Seoyon E-Hwa Co., Ltd. Business Report FY ended Dec. 2014
Financial Overview (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2014 (*1) | FY ended Dec. 31, 2013 | Rate of change (%) |
Factors | |
| Sales | 1,124,952 | 2,955,993 | (61.9) | - |
| Operating income | 60,281 | 200,839 | (70.0) | - |
| Net income | 53,464 | 100,281 | (46.7) | - |
*1: Covers the period between July 1, 2014 and December 31, 2014 due to company split.
Forming a holding-company
-The Company adopted a holding company form of organization through a company split effective July 2014. Seoyeon Co., Ltd., a new holding company, will oversee the group's subsidiaries and perform investment business. Seoyeon has the following companies under its wing. The numbers in brackets show the percentage of Seoyeon's ownership in each company as of December 19, 2014: Hanil E-Hwa Co., Ltd. (48.39%); Daedong Co., Ltd. (50.12%); Top Metal Works (27.76%); Hanil Interior (61.99%); Hanil C&F Co., Ltd. (49.41%); and Hanil Industry Co., Ltd. (80.0%). (From a press release on January 14, 2015)
Subsidiaries
<Mexico>
-In October 2014, the Company established Hanil Automotive Mexico S. de R.L. de C.V. to produce interior components.
Contracts
-Hanil E-Hwa Interior Systems Georgia, Inc., which is a U.S. subsidiary of the Company , will supply interior components for the successor (development code: JFA) to Kia Motors' K5. The new vehicle will be assembled at Kia Motors' Georgia plant. Hanil E-Hwa Interior Systems Georgia generated USD 100 million in sales during 2013. It aims to double its sales to USD 200 million within the next three years. (From a press release on June 23, 2014)
-The Company has been awarded a new contract to supply door trims for Kia Motors' Optima mid-sized sedan for the North American market. The door trims will be produced at Hanil E-Hwa Interior Systems Georgia, Inc. in Georgia, U.S.A. (From a press release on March 14, 2014)
R&D Structure
-130 employees engage in the company's research and development activities as of December 31, 2014.
The Company has the following research facilities :
-A central research center in Asan.
-A development center in Ulsan.
-A technical research center in Beijing, China
R&D Expenditure |
(in millions of won) |
| FY ended Dec. 31, 2014 (*1) | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Amount | 17,472 | 28,941 | 29,034 |
| % of Sales | 3.7% | 3.4% | 3.7 |
*1: Covers the period between July 1, 2014 and December 31, 2014 due to company split.
R&D Activities
-The Company plans to mass-produce new compression molded crash pads made from several different materials. The company started developing these crash pads through a joint development project with Hyundai Motor in July 2010, and completed the exploratory development phase in June 2011. The new crash pads will be used on Hyundai Motor's i20 that will be assembled at the automaker's Turkish plant. (From a press release on June 23, 2014)
Recent Developments
| Car maker | Model (Development code) |
Products | Project period |
Applications in products |
| FY ended Dec. 31, 2014 | ||||
| Kia/ China |
Successor model to Rio 4 door (QBC) |
Bumper | May 2013 - Aug. 2014 |
Completed |
| Hyundai | Successor model to i20 (IB) |
Cross bumper | Mar. 2012 - Jul. 2014 |
Completed |
| Kia/ China |
Small SUV (KC) |
Door trim | Jan. 2013 - Aug. 2014 |
Completed |
| Hyundai/ India |
Small vehicle 3 door (GB) |
Door trim | May 2013 - Aug. 2014 |
Completed |
| Hyundai | Successor model to Accent (RBk) |
Door trim | Jan. 2013 - Aug. 2014 |
Completed |
| Hyundai/ China |
Successor model to Verna (YC) |
Door trim | Dec. 2013 - Nov. 2014 |
Completed |
| Hyundai | Successor model to Equus (HI) |
Door trim | Oct. 2013 - Jan. 2015 |
Under development |
| Kia | Successor model to Sportage (QL) |
Door trim | Jul. 2013 - Nov. 2014 |
Completed |
| Hyundai | Successor model to Avante (AD) |
Door trim | Aug. 2013 - Nov. 2014 |
Completed |
| Kia/ USA |
Successor model to Optima (JFA) |
Door trim | Jan. 2014 - Jun. 2015 |
Completed |
| Kia | Successor model to Pride (5 door) (QB) |
Door trim | Nov. 2013 - Dec. 2014 |
Completed |
| Hyundai | Successor model to Tucson (EV) (TLe) |
Door trim | Nov. 2013 - Nov. 2014 |
Completed |
| Kia/ China |
Successor model to K5 (JFc) |
Bumper | May 2014 - Jan. 2015 |
Completed |
| Hyundai | Environmentally friendly model (AE) |
Door trim | May 2014 - Jan. 2015 |
Under development |
| Hyundai | Successor model to i30 (PD) |
Door trim | Nov. 2011 - Oct. 2015 |
Under development |
| Hyundai | Successor model to i30 (EV) (PDe) |
Door trim | May 2014 - Jun. 2015 |
Under development |
| Kia | HEV (DE) |
Door trim | Jul. 2014 - Oct. 2015 |
Under development |
Technical partnerships (Licensed-in)
| Partner (Country) |
Product | Content | Term |
| -Kasai Kogyo (Japan) -Sumitomo Chemical (Japan) |
KPM | -Technical guidance on the KPM manufacturing method -Operational procedures for KPM -Technical guidance on the KPM manufacturing method |
Oct. 1995 - Oct. 2015 |
| -Tenryu Industries Co., Ltd. | Lightweight bus seats | -Technology to manufacture lightweight, aluminum seat frames for buses | Jan. 2010 - Dec. 2012 |
Capital Expenditure
-The company plans to spend 56,966 million won in capital investment for FY2015.
