Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(million yuan)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Increases (%) Factors
Sales 2,107.45 1,851.12 13.85 - Improved product structure and adjusted market strategy.
- Cost control
Operating profit 79.36 68.38 16.06 -Profit increased due to the following factors:
-Strengthen procurement control and supplier integration
-Improve the input-output through technic reform
Ordinary profit 99.41 92.04 8.01
Net profit 87.72 84.11 4.29


- The Company announced on January 4, 2013 that Hangzhou TBK-APG Brakes Co., Ltd. will be liquidated. The company now owns a 75 percent share in the joint venture with TBK, which also agreed to dissolve the joint- venture business during the contract period. Total assets at Hangzhou TBK-APG Brakes reached 43.34 million yuan as of the end of September 2012. Its sales during the January-September period in 2012 reached 40.23 million yuan. The Company will assume all inventory, accounts receivable, and machinery and equipment of the join venture, planning to launch the APG brand at the new facility as of January 1, 2013. (From an announcement by the company, January 4, 2013)


-The Company was chosen by Mazda as a supplier of front/rear brake caliper assemblies and front/rear disc brakes for the J56 (Mazda 6) in August 2012. Following the agreement, the Company has received an approval from FAW Car, to which it will deliver its products, to mass-produce these products. Details such as product types and supply volumes will be decided later. (From an announcement by the company, October 8, 2012)

- The company was chosen by SAIC-VW as a supplier of rear brake discs for Octavia NF A+, the supply share will up to 80%. (From an announcement by the company, April 13, 2012)

- The company was chosen by FAW-VW as a supplier of rear brake discs for the Golf 7 and the Audi A3 based on the MQB platform. The actual business volume will is scheduled to be decided according to the market needs. (From an announcement by the company, March 21, 2012)


-On January 4, 2013,the Company said it was awarded the Quality Assurance Award from Tianjin FAW Xiali at the automaker’s 2013 supplier meeting. The company had received the same prize in 2012. (From a press release, February 7, 2013)

- The Company received the Excellent Supplier Award from FAW at the 2012 suppliers meeting held by the automaker. The company and FAW have been maintaining close relationship over the last 20 years. (From a press release, March 5, 2012)

Pass Product Test

- The Company has passed a series of product screenings by Mazda. Certifications were given through FAW Car for the front/rear brake caliper assemblies and front/rear disc brakes used on the J56 (Mazda 6), as well as the front/rear brake caliper assemblies featured on the J61 Mazda Ruiyi. Zhejiang Asia-Pacific says that with this achievement, it has now joined the global procurement network of Mazda. Zhejiang Asia-Pacific will supply its products to FAW Car. The details including which and how many products it is providing have not been announced yet. (From an announcement by the company, August 6, 2012)


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 (%)
2010 72.82 4.16
2011 68.99 3.73
2012 71.24 3.38

- 2011, the Company has applied and awarded 14 product patents.
- The Company has obtained 11 invention patents, 65 utility model patents and 1 design patent in total since 2000.

New Products

-The Company announced that its 12 new automotive products have passed the screening held by the specialists from the Economic Development Committee. The 12 items include the IP21MCE clutch master cylinder assembly, the N800 ABS and a vacuum booster with a master cylinder. The IP21MCE clutch master cylinder assemblies will be installed on Shanghai Automotive’s Roewe 550. (From a press release, January 15, 2013)

Investment Activities

Capital Investment Projects for FY2012

Project Budget
(in million yuan)
Amount invested in 2012
(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 3.49 93.82  Under construction
Axle module facility (annual production capacity to be 100k sets) 61.28 22.77 95.81  Under construction

Drum brake facility (annual production capacity to be 1.2million sets) 46.61 7.06 97.77  Under construction
Master cylinder/wheel cylinder facility (annual production capacity to be 0.3million sets) 30.98 0.24 80.34  Under construction
Vacuum booster facility (annual production capacity to be 0.3million sets) 22.95 9.85 88.78  Under construction
Source: Annual report


-The Company said it will make an additional investment in Anji Asia-pacific Brake Systems Co., Ltd., its wholly owned subsidiary. It will provide 50 million yuan, increasing the subsidiary’s capital amount from the current 30 million yuan to 80 million yuan. The added fund will be used as a current fund and a capital to acquire new equipment. (From an announcement by the company, November 30, 2012)

-The Company announced that it will increase its investment in Liuzhou Zheya Automotive Chassis Parts Co., Ltd., its subsidiary. Liuzhou Zheya Automotive Chassis was established as a joint venture between Zhejiang Asia-Pacific Mechanical & Electronic and Wuhu Asia-pacific Automobile Chassis Co., Ltd. It is capitalized at 8 million yuan, of which 75 percent was invested by the company and 25 percent by Wuhu Asia-pacific Automobile. At a board meeting held on October 26, Zhejiang Asia-Pacific decided to invest an additional 20 million yuan in Liuzhou Zheya Automotive Chassis Parts, in which the company has a 75 percent share. When the share transfer is completed, Zhejiang Asia-Pacific will own 92.86 percent in the company, decreasing the percentage owned by Wuhu Asia-pacific Automobile Chassis to 7.14 percent from the current 25 percent. (From an announcement by the company, October 27, 2012)

-Anji Asia-pacific Brake Systems Co., Ltd., a subsidiary of the Company, said it will establish a new plant capable of producing 4 million sets of automotive disc brakes a year. Investment in the two-year construction project is expected to reach approximately 354 million yuan. Disc brakes made at the new facility will be supplied to the global automotive market, especially for installation on passenger vehicles. The new operation is expected to add 760 million yuan to the company’s yearly revenue. (From a press release, September 19, 2012)