China Shipbuilding Industry Group Power Co., Ltd.
(Formerly Fengfan Co., Ltd.) Business Report FY ended Dec. 2015
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Rate of change||Factors|
|Sales||5,750.65||5,748.02||0.05%||-The economy in China is under downward pressure, and the pressure of market competition increased.|
-In 2015, the Company produced 13.91 million of batteries, including industrial batteries. The Company's sales volume reached 14.11 million units. (From the Company's 2015 annual report)
-The Company announced that it has completed procedures for changing its company name and changed its name to China Shipbuilding Industry Group Power Co., Ltd., effective May 1, 2016. (From an announcement by company on May 5, 2016)
-The Company announced that it will revamp its production lines for high-capacity, sealed lead-acid batteries. The project will include construction of a new factory to produce high-capacity, rechargeable, maintenance-free sealed batteries; introduction of a lead powder production system; setting up of a new production line to manufacture rolled sheets; and transferring and retooling of existing lines. The company plans to invest CNY 424.6 million in this project, which is expected to take 48 months to complete. When the whole project is completed, the company will be able to produce 5 million (approximately 3.6 million kVAh) new, high-capacity, sealed lead-acid batteries per year. (From a press release on April 2, 2015)
-The Company announced that it will invest CNY 50 million to establish a wholly owned subsidiary in Baoding, Hebei. The new company will be called Fengfan Limited Liability Company. Its scope of business will include development, production, and sales of batteries, production of electric machineries and their components, storage services, battery collection services, and sales of lead concentrate products. (From an announcement by the company on February 29, 2016)
Pass the Test
-The Company announced that the company passed the VDA6.3 on-site process audit conducted by both Mercedes-Benz and BMW in March 2015. The battery supplier expects that the achievements will enhance its business relationships with the automakers. (From a press release on April 1, 2015)
-The Company announced that the company and Shanghai SIMBATT Energy Technology Co., Ltd. (SIMBATT) have agreed to form a strategic alliance in the development and commercialization of new battery technologies using graphene and other materials. China Shipbuilding Industry will receive SIMBATT’s support for developing high performance graphene lead-acid batteries and lithium-ion batteries. (From a press release on May 16, 2016)
Business Plan for Next Year
-In 2016, the Company plans to reach CNY 5,850.00 million sales revenue, 1.74% rise of last year; CNY 224.10 million profits, 5% rise of last year.
|FY ended Dec. 31, 2015
|FY ended Dec. 31, 2014
|FY ended Dec. 31, 2013
|Ratio of R&D expenses to operating income||5.64%||5%||5.09%|
-The Company has a national level technology center, Fengfan Technical Center, which consists starter battery R&D center and lithuim battery R&D center.
-The Company announced that it has established a R&D Center for new energies and batteries in order to significantly strengthen its business in the area. (From a press release on November 16, 2015)
-In 2015, 92Ah batteries, which are supplied to FAW-VW Audi, passed the performance test from the headquarter in Germany, and are undergoing the electrical performance test.
-In 2015, punching and continuous casting 80Ah batteries got the supply agreement from Yueda brand.
-In October 2015, the samples of EFB69AH batteries passed the test of Germany VW lab. Continuous casting EFB samples began the small batch trial production.
Capital investment projects using raised funds (as of Dec.2015)
|(in million yuan)|
|Capital investment projects||Planned investment amount||Amount invested in 2015
|Construction project for lithium-ion battery production facilities||200.00||4.22||99%|
|AGM (absorbed glass mat) project in Baoding||33.98||0.07||99%|
|Constructing its new plant that will produce 5 million units high-performance maintenance-free lead-acid batteries in Xushui||1,184.66||23.42||99%|
|The Tangshan Fengfan project||138.68||2.69||99%|
|The upgrading of industrial technology in Qingyuan Branch||160.76||8.27||99%|
|The second phase of the upgrading of industrial technology in Qingyuan Branch||-||0.34||99%|