Kunming Yunnei Power Co., Ltd. Business Report FY ended Dec. 2017
Financial Overview |
(in million CNY) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change | Factors | |
| Sales | 5,909.68 | 3,925.63 | 50.54% | -Sales increased due to the Company's acquisition of Mingte Tech as its subsidiary; sales of the subsidiary were included in the Company's operating report; the subsidiary's sales of electronics contributed most to the Company's sales. |
| Operating profit | 300.90 | 154.20 | 94.96% | - |
| Ordinary profit | 300.28 | 259.94 | 15.52% | |
| Net profit | 259.87 | 223.52 | 16.26% |
New Company
-In July 2017, Hunan Corun New Energy Co., Ltd. said on July 22, 2017, its subsidiary, Corun Hybrid System Technology Co., Ltd. (CHS), and Yunnan Yunnei Power Group Co., Ltd. are planning to set up a joint company, Wuxi Tongrun Hybrid Power Technology Co., Ltd. with a registered capital of Chinese yuan (CNY) 600 million. CHS will invest CNY 306 million or 51% of the capital, and Yunnei Power Group will invest CNY 294 million or 49%. The new company will design, develop, manufacture and sell HT3800 (diesel/petrol), HT1800 (diesel), and HT2800 (diesel) engine hybrid transmission assemblies. The company plans to produce 300,000 units of diesel and gasoline hybrid transmission assemblies. The initial production will be 150,000 units. (From a corporate announcement on July 22, 2017)
-In June 2017, the Company said that its controlling shareholder, Yunnan Yunnei Power Group Co., Ltd, will set up a new company, CATARC Motor Vehicle Plateau Quality Inspection Center (Yunnan) Co., Ltd., jointly with China Automotive Technology and Research Center (CATARC) and Sino-Precious Metals Holding Co., Ltd. with a registered capital of Chinese yuan (CNY) 100 million. The joint company will be owned by 70% or CNY 70 million by CATARC and 15% or CNY 15 million by Sino-Precious Metals, and 15% or CNY 15 million by Yunnan Yunnei Power Group. The new company plans to spend CNY 250 million to build a plant and facilities for testing vehicles and engines in use in plateau at a 300,000-square-meter site. (From a corporate announcement on June 30, 2017)
Strategic Cooperation
-On October 12, 2017, Kunming Yunnei Power Co., Ltd. held a ceremony to celebrate the release of its new series of engines, the DEV series, in Kunming. The DEV series engines can run for 50,000 kilometers without replacing engine oil. The company also celebrated the signing of a strategic partnership agreement and the joint release of all-new DEV super engine oil with Shell Oil Company on the same day. The two companies will cooperate in the brand, technology, sales and after-sale service management with their focus on the development of the technology to make engines for light-duty trucks in China run for an extra long time without engine oil replacement. (From some releases on October 13, 2017)
Patents
-In 2017, the Company had applied for 40 patents, including 13 authorized patents and 5 patents for innovation. As of Dec. 31, 2017, the Company had 145 valid patents and 12 patents for innovation.
R&D Expenditure
| FY ended Dec. 31, 2017 (million CNY) |
FY ended Dec. 31, 2016 (million CNY) |
FY ended Dec. 31, 2015 (million CNY) |
|
| R&D Expenditure | 147.07 | 134.78 | 132.73 |
| Ratio of R&D expenses to operating income | 2.49% | 3.43% | 4.69% |
Product Development |
(in million CNY) |
| Project | R&D Expenditure in 2017 |
| Development and industrialization of YNF40 diesel engine | 1.92 |
| State V natural gas product development | 0.12 |
| East technical center | - |
| Development of diesel engine for YN series construction machinery | 0.13 |
| 2.0L dual fuel engine development | 0.61 |
| Key technology research and development and industrialization for project of annual output of 50,000 sets of domestic common rail non-road diesel engine production Enterprise technology center platform construction |
0.99 |
| D14 diesel development project Sporadic product development |
0.93 |
| D16 State IV diesel engine and Jianghuai "M3" vehicle application development project | - |
| D09 State IV diesel engine development project | 0.03 |
| D20 State V diesel engine ontology development and matching application development project | 8.41 |
| Automatic transmission powertrain development project | 6.58 |
| D65 non-road diesel engine development | 5.42 |
| D65 TCIF State VI commercial vehicle diesel engine development State V commercial vehicle product development and product development project |
10.84 |
| D20 TCIF State VI commercial vehicle diesel engine development | 10.56 |
| D19 State V passenger car development | 3.84 |
| D5 commercial vehicle announcement development and development | 1.32 |
| D19 State V diesel engine equippment and development 20-50KW gas generator development project |
6.67 |
| Technical center platform construction Application and extension of innovative methods in Yunnan province |
- |
| Component development | 12.47 |
| D40/D45TCIF-D heavy truck engine State VI development | 4.56 |
| Light commercial vehicle gasoline engine development | 2.83 |
| D25/D30 State V diesel engine development and equippment | 2.75 |
|
Non-road T4-phase engine development and equippment |
2.61 |
| YN series State V diesel engine development and equippment |
1.97 |
|
YN series State V diesel engine development and equippment |
1.81 |
|
Vehicle diesel engine post-processing integration technology research and modular product development and industrialization |
0.98 |
|
State VI diesel engine development |
0.10 |
|
Non-road China-made electronic control high-pressure common rail YN4JL-30CR pressurized intercooled diesel engine |
1.01 |
|
Non-road China-made electronic control high-pressure common rail YN4JL-30CR nutural aspired diesel engine development |
0.84 |
|
Technical standard for high efficiency multi-cylinder trail diesel engine |
0.24 |
|
D65 State V diesel engine development and equippment |
0.34 |
| YNF45E State V commercial vehicle diesel engine development |
0.29 |
| D19 State V engine and Corun CHS2800 passenger vehicle PHV powertrain development |
0.12 |
| YNF40TCIE Bosch system-Heavy Duty HOWO light truck matching |
0.04 |
| PHV powertrain development |
0.03 |
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 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.
Investment |
(in million CNY) |
| Project | Budget |
Amount invested in 2017 (in million CNY) |
Project progress |
| Environmental protection and efficient light commercial vehicle engine construction projects | 350.63 | 92.02 | 100.00% |
| Multi-cylinder small-bore diesel engine cylinder head casting digital workshop project | 80.00 | 20.42 | 53.79% |
| Multi-cylinder small-bore diesel engine digital workshop project | 140.00 | 39.63 | 38.25% |
| Eastern Technology Center construction project | 342.47 | 185.92 | 100.00% |
| Finished product II warehouse construction and assembly line project | 323.98 | 13.45 | 96.00% |
| Commercial vehicle capacity construction project | 42.95 | 0.09 | 94.00% |
| Yunnei YN series engine smart manufacturing plant Construction of civil project |
689.20 | 46.78 | 20.00% |
| Europe VI diesel engine production line adaptive transformation project | 200.00 | 6.79 | 10.00% |
| Europe VI emission standard diesel engine R&D platform construction project | 230.00 | 1.70 | 5.00% |
| Gas center construction project | 79.94 | 14.07 | 100.00% |
| 50,000 sets of natural gas country State Ⅲ, IV and V engine production line project | 60.00 | 2.19 | 100.00% |
| State Ⅳ and Ⅳ above engine production line assembly technical transformation project | 4.46 | - | 100.00% |
| Joint engine plant construction project | 25.00 | 0.005 | 100.00% |