FAW Jiefang Automotive Co., Ltd. Wuxi Diesel Engine Works Business Report up until FY ended Dec. 2015

Financial overview

-During the Twelfth Five Years, as of Dec 31, 2015, the Company sold 1.56 million engines in total and generated CNY 49.2 billion in sales. Its accumulative profit reached over CNY 1.3 billion.

-As of November 2015, the export sales volume reached more than 20,000 units with 24% increase on year-over-year basis.

Recent Development

-FAW Bus and Coach (Wuxi) Co., Ltd.'s 8-meter buses mounted with a China V engine made by the Company were supplied for Tianjin City's public bus system. The engine achieves high power, great fuel efficiency, and added safety features. (From a press release on February 29, 2016)

-In December 2015, 190 units of Xiamen Golden Dragon hybrid buses powered by CA6DLD China V engines from the Company began city bus operations. This is the first time that Wuxi City has introduced China V hybrid buses for its public transportation. The CA6DLD engines use a selective catalytic reduction system and can achieve a 28% reduction in fuel consumption compared with conventional diesel engines. (From a press release on December 30, 2015)

-Jiefang J6 trucks powered by the Company's 11-liter Aowei engine have been released in three cities in China: Xuzhou, Linyi, and Fuyang. The 11-liter engine delivers 460 horsepower and meets the China IV emissions standards. It offers greater safety, improved fuel economy, higher performances, and a 10 percent higher torque than previous engines. In addition, its maintenance cycle was extended up to 100,000 kilometers due to the engine’s greater combustion efficiency, improved lubrication systems and optimized fuel supply systems. With the reduction gear ratio of 3.7, the engine ensures powerful startup and acceleration, low-speed rotation in high-speed driving, and high fuel efficiency. It develops 30.7kW per liter, while consuming 2-3 liter less fuel per 100km. The engine brake offers up to 340 horsepower, which reduces the need for using the brake pedal on downhill descents and improves driving safety. (From a press release on March 16, 2015)

Contracts

-The Company announced that it has received a contract to supply CA6DLD China IV hybrid engines for 190 Xiamen Golden Dragon hybrid buses, which will be operated as city buses in Wuxi. According to the engine supplier, the 4-valve China IV engines can reduce fuel consumption by 30% and offer excellent environmental performances. (From press release on November 2, 2016)

-The Company announced that it has supplied 4DLD China V engines for high-end heavy-duty trucks from Jianghuai Automobile. The 4DLD engines feature the engine supplier's original electronic control unit and a urea selective catalytic reduction system. They are designed to offer optimum power for various road conditions. (From a press release on October 19, 2015)

-The Company announced that it has been awarded a contract to supply 110 engine units, including 10 Aowei 6DL engines, to South Africa. Since the beginning of 2015, the company has supplied over 1,200 China IV engines to the country, which is an increase of 140% year-on-year. (From a press release on September 17, 2015)

Awards

-The Company announced that it has received the Excellent Supplier Award for 2015 from Jianghuai Automobile. (From a press release on December 3, 2015)

R&D Centers

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

New product

-The Company announced that it has successfully ignited its CA6DM diesel-natural gas hybrid engine. The hybrid engine uses the company's original diesel and gas supply systems, and achieves high power, high torque, and low emissions. (From a press release on October 15, 2015)