Wanxiang Qianchao Co., Ltd. Business Report FY ended Dec. 2015
Business Highlights
Financial Overview |
(in million yuan) |
| FY ended Dec. 31,2015 | FY ended Dec. 31,2014 | Rate of increase (decrease) | Factors | |
| Sales | 10,241.43 | 9,828.88 | 4.20% | -Auto parts business went smoothly. |
| Operating profit | 870.36 | 812.15 | 7.17% | |
| Ordinary profit | 924.64 | 887.92 | 4.14% | |
| Net profit | 838.53 | 782.25 | 7.19% |
New Companies
-In December 2015, the Company established two wholly-owned subsidiaries, named as Wanxiang Qianchao (U.S.) Co., Ltd. and Wanxiang Qianchao (Europe) Co., Ltd.
-In August 2015, the Company mergered Wuhan Tongda Weiye Economic Development Co., Ltd.
-The Wanxiang Group announced that the Company and Shanghai Automotive will establish a joint venture to produce new energy buses in Hangzhou. The new company will be owned 51 percent by Wanxiang and 49 percent by Shanghai Automotive. It will assemble approximately 5,000 new energy buses per year. With this joint business, Wanxiang and Shanghai Automotive aim to open up business opportunities in and outside China by leveraging each company’s expertise. (From a press release on July 23, 2015)
-Fisker Automotive, a subsidiary of Wanxiang Qianchao Co., Ltd., announced on June 16, 2015 that it will establish a new plant in the South Moreno Valley Industrial Area, California. The plant will produce the Karma range extender EV, Fisker's flagship model. The plant will be built on approximately 50,000 square meters of land and is expected to create 150 new jobs. (From a press release on June 26, 2015)
Cancellation
-In March 2015, Ningbo Qianchao Auto Parts Co., Ltd., the Company's subsidiary, completed the registration of cancellation procedures. (From the Company's 2015 annual report)
R&D Expenditure
|
(in million yuan) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31,2013 | |
| R&D Expenditure | 397.44 | 426.99 | 359.26 |
| Ratio of sales (%) | 3.88% | 4.34% | 3.88% |
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. |
Product Development
-A123 System and Jianghuai Automobile signed an agreement to jointly develop automotive 48V power systems and their major components. A123 System was fully acquired by the Wanxiang Group in 2013, and this program is A123's first global-scale project since the acquisition. For China, it is the first 48V power system development project. According to the Wanxiang Group, the planned new 48V power systems will be supported by other energy-saving solutions. This technology is expected to reduce fuel consumption by 30 percent, while the 48V power system alone cuts fuel consumption by 12 percent. Production of the new 48V power systems is scheduled to begin in 2017. (From a press release on June 5, 2015)
Patents
-In 2015, the Company has 19 invention patents, 147 patents for utility models, 3 design patents.
Capital Investment Projects |
(As of Dec. 2015) |
| Project | Planned amount of investment (in million yuan) | Investment made in 2015 (in million yuan) | Project progress |
| Constructing additional facility to manufacture constant velocity drive shaft assemblies | 1,112.98 | - | 99% |
| Constructing additional facility to manufacture wheel hub units used in passenger vehicles | 1,807.76 |
121.19 |
35% |
| 100,000 tons of cold temperature precision casting project | 370.00 | 21.75 | 25% |
| Project of 500,000 sets of high-performance drive shafts | 49.57 | 12.24 | 25% |
| Plant construction of Wanxiangqianchao (shanghai) Automotive Systems Co., Ltd. | 94.74 | 2.68 | 100% |
| Automation renovation project for universal joints production | 371.44 | 77.77 | 25% |
-A123 Systems, a wholly owned subsidiary of Wanxiang Group, announced its plan to double its global battery manufacturing capacity to 1.5 GWh within the next 3 years. While the company is currently in the midst of a USD 100 million capital expansion across its manufacturing network, its plants in the state of Michigan, U.S.A., Hangzhou, China, and Changzhou, China, are now operating at full capacity. The new investment program of an additional USD 200 million will be launched in phases over the next three years. The additional capacity is planned to support a variety of applications and new customer programs including low voltage hybrids, plug-in passenger vehicles and several commercial vehicle programs. (From news releases issued by multiple sources on June 15, 2015)