ASIMCO Technologies Limited Business Report FY ended Dec. 2016

New factory

-On December 30, 2016, ASIMCO Tianwei Fuel System (Tianjin) Co., Ltd. held a cornerstone laying ceremony for a high-pressure common rail fuel injection system plant in Wuqing, Tianjin. The Tianjin facility is a wholly owned subsidiary of ASIMCO Tianwei Fuel Injection Equipment (Beijing) Co., Ltd. and was established in January 2015. The plant is scheduled to be completed in September 2017 and begin operating in the first quarter of 2018 with an annual production capacity of 300,000 sets. The subsidiary intends to increase its capacity in stages up to 500,000 sets in the future. (From news releases issued by multiple sources on January 12, 2017)

Equity transfer

-Brembo S.p.A. announced that it has completed the acquisition of a 66% stake in the share capital of ASIMCO Meilian Braking Systems (Langfang) Co., Ltd. The transaction consideration was set at RMB 574,356,000, equal to approximately EUR 78 million. The remaining 34% of ASIMCO's share capital will be held by the state-owned company Langfang Assets Operations Co., Ltd. ASIMCO Meilian Braking Systems, based in Langfang, in the Chinese province of Hebei, owns a foundry and a plant for the manufacturing of cast-iron brake discs. This company supplies regional car makers, mainly joint ventures between Chinese companies and top European and U.S. auto OEMs. ASIMCO Meilian Braking System’s Q1 2016 sales amounted to RMB 109 million (approximately EUR 15 million). It employs a workforce of 637 overall. (From a press release on May 19, 2016)

-Zhengzhou Coal Mining Machinery Group Co., Ltd. announced that it will issue new shares and acquire 100% of ASIMCO International Casting Co., Ltd. (Shanxi) shares and 8.07% of ASIMCO NVH Technologies Co., Ltd. (Anhui) shares from ASIMCO (China) Limited. In addition, it will purchase 14.93% of ASIMCO NVH from ASIMCO (China); 77% of ASIMCO NVH from ASIMCO Technologies Hong Kong Limited; 63% of Yizheng Shuanghuan Piston Ring Co., Ltd., 70% of ASIMCO Foundry (Yizheng) Co., Ltd., and 63% ASIMCO Camshaft (Yizheng) Co., Ltd. all from Axle ATL Cayman Limited; and 100% of CACG I shares from ASIMCO Technologies Limited by paying in cash. These transactions are expected to be worth CNY 2.2 billion in total. (From an announcement by the company on March 25, 2016)

Pass the Test

-The new sealing factory of ASIMCO NVH Technologies Co., Ltd. (Anhui) passed Bosch’s Production Part Approval Process (PPAP) test conducted from June 13 through June 16, 2016. The ASIMCO subsidiary said the new factory had also passed TRW’s NSA system test. (From a press release on June 16, 2016)

-ASIMCO Shuanghuan Piston Ring Co., Ltd. (Yizheng), a subsidiary of ASMICO, announced that it has passed Guangxi Yuchai Machinery Co., Ltd.’s production part approval process (PPAP). (From a press release on June 13, 2016)

Awards

-ASIMCO Shuanghuan Piston Ring Co., Ltd. (Yizheng), a subsidiary of ASIMCO Technologies Limited, announced that it has received the Best Quality Award 2015 from Foton Cummins Engine. (From a press release on May 26, 2016)

Research strength

-The company's R&D team has 450 staff.

R&D facilities

-The company has 5 independent research and development centers.

Product Development

-ASIMCO Tianwei Fuel Injection Equipment (Beijing) Co., Ltd. has been developing diesel common rail system.

Technical Cooperation

Company Name (Country)	Facility	Area of Cooperation	Nature of Relationship
Haldex AB (Sweden)	Asimco Braking Technologies (Langfang) Co., Ltd.	Compressors for air brakes	License Production
Caterpillar (U.S.A.)	Asimco International Casting Co., Ltd. (Shanxi)	Large iron castings (i.e. Engine blocks, Cylinder heads)	Joint Venture

Patents

-ASIMCO Shuanghuan Piston Ring Co., Ltd. (Yizheng), a subsidiary of ASIMCO Technologies Limited, announced that its Physical Vapor Deposition (PVD) multilayer hard-coating technology for piston rings has obtained a European patent. The technology, which has already received a Chinese patent for innovation, is expected to enhance the company's competitiveness in the European and the U.S. market as well. (From a press release on December 22, 2016)

-ASIMCO Shuanghuan Piston Ring Co., Ltd. (Yizheng), a subsidiary of ASIMCO Technologies, announced that its multilayer, multi-element composite hard PVD coating technology for piston rings has obtained a Chinese patent for invention. The technology uses multi-arc ion vacuum coating to form evaporated PVD layers on steel or cast iron piston rings. PVD coated piston rings achieve lower friction coefficient and improved wear resistance. (From a press release on September 19, 2016)