Camel Group Co., Ltd. Business Report FY ended Dec. 2015

Financial Overview

(in million yuan)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Rate of change Factors
Sales 5,376.98 5,167.19 4.06% -The sales in batteries of the Company increased, which accounts for 99.11% of the total operating income.
Operating income 662.83 749.48 -
Ordinary income 683.93 798.82 -
Net income 615.93 686.64 -


-The Company announced that Camel New Energy Battery Co., Ltd., its wholly owned subsidiary, will acquire all shares in Xiangyang Camel New Energy Co., Ltd. for CNY 198 million. Xiangyang Camel New Energy was established jointly by Hubei Sanjun Battery Co., Ltd. and Hubei Sanjun New Material Industry Co., Ltd. in September 2015 to produce lithium-ion batteries and new energy products. The joint venture is capitalized at CNY 300 million, of which 66.67% was invested by Hubei Sanjun Battery and 33.33% was provided by Hubei Sanjun New Material. Its operations have not started yet. (From an announcement by the company on December 12, 2015)

-The Company announced that it will invest an additional CNY 150 million in Camel New Energy Battery Co., Ltd. to expand the wholly owned subsidiary's lithium-ion battery production capacity. After the transaction is completed, Camel New Energy Battery's capital will be increased to CNY 200 million from the current CNY 50 million. (From an announcement by the company on October 12, 2015)

-The Company announced that it will acquire the remaining 30 percent share in South China Camel Storage Battery Co., Ltd. South China Camel Storage Battery, capitalized at CNY 200 million, is currently owned 70 percent by the Camel Group and 30 percent by Guangxi Fengye Investment Co., Ltd. Camel will pay CNY 64 million to Guangxi Fengye Investment for the deal to turn the battery supplier its wholly owned subsidiary. (From a an announcement by the company on April 24, 2015)

Strategic Cooperation

-The Company announced that the company and Dongfeng Yangtse Motor (Wuhan) Co., Ltd. have signed a basic agreement setting the framework to form a strategic partnership in the areas of new energy vehicles. In accordance with the agreement, Camel will provide Dongfeng Yangtse Motor (Wuhan) with lithium-ion batteries, motors, and electronic control components. The two companies will also collaborate on developing and mass-producing new electronic control components. (From an announcement by the company on December 30, 2015)

-The Company announced that the company and Hebei Yuedi New Energy Technology Group Co., Ltd. have signed a strategic alliance agreement. The two companies agreed to collaborate on the following areas related to development of new energy vehicles, supply of lithium-ion batteries, and rental car business: 1) Hebei Yuedi will supply batteries for Camel vehicles 2) The two companies will enter into a formal contract after deciding on what kind of vehicles, batteries, motors, and controllers they will jointly develop and produce 3) Details concerning intellectual property rights in the joint-development stage, product announcement, and role-sharing arrangements in the mass-production stage will be decided later. (From an announcement by the company on November 6, 2016)

-The Company announced that Camel New Energy Battery Co., Ltd., its wholly owned subsidiary, and California Lithium Battery, Inc. have reached a framework agreement to collaborate on lithium-ion battery business. California Lithium Battery, Inc., established in 2012, is a supplier of lithium-ion battery materials based in Los Angeles, U.S. The two companies signed the following agreement on September 21, 2015: (1) California Lithium Battery will offer advanced materials and production technologies for lithium-ion batteries to Camel New Energy Battery, while Camel New Energy Battery will produce lithium-ion batteries by utilizing these materials and technologies. (2) The two companies will consider the possibility of forming a joint venture or entering into a capital alliance, under which California Lithium Battery will provide Camel New Energy Battery with technologies to develop lithium-ion technologies as an in-kind contribution. (3) California Lithium will support Camel New Energy Battery in developing starter batteries and secondary batteries for the U.S. market. (From an announcement by the company on September 22, 2015)


-The Company announced that Camel Group HongKong Investment Trading Co., Ltd., its wholly owned subsidiary, has signed a supply contract worth USD 36.5 million with Venezuela's Fondo Nacional de Transporte Urbano (national urban transport foundation) that operates under the Ministry of Transport and Communications. Camel will deliver 456,210 units of 25 types of batteries for vehicles, including those for public transportation. (From a press release on August 31, 2015)

Pass the Test

-The Company announced that it had passed on-site inspections carried out by both Ford of North America and Changan Ford for production of its two new batteries (development codes: T7 EFB and H6 EFB). The product validation of the T7 batteries and the design verification of the H6 batteries will begin soon as planned. (From a press release on January 15, 2015)

R&D Expenditure

FY ended Dec. 31, 2015
(million yuan)
FY ended Dec. 31, 2014
(million yuan)
FY ended Dec. 31, 2013
(million yuan)
R&D Expenditure 201.06 197.54 162.61
Ratio of R&D expenses to operating income 3.74% 3.82% 3.52%

R&D Structure

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%

Investment in China

-The Company announced that it will construct a lithium-ion battery plant with an annual capacity of 700 million Wh and a lead-acid battery recycling facility with an annual capacity of 150,000 tons. The company will raise funds for this project by issuing new shares that are worth up to CNY 900 million, of which CNY 550 million will be spent for lithium-ion battery production lines. The construction project is expected to take a year to be completed. The plants will be operated at 73.33% of total capacity in the initial year and is expected to reach full capacity in the second year. (From an announcement by the company on May 10, 2016)

-In March 2015, the Company and Jiyuan Wanyang Smelting (Group) Co., Ltd. agreed to establish a joint venture in Jiyuan, Henan Province. The joint venture will be tentatively called Henan Jiyuan New Power Battery Technology Co., Ltd. The company will be capitalized at CNY 30 million, of which 51 percent will be invested by the Camel Group. The joint venture will develop, produce, and sell lead-acid batteries for electric vehicles. It will also collect used batteries. (From an announcement by the company on March 19, 2015)

Capital Investment Projects (as of Dec. 31, 2015)

(in million yuan)
Project Budgeted amount Investment in 2015 Ratio of cumulative investment to budget
Constructing production lines for producing 6 million high-performance low-lead consumption maintenance-free batteries 601.84 4.37 97.47%
Producing batteries for hybrid vehicles 376.72 64.26 91.37%
Constructing production lines for 200WKAH sealed batteries and 400WKVAH novel power batteries - 2.01 -
600WKVAH project in South China Camel - 204.94 -