Kunming Yunnei Power Co., Ltd. Business Report FY ended Dec. 2012
Business Highlights
Financial Overview |
(In million yuan) |
FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | Increases (%) | Factors | |
Sales | 2,381.71 | 2,199.92 | 8.26% |
-Increase in the market share of engines |
Operating profit | 42.33 | (18.83) | - | -Profit increased as a result of new product development, marketing and cost control. |
Ordinary profit | 50.31 | 17.38 | 189.47% | |
Net profit | 43.02 | 1.22 | 3,426.23% |
- Kunming Yunnei Power Co., Ltd. announced on January 10, 2013 that it has produced its 5,500th D19 diesel engine compliant with the Euro V regulations for the
Merging
- Kunming Yunnei Powers said it will merge Kunming Leimo Power System Co., Ltd., its wholly owned subsidiary, into it own operations effective December 31, 2012. Kunming Yunnei Power will take over all assets, liabilities and employees of Kunming Leimo Power System. The merger is intended to establish a lean business structure, reduce operating expenses, and enhance its management system. (From an announcement by the company, October 29, 2012)
Joint Ventures
- Kunming Yunnei Power announced that together with a local sales company it will establish a joint venture company in Qingzhou, Shandong to expand its presence in Northern China and Northeast China. The new company will be called Shandong Yunnei Power Co., Ltd. (tentative name). According to the agreement, its capital amount will not fall below 70 million yuan, of which at least 51 percent will be provided by Kunming Yunnei. When the first phase of the construction project is completed, the plant will be able to manufacture 150,000 units on a double-shift operation. (From a press release, October 29, 2012)
-The company will establish Bijie Yunnei Power Co., Ltd. (tentative name) at the Bijie Economic Development Area, Guizhou Province through a joint investment with Bijie District Lifan Junma Vehicle Co., Ltd. The joint-venture company will produce engines for Bijie District Lifan Junma Vehicle. It will be capitalized at 60 million yuan, of which 80 percent will be invested by Kunming Yunnei. The production facility will be able to produce 50,000 engines a year initially with a plan to increase the capacity based on the future demand levels.(From an announcement by the company, August 4, 2012)
Share Transfer
- Kunming Yunnei Power Co., Ltd. announced that it is going to transfer its 51 percent share in Yunnei Power Dazhou Automobile Co., Ltd., one of its subsidiaries, to Sichuan Zhonghui Enterprise Co., Ltd. The share transfer project has already been approved by China’s State-owned Assets Supervision and Administration. Sichuan Zhonghui Enterprise is paying 25.5 million yuan for the deal, which is equivalent to 51 percent of Yunnei Power Dazhou Automobile’s capital amount. Sichuan Zhonghui Enterprise conducts business in the areas of real estate management, investment and information services. It also sells industrial machinery through its subsidiary. (From an announcement by the company, October 13, 2012)
New Plant
-The company will move its facilities to the Kunming Economic & Technological Development Zone, expecting a long-term growth. The company has been working on the construction project since 2008 on the 60 hectares site it had acquired for the project. The foundation work for the facility has just been completed. (From an announcement by the company, August 4, 2012)
Restructuring
- It has been decided that 100 percent of the shares in Yunnan Diesel Engine Plant, which is a parent company of the Company will be transferred to Changan Automobile free of cost, turning Yunnan Diesel Engine Plant into a wholly owned subsidiary of the automaker. The transfer will bring Kunming Yunnei Power under the umbrella of Changan Automobile. This project, which has already been approved by the State-owned Assets Supervision and Administration Commission of Kunming City, is subject to approval of both the State-owned Assets Supervision and Administration Commission of the State Council; and China Securities Regulator Commission, as well. (From an announcement by the company, January 7, 2011)
Business partnership
- Kunming Yunnei Power Co., Ltd. announced that the company and the Jinan Light Truck Sales Dept. of Sinotruck (Hong Kong) Limited are conducting a nationwide exhibition program for the HOWO light-duty trucks equipped with Kunming Yunnei’s 4100/4102 engines. The program kicked off in Xuchang , Henan in May 2012. Sinotruck entered the light-duty truck market in 2011 by launching operations of a new production line capable of producing 100,000 light duty trucks a year. (From a press release, July 6, 2012)
- Shanghai Automotive Industry Corporation (Group) and the Company are likely to bolster collaboration in the area of small diesel engine technology for passenger cars and other vehicles. The two companies are said to be discussing plans that include establishing a joint-venture company and conducting a stock swap. Since last year, they have been carrying out a joint project to develop 0.9- to 1.9-liter diesel engines. This latest development in strengthening their ties is seen as part of Shanghai Automotive's initiative to enhance its passenger vehicle business. It is believed that Shanghai Automotive is intending to install a new 1.9-liter diesel engine, which it is developing with the company, on in its own-brand Roewe 550 that will be launched possibly by next year.
R&D
R&D Expenditure
Product Development |
(in million yuan) |
Project |
Amount invested in 2012 |
Amount invested in 2011 |
Amount invested in 2010 |
D19TCI electronic controlled Common Rail System | - | 0.97 | - |
D25TCI electronic controlled Common Rail System | 7.33 | 2.22 | 4.95 |
Development of Diesel Engines conforming to China 3 Emissions Limits | 8.93 | 1.59 | 3.36 |
Development of Diesel Engines conforming to Euro 4 Emissions Limits | 1.84 | 0.88 | - |
Development of Diesel Engines conforming to Euro 5 Emissions Limits | 27.18 | 13.89 | 11.51 |
Development of Mini Diesel Engines | 7.56 | 3.02 | 2.34 |
Development of Hybrid Power Diesel Engines | 1.24 | 1.09 | 0.21 |
Development of Diesel Engines conforming to China 4 Emissions Limits | 4.39 | 3.23 | 1.17 |
Development of Euro 4 Platform | 2.59 | 0.2 | 2.39 |
Development of YNC45TCID Disesel Engines | 2.58 | 2.58 | - |
Total | 63.63 | 29.67 | 26.74 |
Source: Annual report
R&D Structure
Facility | Overview |
Internal Combustion Engine Institute |
- Designing and developing diesel engines, and developing manufacturing facilities to produce them - This facility and Beijing Institute of Technology are jointly operating the Internal Combustion Engine Engineering Center - This facility and Kunming Science & Technology University are jointly operating the Diesel Engine Test & Research Center - Set up Su Wanhua Academician Workstation in cooperation with Tianjin University |
- The Company is identified as a National Passenger Car Diesel Engine High-tech Industrial Base, Diesel Engine Engineering Technology Research Center of Yunnan Province, National High-tech Enterprises and International Research Center.
-The Company cooperated with German FEV to develop international advanced passenger car diesel engines with independent intellectual property rights in 2012.
- D series engine research and development is taking a leading position in China. D19TCI passenger car diesel engines have been identified as national key new products in 2010. D16TCI, D19TCI, and D25TCI have been included in the national "Recommended List (secondbatch) of Energy-saving Electrical and Mechanical Equipments and won the national Certificate of Machinery Industry Energy-efficient Mechanical and Electrical Equipment. Meanwhile, D16TCI and D19TCI passenger car diesel engines have obtained 33 utility model patents.(From the Company's 2012 annual report)
Investment Activities
Items (in million yuan) |
Planned Budget | Amount invested in 2012 | Notes |
New plant to manufacture diesel engines for passenger vehicles | 1,256.00 | 158.29 |
100% |