Seoyon Electronics Co., Ltd. (Formerly Daedong 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 704,960 675,644 4.3 -
Operating
income
38,053 32,165 18.3 -
Net
income
32,527 21,281 52.8 -

Parent company change

-In December 2011, Hanil E-Hwa Co., Ltd. acquired 50.12 percent of the shares in Shinchang Electrics Co., Ltd., an automotive switch supplier in Korea, for 60,164 million won. As a result, Tokai Rika which had owned the largest, 28.38 percent share in Shinchang Electrics, now holds 19.72 percent in the company. (From a press release on December 16, 2011)

Subsidiaries


-In August 2008, the Company established Suzhou Shinchang Science & Technology Co., Ltd. in China. The new company, which is wholly owned by Shinchang Electrics and capitalized at 240,000 US dollars, will design automotive electric equipment. (From a press release on August 6, 2008)


-In September 2007, the Company established Shinchang Poland Sp. z.o.o. in Poland to manufacture and sell key sets, switches, and door levers. Shinchang Poland is capitalized at 852 million yuan, which was wholly invested by the Company. (From a press release on September 11, 2007)


-In March 2005, the Company established Shinchang America Corporation in Michigan, U.S.A. to sell automotive components.

Contracts

-The Company developed a new smart key system. Mass production of the product started in February 2008 for installation on the Chairman W assembled by Ssangyong.

R&D Structure

-The Company established an R&D center in August 1989.

R&D Expenditure (Consolidated)

(in millions of won)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Amount 15,677 10,717 9,680
% of sales 2.9% 2.1% 2.1

R&D Activities(FY ended in Dec. 2014)

Models Products
Electrical unit
The successor model to the Hyundai Avante (AD) Immobilizer unit
Hyundai Aslan (AG) IPM
Hyundai Veloster (FS) IPM
Hyundai Eon (HA) SBR unit
Hyundai Grandeur Hybrid (HG HEV) IPM
Hyundai Grandeur (HG) IPM
Kia Sportage R EV (SLE) BCM
Kia Sorento (UM) ANT coil assembly
Kia Sorento (UM) LDC
W222 Smart key system
Power window switch
Hyundai Sonata (CF) Power window switch
Hyundai Santa Fe (DM) Power window switch
Hyundai Sonata (LF) Power window switch
Hyundai (China) Mistra (PF) Power window switch
Hyundai Verna (RBK) Power window switch
Kia (China) Sportage facelift (SL F/L) Power window switch
Hyundai/Kia SR Power window switch
Kia Carnival (YP) Power window switch
Multi function switch
Hyundai Compact SUV (GC) Multi function switch
Hyundai Sonata (LF) W/REMO switch
Hyundai Sonata (LF) Multi function switch
The successor model to the Hyundai Veracruz (NC) Paddle shifter switch
Hyundai (China) Trago (QZC) Multi function switch
Hyundai/Kia SR Multi function switch
Hyundai/Kia SR W/REMO switch
Key set
Hyundai Aslan (AG) Outside door handle
Hyundai i10 (BA) Key set
Ssangyong Actyon (C210) Key set
Hyundai/Kia (China) CS facelift (CSC F/L) Key set
Kia (China) Sportage (KMC) ESCL
Hyundai Sonata (LF) Key set
Hyundai Sonata (LF) Trunk lid switch
Hyundai Sonata (LF) Trunk switch
Hyundai (China) Avante (MDC) Key set
P552 Key set
Hyundai (China) Mistra (PF) Key set
Kia Soul EV (PS EV) SSB
Kia Soul (PS) Key set
Kia (China) Rio (QB) Key set
Hyundai (Russia) Verna facelift (RBR F/L) SSB
Kia (China) Sportage (SLC F/L) Key set
Kia Morning(TA) FOLDING TX
U22X Key set
Kia Rio (UB) Key set
Kia Rio (UB) SSB
Kia Sorento (UM) ESCL
Hyudai i40 (VF) FOLDING TX
Y292 Key set
Kia Venga (YN) Outside door handle
Kia Venga (YN) FOLDING TX
Kia Carnival (YP) ESCL
Kia Carnival (YP) Key set
Other switches
Hyundai Sonata (CF) Crash pad switch
Hyundai Veracruz (EN) Ventilation switch
Hyundai Sonata (LF) Crash pad switch
Hyundai Sonata (LF) Console switch
Hyundai Elantra (RD) E-module
Hyundai Elantra (RD) EHS
Kia (China) Sportage (SLC F/L) Crash pad switch
Kia Sorento (UM) PTG switch
Kia Venga (YN) Center facia switch
Kia Venga (YN) Hazard switch controller
Kia Carnival (YP) Crash pad switch
Kia Carnival (YP) Console floor switch

