Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2016
|(in million yuan)|
|FY ended Dec. 31, 2016||FY ended Dec. 31, 2015||Rate of Change||Factors|
-In 2016 the Company's main customers' sales increased significantly over last year;
-The Company announced on June 8, 2017, a plan to set up a new company with a capital of Chinese yuan (CNY) 6 million, jointly with CIMC Vehicles Group Co., Ltd. The new joint company, which is tentatively named Ningbo Huaxiang Automotive New Materials Co., Ltd, will be owned 60% by Ningbo Huaxiang Electronic and 40% by CIMC Vehicles Group. Its main products will be leaf springs and swing arms made of composite materials for the use in commercial vehicles, cargo vehicle, and trailers. It will be engaged in designing, developing, testing, making prototypes, measuring, manufacturing and global sales. A subsidiary of Ningbo Huaxiang Electronic, Ningbo Huaxiang Automotive FiberTec R&D Co. ,Ltd., will offer the support regarding intellectual property rights and technological issues. (From a corporate announcement on June 8, 2017)
-The Company announced that it has signed an agreement with HIB Rolem Trim on a USD 30 million plant project in Romania. Construction on 15,000 square meters of land will begin in the first quarter of 2017, and is scheduled to be completed by 2019. The plant's main products will be instrument panels, center consoles, and door panels for Mercedes-Benz's small models, and the facility is expected to create 265 new jobs. In December 2016, Ningbo Huaxiang Electronic and HIB Rolem Trim will open a joint-venture plant. EUR 10 million has been invested and 200 people will work at this plant, which will produce interior components for BMW.
HIB Trim Part Solutions, a parent company of HIB Rolem Trim, had been acquired by Ningbo Huaxiang Electronic in 2013. (From news releases issued by multiple sources on October 8, 2016)
-Ningbo Huaxiang Electronic Co., Ltd. announced that it has agreed with Grupo Antolin Irausa, S.A. that Ningbo Huaxiang will acquire the 50% of Ningbo Antolin Huaxiang Automobile Products Co., Ltd. shares that are held by Grupo Antolin Irausa for CNY 119 million. Ningbo Antolin Huaxiang Automobile Products mainly produces door trims and door module systems. After the transaction, it will be converted into a wholly owned subsidiary of Ningbo Huaxiang. (From an announcement by the company on June 17, 2016)
-Ningbo Huaxiang Electronic Co., Ltd. announced that it has agreed with Grupo Antolin Irausa, S.A. that Ningbo Huaxiang will acquire the 50% of Yangzhou Antolin Huaxiang Auto Trim Products Co., Ltd. shares that are held by Grupo Antolin Irausa for CNY 46 million. Yangzhou Antolin Huaxiang mainly produces door trims and door module systems. After the transaction, it will be converted into a wholly owned subsidiary of Ningbo Huaxiang. (From an announcement by the company on June 17, 2016)
-Ningbo Huaxiang Electronic Co., Ltd. announced that it will issue new shares and acquire 100% stake in Ningbo Lawrence Automotive Interiors Co., Ltd. from Ningbo Fengmei Industrial Co., Ltd. for CNY 1.37 billion. Ningbo Lawrence Automotive Interiors was established in 2014. It supplies interior components made of natural wood (peach tree) to Cadillac, Peugeot, Citroen, Land Rover, Ford, Lincoln, Volvo, BMW, Rolls Royce, and other brands. (From an announcement by the company on March 22, 2016)
-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, 2016||FY ended Dec. 31, 2015||FY ended Dec. 31, 2014|
|Proportion of sales||2.19%||2.83%||2.24%|
Investment in China
-The Company said on December 30, 2016, that it will increase the capital of the company’s subsidiary, Shenyang Huaxiang Automotive Parts Co., Ltd., by Chinese yuan (CNY) 40 million in order to reinforce Shenyang Huaxiang Automotive Parts. After the capital increase, Shenyang Huaxiang Automotive Parts will have a capital of CNY 120 million. (From a corporate announcement on December 30, 2016)
-Ningbo Huaxiang Electronic Co., Ltd. announced that it will increase its investment in NBHX Automotive System GmbH, its wholly owned subsidiary in Germany. The company will invest an additional EUR 50 million to help NBHX achieve a turnaround and to increase the subsidiary's capital to EUR 55 million. NBHX posted a loss in the fourth quarter of 2014 due to a quality problem with its new product. Further, in 2015, the company incurred a larger-than-expected loss in connection with production launch of other new products, postponed retirement of special managers, and increased number of Chinese staff. (From a press release on January 28, 2016)