Fengfan Co., Ltd. Business Report FY ended Dec. 2013
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Rate of change(%)||Factors|
-Benefit from technology improvement;
Supply Agreements-The Company announced that it will soon start delivering batteries for Beijing Automotive's new model (internal code "C50E"), which is BAIC's first A class car. (From a press release on August 10, 2013)
-In July 2013, the Company said it will supply Absorbent Glass Mat (AGM) batteries to Shanghai GM. Fengfan has supplied 70Ah AGM batteries to Shanghai GM. This time, the company has received a new order for 60Ah and 80Ah AGM batteries. Volume production will commence in 2017. Demand for these batteries is expected to be 200,000 units a year. (From a press release on July 24, 2013)
-The Company has been chosen as a supplier for Chery Automobile's new luxurious compact sedan, the M16. The M16, to be released soon, is positioned in a higher class than the A3 in Chery's model lineup. (From a press release on June 29, 2013)
-In Decemebr 2012, the Company supplied 8 pieces of 51AH batteries packs and 14 pieces of 60AH battery packs for the soon-to-be-released Shanghai VW YETI models. Supply volume is expected to reach 200,000 units a year. (From a press release, January 16, 2013)
Pass the Test-The Company announced that its battery production lines and battery products have passed a testing by FAW Car. The achievement gives Fengfan the qualification to supply its products to the automaker. (From a press release on November 6, 2013)
-Since 1997, the Company has passed supplier evaluation of FAW-Volkswagen Co., Ltd. and obtained A class supplier qualification. In June 2012, the Company A class supplier qualification from FAW-VW for a second time, which is valid until June 2014. (From a press release, September 27, 2013)
-In October 2011, the Company passed auditing by SAIC Motor Passenger Vehicle Co.,Ltd. and obtained A class supplier qualification, which is valid until October 2014. (From a press release, September 27, 2013)
-The Company announced that its AGM batteries, which meet the European standards, have passed inspections conducted by an authorized battery testing center. At the same time, its AGM 68AH batteries passed testing by Volkswagen. (From an announcement by the company, August 22, 2013)
-The precision casting branch of the Company said it has passed Emerson’s quality testing, thereby obtaining a qualification to supply its product to the U.S.-based company. (From a press release, July 8, 2013)
-The Company announced that it has passed a supplier screening by Yutong Bus, continuing to gain a qualification to supply its products to the bus manufacturer. (From a press release, June 25, 2013)
-In May 2013, the Company said it passed the supplier screening by Nanjing Iveco. (From a press release, June 17, 2013)
Strategic Cooperation-In February 2014, the Company announced that it has signed a strategic framework agreement with China Electronics Technology Group Corporation’s research center No.18 to collaborate on the development of new energy technologies. The two organizations will tie up in the development and production of advanced acid batteries, lithium batteries and solar batteries. (From an announcement by the company on February 22, 2014)
-The Company announced in May 2013 that it has signed a Memorandum of Understanding for the strategic partnership with the 718th Research Institute of China Shipbuilding Industry Corporation. As the first step of the partnership, the Company will produce antifreeze liquid and grease for automobiles on OEM basis using the institute’s technology, expanding the production volume and market share by utilizing the Fengfan’s brand value and sales networks. In addition, Fengfan will introduce the institute’s air purification technology for automobiles to automakers, and will open up the new production area. If the partnership succeeds, they will set up two joint ventures-one for antifreeze liquid and grease for automobiles and another for air purification devices. (From a press release on June 1, 2013)
Restructuring of Parent Company-In August 2013, the Company announced that all the battery businesses of the China Shipbuilding Industry Corporation (CSIC) Group will be integrated into Fengfan. The decision to consolidate the group’s battery operations had been made by CSIC, which notified Fengfan of this plan. When the reorganization is completed, Fengfan will be the Group’s sole battery solutions supplier with an extended product lineup. It will supply various types of battery technologies, including special batteries, batteries for automotive starters, secondary batteries for towing vehicles, ultra high- capacity condensers and fuel cells. (From an announcement by the company, August 31, 2013)
Business Plan for Next Year-In 2014, the Company plans to reach 5,530 million gross industrial output, 10.05% rise of last year; 5,269.48 million industrial sales, 10.15% rise of last year; 935 million industrial added value, 10% rise of last year and 177.53 million profit, 18.08% rise of previous year. The Company plans to invest 591.35 million yuan in 322 projects in 2014.
R&D Activities-The Company conducts its development activities at Fengfan Technical Center.
-The total R&D expenditure in 2013 was 265.64 million yuan, 32.42 percent increase over last year, accouting for 5.09% of the Company's sales.
-As of December 31, 2012, the Company has applied for 232 patents, 53 of them is patents of invention. The Company has 202 authorized patents.
New Products-The Company announced that it has developed solar car charging equipment at its own facility. This charging device uses amorphous silicon film produced by Fengfan. The company expects that the technology will increase adoption of its products, while contributing to the development of the new energy industry. (From a press release, April 27, 2013)
Capital investment projects using raised funds (as of Dec.2013）
|(in million yuan)|
Capital investment projects
|Planned investment amount||Amount invested in 2013
|Construction project for lithium-ion battery production facilities||200.00||5.84||100%|
|AGM (absorbed glass mat) project in Baoding
|AGM (absorbed glass mat) project in Xushui
|Constructing its new plant that will produce 5 million units high-performance maintenance-free lead-acid batteries in Xushui
|The Tangshan Fengfan project||138.68||17.24||100%|
-In July 2011, the company intended to invest 508.94 million yuan to increase its annual production capacity for AMG batteries to 4 million units. In the first phase of this project, it spend 33.96 million yuan to ensure an annual capacity of 500,000 units per year. It is going to raise the level by 500,000 units by the end of 2013 and expand further by 2 million units by the end of 2014 by spending 3 million yuan in total. The company will invest 100 million yuan in the final phase of the project to with a goal to achieve 4 million units by the end of 2015. (From an announcement by the company, August 22, 2013)