Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2017
|(in million yuan)|
|FY ended Dec. 31, 2017||FY ended Dec. 31, 2016||Rate of Change||Factors|
-Sales increased due to well-balanced customer base; and many years' persistance of lean production.
-In June, 2017, the Company announced that it will invest CNY 6 million together with CIMC to establish Ningbo Huaxiang Automotive New Material Technology Co., Ltd. (temporary name). The Company will have a 60% stake in the joint venture, while CIMC 40%. The new company will specialize in the design, development, verification, sampling, testing, production, and global sales of commercial vehicles, trucks, and composite material spring and swing arms for trailers. The Company's another fiber R&D subsidiary will provide intelligent properties and technical supports to the joint venture. (The joint venture was then established in November, 2017)
-Ningbo Huaxiang Electronic Co., Ltd. said on September 29, 2017, that the company signed a memorandum of agreement with GSR GO Scale Capital Advisors and Beijing Century GSR Ventures Capital Management Co., Ltd. (Beijing GSR) regarding the use of Nissan's battery technologies to increase its production in China. GSR GO Scale Capital Advisors and Beijing GSR are going to set up a joint battery technology company, which will be owned 40% by GSR GO Scale Capital Advisors and 60% by Beijing GSR. Ningbo Huaxiang Electronic then plans to make an additional investment of Chinese yuan (CNY) 100 million and acquire a 30% stake in the new joint company. On the other hand, a Chinese joint company of Automotive Energy Supply Company (AESC), AESC (China) Power Battery Co., Ltd., is going to set up AESC (China) Power Battery Co., Ltd. (with a registered capital of CNY 2 billion) and this company is going to have a 30% stake in AESC (China) Power Battery. Ningbo Huaxiang Electronic can also take a stake in AESC (China). Ningbo Huaxiang Electronic intends to have shares of USD 100 million or less in GSR Electric to take part in the acquisition of battery business from Nissan. Ningbo Huaxiang Electronic will then be given a preferential right to take a 10% stake in the manufacturers which produce batteries based on Nissan's battery technologies in China. (From a corporate announcement on September 30, 2017)
-On October 25, 2017, Ningbo Huaxiang Electronic Co., Ltd. announced a plan to sell one of its subsidiaries, Shanghai VW Lianxiang Automobile Products Co., Ltd., to Shangai Huaxiang Explore Electronic Co., Ltd. at Chinese yuan (CNY) 28.64 million. Shanghai VW Lianxiang Automobile was established in 1997 with a registered capital of CNY 10 million as a manufacturer of automotive glass moldings and triangle windows. In June 2015, it was merged into Shanghai Huaxiang Automobile Products Co., Ltd. and ceased its entire operation. So the plant is now in idle condition. Ningbo Huaxiang Electronic, therefore, decided to sell the company to Shangai Huaxiang Explore Electronic, which runs real-estate businesses. (From a corporate announcement on October 25, 2017)
-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, 2017||FY ended Dec. 31, 2016||FY ended Dec. 31, 2015|
|Proportion of sales||2.58||2.19%||2.83%|
|(in million yuan)|
|Project||Amount of Investment||Predicted date of production|
|Renovation project for thermoforming production lines at Changchun Huaxiang, Qingdao Plant||675.59||31 Aug, 2018|
|Technical transform project for thermoforming production lines at Changchun Huaxiang, Foshan Plant||453.64||31 Aug, 2018|
|Technical transform project for 50,000-capacity high-performance composite material (such as carbon fiber) production lines for sedans||200.00||30 Jun, 2019|
|Technical transform project for 400,000-capacity high-performance composite material (such as natural fiber) production lines for sedans||147.59||30 Jun, 2019|
|Technical transform project for interior production lines||354.45||31 Jan, 2019|
|Technical transform project for electronics R&D center||179.59||31 Jan, 2020|