Jiangnan Mould & Plastic Technology Co., Ltd. Business Report FY ended Dec. 2015
Business Results |
(in million yuan) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change(%) | Factors | |
| Sales | 3,136.35 | 3,395.40 | - | - |
| Operating income | 333.93 | 286.54 | 16.54% | -Adjustment of the internal structure |
| Ordinary income | 343.72 | 293.08 | 17.28% | |
| Net income | 296.41 | 248.84 | 19.12% |
Acquisition
-The company announced that it will acquire part of the assets of Shenyang Jingli Machinery Co., Ltd. for CNY 69 million. Shenyang Jingli Machinery was established in May 2015 with a capital of CNY 10 million provided by Jiangyin Jingli Machinery Co., Ltd. However, its operations have not started as of December 31, 2015. The assets that Jiangnan Mould & Plastic Technology will purchase include part of the production facilities currently being constructed and the land-use rights. Jiangnan Mould & Plastic Technology will transfer the assets to Shenyang Minghua Mould & Plastic Technology Co., Ltd. to expand the capacity of this subsidiary, which will supply its products to Shenyang BMW. (From an announcement by the company on March 4, 2016)
-Beijing Beiqi Mould & Plastic Technology Co., Ltd., a joint venture of the Company, announced that the company and Zhuzhou Times New Material Technology Co., Ltd. agreed on asset purchase. Under the agreement, Beijing Beiqi Mould & Plastic Technology would acquire a bumper production line from Zhuzhou Times New Material Technology at CNY 35 million. After the purchase, the bumper department of Zhuzhou Times New Material Technology would become the Zhuzhou Branch of Beijing Beiqi Mould & Plastic Technology. All the engineers of bumper department of Zhuzhou Times New Material Technology would be transferred to the new branch. (From various releases on July 28, 2014)
New Factory
-The company held a ground breaking ceremony for Minghua USA Inc.'s plant in Greer, South Carolina. The plant will be constructed on a 260,000-square-foot plot, and will have injection molding, painting and assembly lines for bumpers. The new operations are expected to begin in the second half of 2017. The new plant is expected to create 150 new jobs over the next five years. (From news releases issued by multiple sources on May 16, 2016)
-The company announced that its wholly owned subsidiary Jiangsu Juhui Investment Management Co., Ltd. will establish a bumper production facility in Greer, South Carolina, U.S. The new company will be called MingHua USA Inc. and will be capitalized at USD 5 million. (From an announcement by the company on January 20, 2016)
Awards
-Beijing Beiqi Mould & Plastic Technology Co., Ltd., a joint venture of the Company, receives the Beijing Benz V205 Special Contribution Supplier Award at the FY2014 Supplier Meeting of Beijing Benz in July 2014. (From various releases on July 28, 2014)
-The Company was awarded "Global developing Supplier" and "A-class supplier" from BMW and Benz seperately.
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 | 85.02 | 97.53 | 72.42 |
| Ratio of R&D expenses to operating income | 2.71% | 2.87% | 2.50% |
R&D Structure
-The Company has Mould & Plastic R&D Center.
-The Company was identified as Provincial Automotive Trim Mold Design Engineering Technology Center by Science and Technology Department of Jiangsu Province.
Capital Investment Projects (as of Dec. 31, 2014) |
(in million yuan) |
| Project | Budget | Amount invested in FY2015 | Project Progress |
| Constructing plant in Binjiang District | 60.66 | 7.19 | 95% |
| Constructing plant (third phase) at Wuhan Mingjie Mould & Plastic Co., Ltd. | 185.00 | 185.00 | - |
Overseas investment
-The company announced that it will establish a wholly owned subsidiary in San Luis Potosi, Mexico. The new company will be called MingHua de Mexico. It will be capitalized at USD 15 million, and investment in this project is expected to reach USD 100 million. MingHua de Mexico will develop and sell automotive components, plastic components, dies, and plastic steel sashes. It will also offer technical support related to these products. As a designated supplier to BMW, Jiangnan Mould & Plastic Technology decided to form this Mexican subsidiary to better support the automaker’s global expansion projects. (From an announcement by the company on July 22, 2015)