Pyung Hwa Industrial Co., Ltd. Business Report FY ended Dec. 2014
Highlights in Recent Years
Financial Overview (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Rate of change (%) |
Remarks | |
| Sales | 239,245 | 134,699 | 77.6 | - |
| Operating income |
(578) | 786 | - | - |
| Net income |
(2,237) | 1,033 | - | - |
Absorption
-The Company announced that it will absorb Pyung Hwa Anti-Vibration System Co., Ltd., effective May 1, 2014. Pyung Hwa Anti-Vibration System, which supplies anti-vibration products to the automotive industry, was originally formed out of Pyung Hwa's anti-vibration rubber division that was spun off in May 2008. Pyung Hwa Anti-Vibration System generated approximately KRW 200 billion in sales each year. (From a press release on February 7, 2014)
Corporate Separation
-In May 2006, the Company reorganized its business into two corporations: Pyung Hwa Holdings Co., Ltd., a holding company; and Pyung Hwa Industrial Co., Ltd., to manufacture and sell automotive rubber products.
New Subsidiaries
-Pyung Hwa Holdings, Daegu Gyeongbuk Institute of Science and Technology (DGIST), and Mirae Holdings, Ltd. have jointly established Pyunghwa Research Institute Co., Ltd. to develop voice recognition technologies for automobiles by using microelectromechanical systems (MEMSs). The research joint venture is capitalized KRW 200 million, of which 70.0 percent was invested by Pyung Hwa Holdings, which is the parent company of Pyung Hwa Industrial. (From a press release on December 4, 2014)
-In 2009, the Company sold all the shares of stock (100 percent) it had in Pyung-Hwa India to Pyung Hwa Holdings Co., Ltd.
-In Feburary 2006, the Company established Pyung-Hwa India Private Ltd. to manufacture and sell automotive anti-vibration rubber and hoses in India. The new entity is capitalized at 6.3 million US dollars, 100 percent of which was invested by the Company.
-In December 2008, Pyung Hwa Anti-Vibration System Co., Ltd. (PAVCO) established Pyung-Hwa America Inc, a wholly owned subsidiary to sell automotive vibration control products in the U.S.
R&D Structure
-The Company has a total of 56 engineers to develop hoses as of December 31, 2014.
-The Company established a technical research center in May 1987.
R&D Expenditure |
(in millions of won) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Amount | 7,708 | 2,022 | 2,635 |
| % of sales | 3.3% | 1.5% | 2.1% |
Recent Developments
| Area of development | Development period |
| Hydraulic engine mounts | Jan. 2014 - Dec. 2014 |
| Plastic roll rod case brackets | Jan. 2013 - Aug. 2014 |
| Coupled torsion beam axle (CTBA) bushes | Jan. 2014 - Dec. 2014 |
| Aluminum brackets | Jan. 2014 - Dec. 2014 |
Investment Activites in Korea
-In April 2013, PNDT, which is a joint-venture between Pyung Hwa Holdings (parent company of the Company) and NOK of Japan, held a ground-breaking ceremony for its new plant in Yeongcheon, Gyeongsangbuk-do. The facility will have 25,000 square meters of building area on 48,000 square meters of land. It is scheduled to be completed in October 2013 and will produce 11 million damper pulleys per year. Annual sales are expected to reach 60 billion won. (From a press release, April 22, 2013)
Data
Sales (Non-consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | ||
| Vibration control products | Export | 60,981 | - | - |
| Korea | 37,208 | - | - | |
| Subtotal | 98,189 | - | - | |
| Hoses | Export | 44,631 | 45,233 | 41,149 |
| Korea | 77,001 | 70,768 | 68,889 | |
| Subtotal | 121,632 | 116,001 | 110,038 | |
| Others | Export | - | - | - |
| Korea | 17,428 | 18,634 | 18,467 | |
| Subtotal | 17,428 | 18,634 | 18,467 | |
| Total | Export | 105,612 | 45,233 | 41,149 |
| Korea | 131,637 | 89,403 | 87,356 | |
| Total | 237,249 | 134,635 | 128,505 | |
Production Capacity / Result (Non-consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | ||||
| Capacity | Result | Capacity | Result | Capacity | Result | |
| Vibration control products | 154,963 | 84,445 | - | - | - | - |
| Hoses | 73,746 | 64,196 | - | 67,386 | - | 67,809 |
Capacity Utilization Ratio (Non-consolidated)
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Vibration control products | 76.3% | - | - |
| Hoses | 78.6% | 78% | 80% |
*The utilization rate was calculated by dividing the actual number of operating hours by the maximum number of possible operating hours per year.>>>Financial Data