FAW Jiefang Automotive Co., Ltd. Wuxi Diesel Engine Works Business Report FY ended Dec. 2017

Contracts

-The Company has supplied its Aowei engines that are compliant with the China V emissions standards for models including the Gallop K3 and K5 from JAC. The power of the Aowei engines ranges from 260 to 460 horsepower. (From news releases issued by multiple sources on December 12, 2016)

-In October 2016, the Company and Dongfeng Shenyu Vehicle Co., Ltd. signed a basic agreement setting the framework to form a strategic partnership. In accordance with this agreement, FAW Jiefang Automotive will supply engines to Dongfeng Shenyu Vehicle. (From news releases issued by multiple sources on November 16, 2016)

-The Company announced that 18 units of Jiefang trucks that are equipped with its Aowei engines have been delivered to a transportation company in Xinjiang. Up until now, an aggregate total of over 10,000 Aowei engines have been supplied to Xinjiang. (From a press release on May 19, 2016)

Awards

-The Company announced that it has received the 2016 Excellent Supplier Award from JAC Motor. (From news releases issued by multiple sources on December 12, 2016)

R&D Centers

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

New product

-The Company announced that its multi-point injection (MPI) system it developed jointly with FAW technical center has passed a series of tests including durability tests, and was incorporated in the company's natural gas engine. The MPI is the first of its kind that was developed in China, and the company has become China's first manufacturer that uses an MPI system in a natural gas engine. The MPI offers an accurate air-fuel ratio control, excellent acceleration and deceleration performance, high power at low speeds, and superior fuel economy. It also helps improving the performance of natural gas engines, while contributing to an over 30% reduction in cost. (From news releases issued by multiple sources on August 2, 2016)

Patent

-The Company announced that its original method to repair a pinhole leak in cast iron cylinder heads has obtained a national patent for innovation. More than 98% of repaired cylinder heads using the company’s impregnating method have passed leak tests. The repaired components offer the same level of quality and performance as new products. The company says shifting from replacement to repair reduces energy use by 60%, material use by 70%, and material costs by 50%. (From news releases issued by multiple sources on September 30, 2016)

-The Company announced that it has obtained a patent of innovation from the State Intellectual Property Office of the P.R.C for its test methods to check the ignition systems while the engine is running. The company says this technology can accurately measure ignition voltage, spark current, ignition energy, and other indexes when the engine is operating. (From a press release on April 8, 2016)