China Auto Electronics Group Limited (THB Group) Business Report FY ended Dec. 2014
|(in million yuan)|
|FY ended Dec. 31, 2014||FY ended Dec. 31, 2013||Rate of change (%)||Factors|
|Profit before tax||159.25||125.89||26.50%|
|Profit after tax||134.52||106.62||26.17%|
-In 2014, Company sales increased 17% to approximately RMB 2,295.85 million. The Company also recorded a net profit after tax of RMB 134.52 million in FY 2014. Due to higher sales volume, the overall gross profit margin increased to 20%, the same as last year. The Company's operating profit increased 17.88% to RMB 458.10 million in 2014.
-In 2014, the Company's China operations revenue improved by 10.8% to RMB 1,800 million. The gross profit of China operations had increased by 16.8% mainly due to higher sales volume.
Operations Outside China
-The Company's overseas operations recorded a 45.1% increase in revenue to approximately RMB 538.6 million in 2014. This was mainly attributable to higher number of new car models being launched to meet customers’ demands in the US.
-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
-In December 2014, the Company announced that Hebi Tianhai Huanqiu Electric Co., Ltd., its subsidiary, has passed quality control testing conducted by Daimler. The company expects this achievement will lead to cable and wire harness business for Mercedes-Benz vehicles. (From a press release on January 5, 2014)
-In August 2014, the Company said its wire harness for GAC Gonow Automobile Co., Ltd.’s new model (development code: GA1027) has passed the PPAP (Production Part Approval Process) testing. China Auto Electronics has thereby become a designated supplier to GAC Gonow Automobile. (From a press release on August 22, 2014)
-In 2014, the Company and its subsidiaries have got the following awards:
- The Company obtained "Outstanding Business Performance Award" from Chery Automobile;
- Hebi Tianhai Huanqiu Electric Co., Ltd., the Company's subsidiary, has won General Motors 2014 Supplier Quality Excellence Award;
- Fujian Juan Kuang Wireharness Electric Co., Ltd., the Company's subsidiary, obtained "2014 Excellence Annual Cost Award" from South East (Fujian) Motor.
-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.
-The total R&D expenditure in 2014 was CNY 72.50 million, accouting for 3.16% of the Company's sales. (From the Company's 2014 annual report)