China Shipbuilding Industry Group Power Co., Ltd. (Formerly Fengfan Co., Ltd.) Business Report FY ended Dec. 2016
Financial overview |
(million yuan) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of change | Factors | |
| Sales | 20,741.19 | 17,951.90 | 15.54% | -Increase operating efforts, highlight their R&D technology and high-end equipment manufacturing advantages |
| Operating profit | 1,275.81 | 1,068.66 | 19.38% | |
| Ordinary profit | 1,396.24 | 1,202.89 | 16.07% | |
| Net profit | 1,153.35 | 1,018.43 | 13.25% |
Recent Development
-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)
New Company
-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 its AGM batteries have passed the final on-site inspection conducted by Mercedes-Benz and BMW. China Shipbuilding Industry will become the first company in China that supplies AGM batteries to Mercedes-Benz. (From a press release on January 20, 2017)
Strategic Cooperation
-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)
-Fengfan cooperated with Tongji University to carry out on-board power system project. 48V hybrid lithium battery finished first battery module sample for SAIC GM. (From the Company's 2016 annual report)
-At the end of 2016, the Company established Fengfan-Shanghai University advanced technology collaborative innovation platform and signed letter of intent with US technology company for lead carbon battery and bipolar battery cooperation. (From the Company's 2016 annual report)
R&D Expenditure
| FY ended Dec. 31, 2015 (million CNY) |
FY ended Dec. 31, 2015 (million CNY) |
FY ended Dec. 31, 2014 (million CNY) |
|
| R&D Expenditure | 581.98 | 324.62 | 287.66 |
| Ratio of R&D expenses to operating income | 2.81% | 5.64% | 5% |
R&D Facilities
-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 has established a R&D Center for new energies and batteries.
-The Power Cell Engineering Center of Hebei Province, which was constructed by the Company, has passed inspections conducted by a group of specialists appointed by the Province's Science and Technology Division, the Financial Division and the Development and Reform Commission. The facility has thereby been designated as the province's official engineering center. (From a press release on July 25, 2016)
R&D Activities
-In 2016, AGM68Ah and EFB69Ah batteries, independently developed by the Company, passed test by German Volkswagen Laboratory and supplied to Volkswagen. AGM92Ah battery passed performance test.
Capital investment projects using raised funds (as of Dec.2016) |
(in million CNY) |
| Capital investment projects | Planned investment amount | Amount invested in 2016 (million CNY) |
Project Progress |
| Constructing its new plant that will produce 5 million units high-performance maintenance-free lead-acid batteries in Xushui | 1,184.66 | 5.38 | 100% |
| The upgrading of industrial technology in Qingyuan Branch | 160.76 | 1.88 | 100% |
| The second phase of the upgrading of industrial technology in Qingyuan Branch | 115.0 | 3.95 | 100% |
| Lithium battery new energy project | - | 3.39 | 99% |