned subsidiary, Fuyao (Hongkong) Co., Ltd., to purchase 100% shares in Fujian Triplex Automotive Trims Co., Ltd. at the cost of Chinese yuan (CNY) 224 million. Fujian Triplex Automotive Trims owns stakes in Fujian Triplex Automotive Trims Co., Ltd., Fujian Triplex Automotive Service Co., Ltd., and Fujian Fuyao Mold Technology Co., Ltd. After the share acquisition, all these four companies will be included in Fuyao Glass Industry's consolidated statement. (From a press release on June 26, 2018)
New Company
-Fuyao Glass Industry Group Co., Ltd. will invest a wholly owned subsidiary in Suzhou. The new company will be called Fuyao Glass (Suzhou) Co., Ltd., and will be capitalized at CNY 400 million. Approximately CNY 1 billion will be invested in the new company that will mainly develop, produce, and sell automotive glass and related components. The subsidiary will construct an automotive safety glass plant that will be capable of producing 4 million sets per year. (From an announcement by the company on February 27, 2017)
New Production Line
-A Tianjin-based automotive glass plant of Fuyao Glass Industry Group Co., Ltd. is currently introducing six new production lines, now at adjusting stage. The company is going to add six more at the end of September. The twelve new production lines are to be completed in the second phase construction at this facility, and their operation is slated to start at the end of 2017. The addition of the production lines will allow the company to boost its annual automotive glass production capacity to 4.5 million sets and its sales to Chinese yuan (CNY) 3 billion. Fuyao Glass Industry has invested more than CNY 1 billion to build the plant that designs, produces and sells automotive glass and related parts on a site of 270,000 square meters. (From some releases on September 27, 2017)
Strategic Partnership
-On August 16, 2017, Fuyao Glass Industry Group Co., Ltd. said that it signed a strategic partnership agreement with a French 3D experience solution provider, Dassault Systèmes S.A. The agreement said that Fuyao Glass Industry would develop new products, apply intelligence engineering, build product simulation systems, and begin intelligent production and production management by the use of 3D experience platform provided by Dassault Systèmes. The platform will allow Fuyao Glass Industry to accelerate the launch of intelligence production. The alliance between Fuyao Glass Industry and Dassault Systèmes was formed in 2006 initially with the use of 3D engineering software and gradually expanded to the level of the application of the 3D experience platform. Fuyao Glass Industry is planning to incorporate this platform into its global IT implementation plan as a tool to support its global product lifecycle management (PLM) joint management platform. (From a press release on August 16, 2017)
Awards
-In May 2018, Our Company announced that its winning the 2017 Gold Award for the best global provider of Jaguar Land Rover. A total of 15 suppliers were awarded in 2017, among which the Gold Award was the highest honor granted by the British company. In 2006, the Company established cooperation with Jaguar Land Rover and provided it with such products as Internal heating wire printing glasses, D-pillar cover integrated encapsulated glasses backside assembly, and panoramic sunroof.
R&D Expenditure
| FY ended Dec. 31, 2017 (million yuan) |
FY ended Dec. 31, 2016 (million yuan) |
FY ended Dec. 31, 2015 (million yuan) |
|
| R&D Expenditure | 803.44 | 727.59 | 592.89 |
| Ratio of R&D expenses to operating income | 4.29 | 4.38% | 4.37% |
R&D Structure
-In 2017, the Company has 3,356 R&D staff, accounting for 12.82% of the total employees.
R&D Facilities
| 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.
Capital Investment Projects |
(As of Dec. 31, 2017) |
| Projects | Planned amount of investment (million yuan) |
Amount invested in 2017 (million yuan) |
% so far invested of the total planned investment amount (%) |
| Fuyao Automotive North America's automotive glass project | 3,540.59 | 187.81 | 97 |
| Tianjin Fuyao's automotive glass project | 1,244.60 | 303.82 | 88 |
| Benxi Fuyao Float's glass project | 1,000.00 | 259.23 | 32 |
Investment in China
-Fuyao Glass Industry Group Co., Ltd. is implementing two projects in Xiangcheng District, Suzhou City, spending Chinese yuan (CNY) 5.2 billion in total. On September 20, 2017, the company set up Fuyao International Holdings Co., Ltd., spending CNY 3 billion. The total registered capital is CNY 50 million. It will become an overseas business headquarters of Fuyao Glass Industry Group by integrating overseas business of the entire group. On September 22, 2017, it held a groundbreaking ceremony of Fuyao Glass (Suzhou) Co., Ltd. The total investment is CNY 2.2 billion. The new facility of 320,000 square meters is going to produce automotive glass products for 4 million vehicles as well as 16 million pieces of glass modules with molding per year. It’s expected to generate sales of CNY 5 billion. At the same time, the company plans to build a new research center specialized in glass technology and a tooling center. (From some releases on September 25, 2017)