Guizhou Guihang Automotive Components Co., Ltd. Business Report FY ended Dec. 2016
Business Results |
(in million yuan) |
| FY ended Dec. 31, 2016 | FY ended. Dec. 31, 2015 | Rate of change | Factors | |
| Sales | 3,361.21 | 3,200.75 | 5.01% |
-Finished the task of R&D and production, and improved the operation quality. |
| Operating profit | 194.27 | 184.23 | 5.45% | - |
| Ordinary profit | 216.73 | 194.01 | 11.71% | |
| Net profit | 190.84 | 176.52 | 8.11% |
Divestiture
-The Company announced that it will transfer its stake in the following companies that have been making losses:
-a 40% stake in Chongqing Hongyang Sealing Product Co., Ltd.;
-a 51% stake in Guiyang Huaxu Science & Technology Development Co., Ltd.;
-a 72.83% stake in Guiyang Huake Electro-plating Co., Ltd.;
-a 40% stake in Xuzhou Guihang Linde Power Machinery Manufacturing Co., Ltd.;
- and a 40% stake in Guizhou Wankaisheng Motor Co., Ltd.
(From an announcement by the company on August 23, 2016)
Liquidation
-The Company announced that it will liquidate and deregister its two production facilities in Hongyang City: Haikou Hongyang Seal Products Branch Company; and Guizhou Huachang Automobile Electrics Co., Ltd. Haikou Branch. The market in Hongyang is expected to shrink considerably due mainly to the reduced business with FAW Haima, which is transferring production of major vehicle models to Zhengzhou City. (From an announcement by the company on August 23, 2016)
-The Company announced that it plans to liquidate and deregister Changchun Wanjiang Auto Parts Co., Ltd., its sub-subsidiary that is supplying its products exclusively to FAW Bora. Because FAW VW will transfer production to Tsingtao in 2020, Changchun Wanjiang Auto Parts will reduce production in steps from 2017. As no other business is expected there, the company decided to close the plant. (From an announcement by the company on August 23, 2016)
Contracts
-Got the supply agreements of key related products with Changan commercial vehicles.
-Developed locks for BAIC Group platform, and supplied in batch to part of models.
-Supplied in batch to BAIC New Energy.
-Supplied locks of GAC Group GS4.
Business Plan for Next Year
-In 2017, the Company plans to reach 3.5 billion sales, increased by 4.14% on year-over-year basis; and plans to reach 0.23 billion profits, increased by 6.12% on year-over-year basis. (From the Company's 2016 annual report)
R&D Expenditure
-The expenditure on R&D in 2016 is 102.88 million yuan, 3.06% of the Company's sales.
Capital Investment Projects in FY2016 |
(in million CNY) |
| Projects | Budget | Investment in 2016 | Project progress |
| Technology transformation | 9.22 | 8.88 | - |
| Infrastructure construction | 298.92 | 3.87 | - |
| Arm forming machine | 1.90 | 1.65 | 86.83% |
| Arm assembly line | 1.76 | 1.16 | 66.05% |