Shanghai Jiao Yun Group Co., Ltd. Business Report FY ended Dec. 2013

Business Highlights

Sales for FY2012

(million yuan)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of change Factors
Sales 8,381.28 7,859.17 6.64% - Sales increased year-on-year as a result of increase of market share by developing new products and cooperating with car maker in new projects.
perating profit 330.85 294.78 12.24% -
Ordinary profit 431.75 393.63 9.68%
Net profit 339.02 293.78 15.40%

-The revenue of auto parts manufacturing and after-sales service in 2013 reached 5,523 million yuan, increased 9.9% year-on-year and the net profit readed 156 million yuan.

Business Plan for Next Year

-In 2014, the Company plans to reach CNY 8.78 billion sales. (From the Company's 2013 annual report)

R&D

R&D Expenditure

-The total R&D expenditure in 2013 was CNY 94.08 million, 16.4 percent increase over last year, accouting for 1.12% of the Company's sales.

-The R&D expenditure in 2014 is expected to increase 15% over previous year. (From the Company's 2013 annual report)

R&D Facility

-In 2013, the Company is pushing the construction of technology center at Shanghai Jiaoyun Auto Power Components Co., Ltd.

-In 2013, Shanghai Intier Jiaoyun Automotive Parts Co., Ltd., the Company's subsidiary, start construction of municipal technology center. (From the Company's 2013 annual report)

Patents

-As of December 31, 2013, the Company has applied for 27 patents, 6 of them is patents of invention. (From the Company's 2013 annual report)

New Products

Key parts for Ford transmission
-Shanghai Jiaoyun Auto Power Components Co., Ltd., a wholly owned subsidiary of the Company, said it has completed prototype production of all seven 6F35/15 automatic transmission products it has been developing for Ford. Mass production of the new products is scheduled to begin in 2014 with a yearly capacity of 500,000 sets. Compared with ATs made in North America, the company’s products are more complex in structure, while achieving reduction in size and weight. The AT consists of 6 forward gears and 1 reverse gear with significant fuel-saving attributes. (From news releases issued by multiple sources on May 6, 2013)

Investment Activities

Investment Activities in FY2013

(million yuan)
Project Planned amount of investment Amount invested in 2013 % so far invested of the total planned investment amount
CF6 automatic transmission system project for Shanghai GM 340.20 0.38 95%  
Expand capacity of GF6 automatic transmission shift systems 113.27 17.74 81%
New plant project in Yantai to support Shanghai GM Dong Yue 189.70 0.17 100%
New plant project in Shenyang to support Shanghai GM (Shenyang) Norsom 173.17 1.10 100%
L850 and GEN3 engine connecting rod assembly expansion project 79.30 5.95 98%
Project of connecting rod assemblies for small-displacement engines 80.57 3.11 100%
Project of connecting rod assemblies in Yantai Plant 176.42 21.63
Infrastructure has been basically completed,
the device is still in the purchase progress
Ford Project (supply for Ford) 103.25 47.97 57%
Small displacement engine connecting rod assembly capacity expansion project and flexible production technology renovation project  114.84 63.21 98%
High speed automatic passenger car body molding production technical transformation project 259.62 37.52 14.21%
The project of car body assembly production base 281.60 1.37 0.49%
Project 211 of Shanghai Jiaoyun Auto Parts Co., Ltd. Wuhan Branch 25.88 8.28 76%
The balance shafts supplied to Great Wall 11.15 6.33 56.78%
Project SGM OMEGA of threshold plate assembly 49.77 6.65 13.35%

 

Domestic Investment

-The Company announced an additional 130 million yuan investment project in Shanghai Jiaoyun Automobile Fine Blanking Co., Ltd. The expansion will increase Shanghai Jiaoyun Automobile Fine Blanking’s capital to 250 million yuan. The subsidiary produces seat products such as seat adjusters, seats for high-speed trains, and seat assemblies for multi-purpose vehicles. The additional capital will be used to construct a new factory on the premises of the existing plant to accommodate high-speed, automatic production lines for producing body components for passenger vehicles. (From an announcement by the company, March 28, 2013)