Wanxiang Qianchao Co., Ltd. Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million yuan)
FY ended Dec. 31,2014 FY ended Dec. 31,2013 Rate of increase (decrease) Factors
Sales 9,828.88 9,262.16 6.12% -
Operating profit 812.15 634.98 27.90%
Ordinary profit 887.92 697.96 27.22%
Net profit 782.25 603.61 29.60%

-In June 2014, A123 Systems, a wholly owned subsidiary of the Company, completed the transactions to acquire battery-related technology from Leyden Energy. Leyden's intellectual property in battery materials covering lithium titanate and non-flammable electrolyte technologies is expected to complement A123's expertise in lithium iron phosphate (LFP), a nano-scale material. As part of the deal, key technical staff of Leyden would join A123 Systems' R&D division. (From a press release on June 25, 2014)

-In Feb. 2014, the Company was approved by U.S. bankruptcy court that it won the bidding for Fisker Automotive, an electric vehicle manufacturer in the U.S.

Transfer of Shares

-In November 2014, the Company announced that it has signed a contract with Zhejiang Founder Motor Co., Ltd. to transfer the entire 57.9 percent shareholding in Hubei Qianchao Auto Parts Co., Ltd. to Zhejiang Founder Motor. Hubei Qianchao Auto Parts develops, produces and sells automotive wiper assemblies, brake valves, and other components. It generated CNY 83.7 million in sales and CNY 12.8 million in net profit during 2013. (From an announcement by the company on November 28, 2014)

-The Company announced that Harbin Wanxiang Hafei Auto Chassis System Co. ,Ltd., its subsidiary, would absorb Harbin Wanxiang Automotive Parts Co., Ltd. into its own operations. Harbin Wanxiang Automotive Parts, which is Harbin Wanxiang Hafei Auto Chassis System's wholly owned subsidiary, would no longer be an independent company after the absorption. Harbin Wanxiang Hafei Auto Chassis System develops, produces, and sells suspension parts assemblies and other chassis products. It is owned 65 percent by Wanxiang Qianchao and 35 percent by Harbin Aircraft Industry (Group) Co. Ltd. (From an announcement by the company on November 28, 2014)


-In November 2014, the Company announced that it would dissolve and liquidate Ningbo Qianchao Auto Parts Co., Ltd., its wholly owned subsidiary. Ningbo Qianchao Auto Parts produces and sells automotive components and dies. Its sales reached CNY 118.10 million in 2013. (From an announcement by the company on November 29, 2014)


R&D Expenditure

(in million yuan)
FY ended Dec. 31, 2014 FY ended Dec. 31,2013 FY ended Dec. 31,2012
R&D Expenditure 426.99 359.26 332.51
Ratio of sales (%) 4.34% 3.88% 3.99%

R&D Facility

Name Wanxiang Technical Center
Year established 1994
Overview -The center conducts R&D activities for all the companies under the Wanxiang Group.
-In Nov. 2003, its automotive product laboratory was authorized by the China Quality Certificate Center (CQC) as a contracted CQC testing facility. This enabled the Company to carry out testing of its products based on CCC (China Compulsory Certification) by itself. Qualified products for self-testing include six kinds of automotive components: brakes, drive shafts, CVJ shafts,; universal joints, shock absorbers, and wheel bearings.


-As of Dec. 31, 2014, the Company has 252 patents altogether.

Investment Activities

Capital Investment Projects

(As of Dec. 2014)
Project Planned amount of investment (in million yuan) Investment made in 2014 (in million yuan) Project progress
Constructing additional facility to manufacture constant velocity drive shaft assemblies  1,112.98 144.93 98%
Constructing additional facility to manufacture wheel hub units used in passenger vehicles 1,807.76



Establishing additional facility to manufacture high-performance drive shafts (annual production volume: 600,000 sets) 166.00 7.88 98%
Constructing additional facility to make universal joints (annual production volume: 20 million sets) and differential assemblies 118.00 0.13 55%
Constructing a plant to manufacture ABSs and brake modules at Shanghai 94.74 0.14 95%
Constructing plant at Wanxiang Qianchao Chongqing Automotive Parts Co., Ltd. 146.26 6.41 100%
Project at Wanxiangqianchao (shanghai) Automotive Systems Co., Ltd. 200.00 2.72 50%
Electrical engineering project 112.52 2.58 25%
60,000 tons casting project 297.00 0.82 15%
100,000 tons of cold temperature precision casting project 370.00
Constructing electric power steerings project (annual production volume: 200,000 sets) 80.00 3.38 5%