Minth Group Limited. Business Report FY ended Dec. 2012

Business Highlights

Financial overview

(in million yuan) FY ended Dec.31,2012 FY ended Dec.31,2011 Rate of Change(%) Factors
Sales 4,329.91 3,889.41 11.33% 1)
Gross profit 1,434.04 1,362.60 5.24% -Improve productivity and efficiency of
-Improve material utilization
-Implementation of centralized procurement
Profit before tax 1,044.08 962.94 8.43%
Profit for the year 896.38 826.93 8.40%

-Due to demand from overseas customers, the Cmpany has won more orders from global vehivle makers. The Company maintained steady growth in turnover and profit in 2012. With the launch of production at the plants located in Thailand and Mexico and the increase of main overseas market,the Company's overseas turnover grew to approximately RMB 1,310,813,000, representing an increase of approximately 27.0% year-on-year.(From the company's 2012 annual report)
Gross Profit
- In 2012, the Company's gross fit margin was approximately 33.10% in 2012, representing a year-on-year decrease of approximately 1.90% from the 35.0% achieved in 2011. This was mainly due to several factors: reductions in product selling prices of the Group's products, increased labour costs, and fluctuations of exchange rate. 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 2012 annual report)

Business development

-The Company successfully entered Toyota's high-end car market, becoming a global supplier to Nissan in 2012. The Company signed an agreement with Great Wall Motor to be its strategic supplier, geot new orders for BMW global platform models, and successfully entered Daimler's global procurement system. (From the company's 2012 annual report)

- In 2012, the commencement of new seat production base and improvement of productivity ensured adequate supply of such kind of products in future market.The establishment of new production base in Thailand, Zhengzhou, Beijing, Tianjin and other areas in central and northern China will enable the Company to meet customers' demands. (From the Company's 2012 annual report)

Joint Venture

-On September 27, 2012, Minth Mexico, which is a wholly owned subsidiary of Minth Group Limited, and Tokai Kogyo Corporation announced that they had agreed to create a 50-50 joint-venture company in Mexico. The new company, TK Minth Mexico, S. A. de C. V., will be capitalized at 50,000 pesos, with Minth Mexico and Tokai Kogyo providing 25,000 pesos each. It will develop and produce resin products, injection molded products, automotive parts, and rubber materials and components. The board members of the new company will comprise five directors, three of which shall be appointed by Minth Mexico and the remaining two by Tokai Kogyo. Minth and Tokai Kogyo already operate a joint venture facility in Wuhan, China, which is called Wuhan Tokai Minth Automotive Parts Co., Ltd. (From a press release, September 28, 2012)


R&D activities

- In 2012, the Company continued to invest in R & D of community service vehicle parts, new energy vehicles parts and  aluminum products. The Company developed  electronic products and system integration products based on the customer demand in 2012. In the field of new materials and new products, the Company kept technology updates and equipment modification, improved R & D efficiency, and reduced production costs to enhance the products competitiveness. In 2012, the Company introduced international experienced research personnels, improved the talent pool and strengthened technical and cultural exchanges to enhance global product design capabilities and synchronization mechanisms. (From the Company's 2012 annual report)

- The Group has R & D centers in Japan and North America.

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 231,840,000. The proportion of the Group's turnover for the fiscal year under review was approximately 5.4%. 


-In 2012, the Group filed 167 patent applications for approval and 203 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.