Jiangnan Mould & Plastic Technology FY2007
|FY2007||FY2006||Rate of change(%)||Factors|
and income increased year-on-year, thanks to the following factors:
- An increase in sales at Shenyang Minghua Mould & Plastic Technology Co., Ltd.;
- Stable sales to Shanghai GM and other leading automakers; and
- Expanded OEM business as a result of the Company's having strengthened its product development capabilities.
Joint venture business
- In August 2007, the Company worked with Venture Global Engineering LLC of the U.S. to have the US company invest in Shenyang Minghua Mould & Plastic Technology Co., Ltd., which is the Company's wholly owned subsidiary. Venture Global Engineering will pay the USD equivalent of 40 million yuan in cash to acquire a 25 percent share in the subsidiary. After the investment is completed, the registered capital at Shenyang Minghua Mould & Plastic Technology will be increased to 160 million yuan, which will allow the Company to strengthen its global presence in the area of bumpers (and other exterior parts), interior products, and dies for making auto parts. In September 2007, the Company received 5.63 million yuan (750,000 dollars) from Venture as an initial payment.
- In October 2007, the board members of the Company agreed to establish a joint venture company with Beijing Automotive Industry Holding Co., Ltd. The new company will be called Beijing Beiqi Mould & Plastic Technology Co., Ltd. It will be capitalized at 40 million yuan, of which 51 percent (20.4 million yuan) will be provided by Beijing Automotive and 49 percent (19.6 million yuan) by the Company. The new facility will be located in the Caiyu Auto Parts Area, Daxing, Beijing to manufacture bumpers and other car exterior parts for carmakers in Beijing. The new company has already won a contract to not only develop but also supply bumpers to Beijing Benz. In addition, the Company will also supply exterior products to Beijing Benz.