-Capital investment for FY2014 reached 2,146 million won.
Investment outside Korea
<Turkey>
-The Company held a groundbreaking ceremony for Assan Hanil Otomotiv Sanayi ve Ticaret’s new plant in Izmit, Turkey. The Turkish company’s second plant will produce seats and bumpers. (From a press release on June 23, 2014)
<U.S.>
-The Company announced that it will invest USD 5.5 million to expand the plant of Hanil E-Hwa Interior Systems Georgia, Inc. The U.S. subsidiary mainly produces door trims, tailgates and pillars for Kia Motors' vehicles built in Georgia. (From a press release on June 11, 2014)
Percentage of sales by customer |
(in millions of won) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |||
| Sales | % | Sales | % | |
| Hyundai Motor | 1,472,558 | 49.8 | 1,016,946 | 48.7 |
| Kia Motors | 911,299 | 30.8 | 403,762 | 19.3 |
| Hyundai Mobis | 65,395 | 2.2 | 55,360 | 2.7 |
| Export | 175,800 | 5.9 | 410,009 | 19.6 |
| Others | 330,941 | 11.2 | 202,569 | 9.7 |
| Total | 2,955,993 | 100.0 | 2,088,646 | 100.0 |
Sales (Non-consolidated) |
(in thousand of units and millions of won) |
| FY ended Dec. 31, 2014 (*1) | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |||||
| Unit | Amount | Unit | Amount | Unit | Amount | ||
| Door Trim | Export | N.A. | N.A. | 4,009 | 185,013 | 3,800 | 175,515 |
| Korea | N.A. | N.A. | 2,170 | 127,713 | 2,206 | 124,449 | |
| Subtotal | N.A. | N.A. | 6,180 | 312,726 | 6,006 | 299,965 | |
| Seat | Export | N.A. | N.A. | 42 | 4,337 | 53 | 5,523 |
| Korea | N.A. | N.A. | 204 | 23,043 | 195 | 22,341 | |
| Subtotal | N.A. | N.A. | 247 | 27,380 | 249 | 27,864 | |
| Headrest, etc | Export | - | N.A. | - | 427,705 | - | 382,717 |
| Korea | - | N.A. | - | 78,971 | - | 82,780 | |
| Subtotal | - | N.A. | - | 503,677 | - | 465,498 | |
| Others | Export | - | N.A. | - | 76 | - | 11 |
| Korea | - | N.A. | - | 7 | - | 4 | |
| Subtotal | - | N.A. | - | 83 | - | 16 | |
| Total | Export | - | N.A. | - | 614,131 | - | 563,767 |
| Korea | - | N.A. | - | 229,735 | - | 229,576 | |
| Total | - | 477,552 | - | 843,866 | - | 793,344 | |
*1: Covers the period between July 1, 2014 and December 31, 2014 due to company split.
Production Capacity / Result / Capacity Utilization Rate |
(in thousands of unit) |
| Product | FY ended Dec. 31, 2014 (*1) | ||
| Capacity | Result | C.U.R | |
| Korea | |||
| Door trim (The Company) | 3,810 | 3,264 | 86% |
| Door trim (Dooyang Industrial) | 290 | 278 | 96% |
| Seat | 148 | 123 | 83% |
| Comsole | 65 | 48 | 74% |
| Lamp | 560 | 485 | 87% |
| China | |||
| Door trim (Jiangsu Hanil Auto Plastic Parts, Beijing Hanil E-Hwa Tech.) | 500 | 411 | 82% |
| Door trim (Beijing Hanil Automotive Trim) | 550 | 339 | 62% |
| Bumper | 400 | 334 | 84% |
| Head liner | 550 | 346 | 63% |
| Package tray | 715 | 468 | 65% |
| Carpet | 410 | 327 | 80% |
| Soft trim | 350 | 212 | 61% |
| Europe | |||
| Door trim | 967 | 879 | 91% |
| Pillar | 1,945 | 1,768 | 91% |
| Exterior | 1,860 | 1,691 | 91% |
| Wheel guard | 1,112 | 1,010 | 91% |
| Luggage trim | 778 | 707 | 91% |
| Console | 868 | 789 | 91% |
| Americas | |||
| Door trim (Alabama, USA / Brazil) | 619 | 562 | 91% |
| Door trim (Georgia, USA) | 66 | 57 | 86% |
| Others | |||
| Door trim | 1,376 | 1,214 | 88% |
| Bumper | 1,037 | 1,016 | 98% |
| Luggage trim | 376 | 367 | 98% |
*1: Covers the period between July 1, 2014 and December 31, 2014 due to company split.
>>>Financial Data