Weifu High-Technology Group Co., Ltd. Business Report FY ended Dec. 2017
Financial Overview |
(million CNY) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change | Factors | |
| Sales | 9,017.28 | 6,422.70 | 40.40% | -The resumption of the growth of commercial vehicle market, thus, market demand for vehicle common rail high pressure pump products increased; -The implementation of the national purchase tax halved policy and the increase in the market share of Chinese brand passenger cars; -Diesel superchargers seized key customers, thus, diesel superchargers marketshare steadily increased; petrol turbocharger began to bulk supply. |
| Operating profit | 2,824.22 | 1,778.26 | 58.82% | |
| Ordinary profit | 2,830.42 | 1,818.55 | 55.64% | |
| Net profit | 2,647.21 | 1,726.00 | 53.37% |
Investments & Joint Ventures
-Weifu High-Technology Group Co., Ltd. announced on March 28, 2018, a plan to invest USD 30 million in UK-based in-wheel motor manufacturer, Protean Holdings Corp. The company is going to acquire 12.34% shares in the company and establish a joint company in Weifu with a subsidiary of Protean Holdings, Protean Electric Ltd.(PEL). The joint company is initially capitalized at USD 20 million. Weifu High-Technology Group will invest USD 16 million to have an 80% stake. PEL will spend USD 4 million to own a 20% stake in the new company. The joint company will develop, manufacture, and sell in-wheel motors meeting mainly the PD18 and higher standards. It also plans to set up a new engineering center and expand it into a new research and development center. (From a corporate announcement on March 28, 2018)
Absorb & Merge
-Weifu High-Technology Group Co., Ltd. will merge one of its subsidiaries, Wuxi Weifu Automotive Diesel System Co., Ltd., according to its announcement on July 6, 2017. The subsidiary was established in 2004 with a registered capital of Chinese yuan (CNY) 300 million as a manufacturer mainly of fuel systems as well as gauges and equipment for fuel system manufacturing. As of December 31, 2016, the subsidiary with a total asset of CNY 1,889.95 million generates operating income of CNY 1,496.64 million and net profit of 194.32 CNY million. After the merger, Weifu High-Technology Group will take over all the assets, liabilities, interests, workforce and business of current Wuxi Weifu Automotive Diesel System. Wuxi Weifu Automotive Diesel System will then lose its corporate status, and its registration will be deleted. (From a corporate announcement on July 6, 2017)
R&D Facility
-The Company has a Post-Doctor Working Station for fuel injection pump R&D and state Technical Center in 1999.
-The Company has provincial engineering center - engineering institute of technology center, exhaust aftertreatment R&D center and supercharger R&D center.
-The Company announced that the company and STMicroelectronics have jointly established a testing laboratory on the premises of Weifu High-Technology's technical center. This new facility will be used to develop automotive power integrated circuits. Weifu High-Technology aims to reach the international levels in terms of electronic fuel pumps for diesel engines and electronic exhaust gas aftertreatment systems by utilizing STMicroelectronics’ advanced electronics solutions for automobiles. (From a press release on March 16, 2016)
R&D Expenditure
|
(in million CNY) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| R&D Expenditure | 391.32 | 319.39 | 287.09 |
| Ratio of R&D expenses to operating income | 4.34% | 4.97% | 5.00% |
R&D Activity
-Wuxi Weifu Leader Catalytic Converter Co., Ltd., which is a subsidiary of the Company, announced that it has signed a joint development project with SDCmaterials, Inc. The two companies agreed to collaborate on the development of catalysts for Chinese automakers. The new catalysts will adopt SDCmaterials' Nano-on-Nano technology, which requires as little as 40% of platinum used in traditional catalysts, while doubling the efficiency of precious-metal composition. The technology will be first delivered to OEMs including SAIC GM. SDC manufactures Nano-on-Nano catalyst ingredients by using its patented plasma-synthesis technology, which integrates nano-sized precious metal particles onto nano-oxide support particles. When incorporated into traditional catalysts, the ingredients inhibit catalyst-degrading and agglomeration, creating more stable and predictable emissions control, and allowing the catalyst manufacturer to significantly reduce use of precious metals. (From news releases issued by multiple sources on December 2, 2016)
Major Investment Project
|
(in million CNY) |
| Project | Investment in 2017 |
| Industrial Park Phase II construction project | 104.13 |
| Technical transformation for equipment of Weifu Tianli | 30.00 |
| Technical transformation of parent company |
69.64 |
| Technical transformation of Wuxi Autocam Precision Machine Co., Ltd. | 38.35 |
| 102 warehouse construction of Wuxi Weifu ITM Supercharger Technology Co., Ltd. | 24.86 |
Investment in China
-On September 28, 2016, the Company signed a contract with the authorities of the Chongqing Tongliang High-tech Industrial Development Zone for its plan to construct a vehicle exhaust system factory in the zone. The new facility will be one of the largest of its kind in China. It will be established and operated by Wuxi Weifu Leader Catalytic Converter Co., Ltd. The planned amount of investment in this project is CNY 100 million. Annual sales are expected to reach 200,000 units after full-scale production begins. (From news releases issued by multiple sources on October 10, 2016)