China Auto Electronics Group Limited (THB Group) Business Report FY ended Dec. 2013
|(in million yuan)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Rate of change (%)||Factors|
|Profit before tax||125.89||10.75||1071.07%|
|Profit after tax||106.62||4.19||2444.63%|
-In 2013, Company sales increased 26% to approximately RMB 1,957.62 million. The Company also recorded a net profit after tax of RMB 106.62 million in FY 2013. Due to improved pricing of products, lower material prices and higher production efficiency, the overall gross profit margin increased to 20%. The Company's operating profit increased 39% to RMB 388.60 million in 2013.
-In 2013, the Company's China operations revenue improved by 25% to RMB 1,600 million. The strong recovery in China economic helped to improve its performance. Furthermore, due to improved pricing of products, lower material prices and higher production efficiency, the gross profit margin of the Company's China operations increased from 21% to 23%.
-The Company's overseas operations recorded a 30% increase in revenue to approximately RMB 371.1 million in 2013. This was mainly attributable to higher sales in USA and Europe despite the challenging economic climate. Due to improved pricing of products, lower material prices and higher production efficiency, the gross profit margin of the Company's overseas operations increased from 2% to 5%
-In March 2014, Henan Tianhai Electric Co., Ltd, a subsidiary of the Company, entered into a Sale and Purchase Agreement with Yueqing Sanzhong Connectors Factory to acquire the remaining 20% equity interest in Hebi Tianzhong Connectors Co., Ltd, for a purchase consideration of RMB1.7 million. The acquisition was completed on 21 March 2014. Thereafter, Hebi Tianzhong becomes a wholly owned subsidiary of Henan Tianhai.
Pass the Test
-The Company announced that it has passed a supplier qualification testing conducted jointly by Daimler Greater China Ltd. and Fujian Benz. (From a press release on October 22, 2013)
-The Company has a total of six engineering research centers. These centers include its research institute, which is a national-level technology center, the Henan Province automotive electrical engineering technology research center and the Henan Province automotive electronics engineering technology research center. The Company conducts R&D activities on connectors, wiring harnesses, auto electronics, harness equipment and parts for clean-energy vehicles.
-The Company established a R&D Centre in Shanghai, which focuses on automotive electrical and electronics distribution system.