Kunming Yunnei Power Co., Ltd. Business Report FY ended Dec. 2015

Financial Overview

(in million yuan)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Increase Factors
Sales 2,831.79 2,421.00 16.97% -In 2015, the Company's diesel engine sales and National Standard Ⅳ engine sales increased, thus, sales increased.
Operating profit 143.36 128.45 11.61% -Cost control.
Ordinary profit 201.83 181.72 11.07%
Net profit 171.20 154.93 10.50%

Recent Development

-Corun Hybrid System (CHS), in which the Company has invested CNY 60 million, broke ground for its 1 million units/year hybrid system plant in Changsha on February 28, 2016. The plant is scheduled to begin operating in 2017, and to reach full-scale operations in 2018. Its initial capacity is planned to be 300,000 systems. (From news releases issued by multiple sources on February 29, 2016)

-The Company announced that it has successfully fired its G24 bi-fuel engine that runs on both gasoline and natural gas. The company has been working on this development project since the beginning of 2015. The engine is suitable for trucks, mini buses, and construction machines. This 16-valve, 4-cyinder engine uses a multiple-injection system and a two-stage catalytic converter system. The engine delivers 112kW, offers 210Nm of torque, and meets the China V emissions standards. Mass production is scheduled to begin in the first half of 2016. (From a press release on August 13, 2015)

-The Company announced that it has succeeded in firing its new D65 6-cylinder engine that it developed in-house. This is the first time that the company has engineered a 6-cylinder engine. The development project was launched at the end of 2014. The engine features a high-pressure common-rail system and SCR technologies for use on off-road vehicles and commercial vehicles. (From a press release on July 27, 2015)

-Shandong Binzhou Bohai Piston Co., Ltd. announced that its YNF40 pistons that meet the China V standards have been chosen for use in YNF40 diesel engines made by the Company. These engines, which use the Selective Catalytic Reduction system, can be upgraded to meet the China V emission standards without requiring any design changes. Mass production of the diesel engines is scheduled to begin at the end of December 2015. (From a press release on March 30, 2015)

New Company

-The Company announced that Tongji University Automotive Design & Research Institute Co., Ltd. has withdrawn from a plan to establish a joint venture with Kunming Yunnei Power; the Administration Committee of Wuxi Huishan Economic Development Zone; and Tianjin Santroll Electric Automobile Technology Co., Ltd. The joint venture project had been announced in December 2014. In place of Tongji University Automotive Design & Research Institute, Zhongheng Anxin (Beijing) Smart & Tech Co., Ltd. will be newly joining the project. The joint venture will be called Wuxi Tongyi Automotive Power Technology Co., Ltd. It will be capitalized at CNY 9 million, of which 56.67 percent will be provided by Kunming Yunnei Power, 32.22 percent will be invested by Tianjin Santroll and 11.11 percent will be offered by Zhongheng Anxin. The new company will develop and manufacture automotive powertrain systems. (From an announcement by the company on June 10, 2015)

Off the Production Line

-The Company announced that a first product/process validation vehicle (PPV) of the SAIC Maxus G10 for the China market rolled off a production line at SAIC's Wuxi Plant on August 12, 2015. The vehicle is equipped with Kunming Yunnei's D19 diesel engine that meets the China V standards. Mass production of the Maxus G10 is scheduled to begin by the end of 2015. (From a press release on August 24, 2015)

Strategic Cooperation

-The Company announced that it signed a basic agreement with Bosch Automotive Diesel Systems Co., Ltd., which sets the framework to form a long-term strategic partnership agreement. Their areas of collaboration will include joint development, technical cooperation, marketing of environmentally friendly electronically controlled high-pressure common-rail diesel engines in China, and introduction of clean-diesel vehicles. (From an announcement by the company on November 19, 2015)

-The Company announced that it had signed an agreement with Punch Powerglide Strasbourg SAS (PPS) of France to collaborate on the development of automatic transmissions. Kunming Yunnei will become PPS's sole partner in the area of diesel engine technologies in China. The two companies will jointly develop 6-speed automatic transmissions for rear-wheel drive and all-wheel-drive vehicles, and will market these products in and outside China. PPS, which was established in 1967, engages in the development and production of gearboxes and automatic transmissions. (From an announcement by the company on September 10, 2015)

R&D Expenditure

FY ended Dec. 31, 2015
(million yuan)
FY ended Dec. 31, 2014
(million yuan)
FY ended Dec. 31, 2013
(million yuan)
R&D Expenditure 132.73 114.45 119.67
Ratio of R&D expenses to operating income 4.69% 4.73% 4.65%

Product Development

(in million yuan)
Project R&D Expenditure in 2015
Developing project of D09 China IV diesel engines 0.41
Development and commercialization of D25/D30 China IV diesel engines 0.79
Conbustion optimiztion and study on performance improvement of D20TCI electronically controlled common-rail diesel engines 3.86
Development and industrialization of YNF40 diesel engines 3.93
Development of China V natural gas engines 0.37
Eastern technical center 0.59
Construction of Enterprises Technical Center 4.00
Project of 863 light vehicle diesels 10.79
D25TCI electronically controlled common rails 0.19
Construction of enterprise R&D platform 1.59
Development of YN series of diesel engines for engineering machinery 1.18
Development of 2.0L dual fuel engines 2.83
Development of D19 National Standard Ⅴ passenger car engines 3.22
Development of D65 non-road diesel engines 6.08
Development of National Standard Ⅳ commercial vehicles product announcement and product development project 0.66
Development of National Standard Ⅴ commercial vehicles product announcement and product development project 3.19

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 has a national recognized enterprise technology center and Kunming Technical Center, Chengdu Gas Development Center, Eastern Technical Center and Shandong Technical Center.

