China Shipbuilding Industry Group Power Co., Ltd.(Formerly Fengfan Co., Ltd.) Business Report FY ended Dec. 2017

Financial Overview

(million yuan)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change Factors
Sales 23,147.10 22,305.28 3.77% -Intensify management efforts and increase the amount of investing R&D technology, and that give the Company advantages with high-end equipment manufacturing
Operating profit 1,463.92 1,167.01 25.44%
Ordinary profit 1,549.65 1,284.66 20.63%
Net profit 1,282.77 1,041.77 23.13%

Pass the Test

-The Company is the only manufacturer in China that provides start-stop use batteries for mid- and high-end vehicles of international OEMs such as Benz, BMW, VW, and GM. (From the Company's 2017 annual report)

-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)

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 535.32 581.98 324.62
Ratio of R&D expenses to operating income 2.31% 2.81% 5.64%

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.2017)

(in million CNY)
Capital investment projects Planned investment amount Amount invested in 2017
(million CNY)
Project Progress
The construction project of the Company's vehicle power battery R&D center 480.00 0.007 1%