Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY ended Dec. 2017
Financial Overview |
(million CNY) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change | Factors | |
| Sales | 3,963.56 | 3,418.96 | 15.93% | -Develop new business and new market to achieve sales growth |
| Operating profit | 106.47 | 148.82 | (28.30%) |
-Surge in price of raw materials and increase in R&D expense |
| Ordinary profit | 107.27 | 176.02 | (39.06%) | |
| Net profit | 88.10 | 151.58 | (41.88%) |
New Company
-On March 10, 2018, Huizhou Desay SV Automotive Co., Ltd. announced a plan to set up a new lab tentatively named China (Beijing) Intelligent and Connected Vehicle Research Institute Co. Ltd. with 10 partners. The partners are FAW, Dongfeng Automobile, GAG Group, Beijing Automotive Technology Center, Zhengzhou Yutong Bus, CATARC, Tus Cloud Monitoring (Beijing) Technology, Jiangling Motors, Zhejiang Asia-Pacific Mechanical & Electronic, and Shanghai Baolong Automotive. The 11 companies are going to invest Chinese yuan (CNY) 50 million each and establish the lab with a registered capital of CNY 550 million. Apart from the 11 corporations, industrial groups such as the Society of Automotive Engineers of China and the China Association of Automoblie Manufacturers, as well as universities such as Tsinghua University, Beihang University, and Jilin University are going to join the initiative. The new lab is going to be positioned as a national-level connected car innovation center. It’s expected to help China to meet its strategic needs of setting up the basis for the industrial expansion and solving common problems, and offer basic modules and common platforms for the new industrial society which is supported by the connected cars. It will also allow each company to exercise its strength, become more competitive, and promote the development of China’s connected car industry. (From a corporate announcement on March 12, 2018)
-Guangzhou Asia-Pacific Chassis Systems Co., Ltd., which is a joint venture established between the Company and Guangzhou Automobile Group Component Co., Ltd., said that it completed the procedure to register itself with the State Administration for Industry & Commerce (SAIC) of the People’s Republic of China. The joint company is owned 51% or Chinese yuan (CNY) 42.84 million by Zhejiang Asia-pacific Mechanical & Electronic and 49% or CNY 41.16 million by Guangzhou Automobile Group Component. (From a corporate announcement on May 25, 2017)
-The Company and Jilin Longshan Silicone Co., Ltd. established a joint company in Jilin city. The new company is called "Jilin Aisa-Pacific Automotive Chassis Co., Ltd." Capitalized at CNY 10 million, the joint company is owned 51% by the Company and 49% by Elaphe. The new company is manily engaged in development, manufacture and sales of automotive chassis modules. (From a corporate announcement on April 6, 2017)
-Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Shanghai Branch completed industrial and commercial registration. The new company is located at Jiading District, Shanghai, mainly engaged in development, sales, technical services and import and export business of automotive and rail vehicle brake systems, automotive chassis systems, automotive electronics and audio entertainment system. (From an announcement by the company on March 24, 2017)
Contract
-The Company said on December 1, 2017, that it was certified by Hebei Changan Automobile Co., Ltd. as an official supplier of ABS actuator assemblies for the R102-P. (From a corporate announcement on December 1, 2017)
-On October 31, 2017, the Company said it became a certified supplier of rear brake calipers for a FAW-Volkswagen model (code name: F 17 M DY DY0260). (From a corporate announcement on October 31, 2017)
-On September 19, 2017, the Company said that it would develop and produce front brake calipers for the Haval H7 as a parts supplier of Great Wall Motors. (From a corporate announcement on September 19, 2017)
-FAW-Volkswagen designated the Company as an official supplier of F17M BC316 DY0260 brakes. (From a corporate announcement on May 20, 2017)
Strategic Partnership
