Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(million yuan)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Increases (%) Factors
Sales 2,718.60 2,107.45 29.00 - Improved product structure and adjusted market strategy.
- Cost control-Profit increased due to the following factors:
-Strengthen procurement control and supplier integration
-Improve the input-output through technic reform
Operating profit 150.21 79.36 89.28
Ordinary profit 164.27 99.41 65.25
Net profit 141.39 87.72 61.18

New Company

-The Company announced that it will establish Zhengzhou Asia-Pacific Chassis Parts Co., Ltd. in Zhongmu County, Zhengzhou to produce and sell automotive chassis components. The new subsidiary will be capitalized at CNY 2 million. (From an announcement by the company on December 19, 2013)

-The Company announced that it will establish a wholly-owned subsidiary in Chongqing. The new company, Chongqing Zheya Chassis Parts Co., Ltd., will be capitalized at CNY 30 million. It will develop, manufacture, and sell automotive brake systems, chassis modules, and electronic systems, and will also offer technical services in these areas. (From an announcement by the company on November 11, 2013)

-The Company announced that it will establish Tianjin Zheya Chasis Parts Co., Ltd., a wholly owned production and sales subsidiary in Tianjin. The new subsidiary will be capitalized at CNY 9 million. Its product lineup will include chassis components, brake system components, and electronic components. (From an announcement by the company on October 22, 2013)

-The Company announced that Hangzhou Yateng Foundry Co., Ltd. has been registered by the State Administration for Industry & Commerce. The new, wholly owned subsidiary is capitalized at CNY 65 million. Located in Xiaoshan, Hanzhou, it produces and sells casting products. (From an announcement by the company, September 18, 2013)

-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)


-Hangzhou APG-FTE Automotive Co., Ltd., a subsidiary of the Company, announced that it will supply two types of clutch pipe assemblies for Nanjin Changan Mazda’s CX-5. It will also provide two types of clutch pipe assemblies for the Mazda3, starting in the first half of 2014. (From a press release on November 25, 2013)

-The Company announced that its rear brake caliper assemblies and rear brake discs have been chosen by SAIC GM Wuling for installation on the GP50. It will start mass production of these products in July 2014. Supply volume will be determined according to the market trend. (From news releases issued by multiple sources on June 13, 2013)

-The Company announced that it has received pre-orders for 1,000 sets of its brake system ASSY for special vehicles for space industry from Chongqing Beiben Transmission Manufacturing Limited in May 2013. The order amount will be decided by the actual production number of space vehicles by Chongqing Beiben Transmission Manufacturing. The company will submit 3 sets of samples for the performance testing before delivery. The brake system ASSY is reported to be under development stage yet. (From a press release on May 31, 2013)


-The Company received the Excellent Supplier Award for 2013 from FAW Car on January 11, 2014. The company had previously won the automaker's Outstanding Contribution Award for four consecutive years, but this is the first time that it has won the Excellent Supplier Award. (From a press release on February 10, 2014)

-The Company was awarded "A class Supplier" from FAW VW in 2013. (From the Company's 2013 annual report)

-In January, 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)

Business Cooperation

-In October 2013, the Company and Hangzhou Jicheng Auto Parts Co., Ltd. signed an agreement to jointly develop a high-performance, carbon-based friction material. The new material is expected to replace imported friction materials used in automotive drum brakes. (From a press release on November 6, 2013)

Pass the Test
-The Company announced that its energy regeneration anti-lock braking system (EABS) for electric vehicles has passed the screening conducted by the  Hangzhou Municipal Science & Technology Bureau. The EABS consists of a hydraulic control unit and an electronic control unit that are integrated with an energy regeneration system. (From a press release, September 25, 2013)

-The Company said its new, EV energy recovery system passed the inspection by the Science and Technology Office of Xiaoshan in April 2013. The company developed the advanced technology as part of the science and technology projects of Xiaoshan District, Hangzhou City. Zhejiang Asia-Pacific Mechanical & Electronic develops regenerative braking systems, which include EABS hydraulic units and control units. It has already acquired 2 patents and 3 utility model rights for these technologies. (From a press release, May 24, 2013)

-The Company announced that it has passed a screening by the China Certification Centre for Automotive Products for its brakes, brake master cylinders, vacuum booster assemblies and other products. The screening covered a wide range of operations conducted by each division and manufacturing site, including product design, production planning, document control, production monitoring, product inspection and facility arrangement. (From a press release, May 22, 2013)

-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)

Business Plan for Next Year

-In 2014, the Company plans to reach CNY 3.0 billion sales, CNY 217 million ordinary profits and CNY 184 million net profits. (From the Company's 2013 annual report)


R&D Facility

-The Company established a technical center in 1996.

-In March 2013, the Company said it has established a cold-weather testing center for automotive electronic components in Heihe, Heilongjiang Province. Since it developed its first ABS in 2000, the company has been working on in-house development and testing of brake technologies, including ESC systems and EPB systems. Over the past five years, it has conducted various testing programs at the public measurement center in the freezing city of Heihe, which is located in the northernmost region in China. (From a press release, April 23, 2013)

-The Company announced that its inspection center has passed a screening by the China National Accreditation Service for Conformity Assessment, obtaining a national certification. The center was established in 1989 to perform a series of testing based on various industrial and corporate standards. The facility is equipped with laboratories and devices to test and measure brake systems such as disc brakes, drum brakes and parking brakes. It can also test a number of components including vacuum boosters, brake master cylinders, brake wheel cylinders, proportioning valves, clutch pumps, friction materials, brake hoses, and oil rings. (From a press release on January 25, 2014)

R&D Expenses

(in million yuan)
Year FY ended Dec. 31, 2013  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
R&D Expense 79.96 71.24 68.99
Percentage in sales revenue (%) 6.39 6.24 6.37

- From 2000 to 2013, the Company has obtained 13 invention patents, 78 utility model patents and 1 design patent in total.

Investment Activities

Capital Investment Projects for FY2013

Project Amount invested in 2013
(in million yuan)
Drum brake facility (annual production capacity to be 1.2million sets) 0.03 Under construction
Vacuum booster facility (annual production capacity to be 0.3million sets) 0.14 Under construction
Plant construction of Liuzhou Zheya Automotive Chassis Parts Co., Ltd. 2.16 main part of plant 30%
Plant construction of Changchun ZA  Chassis  Co., Ltd 0.57 main part of plant did not start
Plant construction of Anji Asia-pacific Brake Systems Co., Ltd. 47.14 50%

Domestic Investment

-Liuzhou Zheya Automotive Chassis Parts Co., Ltd., a subsidiary of the Company, announced that it has launched the second phase of its construction project at the Liuzhou Bailu Industrial Park. The subsidiary will set up a new plant on a 14,000-square-meter plot by June 2014. The new operation is expected to double the company’s capacity to produce caliper disc assemblies and front suspension assemblies. (From a press release on October 31, 2013)