Changchun Faway Automobile Components Co., Ltd. Business Report FY ended Dec. 2017

Financial Overview

(in million yuan)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change Factors
Sales 12,732.78 11,992.48 6.17%

In 2017, sales increased as the following reasons:
-Cost control
-Efforts in R&D, marketing, and management

Operating profit 606.81 554.81 9.37%
Ordinary profit 622.82 566.02 10.03%
Net profit 580.83 525.40 10.55%

New Company

-The Company announced on February 13, 2018, a plan to set up a new company, Faway Benteler Automobile Components (Tianjin) Co., Ltd., jointly with Benteler Automotive (China) Investment Limited. The joint company is going to be a strategic partner of FAW Group and help the car manufacturer develop solutions to make lighter vehicles including high-strength steel, thermoforming, and aluminum alloy. The new company is going to have a registered capital of Chinese yuan (CNY) 120 million, CNY 90 million or 75% from Changchun Faway Automobile Components and CNY 30 million or 25% from Benteler Automotive (China) Investment. It requires a total of CNY 180 million to construct a new plant, which is slated to start operating fully in 2021. At full operation, it’s expected to generate sales of CNY 366.73 million and a pre-tax profit of CNY 26.96 million a year. (From a corporate announcement on February 14, 2018)

Business Plan for Next Year

-In 2018, the Company plans to reach CNY 12,437.97 million sales, a 2.36% y/y decline.


-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)

R&D Expenditure

FY ended Dec. 31, 2017
(million CNY)
FY ended Dec. 31, 2016
(million CNY)
FY ended Dec. 31, 2015
(million CNY)
R&D Expenditure 82.02 104.87 96.55
Ratio of R&D expenses to operating income 0.64% 0.87% 0.98%

R&D Structure

-As of 2017, The Company's accumulated R&D investment was up to CNY 82.02 million. It had a R&D team with about 125 staff, accounting for 2.82% of all staff.

R&D facilities

Name Company
Wheel R&D Center Changchun Faway Automobile Components Co., Ltd. Wheel Company
Faway Adient Technical Center

Formerly: Faway-Johnson Technical Center
Changchun Faway-Adient Automotive System Co., Ltd.

Formerly: Changchun Faway-Johnson Controls Automotive Systems Co., Ltd.

-The Company has two provincal-level technical centers, involving the automotive wheels and the interior components.

Projects Under Construction

(in million CNY)
Project Budget Investment in 2017 Project progress Start of Production Supplier
Faway Tianjin Industrial Park 117.14 157.66 65.78% - -
Faway Qingdao Industrial Park 315.74 121.41 86.88% March 2018 FAW-VW Qingdao Plant
Faway Dongyang Tianjin Plant 195.92 65.10 33.23% June 2018 FAW-VW Tianjin Plant
Faway Dongyang Qingdao Plant 170.61 48.47 37.63% March 2018 FAW-VW Tianjin Plant
Faway-Huawei Joint Station 6.00 0.03 90.00% - -
Cheng Hella vehicle lamp project 357.31 31.28 50.00% - -
Faway Dongyang Foshan Plant II Phase 14.97 8.99 100.00% March 2017 -
Yanfeng G14FYTZ1 II Painting Line 14.00 6.01 100.00% - -
Foshan tire identification and monitoring project 13.00 12.94 100.00% - -
Yanfeng production capacity expansion project 4.00 0.02 100.00% - -

Major Investments

(in million CNY)
Project Amount of Investments Start of Production Supplier
Faway Qingdao tire assembly project 35.30 March 2018 FAW-VW Qingdao Plant
Faway Tianjin component project 379.43 June 2018 FAW-VW Tianjin Plant
Faway Tianjin tire assembly project 40.95 June 2018 FAW-VW Tianjin Plant
Faway Foshan tire assembly production expansion project 21.08 March 2017 FAW-VW Foshan Plant
Faway Tianjin welding plant 72.07 June 2018 Tianjin Toyota