Minth Group Limited. FY2011

Business Highlights

Financial overview

(in million yuan) FY2011 FY2010 Rate of Change(%) Factors
Sales 3,889.41  3,575.59 8.78% 1)
Gross profit 1,362.60 1,307.44 4.22%
Profit before tax 962.94  972.40 (0.97%) -
Profit for the year 826.93 849.71 (2.68%)

-The rate of growth in sales turnover at the Group has slowed down, resulting from a decline in the growth of the auto industry in China and from the negative impact that the Great East Japan Earthquake in Japan had on operations. The sales in China increased to RMB 2,857,134,000, representing an increase of 4.5% year-on-year. With the launch of production at the plants located in Thailand and Mexico, the increase in exports arising from the recovery in the US market, and strategies at OEMs to procure parts globally, the Group's overseas turnover grew to approximately RMB 1,032,271,000, representing an increase of approximately 22.7% year-on-year. (From the company's 2011 annual report)

Gross Profit

-In 2011, the Group's gross profit margin was approximately 35.0% in 2011, representing a year-on-year decrease of approximately 1.6% from the 36.6% achieved in 2010. This was mainly due to several factors: increases in raw-materials prices in the international markets, increased labour costs, appreciation of the RMB, reductions in product selling prices of the Group's products, and slower sales growth. In order to offset the unfavorable impact of market forces, the Group undertook measures such as continuously improving its manufacturing processes and technologies, better utilizing materials, and implementing a centralised procurement policy. In addition, the Group continued to enhance the efficiency of both production and management, to maintain the overall gross profit margin at a decent level. (From the company's 2011 annual report)

Business development

-The Group has further increased the number of customers it serves across the globe. Audi Germany, Dongfeng Yulon, GAC Mitsubishi, GAC FIAT and Renault Romania are some of its new customers. Meanwhile, the Group first delivered genuine service parts to Dongfeng Honda. By way of optimising its customer mix and strengthening the relationship with its key customers, in 2011, the Group won more orders worldwide from Nissan Motor, consolidated its business partnership with Toyota China, which in turn enhances the Group's penetration in Toyota China and lays a solid foundation for expanding together with Toyota's global business. The Group has also successfully provided BMW with concurrent designs in China, North America and Europe, becoming a global supplier to BMW. (From the company's 2011 annual report)

-In 2011, the commencement and operation of the new plant assembling seat frame systems has further increased the Group's sales and market share of such products and enriched the Group's product range. This over time will help to gradually diversify the profit sources of the Group. The Company has either established or enlarged its plants in Liuzhou, Wuhan and Huai'an, China; consolidated its existing plants outside China, and explored emerging markets in a proactive and progressive manner to meet the needs and plans of its customers and to refine its global operations. (From the company's 2011 annual report)

Joint Venture 

-Cheerplan (China) , a subsidiary of the Company, entered into a joint venture agreement with Tokai Kogyo Co., Ltd. to establish a 50-50 joint venture, Wuhan Tokai Minth Automotive Parts Co., Ltd., in China. Cheerplan (China) and Tokai Kogyo will each invest 2.5 million US dollars in the new company to engage in research, development, manufacture, production and sale of resin products, plastic injection products, key automobile parts and components, rubber materials, rubber products and construction materials. (From an announcement of the Company on September 28, 2011)


R&D activities

-In 2011, the Group laid technological foundations for R&D in new businesses such as parts for community service vehicles, new energy vehicles, and their related parts. Research on electronic products and system integration have led to their being launched in the market. Providing design services globally for products has brought more opportunities for high quality business and global opportunities, which are expected to become the Group's new competitive advantage. The Group has built up an international professional research team through introducing more extensive international research personnel, increasing the exchange of technical expertise among domestic and overseas research teams, as well as keeping abreast of the trend in international technological developments. (From the company's 2011 annual report)

R&D facilities

Company Name R&D activities Location Shareholding (%)

Shanghai Cogen Research and Design Co., Ltd.

Design of automobile exterior and interior decorative parts

Shanghai 100

Ningbo Minth Automotive Parts Research & Development Co., Ltd.

Design consulting on stamping dies and auto parts


R&D Expenditure

-The research expenditures of the Group in R&D activities amounted to approximately RMB 209,377,000. The proportion of the Group's turnover for the fiscal year under review was approximately 5.4%. 


-In 2011, the Group filed 209 patent applications for approval and 181 patent applications were authorised by the competent institutions.

Technical alliance

Partner Agreement
Sankei Giken Holdings Co.,Ltd.

To provide technology, technological support, and expertise on certain types of auto-parts to the Group and to grant non-exclusive rights to use the technological expertise to manufacture auto-parts for Guangzhou Honda and Dongfeng Honda (Wuhan).

AAPICO Hitech Public Company Limited

To provide technical services and activities related to the design, manufacture, sale, import, export and after-sales services of automobile components in Thailand.

Tokai Kogyo Co., Ltd. 

To provide technological support.