-The Company's technology center was identified as Kunming Municipal Diesel Engineering Research Center by Kunming Science and Technology Bureau. (From a press release on January 21, 2016)

-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.


-As of Dec. 31, 2015, the Company had obtained 107 authorized patents, 5 of them are invention patents, 71 of them are utility model patents and 31 of them are design patents.

New Product

-The Company announced that its DEV series engines are used on the KAMA high-end light trucks that have been released by Shandong KAMA Automobile. The small DEV series engines offer superior fuel efficiency and high torque, meeting the China IV and China V standards. (From a press release on November 24, 2015)

(in million yuan)
Budget Amount invested in 2015 Project progress
Production capacity construction of commercial vehicles 42.95 6.98 99%
Industrialized construction of environmentally friendly high-performance engines for small commercial vehicles 305.28 176.78 55%
Production line of 50,000 natural gas engines, which meet China III Standard and higher than China III Standard 60.00 30.73 76.02%
Technical renovation project of production line of China Ⅳ Standard and higher than China Ⅳ Standard engines 4.46 1.67 89.56%
Construction of combined engine plant 25.00 7.58 69.09
Casting workshop of multi-cylinder diesel engine head digitization project 80.00 14.79 20%
Eastern Technical Center construction project - 69.74 48%

Investment in China

-The Company announced that it has signed a framework agreement with Hunan Corun New Energy Co., Ltd., Zhejiang Geely Holding Group Co., Ltd., and Chongqing Changan Automobile Co., Ltd. to make an investment in Corun Hybrid System (CHS). CHS was formed as a joint venture between Hunan Corun New Energy and the Zhejiang Geely Group on November 25, 2014 to produce drive systems for hybrid cars, electric batteries, and modules. Subsequently, Geely transferred its CHS shares to Shanghai Maple Guorun Automobile, which changed CHS's ownership to 51% by Hunan Corun and 49% by Shanghai Maple. In accordance with the framework agreement, a total of CNY 460 million is planned to be invested with Hunan Corun providing CNY 200 million in cash, Chongqing Changan providing CNY 200 million in cash and technology, and Kunming Yunnei providing CNY 60 million in cash. New investment ratios after the planned capital increase have not been announced yet. It has been decided that Shanghai Maple will return its CHS shares to Geely before an official investment agreement is signed, but Geely has not accepted them yet. Geely says its new investment, if any, will not be more than CNY 200 million. (From an announcement by the company on February 19, 2016)

-The Company is carrying out a project to develop and commercialize environmentally friendly compact engines for commercial vehicles. The company announced its plan to begin trial production of a new engine in May 2016 and to start mass production in June 2016. The company is investing CNY 898 million in this project, which includes setting up production lines to produce diesel engines for small commercial vehicles in both Kunming and Wuxi. The Kunming Plant will be able to produce 100,000 units of YNF40 diesel engines per year. (From a press release on December 30, 2015)

-The Company announced that it will raise CNY 650 million in capital by issuing third-party shares. The company will use this fund to develop new diesel engines that meet the Euro VI standards, design new platforms, and revamp its production lines. When the new project is completed, the company will be able to produce annually 200,000 diesel engines meeting the Euro VI standards. The new diesel engines, D19, D20 and D25 engines, will be used on both passenger cars and commercial vehicles. (From an announcement by the company on July 25, 2015)


Segment FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Production 1,608 887 931
Sales 210 191 174
Engineering 553 457 449
Finance 49 21 22
Administration 223 116 120


2,643 1,672 1,696


(in million yuan)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Main business income 2,705.00 2,227.56 2,294.21
Other operating income 126.79 193.45 276.94
Sales 2,831.79 2,421.00 2,571.15


Sales by Product

(in million yuan)
  FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Diesel engines 2,544.31 1,965.18 1,921.91
Diesel engine components, etc.  160.69 262.37 372.31

Sales by Region

(in million yuan)
Region FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Western China 994.83 662.13 1,055.19
Eastern China  1,710.17 1,565.42 1,239.02

Sales by Subsidiary

(in million yuan)
Company Name FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Chengdu Yunnei Power Co., Ltd. 742.86 593.90 479.38
Shandong Yunnei Power Co., Ltd. 207.54 177.42 63.25
Wuxi Tongyi Automotive Power Technology Co., Ltd. 0.53 - -

Production Volume

(in thousand units)
Company Name FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Diesel engines Kunming Yunnei Power Co., Ltd. 225 224 243
Chengdu Yunnei Power Co., Ltd. N.A. N.A. 65

Source: China Automotive Industry Yearbook (issued every October)

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