FAW Jiefang Automotive Co., Ltd. Wuxi Diesel Engine Works Business Report FY ended Dec. 2014

Business Highlights

Financial overview

-The Company announced its business results for 2014. It sold 300,000 diesel engines and generated CNY 10 billion in sales. Its profit increased by 67 percent from that of 2013. (From news releases issued by multiple sources on January 23, 2015)

-The Company sold more than 100 thousand units Aowei diesel engines in 2014. The sales volume of 11-liter Aowei diesel engines increased by 36%, accouting for 50% share of diesel engines of the same displacement sold in China.

Contracts

-The Company announced that it has been awarded a contract to supply 500 units of Kangwei diesel engines for FAW-Hongta's light-duty trucks. The supply agreement was signed at the end of September 2014. The Kangwei series diesel engines for light-duty trucks are compliant with the China IV emissions standards. To FAW-Hongta, the company has already supplied over 80,000 units of these engines since 2008. (From news releases issued by multiple sources on October 21, 2014)

-The Company delivered its Kangwei China IV engines for over 400 light-duty trucks produced by JAC Motors in September 2014. During the period between January and September 2014, over 2,500 FAW Jiefang T6 trucks powered by the Company's Aowei engines were sold. Production volume of these Jiefang T6 trucks during the same term increased 41 percent on a year-over-year basis. (From news releases issued by multiple sources on November 19, 2014)

-The Company announced that it would supply approximately 1,400 Hengwei engines to automakers in South America in September 2014. Between January and August 2014, it exported 21.9 percent more engines than it did in the same period the previous year. Export in August alone increased more than 42 percent year-on-year. (From news releases issued by multiple sources on September 18, 2014)

-The Company supplied its engines that are compliant with the China IV emissions standards for 100 city buses in Wuxi City in July 2014. (From news releases issued by multiple sources on November 19, 2014)

Off the Production Line

-The Company produced its 600,000th Aowei engine in June 2014, and held a ceremony to celebrate this achievement. (From a press release on June 25, 2014)

Awards

-The Company has won FAW's Science and Technology Innovation Award for its three original diesel engines. Its CA4/6DLD (development code) won the second prize, and both its 4DW (development code) China IV diesel engine and its 4DW91-56G2 diesel engine for forklifts won the third prize. (From news releases issued by multiple sources on November 19, 2014)

-The Company honored KAMAX Automotive Fasteners (China) Co. Ltd as core supplier of high strength bolts for its high standards in product quality. This is the first award KAMAX China received from one of its customers as well as the first time KAMAX gets such an honor from a Chinese automotive supplier. (From a press release issued in December 2014)

-The Company has received the Outstanding Contribution Award 2013 from Shenyang Jinbei Vehicle Manufacturer Co., Ltd. The Company has won this award for the sixth consecutive year. (From a press release on January 13, 2014)

R&D

R&D Centers

-Changchun Automobile Research Institute
-Wuxi Spherical Graphite Cast Iron Institute
-Engine Technical Institute

New products

-The Company has developed a high-performance 11-liter CA6SM2 natural gas engine. The environmentally friendly high-power engine is the Company’s second product, following the 13-liter CA6SN1 natural gas engine that was developed jointly with FAW Technical Center. The 13-liter engine is the most powerful engine in China. (From news releases issued by multiple sources on April 20, 2014)