Changchun Faway Automobile Components Co., Ltd. FY2011

Business Highlights

Joint Venture

- Changchun Faway Automobile Components Co., Ltd. and Hella Shanghai Electronics Co., Ltd., a supplier of automotive electronics components, will establish a joint-venture company in Changchun City, Jilin Province. The new company will design, develop, manufacture, test and sell automotive lighting products. It will also handle installation of electronic devices on lighting products. The joint venture will be capitalized at 200 million yuan, of which 51 percent will be invested by Changchun Faway, and 49 percent by Hella Shanghai.

Capacity Expansion

- Changchun MANN+HUMMEL Faway Filter Co., Ltd., a filter manufacturer in which Changchun Faway has 40 percent ownership, is planning a 98.77 million yuan expansion project to better meet its customers’ requirements and boost its share in the market. (From a press release on November 24, 2011)

- Changchun Faway Gaoxin Automotive Accessories Co., Ltd. will invest 55 million yuan to establish a new painting line. The company, which is owned 51 percent by Changchun Faway Automobile Components Co., Ltd., manufactures products such as plastic injection molded components, electroplated components and spray painted components. (From a press release, June 24, 2011)

- Changchun Faway Tong Yang Plastics Products Co., Ltd., which is a joint venture for bumper production between Changchun Faway Automobile Components Co., Ltd. and the Taiwan Dong Yang Group, will invest 134.1 million yuan to expand its production capacity. The company is going to construct an additional plant building and a painting line, and install an injection-molding machine. The expansion project is intended to raise the joint venture’s annual production capacity by 300,000 sets on the injection molding line and 450,000 sets on the painting line. Products made at the plant will be supplied to FAW Car for its passenger vehicles as well as to FAW-VW for the new Bora, the Sagitar, and the Audi. (From an announcement by the company, June 1, 2011)

R&D

Product developments in 2011

- In 2011, there were 10 automotive interior projects and 20 seat projects in different stages of product development, of which B50 interior project was the Company's first independent development highly approved by the OEM.
The Company carried out development in MV3, A130, Toyota 391 and other four wheel projects. The average weight of newly designed wheels reduced by 11% ; the fatigue life of synthetic welds increased by 10%; the coating thermal efficiency increased by 50%..
The company produced trial samples and modified data for bumper assemblies of new C303, D003 and B70 and developed front and rear bumpers of new B50.

Investment Activities

Investment activity in 2011

（in million yuan）

Project	Amount invested in FY2011	Status
Chengdu Faway Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd.	10.20	100%
Chengdu Faway Wheel Company	30.41	100%
Increase capacity in Chengdu Faway Wheel Company	63.50	40%
Expand plant in Faway-Johnson Controls	23.18	60%
Increase capacity in Stamping Parts Company	10.72	70%
Total	138.01	-

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)