Shandong Binzhou Bohai Piston Co., Ltd. Business Report FY ended Dec. 2012
|(in million yuan)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||Rate of increase (decrease)||Factors|
|Sales||1,414.20||1,823.87||(22.46%)||2012 sales decreased as the following reasons.
-The automobile industry was slow;
-The sales of commercial vehicles decreased;
-The company shut down aluminum project, thus, sales of special alloys decreased.
|Operating profit||44.39||116.03||(61.74%)||-The decline in operating income led to profits decline.|
- The Company plans to achieve sales of 1.235 billion yuan in 2013.(From the Company's 2012 annual report)
Increased registered capital- The Company decided to increase its subsidiary, Zibo Bohai Piston Co., Ltd.'s registered capital from 9,810 thousand yuan to 20 million yuan.(From an announcement by the company, April 24, 2012)
Contracts-Shangdong Binzhou Bohai Piston Co.,Ltd. built a production line especially designed for the needs of Guangxi Yuchai Machinery, holding a ceremony to celebrate the launch of operations. The dedicated production line makes it possible for the two companies, which have had a cooperative relationship for many years, to develop products, manage quality control, control costs, and respond to after-service needs all at the same time. As a result, their commercial alliance is expected to grow even stronger. (From a November 2, 2012 press release)
-In October 2012, Shandong Binzhou Bohai Piston Co., Ltd obtained the qualification as an A-class supplier. (From news releases issued by multiple sources on November 2, 2012)
Expansion- The Company planned to build plants and buy equipment for manufacturing 10 million pistons and 30 million piston rings for engines. The investment of the first phrase of this project is 100 million yuan.(From an announcement by the company, April 24, 2012)
Pass quality audits-Shandong Binzhou Bohai Piston Co., Ltd. announced that the Company has been newly included in Daimler’s global procurement network based on the automaker’s supplier onsite assessment (OSA) conducted at its plant. Right after completing the OSA program, Daimler ordered sample pistons and paid 60,000 euros in advance as a cost to acquire a new die for the pistons of Euro V engines. Delivery of the sample products is planned to begin at the end of January 2013. If the products fully meet Daimler’s requirements, Shandong Binzhou Bohai Piston will be supplying pistons for 300,000 vehicles a year, starting at the end of 2014. (From news releases issued by multiple sources on December 23, 2012)
- Shandong Binzhou Bohai Piston Co., Ltd. obtained the ISO/TS16949:2009 standard after passing a series of screening conducted by NSF Shanghai Co., Ltd. from March 26 through March 28, 2012. Its subsidiary, Zibo Bohai Piston Co., Ltd., also acquired the standard for the first time. (From a press release, April 11, 2012)
Awards-The Company has won the "Excellent Supplier" and "Excellent Quality" from Weichai Power, Guangxi Yuchai, Shanghai Diesel Engine Factory, China National Heavy Duty Truck, JAC power, Fukuda Power, Revo Power and Dongfeng Cummins for many years. The Company also won the title of "Shandong Provincial Famous Brand" for many years. (From the Company's 2012 annual report)
R&D facility- The Company owns a national level technical center for developing pistons.
- In 2012, the Company's R & D expenditure is 55.75 billion yuan, 3.94% of the Company's operating income.
Capital Investment Projects for FY2012
|(in million yuan)|
|Project||Planned amount of investment||Investment made in 2012||Actual Spending by 2011 as a percent
of planned amount of investment
|Improving technology for 8 million pistons for low-emission passenger vehicles||279.87||23.28||28%|
|Constructing R & D building||-||12.83||80%|
-Shandong Binzhou Bohai Piston Co., Ltd. decided at a board meeting on August 23 that it will construct additional production lines to manufacture piston pins. The new lines will be completed in two phases at the company’s existing facility. The company is investing 35 million yuan in the first phase to set up two production lines: one for manufacturing 5 million piston pins a year for gasoline engines; and another for producing 3 million more for diesel engines. The company will spend another 35 million yuan in the second phase to add one more production line to boost its total capacity up to 16 million units. Piston pins for gasoline engines will be supplied to global automakers, including Volkswagen and Fiat. Those for diesel engines will be delivered to Cummins, FAW, Shanghai Automotive, Caterpillar and other customers. (From an announcement by the company, August 24, 2012)