Guizhou Guihang Automotive Components Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Business Results for FY2012

(in million yuan)
million yuan FY ended. Dec. 31, 2012 FY ended. Dec. 31, 2011 Difference (%) Factors
Sales 2,464.39 2,657.95 (7.28%) -Sales decreased as the Company's subsidary Suzhou Huachang Electrical Co., Ltd. no longer included in the scope of consolidation.
Operating profit  180.78 192.43 (6.05%) -

Ordinary profit 207.71 201.57 3.05%
Net profit 183.63 165.28 11.10%

Pass Examination

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., a subsidiary of the Company, received a screening by Dongfeng-Peugeot-Citroen for its T8 rear wiper production line in October 2012. The company is going to begin mass production later this month after making some minor improvements. The company has already completed prototype production and met all basic conditions for launching mass production of the H5 front/rear wipers. (From a press release, November 2, 2012)


New Companies

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., which is a wholly owned subsidiary of the Company, will establish Tianjin Huayang Auto Parts Co., Ltd. to manufacture and sell switches such as combination switches and power window switches. The new entity will be owned 100 percent by Guizhou Guihang Automotive and capitalized at 41 million yuan. (From an announcement by the company, April 28, 2012)

 

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., which is a wholly owned subsidiary ofthe Company., will establish Tianjin Wanjiang Auto Parts Co., Ltd. at theJingjin Technology Valley, Wuqing, Tianjin to manufacture and sell windshield wipers and window regulators. The new company will be owned 100 percent by Guiyang Wanjiang Aviation Electromechanical and capitalized at 30 million yuan. (From an announcement by the company, April 28, 2012)

 

Contract
-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., a subsidiary of the Company, received from the Chengdu Plant of FAW-VW a 2013 order schedule for wipers to be installed on the new Jetta NF. The new wiper program is expected to rev up the company’s sales, as the NF is likely to enjoy favorable demand on the back of the popularity of existing Jetta vehicles. (From a press release, December 12, 2012)

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., a subsidiary of the Company, has been chosen as a supplier of wiper systems (wiper driving mechanisms and wiper arms) for the Voleex C30. Prior to this award, the company had also won a wiper program for the Haval H5. Approximately 100,000 Voleex C30 vehicles are expected to be produced each year. (From a press release, November 2, 2012) 

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., a subsidiary of the Company,will supplyT8 rear wipers and H5 front rear wipers to Dongfeng-Peugeot-Citroen in November. (From a press release, November 2, 2012)

R&D

Product development  
-The expenditure on R&D in 2012 is 61.66 million yuan, 2.36% of the Company's sales. 

-The Company has the ability of synchronous design with automotive OEMs.

Investment Activities

Capital Investment Projects in FY2012

(in million yuan)
Projects Budgeted amount Amount Invested up to Dec. 2012 Status Funds
Installing die casting machine
3.2 0.87 100% Own funds 
Installing transformers
1.65 - 100% Own funds
Technological transformation project 110.64 13.42 30% Own funds & funds raised

Investment in northern China

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., a wholly owned subsidiary of the Company, is going to invest 19.2 million yuan in 2012 to upgrade its manufacturing equipment. Over the next 18 months, it plans to install 21 pieces of production equipment, product analysis software, and management software. With this expansion, the company’s production capacity is expected to increase as follows: 2.5 million armatures (current capacity is 2 million); 6 million arms (current capacity is 5 million); 3 million wiper systems (current capacity is 2.5 million). (From an announcement by the company, April 28, 2012)

-The Company will establish Tianjin Huayang Auto Parts Co., Ltd. to manufacture and sell switches such as combination switches and power window switches. The new entity will be owned 100 percent by Guizhou Guihang Automotive and capitalized at 41 million yuan. (From an announcement by the company, April 28, 2012)

-Guiyang Wanjiang Aviation Electromechanical Co., Ltd., which is a wholly owned subsidiary of the Company, will establish Tianjin Wanjiang Auto Parts Co., Ltd. at the Jingjin Technology Valley, Wuqing, Tianjin.(From an announcement by the company, April 28, 2012)