Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2015
|(in million yuan)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Rate of Change(%)||Factors|
|Slaes||9,809.93||8,712.81||12.59%||The Company's sales increased due to the following reasons:
-The Company supplied auto parts to some hot-selling models;
-New customers brought new contracts;
-"Lean production" and "promoting automation equipment" to improve production efficiency;
-Strengthen cost control to decrease operating costs.
|Operating profit||589.06||835.42||-||-In 2015, NBHX Automotive had a 436 million yuan operating losses which had a serious impact on the overall performance of the company.|
Recent Development of Subsidiary
-The Company announced that it will add investments with Polyfoam Asia Pte. Ltd., and Kenjou Investment Co., Ltd.in their joint venture, Ningbo Inoac Huaxiang Automobile Products Co., Ltd. Polyfoam Asia is Japan-based Inoac's subsidiary and Kenjou Investment is a joint venture between Kenjou of Taiwan and Inoac. Ningbo Huaxiang Electronic will invest CNY 40.8 million, Polyfoam Asia will invest CNY 17.3 million, and Kenjou will invest CNY 18.3 million, which will change their shareholding ratio in the joint venture to 50 percent, 30 percent, and 20 percent, respectively. At the same time, Ningbo Inoac Huaxiang Automobile Products will acquire the following assets from Ningbo Huaxiang Electronic:
-100 percent of Shanghai Huaxiang Auto Parts Co., Ltd. shares
-all assets and business, excluding land, of Shanghai VW Lianxiang Automobile Products Co., Ltd.
-100 percent of Chendu Huaxiang Auto Parts Co., Ltd. shares
-25 percent of Ningbo Huaxiang Auto Trim Parts Co., Ltd. shares; the shares will be transferred from Feigmei Deutschland GMBH.
Ningbo Inoac Huaxiang Automobile Products will also acquire Polyfoam's hard/soft foam business and assets, as well as 100 percent of Dongguan Inoac Kenjou Automotive shares currently owned by Kenjou. (From an announcement by the company on February 11, 2015)
-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, 2015||FY ended Dec. 31, 2014||FY ended Dec. 31, 2013|
|Proportion of sales||2.83%||2.24%||2.49%|
Investment in China
-The Company increased its investment of CNY 30 million in Shenyang Huaxiang Auto Parts Co., Ltd. in order to expand the subsidiary’s capacity to supply products for BMW in October 2014. Shenyang Huaxiang Auto Parts’ capital will be increased to CNY 50 million after the transaction is completed. In order to expand the subsidiary's production capacity, the Company invest an additional CNY 30 million in Shenyang Huaxiang Auto Parts Co., Ltd. in February 2015. The expansion plan was decided based on large orders the company has already received for the next two years. Shenyang Huaxiang Auto Parts' capital will be increased to CNY 80 million from the current CNY 50 million after the transaction. (From an announcement by the company on February 11, 2015)