Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY ended Dec. 2015
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Increases (%)||Factors|
|Sales||3,059.48||3,278.88||-||-Sales declined due to severe market competition.|
|Operating profit||157.48||186.93||-||-Profit declined due to sales decrease.
-In 2015, the Company invested EUR 10 million in Elaphe Propulsion Technologies Ltd., thus, the Company's profit declined.
-The Company announced that it will establish a wholly owned subsidiary in the China (Shanghai) Pilot Free Trade Zone. The company will invest CNY 10 million in this project. The new company will be called Shanghai ZA Automotive Technology Co., Ltd. It will develop technologies related to automobiles, electronic devices, and machineries. (From an announcement by the company on August 14, 2015)
-The Company announced that the company and Elaphe Propulsion Technologies of Slovenia signed an agreement to form an in-wheel motor production joint-venture in China. The signing took place on July 27, 2015. The joint venture is expected to be owned 51 percent by Zhejiang Asia-Pacific Mechanical & Electronic and 49 percent by Elaphe. Zhejiang Asia-Pacific Mechanical & Electronic will provide capital, while Elaphe will offer in-wheel motor production technologies to the new company. In addition, Zhejiang Asia-Pacific Mechanical & Electronic will collaborate with the new company in the areas of powertrain technologies other than in-wheel motors for new energy vehicles. Elaphe will develop special technologies for the joint venture. Elaphe develops and produces in-wheel motors for electric vehicles and other automobiles. (From an announcement by the company on July 29, 2015)
-The Company announced that the company, Forward Innovation, and Tima Network Technology Co., Ltd. will establish a joint venture. The new company will be called Zhejiang Netlink Automotive Active Safety System Co., Ltd., and will develop advanced driver assistance systems (ADASs), active safety systems, and mobile platforms for Chinese OEMs. It will be capitalized at CNY 10 million, of which 60 percent will be provided by Zhejiang Asia-Pacific Mechanical & Electronic, and 20 percent will be provided each by Forward Innovation and Tima Network Technology. Zhejiang Asia-Pacific Mechanical & Electronic owns shares in both Forward Innovation and Tima Network. (From an announcement by the company on July 10, 2015)
-Zhengzhou Asia-Pacific Chassis Parts Co., Ltd., the Company's subsidiary, completed the registration of cancellation procedures in July 2015.
-The Company announced that the Hongqi L9 equipped with the company's brake was used in the military parade held on September 3. The company's brakes were also used in 30 or more other models that were on the parade. (From a press release on September 6, 2015)
-The Company announced that it has received a letter of request from Zhengzhou Nissan for developing new products for the Succe EV. The company will develop and supply right and left rear brake caliper assemblies, rear brake disks, right and left rear wheel hub shaft heads, and ABS integrated with an energy regeneration system. (From an announcement by the company on July 16, 2015)
-The Company announced that it has been awarded new contracts from both Dalian Huanghai Automotive and Jiangxi Isuzu Motors. The company will supply ABS assemblies for Dalian Huanghai's Raytour, and will supply ABS assemblies, front calipers, and rear brake components for Jiangxi Isuzu's new model (development code: PPA02). (From an announcement by the company on May 6, 2015)
-The Company announced that it has been chosen by Huzhou Enchi Automobile as a supplier for both the C01 postal EV and the D01 EV projects. Zhejiang Asia-Pacific will supply front steering knuckle with brakes, vacuum booster assemblies with master cylinders, electric vacuum pump assemblies, and brake fluid reservoir tanks for the C01, and will supply EPBs and ESCs for the D01. (From a announcement by the company on May 5, 2015)
-The Company announced that it has been chosen as a supplier of ABSs for Chery Automobile Henan Co., Ltd.'s new models that are developed under the codes Q22 and Q22L. (From an announcement by the company on April 30, 2015)
-The Company announced that the company and Dandong Huanghai Automobile Co., Ltd. have signed a technical collaboration agreement under which Zhejiang Asia-Pacific will develop and produce ABS controllers for Dandong Huanghai's new models (development codes: N1 and N3). (From an announcement by the company on April 28, 2015)
-The Company announced that it has received from SAIC Commercial Vehicle a letter of intent, under which Zhejiang Asia-Pacific Mechanical & Electronic will develop and produce front/rear brake caliper assemblies for the automaker's new model, SK81 (development code). (From a press release on January 9, 2015)
Business Plan for Next Year
-In 2016, the Company plans to reach CNY 3.5 billion sales, CNY 220 million ordinary profits and CNY 187 million net profits. (From the Company's 2015 annual report)
-The Company established a technical center in 1996, which is identified as the only one state-level enterprise technology center in China's brake industry.
