[Gen-AI Analysis] Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. FY2011 - MarkLines Automotive Information & Gen-AI Platform

Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY2010

Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY2011

Business Highlights

Financial Overview

(million yuan)

	FY2011	FY2010	Increases (%)	Factors
Sales	1,851.12	1,750.20	5.77	- Improved product structure and adjusted market strategy. - Expanded domestic and international market.
Operating profit	68.38	126.95	(46.14)	- Due to the slow-down of the growth of domestic automotive industry, the company's business growth didn't reach its expect target. - Due to high material cost and labor cost, the product cost was higher than expected and net profit was greatly influenced.
Ordinary profit	92.04	134.55	(31.6)
Net profit	84.11	124.58	(32.5)

New Subsidiaries

- The company established a wholly owned subsidiary in Beijing August, 2012. The new company, Beijing ZA Automotive Parts Co., Ltd., capitalized at 5 million yuan, will develop and sell brakes, axles, transmission gears and module products for automobiles and construction machinery. (From a press release, July 23, 2011)

- The company established Changchun ZA Chassis Co., Ltd., a wholly owned subsidiary, at the Changchun Xixin Economic & Technological Development Zone, Jilin Province and completed its registration at the Industry and Commerce Administration. The subsidiary, capitalized at 30 million yuan, will develop, manufacture and sell brake systems and chassis modules for various types of vehicles. The company was tentatively named Changchun Asia-Pacific Brake Systems Co., Ltd. when the new subsidiary plan was first announced in December 2010. (From an announcement by the company, May 26, 2011)

Awards

- The Company was awarded the Special Contribution Award for 2010 from FAW Car. It also won the Innovative Technology Development Award for 2010 from Beiqi Foton. (From a press release, February 8, 2011)

R&D

R&D Structure

- The Company established a technical center in 1996.
- The Company established a post-doctoral research station in 2003, which is mainly responsible for cutting-edge research topics including:,
automotive-wire braking systems,
electronic parking control systems,
automotive-wire electro-hydraulic braking systems,
vehicle stability and tire puncture emergency braking control systems
(Source: company's website as of 2010)

R&D Expenses

(in million yuan)

Year	R&D Expense	Percentage in sales revenue(%）
2009	52.69	3.98
2010	72.82	4.16
2011	68.99	3.73

- 2011, the Company has applied and awarded 14 product patents.

Investment Activities

Capital Investment Projects for FY2011

Project	Budget (in million yuan)	Amount invested in 2011 (in million yuan)	Actual Spending by 2010 as a percent of planned amount of investment(%)	Status
Disc brake facility (annual production capacity to be 2.6million sets)	166.03	32.27	93.21	Under construction
Axle module facility (annual production capacity to be 100k sets)	61.28	23.21	77.09	Under construction
Drum brake facility (annual production capacity to be 1.2million sets)	46.61	32.90	79.57	Under construction
Master cylinder/wheel cylinder facility (annual production capacity to be 0.3million sets)	30.98	13.69	85.50	Under construction
Vacuum booster facility (annual production capacity to be 0.3million sets)	22.95	8.75	54.46	Under construction