Changchun Faway Automobile Components Co., Ltd. Business Report FY ended Dec. 2016
|(in million yuan)|
|FY ended Dec. 31, 2016||FY ended Dec. 31, 2015||Rate of change||Factors|
In 2015, sales increased as the following reasons:
|Operating profit||554.81||483.98||14.63%||-Raw material price increase led to reduced profitability.
-The Comapny announced that it will establish a subsidiary in Tianjin to assemble tires for FAW-VW’s new plant in the same city. CNY 40.95 million will be invested in this plant, which will have a building area of 8,208 square meters. Operations are scheduled to begin in June 2018. The plant is expected to achieve its designed production capacity in 2019. Sales thereafter are forecast to reach CNY 16.9 million for a profit of CNY 4.14 million. (From an announcement by the company on November 24, 2016)
-The Company announced that Changchun Faway Tong Yang Plastics Products Co., Ltd., its subsidiary, will establish a new subsidiary in Tianjin to supply bumpers to FAW-VW’s new plant in the same city. CNY 195.92 million will be invested in the new company, which will lease a factory building (20,721 square meters) and manufacturing equipment from Changchun Faway’s new Tianjin facility. The plant is expected to reach its designed production capacity in 2019. Sales thereafter are expected to reach CNY 510.48 million for a profit of CNY 41.24 million. (From an announcement by the company on November 24, 2016)
-The Company announced that it will establish a plant in Tianjin to supply automotive parts to FAW-VW’s new plant in the same city. CNY 379.43 million will be invested in this project. The plant will have a building area of 66,973 square meters on 124,500 square meters of land. Construction will begin in February 2017 and is scheduled to be completed by the end of the same year. The plant is expected to achieve its designed production capacity in 2019. Sales thereafter are forecast to reach CNY 33.63 million for a profit of CNY 10.51 million. (From an announcement by the company on November 24, 2016)
Business Plan for Next Year
-In 2017, the Company plans to reach CNY 11,029.07 million sales.
-Chengdu FAW Faway Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd., the Company's subsidiary, got "Supplier Award" from FAW-Volkswagen. (From a press release on January 19, 2017)
|FY ended Dec. 31, 2016
|FY ended Dec. 31, 2015
|FY ended Dec. 31, 2014
|Ratio of R&D expenses to operating income||0.87%||0.98%||0.93%|
-As of 2016, The Company's accumulated R&D investment was up to CNY 47.77 million. It had a R&D team with about 148 staff.
|Wheel R&D Center||Changchun Faway Automobile Components Co., Ltd. Wheel Company|
|Faway-Johnson Technical Center||Changchun Faway-Johnson Controls Automotive Systems Co., Ltd.|
-The Company has two provincal-level technical centers, involving the automotive wheels and the interior components.
-The technical centers have strengthened their development in the field of automotive exteriors and have the ability to simultaneously design 3 sets of bumpers.
-Changchun Faway Johnson Controls Automotive Electronics Co., Ltd. has the ability to research and develop software and hardware.
Investment activities in 2016
|(in million CNY)|
|Project||Budget||Investment in 2016||Project progress|
|Qingdao exteriors project||117.90||35.64||20.03%|
|Chengdu automotive lamps project of Chengdu Faway Hella Automotive Lamps||357.31||40.49||34.91%|
|Second painted production line of G14 FYTZ1||149.95||44.14||29.44%|
|T181 front and rear bumper assembly||13.19||6.91||52.37%|
|Plastic mould of Changchun Faway Huawei Mould Co.,Ltd.||199.90||18.25||82.02%|
|Improve production capacity project||44.91||7.32||22.01%|
|T909 front and rear bumper assembly||3.00||2.56||85.47%|
|Phase II plant construction||14.97||1.54||10.26%|
|Tire automatic feeding device||0.67||-||85.47%|
|C7PA project for Audi||14.17||2.19||99.00%|
|T503 front and rear bumper assembly||0.30||0.26||85.47%|