Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2018
|(in million CNY)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||Rate of Change (%)||Factors|
-In 2018, automotive industry was sluggish, which affected the Company's revenue.
-The Company's overseas business is still at a loss.
-The Company announced a plan to establish a wholly-owned subsidiary in Japan, spending USD 5 million, to strengthen business with Japanese OEMs. The subsidiary is going to be a liaison office for technologies and the market in Japan, according to the company. (From a release on January 9, 2019)
-Ningbo Huaxiang Electronic Co., Ltd. announced 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 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 will have a 30% stake in AESC (China) Power Battery. Ningbo Huaxiang Electronic will also take a stake in AESC (China). Ningbo Huaxiang Electronic intends to invest up to USD 100 million 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 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 and triangle windows. In June 2015, it was merged into Shanghai Huaxiang Automobile Products Co., Ltd. and ceased operation, and the plant is now idle. 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 Mold Provincial Level R&D Center
-Ningbo Huaxiang Auto Research and Design Institute
-Shanghai Huaxiang Auto Parts Design Co., Ltd.
-Ningbo Huaxiang Automotive Fiber R&D Co., Ltd. (Formerly: Ningbo Huaxiang Automotive Parts and Accessory Systems R & D Co., Ltd.)
|Year||FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||FY ended Dec. 31, 2016|
|Proportion of sales (%)||3.47||2.58||2.19|
-As the end of 2018, the Company had 2,361 R&D staff, 15.19% of total employees.
|(in million CNY)|
|New plant and decoration||222.43|
|Equipment to be installed||709.08|
Investment outside China
-The Company announced a plan to make an additional investment of up to EUR 43 million in its European subsidiary, NBHX Automotive System GmbH, to improve its financial and liquidity fund standings. (From a release on January 9, 2019)