Changchun Faway Automobile Components Co., Ltd. Business Report FY2010

Business Highlights

Financial overview

(million yuan)

  FY2010 FY2009 Increases (%) Factors
Sales 6,182.50 3,565.45 73.40%

By taking advantage of the government's incentive programs, the Company was able to reinforce and adjust its product mix, as well as reorganize its corporate structure. As a result, the Company achieved the best sales performance in history.

The sales of wheels increased 58.81% and the sales of all other auto parts also increased a lot.  

Operating profit 634.33 343.3 84.77% -Profits increased as a result of increased sales.
-The Company made some breakthroughs in its R&D activities.
-The production efficiency of manufacturing bumpers increased and the cost reduced.
Ordinary profit 636.92 356.85 78.48%
Net profit 617.95 354.54 74.30%


Joint Ventures

-Toyota Boshoku (China) Co., Ltd. and the Company will establish an automotive interior parts manufacturing joint venture based in Changchun, Jilin Province, in August 2010. Toyota Boshoku (China) will hold a 60% stake in the new company "Changchun Faway Toyota Boshoku Auto Parts Co., Ltd." while the remaining 40% interest will be held by Faway. A total of 183 million Chinese yuan (approximately 1,757 million yen) will be invested. The JV plans to start manufacturing components for Corolla models including seats, door trims, carpets and luggage trims for Corolla models and deliver them to the new Changchun plant of Sichuan FAW Toyota Motor, beginning the first half of 2012. Its production capacity is expected to be 100,000 units per year. Changchun Faway Toyota Boshoku Auto Parts will be the second joint venture between Faway and a Toyota Boshoku group company, following Tianjin Intex Auto Parts Co., Ltd. In the Changchun region, Toyota Boshoku currently manufactures Land Cruiser seats to be delivered to the Sichuan FAW Toyota's Changchun Plant (current plant) at the Changchun branch of Tianjin Intex. (From a press release on July 30, 2010)


-The Company and Changchun Gaoxin Automotive Accessories Co., Ltd. agreed on January 8 for Changchun Faway to acquire 51 percent of Changchun Plastal Gaoxin Automotive Accessories Co., Ltd.'s (Plastal's) shares and capital held by Gaoxin (purchased amount 55.7million yuan). The new joint-venture, named Changchun Faway Gaoxin Automotive Accessories Co., Ltd. and capitalized at 74.13 million yuan, will manufacture automotive coatings, injection molded components, and surface-treated components.(From an announcement by the company, January 12, 2010)

-The Company and Yanfeng Plastic Omnium Automotive Exterior Systems are planning to establish a joint-venture company in Chongqing City also, following their existing joint-venture company in Chengdu City. (From an announcement by the company, January 30, 2010)

-The Company will establish Chengdu Faway Wheel Company in Chengdu in order to be in close proximity to FAW-VW's new vehicle assembly facility now under construction in the same city. Chengdu Faway Wheel will produce passenger-car wheels. (From an announcement by the company, January 28, 2010)


R&D facilities

Name Company
Wheel R&D Center Changchun Faway Automobile Components Co., Ltd. Wheel Company
Faway-Johnson Technical Center Changchun Faway-Johnson Controls Automotive Systems Co., Ltd.
-New product development activities at its own Chinese-brand operations (FY2010)
-Faway-Johnson Technical Center became the provincial-level technology center.
-The Technical Center further strengthened it's development on exteriors business and has the ability to synchronously design  3 sets of bumpers.
Changchun Faway Johnson Controls Automotive Electronics Co., Ltd. had the ability to research and develop software and hardware.

Investment Activities

Investment activity in 2011

Project Planned amount of investment
(in million yuan)
Amount invested in FY2010

Percentage of amount already spent

Technological improvement on Wheels and Bumpers in Chengdu
212.59 118.89 55.93%


Increase of Production Capacity

-On February 18, 2011, the Company announced that it will increase its production capacity at Chengdu Faway Wheel Company. Chengdu Faway Wheel was established in March 2010 to supply wheels for the Chengdu Plant of FAW-VW. The subsidiary, which now has the capacity to manufacture tire and wheel assemblies for 350,000 vehicles a year, will raise the level to 450,000 vehicles. The Chengdu Plant will also add a new steel wheel factory, which will be able to produce each year 1.2 million steel wheels on a double-shift system with 250 operating days. The factory's full scale operations are slated to begin in 2013. The 1.61 million yuan project is expected to contribute to the company's cutting down on cost, expanding markets share, and further enhancing support to FAW-VW. (From an announcement by the Company, February 19, 2011)