Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2013
|(in million yuan)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Rate of Change(%)||Factors|
|Slaes||7,291.83||5,599.70||30.22%||-The sales of cars manufactured by Shanghai VW and FAW VW increased, which accounted for the year-on-year increase in the Company’s sales.
-The company consolidated overseas subsidiaries into its financial statement.
|Operating profit||545.70||328.36||66.19%||-Due to cost control, operating efficiency, the Company's profits rise.
-Shanghai Huaxiang Helbako Automotive Electronic Co., Ltd., the Company's subsidiary, set up its wholly subsidiary Ningbo Huaxiang Helbako Automotive Electronic Co., Ltd. The new company capitalized at capital of 20 million, the Company holds 100% share. On October 22, 2013, the new company finished registration procedures. (From the Company's 2013 annual report)
-The Company set a new subsidiary, Shenyang Huaxiang Auto Parts Co., Ltd. The new company capitalized at capital of 20 million, the Company holds 100% share. On July 5, 2013, the new company finished registration procedures. (From the Company's 2013 annual report)
-In May 2013, the Company announced that its board members agreed on the following two investment projects:
1. Ningbo SMR Huaxiang Automotive Mirrors Ltd., in which the company has a 50 percent share, would invest 80.76 million yuan to establish Chongqing SMR Huaxiang Automotive Mirrors Ltd. at the Chongqing Xipeng Industrial Park. The new company will be capitalized at 40 million yuan. It will supply automotive mirrors to Changan Ford, Changan Suzuki and other manufacturers in the Changan Automobile Group.
2. Gongzhuling Antolin Huaxiang Auto Trim Products Co.,Ltd., a joint venture between the Company and Antolin Shanghai Autoparts Co., Ltd., would acquire Antolin Shanghai‘s factory producing sunroof modules for BMW Shenyang. The joint venture will be spending up to 15.21 million yuan to purchase the Just-in-Time factory, assets, operations and workers. (From an announcement by the company, May 15, 2013)
-Ningbo Antolin Huaxiang Automobile Products Co.,Ltd., the Company's subsidiary, set up its wholly subsidiary Dongguan Antolin Huaxiang Automobile Products Co.,Ltd. The new company capitalized at capital of 3 million, the Company holds 100% share. On March 28, 2013, the new company finished registration procedures. (From the Company's 2013 annual report)
-Ningbo ABC Jinghua Auto Parts Co., Ltd., a subsidiary of Ningbo Inoac Huaxiang Automobile Products Co., Ltd, set up its wholly subsidiary Shenyang ABC Jinghua Auto Parts Co., Ltd. The new company capitalized at capital of 3 million, the Company holds 100% share. On March 13, 2013, the new company finished registration procedures. (From the Company's 2013 annual report)
-In May 2013, board members of the Company agreed on a plan to acquire a 49 percent share in Faurecia (Chengdu) Emission Control Technologies Co., Ltd., Faurecia’s wholly owned subsidiary in China. The plan is based on a collaboration formed between the company and Faurecia China in 2011. Ningbo Huaxiang Electronic will pay 24.28 million yuan for the deal. Faurecia (Chengdu) was established in March 2011 with a capital of 2 million US dollars. Having won contracts from FAW-VW to supply products for the Jetta NF and NCS products, the subsidiary is expecting to remain profitable over the years. This is one of the decisive factors that led to the acquisition plan. (From an announcement by the company, May 30, 2013)
-In April 2013, the Company announced that it would acquire the HIB Trim Part Group, a Germany-based manufacturer of interior trim parts for high-end sedans. The world’s third largest supplier in the area of natural wood interior components supplies its products to automakers such as Mercedes-Benz, BMW and Porsche. Ningbo Huaxiang will buy out the company for 34.2 million euros through NBHX Trim GmbH, its sub-subsidiary.In May 2013, the Company said it acquired the HIB Trim Part Group, a Germany-based interior supplier for high-end vehicles on May 28. The acquisition was completed in line with the agreement made in April 2013. (From an announcement by the company, May 29, 2013)
-Ningbo City Auto Plastic Mould Provincial Level R&D Center
-Ningbo Huaxiang Auto Research and Design Institute
-Shanghai Huaxiang Auto Parts Design Co., Ltd.
-Ningbo Huaxiang Automotive Parts and Accessory Systems R & D Co., Ltd.
|Year||FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||FY ended Dec. 31, 2011|
|Proportion of sales||2.49%||3.01%||3.00%|
Investment (as of Dec. 31, 2013）
|(in million yuan)|
|Project||Amount invested in 2013||Project Progress|
|Constructing R & D center||
|New plants and buildings||
Investment in China
-The Company decided at a board meeting held on September 28, 2011 that it will change the purpose of the funds that it raised from issuing new shares of unquoted securities. The company, which originally intended to invest in new equipment to manufacture seat cushions and headrests for passenger vehicles, will spend the funds instead on establishing production lines to make walnut interior trims for luxury vehicles. Investment in this project is expected to total around 152 million yuan with the annual production capacity expected to reach 150,000 sets. A major factor behind the shift in the plan is the low level of cost efficiency in the seat product segment in connection with increasing safety requirements, which is extending the time needed until the company becomes ready for mass production. (From an announcement by the company, September 29, 2011)
-The Company announced that the company would invest an additional CNY 40 million in Ningbo Huaxiang Automotive Parts and Accessory Systems R&D Co., Ltd., its research and development unit. The capital of the R&D subsidiary will thereby be increased from the current CNY 10 million to CNY 50 million. (From an announcement by the company on November 19, 2013)