-On April 13, 2018, Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. and Weltmeister Motor Technology Co., Ltd. signed an alliance agreement. According to the agreement, Zhejiang Asia-Pacific Mechanical & Electronic is going to supply in-wheel-motor drive system, lightweight aluminum alloy chassis module, and brake system to Weltmeister Motor, and Weltmeister Motor will use and prioritize the products of Zhejiang Asia-Pacific Mechanical & Electronic as standard components for its development program. Additionally, the two companies are going to deepen the alliance in the development of Advanced driver-assistance systems (ADAS) such as Electronic Stability Control (ESC), Intelligent Battery Sensors (IBS), Autonomous Emergency Braking (AEB), Adoptive Cruise Control (ACC), Forward Vehicle Collision Warning Systems (FCWS), and Lane Departure Warning Systems (LDWS). (From a corporate announcement on April 16, 2018)
Award
-The Company announced on March 23, 2018, that it received an excellent supplier award at the 8th suppliers meeting of SAIC MAXUS Automotive. The company has reached a strategic partnership agreement with SAIC MAXUS in 2010. Since then, it’s maintaining a stable supply of its products. At the meeting, the same awards were given to Huayu Sanden Automotive Air Conditioning, United Automotive Electronic Systems, and Bosch Automotive Diesel Systems Co., Ltd, as well. (From a press release on March 26, 2018)
-The Company won a 2017 special contribution award from FAW-Volkswagen Co., Ltd. (From a press release on February 2, 2018)
-The Company won an A-class supplier award from FAW-Volkswagen Automobile Co., Ltd. and Shanghai Volkswagen Automotive Co., Ltd. (From annual report 2017)
Outlook for FY ending December 2018
-The target for FY ending December 2018 is sales of CNY 4,500 million, ordinary profit of CNY 120 million, and net profit of CNY 102 million.
R&D Facility
-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 2005.
R&D Expenses |
(in million CNY) |
| Year | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 |
| R&D Expense | 159.25 | 142.52 | 110.63 |
| Percentage in sales revenue (%） | 4.02% | 4.17% | 3.62% |
R&D Cooperation
-On March 1, 2017, the Company and the China Automotive Technology and Research Center (CATARC) jointly established a research center to develop connected vehicle standards in Xiaoshan District, Hangzhou. The new center will perform research activities to develop basic technology, evaluation methods, and standards related to connected vehicles. (From news releases issued by multiple sources on March 2, 2017)
Patents
-As of December 31, 2017, the Company has obtained 180 patents, including 20 invention patents, 152 utility model patents and 8 design patents.
Investment
|
(in million CNY) |
| Project | Budget | Investment in 2017 | Project progress |
| Project of annual output of 400,000 sets of electronic integrated rear brake caliper assembly with EPB technological transformation | 151.87 | 6.32 | 100% |
| Project of annual output of 150,000 sets of in-wheel motor drive module for NEV technological transformation | 751.06 | 45.16 | 20% |
| Project of annual output of 4 million sets of automotive disc brakes construction | 333.20 | 55.71 | 90% |
| Project of annual output of 120,000 tons of key automotive parts casting | 794.62 | 151.10 | 90% |
| Chongqing Aisa-pacific plant construction | 170.00 | 7.07 | 25% |
| Plant and ancillary projects construction in Anji | 136.00 | 43.21 | 95% |
Investment in China
-On December 25, 2017, the Company announced a plan to raise Chinese yuan (CNY) 1 billion for the following two projects. The company is going to invest CNY 980 million in the first project to update a facility to annually produce 150,000 sets of in-wheel motor drive chassis modules for new energy vehicles, and CNY 591 million in the second project to modernize a facility to annually produce 1 million sets of brake system electric control modules. The two projects are conducted by the company itself. From January through September, 2017, the company generated sales of CNY 2.77 billion and a net profit of CNY 84.49 million. (From a corporate announcement on December 26, 2017)
-On August 20, 2017, a subsidiary of the Company, Anji Asia-pacific Brake Systems Co., Ltd., received an inspection at its new assembly lines now under construction for adding production capacity of 16 million sets of brake calipers for mid-class and high-class models a year, by the mayor and principal executives of the city. The total investment in the new project is Chinese yuan (CNY) 468 million. Anji Asia-pacific Brake Systems has added a 13,280.46 square meters auxiliary building to an existing facility, which consists of eight factory buildings of 152,880 square meters in total. The company has installed twelve automated production lines which are already in the trial operation stage. The new production lines are scheduled to start operating in October 2017. (From some releases on August 23, 2017)