Changzhou Xingyu Automotive Lighting Systems Co., Ltd. Business Report FY ended Dec. 2014
|(in million yuan)|
|FY ended Dec. 31, 2014||FY ended Dec. 31, 2013||
Rate of Change
|Sales||2,016.02||1,632.30||23.51%||-Customer structure optimization. The Company increased supply to FAW-VW, Shanghai VW, FAW Toyota and other key customers; New customers like GAC Toyota brought sales increase.
-Product structure optimization. The Company increased sales of headlights, rear combination lamps and fog lamps.
-In 2014, the Company won the contract of developing combination rear lamps for Audi SUV model; the Company passed German BMW supplier review and won the contract of developing turn signal lamps and charge indicator lamps.
-In August 2014, the Company announced that Xingyu Automotive Lamps (Hong Kong) Co., Ltd., its wholly owned subsidiary, has signed an agreement to acquire a 70 percent stake in Neue I&T, an Austria-based cable supplier. In accordance with this agreement with both Mag. Michael Wagner and Innovation-technology (I&T), Xingyu Automotive Lamps (Hong Kong) plans to pay EUR 4.6 million for the deal. Neue I&T, capitalized at EUR 35,000, has already filed for bankruptcy. The company develops, produces and sells electric/electronic components and technologies such as flexible flat cables (FFCs), harnesses, and three-dimensional electronic substrates. Its major customers include Mercedes-Benz, BMW, Audi, Fiat, and Renault. On January 2015, neue I&T GmbH changed its name into I&T GmbH.
Come into Operation-The Company announced that it has completed a new LED lamp plant. The factory will start operations in June 2014, and is expected to be able to produce the planned volume of 500,000 sets per year by the end of 2014. Its annual sales are forecast to reach CNY 120 million to CNY 150 million. (From news releases issued by multiple sources on June 10, 2014)
-In 2014, the Company announced that it has won the following awards from car makers:
- Excellent Development Award from FAW Car Co., Ltd. It has also been selected as the automaker's core lighting supplier for medium- and luxury-class vehicles;
- Excellent Development Award from FAW-VW. It has also become one of VW's 10 largest suppliers;
- "Excellent Cooperation Performance Award" from Chery Automobile;
- "Special Contribution Award" from Tianjin FAW Toyota.
Business Plan for Next Year
-In 2015, the Company plans to reach CNY 2.35 billion sales and 320 million net sales.
-The Company has a R&D Technology Center.
|FY ended Dec. 31, 2014
|FY ended Dec. 31, 2013
|FY ended Dec. 31, 2012
|Ratio of R&D expenses to operating income||3.45%||3.76%||5.20%|
- The Company has obtained 13 invention patents, 100 utility model patents and 87 design patent in total.
New Products-In 2014, the Company develped the first automotive adaptive headlights (AFS) and it will be mass production in 2015.
Capital investment project
|(in million yuan)|
|Project||Budget||Investment in 2014||Project status|
|Increase annual production capacity of lamps by 0.5 million sets||588.00||113.89||44.20%|
|Lamp production and supply in Foshan Xingyu Automotive Lamps Co., Ltd.||200.00||0.27||0.13%|
Investment in China
-In December 2014, the Company announced that it would invest CNY 200 million in a new plant project for its subsidiary in Foshan, Foshan Xingyu Automotive Lamps Co., Ltd. The new plant would be constructed in two phases on 38,120.9 square meters of land. The first phase of the construction project is scheduled to begin in March 2015 and is planned to be completed in two years. The plant would have the capacity to produce 500,000 headlamp systems and 800,000 rear combination lamp systems per year. These products would be supplied mainly to FAW-VW, Dongfeng Nissan, GAC Toyota, GAC Motor, FAW Haima, Guangqi Honda and other automakers' facilities in southern China. The plant's annual sales are forecast to reach CNY 746 million and net profit is expected to be about CNY 115 million. (From announcement by the company on December 11, 2014)
-The Company announced that its subsidiary, Jilin Xingyu Automotive Lamps Co., Ltd., will establish an automotive lighting plant in Jilin. CNY 500 million will be invested in the 79,975-square-meter plant, which will consist of manufacturing facilities, a warehouse and an office building. The plant will be capable of producing lighting products for 1 million vehicles per year. These products will be supplied to customers in the Changchun region, including FAW-VW, FAW Car, FAW Jiefang, FAW Jilin and FAW Fengyue. Sales and profit are expected to reach CNY 517 million and CNY 83.63 million, respectively. (From an announcement by the Company, April 15, 2014)