Jiangnan Mould & Plastic Technology Co., Ltd. Business Report FY ended Dec. 2016

Business Results

(in million CNY)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 Rate of change Factors
Sales 3,191.02 3,136.35 1.74% -
Operating income 235.31 333.93 (29.53%)

-Mingci Hospital, the Company's subsidiary, was at a loss at the first opening year. The loss was up to CNY 89.28 million, thus, resulting in significant decline in profits over last year.

Ordinary profit 233.12 343.72 (32.18%)
Net profit 186.17 296.41 (37.19%)


-The Company said on August 4, 2017, that the company plans to buy all the shares in Jiangyin Daoda Decorative Parts Co., Ltd. from its current shareholders, Jiangyin Mould Plastic Group Co., Ltd. and Jiangyin Jingli Machinery Co., Ltd.. The acquisition cost is Chinese yuan (CNY) 1.25 billion. When the transaction completes, Jiangyin Daoda Decorative Parts will be a wholly-owned subsidiary of Jiangnan Mould & Plastic Technology. Jiangyin Daoda Decorative Parts’ main products are electroplated products for automakers such as SAIC Volkswagen Automotive Company Limited (SAIC VW) and SAIC General Motors Corporation Limited (SAIC GM). (From a corporate announcement on August 4, 2017)

-The Company announced that it has decided to acquire a 100% stake in Shenyang Jingli Machinery Co., Ltd., instead of purchasing part of the assets in the same company. At a board meeting held on March 2, 2016, Jiangnan Mould & Plastic decided to acquire part of the facilities and land-use rights of Shenyang Jingli Machinery’s new plant that is under construction. Due to heavy tax burdens that will fall on the company with the asset acquisition, it has changed its plan and will acquire 100% of Shenyang Jingli Machinery shares for CNY 8.92 million. Shenyang Jingli Machinery was established in 2015, and is capitalized at CNY 10 million. It mainly produces, designs, and sells plastic and rubber products and automotive components. (From an announcement by the company on December 7, 2016)

-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)

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 December 28, May 16, January 20, 2016)

-The Company established subsidiaries in Mexico to supply its products locally to BMW's car assembly plants. The Mexican subsidiary, MingHua de Mexico, was formed in San Luis Potosi, invested 100% by Jiangnan Mould. The plants of these new subsidiaries are currently under construction, with production scheduled to begin in 2018 in Mexico. The annual production capacity of the Mexican facility is expected to reach 400,000 sets. (From news releases issued by multiple sources on December 28, 2016)


-The Company said on July 27, 2017, that its subsidiary, Beijing Beiqi Mould & Plastic Technology Co., Ltd., received Supplier Meeting Special Award from Beijing Benz Automotive Co., Ltd for its significant contribution in the field of aqueous coating technology. (From a press release on July 29, 2017)

R&D Expenditure

FY ended Dec. 31, 2016
(million CNY)
FY ended Dec. 31, 2015
(million CNY)
FY ended Dec. 31, 2014
(million CNY)
R&D Expenditure 110.96 85.02 97.53
Ratio of R&D expenses to operating income 3.48% 2.71% 2.87%

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.

Investment in 2016

(in million CNY)
Project Budget Investment in 2016 Project progress
Plant construction in Mexico 655.83 100.06 30.61%
Plant construction in America 324.62 102.53 28.94%
Plant transformation of Shenyang Minghua 7.96 4.98 60%
Plant construction of Shenyang Jingli Machinery 32.64 0.96 100%

Investment outside China

-The Company said on July 25, 2017, that the company would make an additional USD 49.5 million investment in its fully owned sub-subsidiary, MingHua USA Inc. The money will be used to run daily businesses. The additional investment will boost the total investment in MingHua USA to USD 99.50 million from USD 50 million, while MingHua USA will remain fully owned by Jiangnan Mould & Plastic Technology. MingHua USA was established in South Carolina in the U.S., capitalized at USD 5 million. Its main scope of business is mold injection, painting, assembling and related works on bumpers. (From a corporate announcement on July 25, 2017)