Bohai Automotive Systems Co., Ltd. Business Report FY ended Dec. 2018

Financial overview

(in million yuan)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of change Factors
Sales 3,877.98 2,498.55 55.21 -Sales increased.
Operating profit 161.41 292.76 (44.87) -
Ordinary profit 161.13 281.14 (42.69)
Net profit 124.21 233.16 (46.73)



-The Company made new breakthroughs in development of new projects and clients in 2018. It supplied piston components for VW's EA211MPI 1.6L engine manufactured by VW's plant in Kaluga, Russia and Skoda's plant in the Czech Republic and realized the mass-production of piston pins for VW's Scania brand. (From Business Report FY2018)

-On March 28, 2018, the Company announced a plan to sell stocks to raise Chinese yuan (CNY) 1.68 billion and use the funds to buy 75% shares in TriMet Automotive Holding GmbH of Germany, refinance liquid fund and make some other capital investments. TAH is one of the leading light-weighted aluminum alloy parts manufacturers in Europe. It supplies aluminum alloy engine parts as well as transmission and car body structural components to Daimler, BMW, Audi, VW, Volvo, and Magna.
Other capital investment projects are listed below:
Construction of an aluminum alloy wheel hub plant, which requires an investment of CNY 149 million and the construction work of 25 months for creating the additional capacity to produce 700,000 hubs a year.
Construction of a 6AT transmission case and new energy vehicle shock tower plant, which requires an investment of CNY 173 million and the construction work of 14 months for creating an additional capacity to produce 150,000 sets of 6AT transmission cases and 100,000 sets of shock towers a year.
Construction of a China-VI automotive piston plant, which requires an investment of CNY 484 million and a construction period of 24 months to create the additional capacity to produce 2 million China-VI light-weight clean energy vehicle pistons and 600,000 China-VI steal pistons a year. The project also includes the construction of a new China-VI automotive piston experiment center.
Addition of an intelligent automotive component production facility, which requires an investment of CNY 110 million and a construction period of 24 months to make additional production facilities for critical parts. (From a corporate announcement on March 30, 2018)

-TRIMET Aluminium SE informed that Bohai Automotive Systems Co., Ltd. now holds 75 percent of the shares in TRIMET Automotive Holding GmbH, which, along with its subsidiary plants in Harzgerode and Soemmerda, manufactures high-quality die-casting components for vehicles. The remaining 25 percent stake continues to be held by TRIMET Aluminium SE. The merger provides additional opportunities for TRIMET Automotive as a system supplier to the increasingly global operations of automobile manufacturers, thus sustainably strengthening its production sites in Harzgerode and Soemmerda. (From a corporate announcement on August 7, 2018)


-In 2018, the Company received the following awards:

  • "Excellent Supplier Award" issued by Kohler, General Electric, Xi'an Cummins (XCEC), FAW Jiefang Automotive Dalian Diesel Engine, JAC Motors and Shanghai Diesel Engine
  • "Quality Contribution Award" issued by Beiqi Foton Motor
  • "Best Product Development Award" issued by Chongqing Cummins
  • "Excellent Partner Award" issued by Shanghai Volkswagen Powertrain Co., Ltd. (From news issued on the Company's website in 2018)


-As of the end of 2018, the Company had applied for 23 new patents, including 14 invention patents, and had 16 newly authorized patents, including eight invention patents. (From Business Report FY2018)


R&D facility

-The Company established the only national-level corporate technical center in the industry in China, a Nationally Recognized Testing Laboratory and a corporate postdoctoral working station. By synchronizing its R&D, testing and evaluation with those of developed countries, many of the Company's new products and invention patents are at the forefront worldwide.

R&D Expenditure

FY ended Dec. 31, 2018
 (million CNY)
FY ended Dec. 31, 2017
 (million CNY)
FY ended Dec. 31, 2016
 (million CNY)
R&D Expenditure 104.37 86.61 65.54
Ratio of R&D expenses to operating income 2.69% 3.47% 3.71%

-As of the end of 2018, the Company has 343 R&D personnel, accounting for 6.37% of the total employees.

Capital Investment Projects for FY2018

(in million CNY)
Project Planned amount of investment Investment in 2018 Project progress (%)
Manufacturing project of annual output of 400,000 high-strength steel-forged pistons for automotive applications  273.66 138.4 94.54
Construction project of annual output of 250,000 sets of cylinder head crankshafts for engines 1,379.41 12.23 45.71
Construction project of annual output of 2 million aluminum alloy pistons for high-power diesel engines 596.78 12.17 99.60
Project of China-VI high-efficiency automotive piston smart plant 927.45 14.01 0.02
Reconstruction die casting machine No.6 project 10.99 10.05 96.83
Die casting forms project 9.52 7.92 97.37
CNC processing machine SWW08-22 project 5.89 4.24 60.22
Air purification and cleaning system B34a project 3.14 3.22 16.39