Financial overview

(in million yuan)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of increase (%)	Factors
Sales	1,178.80	1,279.78	(7.89%)	-In 2014, Chinese government carried out enforcement policy of Eliminating State II & State III emission standards, Switching to State IV emission standards,the commercial vehicle market, especially diesel market was slow. The Company's sales volume declined in 2014, thus, annual sales declined in 2014.
Operating profit	48.81	66.46	(26.56%)	-
Ordinary profit	110.64	72.98	51.60%
Net profit	98.10	60.81	61.32%

-The Company announced that it produced 19.56 million pistons, 3.68 million piston rings, and 430,000 piston pins in 2014. During the year, the Company invested in installing 154 pieces of production equipment and upgrading 82 pieces of equipment. (From news releases issued by multiple sources on February 3, 2015)

Contract

-The Company announced that it is mass-producing components for China IV engines. These components are supplied to Weichai Power, Guangxi Yuchai Machinery, FAW Jiefang Wuxi Diesel Engine, DFM Diesel Engine and other major diesel engine manufacturers in China.(From news releases issued by multiple sources on September 17, 2014)

-In May 2014, the Company announced that it is mass-producing its JX4D24 pistons for Jiangling Motors' Yusheng SUV. (From a press release on June 18, 2014)

Share Transfer

-The Company announced that the State-owned Assets Administration Office of Binzhou City and the Beijing Automotive Group have signed a share transfer agreement. In accordance with the agreement, the State-owned Assets Administration Office will transfer a 32.06 percent share in Shandong Binzhou Bohai Piston to Beijing Automotive for free. (From an announcement by the company on June 16, 2014)

Cancellation

-In June 2014, Changchun Bohai Piston Co., Ltd., the Company's subsidiary, completed the registration of cancellation procedures. (From the Company's 2014 Annual Report)

Pass the Audit

-The Company announced that it has undergone screening by both Dongfeng Motor Group Co., Ltd. and Dongfeng Liuzhou Motor Co., Ltd., which is expected to pave the way for a new partnership with Dongfeng Liuzhou. (From a press release on November 11, 2014)

-In November 2014, the Company's pistons for high-performance engines passed testing by Chongqing Cummins Engine Company. Testing was performed by the Cummins headquarters in the U.S., the Daventry Engine Plant in the U.K., and Chongqing Cummins Engine in China. (From a press release on November 11, 2014)

-The Company passed potential supplier quality audit of Nanjing Iveco Automobile Co., Ltd. and successfully entered Nanjing Iveco supplier system.(From a press release on June 23, 2014) -The Company announced that it has been designated as one of the global suppliers to Daimler Benz. (From a press release on March 21, 2014)

Awards

-In 2014, the Company announced that it has won the following awards from car makers:

• 2014 Quality Contribution Award from Jiangling Motors;
• 2014 Corporate Contribution Award from Anhui Jianghuai Automobile Co., Ltd.;
• 2014 Excellent Partner Award from JiangSu JiangHuai Engine Co., Ltd.;
• Outstanding Quality Management Improvement Award from Great Wall Motor;
• Excellent Quality Award from Liuzhou Wuling Automobile Industry Co., Ltd.

-In 2014, the Company announced that it has won the following awards from suppliers:

• 2014 Excellent Supplier Award from Dongfeng Chaoyang Chaochai Power;
• 2014 Excellent Supplier Award from DEUTZ FAW (Dalian) Diesel Engine;
• 2014 Continuous Quality Improvement Award from Guangxi Cummins Industrial Power Co., Ltd.;
• 2014 Excellent Supplier Award from FAW Jiefang Wuxi Diesel Engine Works;
• 2014 Excellent Supplier Award from Zibo Diesel Engine Parent Company;
• 2014 Excellent Supplier Award from Beijing Foton Engine Plant;
• 2014 Excellent Supplier Award from Tianjin Lovol Engines Co., Ltd.;
• 2014 Excellent Supplier Award from China Heavy-duty Auto;
• 2014 Excellent Supplier Award from Weichai Power;
• 2014 Excellent Supplier Award and Excellent Quality Award from ASIMCO Meilian Braking Systems (Lagnfang) Co., Ltd.;
• Excellent Supplier Award from Shanghai Diesel Engine. The Company has earned this award for 16 consecutive years;
• 2014 Excellent Supplier Award from Guangxi Yuchai Machinery;
• 2014 Continuous Quality Improvement Award from Cummins China.

Business Plan for Next Year

-In 2015, the Company plans to reach 1.35 billion sales. (From the Company's 2014 annual report)

R&D facility

-The Company owns a national level technical center for developing pistons. The Company established only one national technology center, National Recognized Testing Laboratory and enterprise postdoctoral working station. With the synchronized R&D, test and evaluation, the Company's many invention patents and new products reached advanced international level.

Patents

-The Company's technical center has 63 patents, including 10 invention patents.

R&D Expenditure

-In 2014, the Company's R&D expenses is CNY 59.60 million, 5.06% of the Company's total sales.

Capital Investment Projects for FY2014

(in million yuan)

Project	Planned amount of investment	Investment made in 2014	Actual Spending by 2014 as a percent of planned amount of investment (%)
Annual output of 8 million pistons construction project for luxury cars	392.41	121.31	51.87
Annual output of 400,000 high reinforced steel forged pistons construction project for cars	273.66	29.16	17.58
Annual output of 2 million pistons construction project for aluminum high-power diesel engine	298.39	119.83	46.78