Kunming Yunnei Power Co., Ltd. Business Report FY ended Dec. 2014
Business Highlights
Financial Overview |
(in million yuan) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Increases | Factors | |
| Sales | 2,421.00 | 2,571.15 | (5.84%) | -In 2014, the Company's main operating income decreased 2.91%. |
| Operating profit | 128.45 | 127.09 | 1.07% | -Cost control. |
| Ordinary profit | 181.72 | 165.03 | 10.11% | |
| Net profit | 154.93 | 130.83 | 18.42% |
-The Company announced its diesel engine production and sales results for 2014. Sales reached 213,275 units, which accounted for a 6.6 percent share of the automotive diesel engine market. Its production volume totaled 224,648 units, which made up a 7.0 percent share of the market. The company was ranked sixth in both production and sales segments in the Chinese diesel engine market. (From news releases issued by multiple sources on January 16, 2015)
New Company
-The Company announced in December 2014 that it would form a new joint venture, Wuxi Tongrun New Energy Automotive Power Systems Co., Ltd. (tentative name), to develop, manufacture, and sell powertrain systems for new energy vehicles. The new company was established jointly with the Administration Committee of Wuxi Huishan Economic Development Zone; Tianjin Santroll Electric Automobile Technology Co., Ltd.; and the Tongji University Automotive Design & Research Institute Co., Ltd. A special focus will be set on developing and manufacturing new engines exclusively for use in plug-in hybrid buses and plug-in hybrid passenger cars. (From an announcement by the company on December 23, 2014)Acqusition
-The Company announced that it would acquire the remaining 28.62 percent share in Chengdu Yunnei Power Co., Ltd. to turn the Chengdu facility into its wholly owned subsidiary. Shares had been transferred from Chengdu Diesel Engine General Plant for approximately CNY 45.2 million in July, 2014. Chengdu Diesel Engine General Plant is owned 100 percent by Yunnei Power Group Co., Ltd., which is Kunming Yunnei Power’s parent company.Recent Development
-The Company announced in Octorber 2014 that the Company's board agreed to terminate the establishement of Bijie Yunnei Power Co., Ltd., a subsidiary of the Company, as for some factors like the changing of the demands of Bijie Lifan engines.Off the Production Line
-Shandong Yunnei Power Co., Ltd., a subsidiary of the Company, announced that its diesel engine production line began operating and produced 100 units of 490GB diesel engines on February 28, 2014. (From a press release on March 19, 2014)R&D
R&D Expenditure
| FY ended Dec. 31, 2014 (million yuan) |
FY ended Dec. 31, 2013 (million yuan) |
FY ended Dec. 31, 2012 (million yuan) |
|
| R&D Expenditure | 114.45 | 119.67 | 77.72 |
| Ratio of R&D expenses to operating income | 4.73% | 4.65% | 3.26% |
Product Development |
(in million yuan) |
| Project | R&D Expenditure in 2014 |
| Developing project of D09 China IV diesel engines | 24.51 |
| Development and commercialization of D25/D30 China IV diesel engines | 9.24 |
| Conbustion optimiztion and study on performance improvement of D20TCI electronically controlled common-rail diesel engines | 7.65 |
| Development and industrialization of YNF40 diesel engines | 5.01 |
| Development of China V natural gas engines | 3.15 |
| Eastern technical center | 2.55 |
| Construction of Enterprises Technical Center | 2.01 |
| Project of 863 light vehicle diesels | 0.05 |
| Provincial engineering technical center for diesel engines | 0.57 |
| Entire vehicle matching development of D19 Euro IV/ Euro V diesel engines | 29.38 |
| D25TCI electronically controlled common rails | 0.13 |
| Development and industrialization of YN series China IV electronic control systems | 3.47 |
| Construction of enterprise R&D platform | 0.003 |
| Development of key technology of powertrains for new energy vehicles | 0.24 |
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 announced in January 2015 that its technical center has been recognized as a state-level technical center by the National Development and Reform Commission (NDRC) and the Ministry of Science and Technology of the People's Republic of China. (From a press release on January 8, 2015)
-The Company established a new subsidiary in Wuxi, Jiangsu in July 2014, named as Kunming Yunnei Power Co., Ltd.. It is one of the Company's technical centers in the east of China. At present, the Company has four R&D base, which are located in Kunming, Chengdu, Shandong and Wuxi.
Product Development
-The Company announced in November 2014 that it had raised CNY 724 million by issuing new unlisted shares, and would use the entire amount for its project to develop and commercialize environmentally friendly high-performance engines for small commercial vehicles. The focus of the program includes the development of the YNF40 diesel engines and the YN30/36/38QNE natural gas engines. The YNF40 diesel engines will meet both the China IV and Euro V emissions standards. The company will build production, assembly, and testing lines for the YNF40 diesel engines at its existing plant. Its annual production capacity is expected to reach 100,000 units. For the YN30/36/38QNE natural gas engines, the company will build a new factory within its existing production site. The factory’s annual capacity is expected to reach 50,000 units. New construction projects also include a technical center (the second phase of a construction project), a product warehouse, and a wastewater treatment facility. (From an announcement by the company on November 29, 2014)-The Company announced that it will develop and commercialize electronically controlled high-pressure common rail diesel engines for mini vehicles. The company will receive a subsidy of CNY 1.8 million for this project from Yunnan Province. (From a press release on August 26, 2014)
New Product
-The Company announced that it had produced a prototype of the new YNF40 commercial vehicle diesel engine, which meets the China V emissions standards. (From a press release on January 8, 2014)Investment Activities
| Items (in million yuan) |
Amount invested in 2014 | Project progress |
| Production capacity construction of commercial vehicles | 14.54 | 91% |
| Production capacity construction of D series advaned diesel engines | 4.78 | 56.46% |
| Industrialized construction of environmentally friendly high-performance engines for small commercial vehicles | 2.06 | 0.67% |
| Qingzhou project | 0.004 | - |
| Chengdu technical renovation project | 2.04 | - |
| Three special programs of mass-production of alumiun products | 7.84 | 49.7% |
| YN27CRD Engine project | 0.76 | - |
| Production line of 50,000 natural gas engines, which meet China III Standard and higher than China III Standard | 11.51 | 19.18% |
| Technical renovation project of production line of China Ⅳ Standard and higher than China Ⅳ Standard engines | 0.05 | 1.14% |
| Assembling production line of 150,000 diesel engines | 7.03 | 98% |
| Construction of combined engine plant | 17.27 | 69.09% |