Jiangnan Mould & Plastic Technology Co., Ltd. Business Report FY ended Dec. 2017
|(in million CNY)|
|FY ended Dec. 31, 2017||FY ended Dec. 31, 2016||Rate of change (%)||Factors|
|Sales||4,340.15||4,026.62||7.79||-Constant exploration of domestic and foreign markets.|
-Development of new business; high investment in the early stage.
-On August 4, 2017, the Company announced its plans to purchase all 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 CNY 1.25 billion. Upon the completion of the transaction, Jiangyin Daoda Decorative Parts will be a wholly owned subsidiary of the Company. Jiangyin Daoda Decorative Parts’ main products are electroplated products for automakers such as SAIC Volkswagen Automotive Company Limited and SAIC General Motors Corporation Limited.
-In April 2017, the Company’s subsidiary, Wuhan Mingjie Mould & Plastic Co., Ltd., obtained the "2016 Excellent Supplier Award" from Geely. In November 2017, it obtained the "2017 Quality Award" from Dongfeng-Peugeot-Citroen. (From the Company's 2017 annual report)
-On July 27, 2017, the Company’s subsidiary, Beijing Beiqi Mould & Plastic Technology Co., Ltd., received the 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)
|(in million CNY)|
|FY ended Dec. 31, 2017||FY ended Dec. 31, 2016||FY ended Dec. 31, 2015|
|Ratio of R&D expenses to operating income||3.85%||3.48%||2.71%|
-The Company has a Mould & Plastic R&D Center.
-The Company was identified as a Provincial Automotive Trim Mould Design Engineering Technology Center by the Science and Technology Department of Jiangsu Province.
Investment in 2017
|(in million CNY)|
|Project||Budget||Investment in 2017||Project status|
|Plant construction in Mexico||1,176.16||404.43||40%|
|Plant construction in America||650.15||407.32||77%|
|Plant transformation of Shenyang Minghua||7.96||0||60%|
|Plant construction of Shenyang Jingli Machinery||30.00||15.22||70%|
Investments in China
-On October 31, 2017, the Company announced a plan to set up a new wholly owned subsidiary, Changshu Jiangnan Mould & Plastic Technology Co., Ltd. The new company will be built in the Economic & Technological Development Zone in Jiangsu, China, and will supply products to OEMs based around Jiangsu. The subsidiary with a registered capital of CNY 200 million will develop technologies in the areas of machinery, moulds, and plastic engineering. It will also make and sell automotive parts and spinning machines. (From a corporate announcement on October 31, 2017)
Investment outside China
-As of March 2018, the Company has completed basic construction of its plant in Greer, South Carolina, U.S. The equipment has been installed and the production lines have been commissioned for mass production. The Company has provided samples to BMW for the automaker's internal verification. The Company has also completed basic construction and installation of equipment at its plant in San Luis Potosi, Mexico. The plant will begin mass production by the end of 2018. (From the Company's 2017 annual report)
-On February 8, 2017, the Company announced a plan to make additional investments of USD 180.5 million and USD 80 million in its wholly owned subsidiaries in the U.S. and Mexico, Minghua USA Inc. and Minghua de Mexico, S.A. de C.V., respectively. Upon completion of the investment, the Company’s total investment in Minghua USA will be USD 280 million, up from USD 99.5 million, while its investment in Minghua de Mexico will be USD 180 million, up from USD 100 million. The ownership ratios in the two subsidiaries will remain at 100%. The additional investments will allow the Company to reinforce its ties with the BMW Group, GM, Volvo and other customers as well as expand sales of external resin components including bumpers. (From a corporate announcement on February 8, 2018)
-On July 25, 2017, the Company announced that it would make an additional USD 49.5 million investment in its fully owned subsidiary, Minghua USA Inc. The funding will be used for daily operations. 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 the Company. Minghua USA was established in South Carolina in the U.S., capitalized at USD 5 million. Its main scope of business is mould injection, painting, assembling and related works on bumpers. (From a corporate announcement on July 25, 2017)