Minth Group Limited. Business Report FY ended Dec. 2013
|(in million yuan)||FY ended Dec.31,2013||FY ended Dec.31,2012||Rate of Change||Factors|
|Gross profit||1,818.57||1,434.04||26.81%||-Improve productivity and efficiency of
-Improve material utilization
-Implementation of centralized procurement
|Profit before tax||1,225.20||1,044.08||17.35%|
|Profit for the year||1,029.41||896.38||14.84%|
-In 2013, due to major customers' production increase, Japanese OEM sales recovery and orders from global platform models, the Company's revenue grew steadily. With steady growth of main overseas markets, increased orders from global platform models and the launch of production at the plants located in Mexico, the Company's overseas turnover grew to approximately CNY 1,743.73 million, representing an increase of approximately 33.0% year-on-year.(From the Company's 2013 annual report)
-In 2013, the Company's gross fit margin was approximately 33.0%, representing a year-on-year decrease of approximately 0.1% from the 33.1% achieved in 2012. 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. Through continuous improvement of manufacturing processes and technologies, better utilizing materials and implementation of centralized procurement, the Company 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 2013 annual report)
Business development-In 2013, the Company officially entered the Honda global procurement system, acquired orders of Honda global platform models and participated in global synchronization R&D of parts installed in Honda new models. The Company acquired aluminum business from GM. (From the company's 2013 annual report)
-Enboma Investments Limited, which is owned indirectly by the Company, and Sojitz Corporation signed an agreement that Enboma acquired all the shares (a 45.99 percent stake) that Sojitz owns in Plastic Trim International (PTI) in Michigan, U.S.A. After Eboma acquired the stock, it would own 95.81 percent of the joint venture, while Huge Leader Investments Limited will continue to own 4.19 percent. PTI thereby became a member of the Minth Group. PTI manufactures plastic injection molding and extraction molding parts. (From a press release on March 28, 2014)
R&D activities-In 2013, the Company continued to invest in R&D of community service vehicle parts, new energy vehicles parts and aluminum products. The Company increased investment in R&D of high-strength steel products, continued investment in new materials and new technology product application. (From the Company's 2013 annual report)
-The Group has R & D centers in Japan and North America.
|Company Name||R&D activities||Location||Shareholding (%)|
Shanghai Cogen Research and Design Co., Ltd.
Design of automobile exterior and interior decorative parts
Ningbo Minth Automotive Parts Research & Development Co., Ltd.
Design consulting on stamping dies and auto parts
R&D Expenditure-The Company's R&D spending in 2013 was CNY 259.78 million, a 12.05% increase from the previous year's figure of CNY 231.84 million. The Company's R&D spending for 2013 accounts for 4.71% of the Company's operating income for the year.
Patents-In 2012, the Group filed 167 patent applications for approval and 203 patent applications were authorised by the competent institutions.
|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.|
Investment in China
-The Company announced that it would invest USD 50 million to establish a major auto parts plant in Qingyuan City, Guangdong Province. The company and the local government have already signed a letter of intent for the project. (From news releases issued by multiple sources on January 10, 2014)
-Tianjin Minxin Machinery Co., Ltd., a wholly-owned subsidiary of the Company, would invest CNY 92 million to build an automotive trim production plant with an annual capacity for 10 million vehicles. The existing plant building will be retrofitted by introducing the lines for injection molding, coating and electroplating. The retrofitting work started in July 2013 and is scheduled to be completed in May 2014. When completed, the plant will have an annual capacity to produce front grilles for 2 million cars and door handles for 8 million cars. (From news releases issued by multiple sources on April 30, 2013)