Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. Business Report FY ended Dec. 2018

Financial Overview

(million CNY)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of change Factors
Sales 3,904.49 3,963.56 (1.49%) -Sales results decline due to macro-economic impact, decrease in vehicle sales, surge of raw materials prices and increase in R&D costs.
Operating profit 21.75 106.47 -
Ordinary profit 19.87 107.27 -
Net profit 12.68 88.10 -

New Company

-Registered for establishment in Hangzhou on February 28, 2019, Hangzhou Asia-Pacific Intelligent Vehicle Control System Co., Ltd. is a wholly-owned subsidiary of the Company and focuses on R&D, production and sale of intelligent automobile control systems, connected car module parts, in-vehicle electronic devices, sensors and electronic control brake systems. (From Business Report FY2018)

-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 Automobile 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 strengths, become more competitive, and promote the development of China’s connected car industry. (From a corporate announcement on March 12, 2018)


-The Company recently received a notice for new product development and an order for front brake caliper assemblies for the Great Wall Motor’s Haval H6. (From a Shenzhen Stock Exchange corporate announcement on January 17, 2019)

Strategic Partnership

-On August 10, 2018, the Company's controlling shareholder, Asia-pacific Machine & Electric Group Corp. (Asia-pacific Group) signed an investment agreement with Hangzhou EOHI Information System Co., Ltd. (Hangzhou EOHI Information System). The Asia-pacific Group and Hangzhou EOHI Information System have already been obtaining ideal achievements in the area of smart manufacturing and the convergence of information and industrial technology through their existing long-term, stable partnership. Through this alliance, the companies intend to utilize their strengths in the areas of automation, intelligence, and information technology and accelerate the establishment of operatorless and smart factories. Asia-pacific Group has a wealth of technologies and practical experience in machine and electric integration. Hangzhou EOHI Information System has been specializing in information technology relating to the machine/electric industry for a long time and has extensive research and implementation experience in IIoT and Industrial Internet. (From a corporate announcement on August 10, 2018)

-On April 13, 2018, the Company and Weltmeister Motor Technology Co., Ltd. signed an alliance agreement. According to the agreement, the Company is going to supply in-wheel-motor drive systems, lightweight aluminum alloy chassis modules, and brake systems to Weltmeister Motor. Weltmeister Motor will use and prioritize the products of the Company 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)


-The Company recently announced that it won the following awards from major automakers in 2018:
"Excellent Supplier Award" issued by FAW-VW 
"R&D Collaboration Award" issued by FAW Car 
"Excellent Partner Award" issued by SAIC GM Wuling
"Excellent Supplier Award" issued by Jiangxi Isuzu
"R&D Contribution Award" issued by Hebei Changan
"Outstanding Quality Performance Award" issued by Chery New Energy
"Excellent Supplier
 Award" issued by Zhongxing Automobile
"Quality Contribution
 Award" issued by Brilliance Xinyuan (from a press release on March 11, 2019)

-In March 2018, the Company won an excellent supplier award from SAIC MAXUS Automotive. The company has reached a strategic partnership agreement with SAIC MAXUS in 2010. Since then, it has been maintaining a stable supply of its products. (From a press release on March 26, 2018)

-In February 2018, the Company won a 2017 special contribution award from FAW-Volkswagen Co., Ltd. (From a press release on February 2, 2018)

Outlook for FY ending December 2019

-The target for FY ending December 2019 is sales of CNY 3.8 billion, ordinary profit of CNY 65 million, and a net profit of CNY 55 million.

R&D Expenses

(in million CNY)
Year FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
R&D Expense 157.58 159.25 142.52
Percentage in sales revenue (%) 4.04% 4.02% 4.17%

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.


-The Company has so far obtained 385 patents, including 34 invention patents, 235 utility model patents and 116 design patents. (From Business Report FY2018)


(in million CNY)
Project Budget Investment in 2017 Project progress
Project of annual output of 150,000 sets of in-wheel motor drive modules for NEV technological transformation 751.06 57.98 25%
Project of annual output of 4 million sets of automotive disc brakes construction 333.20 1.37 95%
Project of annual output of 120,000 tons of key automotive parts casting 794.62 96.34 95%
Project of annual output of 1 million sets of electric control modules for vehicle brake system technological transformation 464.13 1.25 5%
Chongqing Aisa-pacific plant construction 170.00 9.35 45%
Plant and ancillary projects construction in Anji 136.00 18.82 100%