Fuyao Glass Industry Group Co., Ltd. Business Report FY ended Dec. 2018
Financial Overview |
(million yuan) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | Rate of Change (%) | Factors | |
| Sales | 20,224.99 | 18,715.61 | 8.08 | The sales of automotive products increased. |
| Operating profit | 4,973.22 | 3,669.93 | 35.51 | - |
| Ordinary profit | 4,962.36 | 3,679.72 | 34.86 | |
| Net profit | 4,107.17 | 3,148.24 | 30.46 |
Recent Development
-The Company said its wholly-owned subsidiary, Fuyao Glass Europe Industry Co., Ltd., agreed to acquire assets of SAM Automotive Production GmbH (SAM) with Dr HolgerLeichtle, an assignee in bankruptcy for SAM. The assets include equipment, materials, products, and industrial tools. The acquisition cost is EUR 58.83 million. SAM is a German-based aluminum interior trimming manufacturer which is now in bankruptcy. After the transaction, Fuyao Glass Industry is going to renovate and renew SAM. (From a press release on January 16, 2019)
Share Transfer
-The Company announced on June 29, 2018 a plan to sell 75% of shares in its subsidiary, Fuyao Group Beijing Futong Safety Glass Co., Ltd., to Taiyuan Jinnuo Investment Co., Ltd. After the share transfer, the subsidiary will be owned 25% by Fuyao Glass (Hongkong) and 75% by Taiyuan Jinnuo Investment. Fuyao Group Beijing Futong Safety Glass primarily deals with machines glass and tempered glass for passenger cars. Its production and sales are temporarily suspended as its plant relocation work is now ongoing. (From a press release on June 29, 2018)
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)
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. (From a press release on May 30, 2018)
R&D Expenditure
| FY ended Dec. 31, 2018 (million yuan) |
FY ended Dec. 31, 2017 (million yuan) |
FY ended Dec. 31, 2016 (million yuan) |
|
| R&D Expenditure | 887.72 | 803.44 | 727.59 |
| Ratio of R&D expenses to operating income | 4.39 | 4.29 | 4.38% |
R&D Structure
-In 2018, the Company has 3,924 R&D staff, accounting for 14.50% 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 2018 (million yuan) |
Project progress (%) |
| Suzhou automotive glass project | 1,000.00 | 581.01 | 77 |
| Benxi Fuyao Float's glass project | 1,000.00 | 547.89 | 97 |
Investment in China
-On July 9, 2018, Volvo Car Corporation hosted a summit meeting in Daqing, Heilongjiang, with its suppliers in the Asia-Pacific region. Also at the meeting, it held a ceremony for four of its automobile parts suppliers and the management committee of the Daqing High-tech Zone to sign an investment agreement. The details of the investment plans of the four companies are explained below.
- TI Automotive China (Chongqing) Co., Ltd. plans to invest Chinese yuan (CNY) 100 million in building a new automotive pipe bending facility. The new plant is expected to generate sales of CNY 100 million once its first-phase full-scale production begins.
- Suzhou Daoben Metal Materials Co., Ltd. plans to invest CNY 200 million in building a new automotive metallic material machining plant. The new facility is expected to have a capacity to make 200,000 sets a year and generate sales of CNY 280 million once its full-scale production begins.
- Fuyao Group (Shanghai) Automobile Glass Co., Ltd. plans to invest CNY 20 million, in the first phase, in building a new automotive glass plant. It will be a multi-stage project, and the first-phase plant is expected to generate sales of CNY 200 million once its full-scale production begins.
- Daqing Yanfeng Adient Automotive Components Co., Ltd. plans to invest CNY 100 million in building an additional Volvo S60 seat production line. The new line is expected to generate sales of CNY 500 million once its full-scale production begins.
The four companies are going to supply all these products to Volvo Cars. (From a press release on July 11, 2018)