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5. Bosch Group (China) Business Report FY ended Dec. 2015

Bosch Group (China) Business Report FY ended Dec. 2015

Business Overview

-In recent years, the Company has been expanding its activities in the development and manufacturing of products specifically designed for the Chinese market and conducting these activities locally in China.

-The Company conducts its business in the following areas: diesel engine systems, gasoline engine systems, automotive electronics systems, electric drive systems, and chassis systems.

Recent Development

-Robert Bosch GmbH announced that sales of Bosch in China reached CNY 77 billion in 2015, almost double those in 2012. China's share in Bosch's global sales has climbed from 9% to 16%, making the country the group's largest market outside Germany. With more than 55,000 associates, China also employs the Bosch Group's largest workforce outside Germany. Over the last ten years, Bosch in China achieved a compound annual growth rate of over 22 percent. It invested CNY 5.2 billion in the market in 2015 alone, and is intending to continue investing in the market. (From a press release on May 16, 2016)

Strategic Cooperation

-Bosch Automotive Diesel Systems Co., Ltd. announced that it had signed a basic agreement with Anhui Quanchai Engine Co., Ltd. to set the framework to enter into a full-scale partnership. Their areas of partnership will include engine fuel systems compliant with the China V or stricter standards, diesel exhaust aftertreatment systems that meet the China V or higher standards, and engine fuel systems that meet the China III or higher standards. The company expects the collaboration will accelerate the development and sales of high-end diesel engines for the Chinese market. (From a press release on January 25, 2016)

-The Group announced that Bosch Engineering Technology Co., Ltd. and CH-AUTO Technology Co. Ltd. have signed an agreement to form a strategic partnership to collaborate on the development of electronic stabilizer programs for CH-Auto’s Event. (From news releases issued by multiple sources on January 19, 2016)

-Bosch Automotive Diesel Systems Co., Ltd. announced that it had signed a basic agreement with Kunming Yunnei Power Co., Ltd. that sets the framework to form a long-term strategic partnership agreement. Their areas of collaboration will include joint development, technical cooperation, marketing of environmentally friendly electronically controlled high-pressure common-rail diesel engines in China, and introduction of clean-diesel vehicles. (From an announcement by the company on November 19, 2015)

-In September 2015, Bosch and Tencent announced that they will collaborate in the area of vehicle telematics systems. Tencent will integrate all its driving-related applications and services into a single APP, while Bosch will realize its introduction in vehicles via its mySPIN smartphone integration solution. mySPIN has cooperated with more than 20 of the most popular apps including Tencent Automotive APP, Sogou Navigator, AutoNavi, and Baidu Navi, with their scope of service ranging from navigation, music, news to voice interaction and maintenance services. (From news releases issued by multiple sources on September 21, 2015)

Awards

-United Automotive Electronic Systems Co., Ltd., a subsidiary of the Bosch Group, announced that it won the following awards from OEMs in 2015.

• Geely Automobile's Excellent Supplier Award for 2016;
• Excellent Supplier Award 2015 from SAIC MAXUS Automotive Co., Ltd.;
• Excellent Supplier Award 2015 from FAW Haima Motor;
• Excellent Supplier Award 2015 from Haima Car;
• Excellent Supplier Award 2015 from BYD;
• Best Innovation Award from SAIC Passenger Vehicle;
• Zotye Auto’s Best Supplier Award for 2015;
• Excellent Supplier Award from Jianghuai Automobile;
• Excellent Supplier Award and the Technology Innovation Award from Great Wall Motor.

-United Automotive Electronic Systems Co., Ltd., a subsidiary of the Bosch Group, announced that it won the following awards from parts suppliers in 2015.

• Harbin Dongan Automotive Engine’s Excellent Supplier Award for 2015;
• 2015 Excellent Supplier Award from Harbin Dongan Auto Engine Co., Ltd.

R&D Facility

-The Company has cutting-edge technical centers in Shanghai, Wuxi, Suzhou, Donghai, Chongqing and Changsha to serve the Chinese market. The Company is active in hiring local engineers in order to quickly respond to demand from Chinese customers.

-In November 2008, the company opened its winter proving-ground in Yakeshi, Inner Mongolia.

-United Automotive Electronic Systems Co., Ltd. in the Bosch Group announced that the company and Great Wall Motor have jointly established a development center on the premises of Great Wall Motor’s Haval R&D center in Baoding, Hebei Province. (From a press release on June 30, 2015)

R&D Result

-United Automotive Electronic Systems Co., Ltd., a subsidiary of Bosch, announced that it has received Shanghai Automotive’s 2015 Technical Innovation Award and other awards for the following five new development projects:
-INVCON2.2 power electronics controller project for Shanghai Automotive’s E50 EV: second prize, Technical Innovation Award
-China V system solution: third prize, Technical Innovation Award
-APM1.3 next-generation accelerator pedal project: third prize, Technical Innovation Award
-Throttle valve shaft, fan gear, connecting devices: second prize, Patent for Innovation
-V1.0 basic software for UAES high-end complex power supply system and TLE8888 power supply chip: third prize, Software Development Award.
(From a press release on July 15, 2015)

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