HI-LEX Corporation Business Report FY ended Oct. 2014
Business Highlights
Financial Overview |
(in million JPY) |
| FY ended Oct. 31, 2015 | FY ended Oct. 31, 2014 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 239,131 | 201,447 | 18.7 | -Strong sales in China and North America. -Daedong Door Inc. was added to the consolidated financial statements. |
| Operating profit | 17,381 | 18,569 | (6.4) | -Large depreciation costs in connection with the inauguration of new plants in China and India |
| Ordinary income | 20,626 | 20,379 | 1.2 | - |
| Net income | 13,432 | 13,051 | 2.9 | - |
Business Plan
1. Establishing global production and development structure
-The Company's challenge as world's No. 1 automotive cable manufacturer
4-pole global production structure: Japan (Asia); North America; Europe; and China
1)Asia
- HI-LEX India Private Ltd. is constructing a plant in Gujarat (construction began in October 2015 and is scheduled to be completed in July 2016
2) Europe
- HI-LEX RUS LLC is constructing a plant, planning to start mass production in May 2016
- Install new manufacturing equipment at HI-LEX Hungary Cable System Manufacturing LLC (project began in October 2015 and is scheduled to be completed by September 2016)
2. Development of new products and technologies
1) Electronic and electric components for cable-less products
- Power slide door systems
- Power liftgate systems
- Electric parking brake systems
- Wheelchair fastening equipment
2) New technologies
- Irregularly shaped inner cables
- Newly designed geared wires
- High-performance anti-vibration cables
- Split seat cables
- Seat unlocking actuators
Outlook for FY ending Oct. 31, 2016
-The Company expects its sales to be JPY 241,800 million, and its operating profit to be JPY 20,750 million.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Oct. 31, 2015 | FY ended Oct. 31, 2014 | FY ended Oct. 31, 2013 | |
| Japan | 1,780 | 975 | 881 |
| North America | 375 | 357 | 252 |
| China | 760 | 429 | 311 |
| Asia | 628 | 294 | 186 |
| Adjustment | 134 | 70 | 2 |
| Total | 3,677 | 2,125 | 1,632 |
R&D Structures
<Japan>
-Research and development activities are conducted at the following operations. Focus is set on development of new materials, technologies and products in the areas of automotive components, industrial equipment and home-related equipment.
- R&D Group
- Systems Planning Group
- Cable Design Group
- Utsunomiya Technical Center
<North America>
-Engineers at the Automotive Center of HI-LEX Controls Inc. are developing new technologies and products targeted at the automotive industry in North America.
<China>
-Engineers at Chongqing HI-LEX Cable System Group Co., Ltd. are developing new technologies and products targeted at the automotive industry in China.
<Asia>
-Major development activities are conducted at Daedong HI-LEX Inc. Focus is set on developing new technologies and products, especially in the area of automotive door modules.
R&D Activities
New materials
-The Company is developing lightweight cables with low stretch rates by producing super-fiber steel compounds with high-strength and high-elasticity rates.
New technology
-The Company has developed a new cable with high sliding properties by utilizing a new coating technology. The cables are expected to be used for transmission shift cables.
-In order to support advanced drive-by-wire technology, the Company is developing new system solutions by utilizing and integrating its cable and controller technologies.
New products
-Window regulators: the Company will continue to develop compact, lightweight, and highly durable products
-Door modules: the Company will develop next generation products
-Door opening and closing systems: the Company will develop new products incorporating various sensing technologies and control technologies to address the needs for safer and user-friendly technologies.
Capital Expenditure |
(in million JPY) |
| FY ended Oct. 31, 2015 | FY ended Oct. 31, 2014 | FY ended Oct. 31, 2013 | |
| Japan | 814 | 1,316 | 2,038 |
| North America | 1,781 | 2,123 | 1,986 |
| China | 3,748 | 3,193 | 1,848 |
| Asia | 2,619 | 2,317 | 1,441 |
| Europe | 1,210 | 568 | 400 |
| Total | 10,174 | 9,519 | 7,715 |
-During FY ended Oct. 2015, the Company invested primarily in new plant construction at its subsidiaries in India and Russia, and facility expansion at its Korean subsidiary.
-The Company expects to invest JPY 10,600 million in FY ending Oct. 2016.
Planned Capital Investment |
(As of Oct. 31, 2015) |
| Company name (Location) |
Type of project | Planned total investment (in million JPY) |
Project period | Increased capacity upon completion | |
| From | To | ||||
| HI-LEX India Private Ltd. Gujarat Plant (Ahmedabad, Gujarat, India) |
New plant and equipment installation etc. |
1,357 | 2015.10 | 2016.07 | 15% increase in production capacity |
| HI-LEX Hungary Cable System Manufacturing LLC Headquarter and Plant (Budapest, Hungary) |
Equipment installation | 437 | 2015.10 | 2016.09 | 63% increase in production capacity |