|(in million yuan)|
|Year||FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||FY ended Dec. 31, 2013|
|Percentage in sales revenue (%）||3.62%||2.86||2.94|
-The Company announced that the company and CASC Beijing Institute of Space Launch Technology have signed a memorandum of understanding to form a comprehensive strategic alliance. The two organizations plan to collaborate on the development and production of brake systems for military and consumer vehicles. CASC Beijing Institute of Space Launch Technology has expertise in simulation analysis, optimization of brake technologies, and bench testing, and will offer related services to Zhejiang Asia-Pacific. Meanwhile, Zhejiang Asia-Pacific will provide high-quality brake products to CASC Beijing Institute by utilizing its advanced R&D technology and large production capacity. (From an announcement by the company on December 8, 2015)
-As of 2015, the Company has obtained 108 patents, including 17 invention patents, 89 utility model patents and 2 design patents.
Capital Investment Projects for FY2015
|Project||Budget||Amount invested in 2015
(in million yuan)
|Disc brake facility (annual production capacity to be 4 million sets)||333.20||21.64||60%|
|The technical improvement project of the rear brake calipers integrated with EPB' (annual production capacity to be 400,000 sets)||151.87||50.68||70%|
|Key auto casting parts facility (annual production capacity to be 120,000 tons)||657.40||252.10||40%|
|Plant construction of Changchun ZA Chassis Co., Ltd||93.94||30.20||100%|
|Plant construction of Anji Asia-pacific Brake Systems Co., Ltd.||136.00||15.88||70%|
Investment in China
-The Company announced that the company and Elaphe Propulsion Technologies Ltd., a supplier of in-wheel motors in Slovenia, signed a partnership agreement. Zhejiang Asia-Pacific will acquire new Elaphe Propulsion shares for EUR 10 million, and will hold a 20% share in the Slovenian company. Elaphe Propulsion will spend the fund raised by the transaction on developing and producing in-wheel motors. (From an announcement by the company on December 2, 2015)
-The Company announced that it will invest CNY 82 million in Tima Network Technology Co., Ltd., an on-board network service company located in the Shanghai Pudong New Area. With this investment, Zhejiang Asia-Pacific will hold 11.8841 percent of Tima Network. Tima Network will use the additional funds from Zhejiang Asia-Pacific for research and development of data platforms that support new energy vehicles. Tima Network develops and produces world-level automotive network solutions by utilizing big data and various smartphone technologies. These solutions are supplied to automakers including new-energy vehicle manufacturers, telecommunications companies, insurance companies, and auto repair chains. (From an announcement by the company on June 23, 2015)
-The Company announced that the company and Forward Innovation signed a memorandum of understanding that Zhejiang Asia-Pacific will invest additional CNY 27.9 million to acquire a 15 percent stake in Forward Innovation. Forward Innovation specializes in automotive driver-assistance systems. It develops and produces products such as lane-departure warning systems, forward-collision warning systems, fatigue-drive detection systems, pedestrian detection warning systems, speed-limit-sign recognition systems, eagle view 360 parking systems, auto light systems, automatic stop-start systems, and night-vision systems. (From an announcement by the company on May 6, 2015)
-The Company announced that it is constructing a new casting plant. The plant will be capable of producing 120,000 tons of automotive casting parts per year. Major facilities are expected to be completed by the end of August 2015, and trial production is scheduled to begin in early 2016. (From a press release on April 28, 2015)