Camel Group Co., Ltd. Business Report FY ended Dec. 2012
|(in million yuan)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||Rate of change(%)||Factors|
|Sales||3,972.78||3,068.16||29.48%||-The Company's main sales volume has grown rapidly.|
-Profits increased as sales increased.
-The Company was able to control its costs to increase profit.
-The Company announced that it will merge two of its wholly-owned subsidiaries, Hubei Camel Storage Battery Academy Co., Ltd. and Hubei Camel Special Power Co., Ltd. Hubei Camel Storage Battery Academy will be the surviving company after absorbing Hubei Camel Special Power. The surviving company will then be renamed, Camel Group Storage Battery Academy Co., Ltd. (From a press release, Tuesday, November 13, 2012)
-The Company signed a memorandum of cooperation with Guangxi Fengye Investment Co., Ltd. and Guangxi Swan Battery Co., Ltd. to establish Camel South China Storage Battery Co., Ltd. in Wuzhou City, Guangxi. The new company will manufacture and sell batteries. The registered capital of Camel South China Storage Battery is 200 million yuan, of which 70%, or 140 million yuan, is invested by the Company. The new company will implement a project to build new, high-capacity, structurally sealed-type batteries in the Import Renewable Industrial Park in Wuzhou City. Construction on the new facility is expected to complete in approximately 2 years. The accumulated annual equivalent output of the batteries produced by the new company is expected to reach 3.5 million kVAh. (From a news release April 26, 2012)
Adjust Production Lines
-The Company has revised its plant construction project. The Company’s original plan was to construct six polar plate production lines at Camel Group Xiangfan Storage Battery Co., Ltd. These polar plates were to be used in high-performance, low-leaded, maintenance-free batteries that the Company currently produces at an accumulated annual equivalent output capacity of 6 million kVAh. Four of these production lines have already been established and have started operations. However, the Company has decided to construct the two remaining production lines at Camel Group Huanan Storage Battery Co., Ltd. formed in June 2012. The Company has also made some changes to the production processes so that the polar plates can be integrated into batteries for high-end vehicles. (From a press release, Tuesday, November 13, 2012)
-Hubei Camel Haixia Storage Battery Co., Ltd., a subsidiary of the Company, restarted its operations after acquiring an approval for resumption. The company had suspended its operations since Jun 20, 2011 due to an environmental issue. (From an announcement by the company, September 13, 2012)
-In April 2012, Daramic Xiangfan Battery Separator Co., Ltd. held a ceremony for its facility in Xiangyang Shenzhen Industrial Park. Daramic Xiangfan Battery Separator Co., Ltd. was founded in June 2010, and acquired most of its production equipment and technology from Daramic’s factories overseas. The launch of Daramic Xiangfan’s operations will reduce the Company’s costs and enhance the Company’s competitiveness. (From a press release on May 30, 2012)
-In February 2012, the Company installed and started operations on two new production lines. This was the 7th time that the Company had installed new production lines. The addition will increase the Company’s production of battery plates to an accumulated annual equivalent output of 2 million kVAh. The Company’s next plans are to improve its four older production lines to adapt to the newly-installed production lines. (From a news release on May 8, 2012)
-In February 2012, the Company held a groundbreaking ceremony for its Camel Battery Industrial Park Phase II Project at the Xiangyang Economic and Technological Development Zone. The Camel Battery Industrial Park Phase II Project covers an area of 458 acres and lies close to the Company’s northern factory. The planned total investment of 1.5 billion yuan will be used to build manufacturing facilities that will produce 2 million hybrid batteries and 6 million kVAh worth of high-performance sealed batteries annually. With the completion of the project, the annual production value is expected to increase to 2.45 billion yuan. (From a news release April 20, 2012)
|Name||Main business||Location||Year established||Shareholding ratio|
|Hubei Camel Battery Institute Co., Ltd.||Develop batteries||Xiangfan, Hubei||2004||100%|
|Hubei Golden Camel Special Battery Equipment Technology Co., Ltd.||Develop batteries||Xiangfan, Hubei||2011||51%|
|Hubei Camel Electrical Co., Ltd||Develop electrical products||Wuhan, Hubei||2010||55%|
-The Company was awarded eight utility model patents and two design patents.
Capital Investment Projects (as of Dec. 31, 2012)
|(in million yuan)|
|Project||Budgeted amount||Investment in 2012||Status||Capacity|
|Constructing production lines for producing 6 million high-performance low-lead consumption maintenance-free batteries||601.84||3.09||83.71%||
After the completion of the project, the Company’s accumulated annual equivalent output will reach 15.5 million kVAh for automotive starter batteries and 13 kVAh for sealed maintenance-free batteries.
|Producing batteries for hybrid vehicles||376.72||1.46||4.49%||
Produces winding, flat, valve-regulated, lead-acid batteries and thin-plate, pure-lead, VRLA batteries for hybrid vehicles
|Constructing production lines for producing 4 million high-performance low-lead consumption maintenance-free batteries||346.20||83.17||52.81%||-|
|Constructing production line for high-capacity new structure sealed battery in Camel South China Co.,Ltd||670.65||1.05||4.76%||-|
Investment in China-The Company announced that it will invest an additional USD 1.75 million in Daramic Xiangyang Battery Separator Co., Ltd., in which it already owns a 35 percent share. The investment will be used to construct an additional production line to manufacture battery separators. Daramic will also provide financial support to the joint venture according to its shareholding ratio in the business. (From an announcement by the company, November 29, 2012)
-The Company and the local government of Antu County signed a letter of intent to establish a production facility in Antu County, Jilin Province. This new production facility would manufacture a new type of high-performance sealed battery. The total planned investment for this project is approximately 1 billion yuan. 500 million yuan will be used for the first phase of the project to construct a plant with the capacity to produce 4 million kVAh worth of high-performance sealed batteries annually. Operations are scheduled to begin in the second half of 2014. The second phase of the project will invest the remaining 500 million yuan by 2016 to raise the plant’s annual capacity to 6 million kVAh worth of batteries and establish a facility to process 150,000 tons of lead acid battery waste annually. These projects are currently under subject to official approval. (From a press release, September 7, 2012)
-In February 2012, the Company held a groundbreaking ceremony for its Camel Battery Industrial Park Phase II Project at the Xiangyang Economic and Technological Development Zone. The Camel Battery Industrial Park Phase II Project covers an area of 458 acres and lies close to the Company’s northern factory. The planned total investment of 1.5 billion yuan will be used to build manufacturing facilities that will produce 2 million hybrid batteries and 6 million kVAh worth of high-performance sealed batteries annually. With the completion of the project, annual sales are expected to increase to 2.45 billion yuan. This would make the facility located in the Xiangyang Economic Development Zone in Shenzhen Industrial Park the world’s largest automotive battery production facility. (From a news release April 20, 2012)