Xiangyang Automobile Bearing Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million yuan)
2012 2011 Difference(%) Factors
Sales 761.36 873.15 (12.8) The  development of auto industry has been slowdown, thus the company's sales volume and unit price decreased.The Company's total revenue declined
Operating profit (15.67) 20.96 -
Ordinary profit 7.48 26.94 (72.2)
Net profit 5.57 25.84 (78.4)

Tri-ring Xiangyang Bearing Industrial Park

-On December 25, 2012, Xiangyang Automobile Bearing launched the second phase of the construction project at the Tri-ring Xiangyang Bearing Industrial Park. The project will include an addition of the Plant No.2&3, a heat treatment factory, a passenger vehicle bearing plant, an office building, an R&D center and a staff quarter to the existing facilities. (From a press release, December 26, 2012)

-Xiangyang Automobile Bearing Co., Ltd.  announced that it has completed the first phase of construction at its new facilities in the Tri-ring Xiangyang Bearing Industrial Park on Sep. 29, 2012. It is now in the process of transferring the operations to produce bearings for commercial vehicles, installing automatic production lines at the new plant. Later, it will start transferring driveshaft-production operations to the plant. In the 2nd phase of construction, which it is currently getting ready to start, it will build several plants and buildings: one to produce automotive bearings; another to conduct heat treatment; one more, its third to produce commercial-vehicle bearings; an office building; and an R&D center. Construction of these projects is scheduled to begin by the end of November 2012. (From a Sep. 30, 2012 press release)


-The Company has won an exclusive agreement from Dongfeng to supply a constant velocity universal joint (CVJ) to the Dongfeng Mengshi, an off-road military vehicle. It has already began supplying them. (From an Aug. 15, 2012 press release)

-The Company's plant producing drive-shafts has started exporting drive-shafts. This is the first time for the Company to export any of its products. It is shipping 1,000 CVT assembly-units to Iran. (From an Aug. 15, 2012 press release)

-The Company has supplied its drive shaft assemblies to Iran based on a first export business it won in March 2012. The company was able to deliver its products on schedule after carefully studying and deciding its operation schedules for each process of production, inspection and packaging. (From news releases issued by multiple sources on May 15, 2012)


-The Tri-Ring Group, Co., which now holds a 27.42 percent ownership in Xiangyang Automobile Bearing, is going to purchase part of the new Xiangyang Automobile Bearing shares to be issued by the company. Of the total 461.0798 million Xiangyang Automobile Bearing shares, the Tri-Ring will own the largest 210.5591 million shares, increasing its ownership to between 30 percent and 45.67 percent. (From an announcement by the company, May 17, 2012)


R&D Activities

- In 2012, the Company developed 105 new products and achived an output of 40.60 million yuan.

- In 2012, the R&D expenditure is 38.41million yuan,5.05% of total sales.

New product

-The automotive-bearing plant of Xiangyang Automobile Bearing Co., Ltd. announced that it successfully launched commercial production of a proprietary third-generation wheel-hub bearing unit that it developed in-house. It plans to export the first lot of 2,000 units. This new bearing unit, which is the third-generation designed for ABSs, involves very complicated production processes, and is considered to be the most difficult to produce of all hub-bearings. Since the beginning of 2012, the company’s automotive-bearing plant has been developing a variety of new products, of which 10 are in the prototype stage. (From a Sep. 15, 2012 press release)

Investment Activities

Capital investment projects for FY2012

Project Budget Amount invested in 2012
(million yuan)
Constructing a production line to manufacture Constant Velocity Joints 79.76 - -
Constructing the first stage of new plant at the Xian Fan Hi-Tech Industrial Development Zone  723.84 127.29 80%

Investment activities

-The Company will issue unlisted shares to raise funds for establishing a new plant. The total investment in this is this project is scheduled to reach 773.5 million yuan. The company is intending to raise up to 683.2 million yuan through stock issue, of which 666.8 million yuan will be allocated for the plant construction. The remaining amount will be paid from the company’s own resources. The first phase of the construction project will include five new production facilities to produce 12 million sets of tapered roller bearings for commercial vehicles as well as constant velocity universal joints for 1 million passenger vehicles a year. The expansion is expected to add 827.78 million yuan to the company’s yearly revenue. (From an announcement by the company on May 15, 2012)