Data

Sales by product

(in millions of won)
Company Products FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Sales Ratio Sales Ratio Sales Ratio
The Company Switches 298,677 55.5% 273,421 54.1% 260,417 56.8%
Key sets 198,706 36.9% 186,447 36.9% 167,252 36.5%
Magnesium products 27,710 5.2% 33,004 6.5% 21,123 4.6%
Others 12,967 2.4% 12,427 2.5% 9,871 2.2%
Total 538,060 100.0% 505,299 100.0% 458,663 100.0%
U-Chang Precision Co., Ltd. Key sets 11,013 28.0% 13,691 33.9% 14,495 34.9%
Steering locks 7,317 18.6% 9,366 23.2% 9,611 23.2%
Door handles 7,804 19.9% 8,880 22.0% 9,147 22.0%
Switches 5,894 15.0% - - - -
Gear boxes 850 2.2% 936 2.3% - -
Cigarette lighters 216 0.6% 252 0.6% 384 0.9%
Others 6,149 15.7% 7,272 18.0% 7,873 18.9%
Total 39,243 100.0% 40,398 100.0% 41,510 100.0%
STF BCMs 33,877 34.5% 40,831 42.0% 48,577 53.9%
Smart keys 33,300 33.9% 30,471 31.3% 22,514 25.0%
Switches 21,873 22.3% 20,161 20.7% 13,436 14.9%
Immobilizers 6,141 6.2% 5,568 5.7% 4,859 5.4%
LDCs 2,861 2.9% - - - -
Others 211 0.2% 225 0.2% 772 0.8%
Total 98,263 100.0% 97,256 100.0% 90,158 100.0%
Suzhou Huachang Mechanical and Electrical Co., Ltd. Key sets 97,091 37.7% 50,709 32.4% 46,814 40.6%
Switches 49,614 27.9% 25,120 16.1% 22,796 19.8%
Others 61,328 34.4% 80,495 51.5% 45,619 39.6%
Total 178,033 100.0% 156,324 100.0% 115,229 100.0%
Daedong Poland Sp. z.o.o Key sets 51,115 71.7% 20,638 29.8% 21,078 30.2%
Switches 20,187 28.3% 48,572 70.2% 48,717 69.8%
Total 71,302 100.0% 69,210 100.0% 69,795 100.0%

Sales by customer

(in millions of won)
Company Customer FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Sales Ratio Sales Ratio Sales Ratio
The Company Hyundai 217,365 40.4% 180,463 35.7% 165,895 36.2%
Kia 130,975 24.3% 133,793 26.5% 131,015 28.6%
GM Korea 6,527 1.2% 8,469 1.7% 10,972 2.4%
Ssangyong 1,205 0.2% 7,075 1.4% 5,842 1.3%
Export 163,640 30.5% 151,679 30.0% 130,600 28.5%
Others 18,348 3.4% 23,820 4.8% 14,339 3.2%
Total 538,060 100.0% 505,299 100.0% 458,663 100.0%
U-Chang Precision Co., Ltd. GM Korea 22,113 56.3% 22,963 56.8% 28,640 69.0%
Korea Delphi 3,248 8.3% 3,616 9.0% 4,107 9.9%
Mando 3,519 9.0% 4,948 12.2% 1,948 4.7%
Renault Samsung 856 2.2% 1,040 2.6% 899 2.2%
Others 9,507 24.2% 7,830 19.4% 5,916 14.3%
Total 39,243 100.0% 40,398 100.0% 41,510 100.0%
STF Hyundai 51,344 52.3% 51,020 52.5% 43,840 48.6%
Kia 45,147 45.9% 43,985 45.2% 41,722 46.3%
GM Korea 162 0.2% 747 0.8% 2,678 3.0%
Ssangyong, etc. 1,399 1.4% 1,278 1.3% 1,146 1.3%
Others 211 0.2% 225 0.2% 772 0.8%
Total 98,263 100.0% 97,256 100.0% 90,158 100.0%
Suzhou Huachang Mechanical and Electrical Co., Ltd. Hyundai Mobis, etc. 99,765 56.0% 86,082 55.1% 37,841 32.8%
Beijing Hyundai 27,981 15.7% 31,137 19.9% 28,673 24.9%
Yancheng Kia 24,653 13.8% 19,872 12.7% 19,988 17.4%
Shanghai GM - - - - 9,788 8.5%
Others 25,634 14.5% 19,234 12.3% 18,939 16.4%
Total 178,033 100.0% 156,324 100.0% 115,229 100.0%
Daedong Poland Sp. z.o.o Hyundai Czech 35,261 49.5% 34,010 49.1% 21,078 55.0%
Kia Slovakia 36,041 50.5% 35,200 50.9% 48,717 45.0%
Total 71,302 100.0% 69,210 100.0% 69,795 100.0%

Production Capacity / Result / Capacity Utilization Rate

(in thousands of unit)
Product FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Capacity Result C.U.R Capacity Result C.U.R
The Company
Key sets 5,419 4,000 73.8% 4,502 4,042 89.8%
Multi-function switches 6,653 5,040 75.8% 5,517 4,840 87.7%
Power window switches 2,974 2,689 90.4% 3,957 2,659 67.2%
Wheel remote control switches 2,054 1,538 74.9% - - -
In-panel switches 2,222 1,686 75.9% - - -
STF
BCM 3,717 3,436 92.4% 4,357 3,665 84.1%
Smart keys 5,314 4,947 93.1% 4,905 4,227 86.2%
Switches 2,273 1,804 79.4% 1,908 1,542 80.8%
Immobilizers 1,360 1,201 88.4% 1,264 1,056 83.6%
LDCs 170 168 98.6%
U-Chang Precision Co., Ltd.
Key sets 1,500 877 58.5% 1,680 1,038 61.8%
Steering column locks 1,800 946 52.6% 1,800 1,144 63.6%
Outside door handles 4,856 2,368 48.8% 5,640 3,257 57.8%
Power window switches 22,572 19,896 88.1% 19,200 16,680 86.9%
Suzhou Huachang Mechanical and Electrical Co., Ltd.
Key sets 3,984 2,977 74.7% 3,984 3,152 79.1%
Multi-function switches 6,970 6,350 91.1% 5,968 4,798 80.4%
Power window switches, etc. 4,999 4,810 96.2% 4,054 3,501 86.4%
Daedong Poland Sp. z.o.o
Key sets 632 606 96.0% 662 579 87.5%
Switches 688 656 95.4% 734 623 84.9%

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