Shanghai Feilo Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in millions CNY)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of Change (%) Factors
Sales 2,019.67 1,321.54 52.83 -The Company acquired 97.5% of Shanghai Delco Electronics & Instrumentation Co., Ltd. at the end of 2011, thus increasing its annual sales in 2012.
-Increased operating income of automotive instrument products.
Operating Profit 113.07 109.44 3.32 -
Ordinary Profit 121.73 114.27 6.53 -
Net Profit 114.92 107.39 7.01 -


-On March 17, 2012, the Company's board decided to bid on 20% of Shanghai Nissei Display System Co., Ltd. held by Shanghai Precision & Scientific Instrument Co., Ltd. Shanghai Nissei is located on No. 288, Chunguang Road, Shanghai Xinzhuang Industrial Zone. Its business includes the development and manufacture of motorcycle and automotive instruments, electronic remote controls and accessories. As of December 31, 2011, the assets of the Shanghai Nissei total CNY 522.73 million, its sales income is CNY 795.89 million, and its net profit is CNY 43.11 million. On April 13, 2012, the Company acquired 20% of Shanghai Nissei from Shanghai Precision & Scientific Instrument Co., Ltd. On April 18, 2012, the Company signed a "Shanghai Property Transaction Contract" with Shanghai Precision & Scientific Instrument Co., Ltd. at the price of CNY 69.79 million. (From an announcement by the Company, April 24, 2012)

Focus on Automotive Electronic Parts Business

-The Company announced that Wujiang Feilo Electronic Components Co., Ltd, its electronic material production subsidiary, will receive CNY 26.89 million in capital injection from Chori Co., Ltd. of Japan. The investment will allow the Company to increase its focus on the automotive electronic parts business. Wujiang Feilo Electronic Components is capitalized at CNY 18.10 million, of which 50 percent was invested by the Company and 50 percent was provided by private investors. The investment by Chori will increase the company's capital to CNY 25.86 million. The ownership ratio will change such that Wujiang Feilo will be 35 percent owned by the Company, 30 percent by Chori, and 35 percent by private investors. (From an announcement by the company, March 15, 2012)


R&D Expenditure

-In 2012, the Company's R&D expenses total CNY 77.03 million, a 101.46% increase over the previous year's figure of CNY 38.24 million in 2011. The Company's R&D expenses accounted 3.81% of the Company's sales in 2012.

(in millions CNY)
Project R&D Expense in 2012
Instrument meters 3.72
Air conditioning controllers 0.83

R&D Structure

-The Company has three Shanghai Municipal Enterprise Technology Centers, a District Enterprise Technology Center, two test centers which are accredited by CNAS (China National Accreditation Service for Conformity Assessment) and a joint laboratory that it shares with various universities.

-At the end of 2012, the Company had 136 patents, including 29 invention patents, 62 utility model patents, 25 design patents and 20 pieces of software copyright. As of the first half of 2013, the Company had applied for 8 new patents, including 6 invention patents, and had 13 newly authorized patents, including four invention patents.

Investment Activities

Capital Expenditure

(in millions CNY)
Project FY ended Dec. 31, 2012
New Facilities and Renovation of Older Facilities 40.56
Renovation of Existing Production Equipment 21.20
Instrumentations and Clusters 2.82

Investment In China

-The Company intended to carry out a capital increase in its subsidiary, Shanghai Yuanyi Electronics Co., Ltd., to speed up the development of automotive electronics. The increase in capital totaled CNY 29.23 million. Shanghai Yuanyi is a wholly owned subsidiary of the Company, with a registered capital of CNY 25.77 million. After the capital increase, the registered capital of Shanghai Yuanyi is CNY 55.00 million. The funds were used to expand production capacity of automotive wire harnesses and improve the infrastructure within the facility. Shanghai Yuanyi's business includes the development and manufacturing of electronic wiring harnesses, cable harnesses, power lines, optical components, car harnesses, plastic parts, sensors, fittings, frequency energy saving connection components, cable assemblies and industrial abrasives. (From an announcement by the Company, August 27, 2012)