Wanxiang Qianchao Co., Ltd. Business Report FY ended Dec. 2016

Financial Overview

(in million yuan)
FY ended Dec. 31,2016 FY ended Dec. 31,2015 Rate of increase (decrease) Factors
Sales 10,785.82 10,241.43 5.32% -Auto parts business went smoothly.
Operating profit 971.76 870.36 11.65%
Ordinary profit 1,003.08 924.64 8.48%
Net profit 890.52 838.53 6.20%

Business integration
-Wanxiang Qianchao Co., Ltd.'s subsidiary Wanxiang Tongda Co., Ltd. announced that it will absorb Shiyan Gunuoer Automobile Fuel Tank Co., Ltd., its subsidiary, into its own operations. Shiyan Gunuoer Automobile Fuel Tank will be deregistered after this reorganization. Wanxiang Tongda is capitalized at CNY 300 million. It produces and sells automotive components like mufflers, catalytic converters, silicone oil fan clutches, and fuel tanks. Shiyan Gunuoer Automobile Fuel Tank is capitalized at CNY 22.32 million, and develops, produces, and sells fuel tanks. As of September 30, 2016, its total assets were CNY 72.16 million, and net profit was CNY 10.34 million. (From an announcement by the company on November 16, 2016)

Equity transfer
-Zhejiang Wanxiang System Co., Ltd., a subsidiary of Wanxiang Qianchao Co., Ltd., announced that the company and Zhejiang Shitai Industrial Co., Ltd. agreed that Zhejiang Wanxiang System will transfer its entire 80% shareholding in Wanxiang Qianchao (Guilin) Chassis Parts Co., Ltd. to Zhejiang Shitai for CNY 31 million. After the transaction, Wanxiang Qianchao (Guilin) Chassis Parts will be owned 80% by Zhejiang Shitai and 20% by Guilin State-Owned Assets Investment & Management Co., Ltd. (From an announcement by the company on May 17, 2016)

New order
-A123 System, a subsidiary of the Wanxiang Group has been awarded a contract to supply 2.6 million units of 48V lithium-iron phosphate battery packs to SAIC GM. The business is worth over USD 1 billion in sales. The new battery consists of fourteen 8Ah cells, and is 96mm in height. Its cell power is 3kW/kg and battery power is 2kW/kg. Adopting this battery is expected to contribute to a 15% reduction in fuel consumption. A123 has already won a program to supply low-voltage batteries to Jaguar Land Rover in Europe. (From news releases issued by multiple sources on February 8, 2017)

R&D Expenditure

(in million yuan)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014
R&D Expenditure 438.78 397.44 426.99
Ratio of sales (%) 4.07% 3.88% 4.34%

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.

Capital Investment Projects

(As of Dec. 2016)
Project Planned amount of investment (in million yuan) Investment made in 2016 (in million yuan) Project progress
Intelligent plant construction project 3,696.25 161.40 5%
Constructing additional facility to manufacture constant velocity drive shaft assemblies 1,112.98 - 100%
Constructing additional facility to manufacture wheel hub units used in passenger vehicles 1,807.76



100,000 tons of cold temperature precision casting project 370.00 27.36 30%
Project of 500,000 sets of high-performance drive shafts 49.57 - 30%
Cardan joints plate bearing
53.06 26.26 55%