Ningbo Joyson Electronic Corporation Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in millions yuan)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Increases (%) Factors
Sales 6,103.83 5,358.46 13.91 -The Company sales rose in 2013 because of the following reasons:
the Company received a series of new orders in North America and China;
the Company developed automotive electronics in domestic market;
the Company completed acquisitions of Preh Holding GmbH and its subsidiaries.
Operating profit 379.79 300.14 26.54 -
Ordinary profit 385.65 311.71 23.72 -
Net profit 299.99 248.85 20.55 -

Major Contracts

-Preh, a subsidiary of the Company, announced that its new central control system would be used on the new BMW X5. The system was developed at Preh's headquarters in Bad Neustadt, Germany. The panel with the sophisticated 3D-coutour is made at Preh’s plant in Bad Neustadt. All the other components including electronic components are manufactured at the company’s facility in Monterrey Mexico. The products would be supplied to BMW’s plant in Spartanburg, South Carolina, U.S.A. (From a press release on March 24, 2014)

-Preh, a subsidiary of the Company, announced that it would supply its battery management systems for the fully electric BMW i3. Preh is currently the sole battery management systems supplier to the BMW Group. Produced at Preh’s headquarters in Bad Neustadt, Germany, the battery management control system comprises the battery management unit (BMU) and the Cell Supervising Sensor Unit (CSSU). Preh also supplies control systems for the i3’s interior: the iDrive Touch Controller and the so-called Driving Experience Control. Other BMW models that use Preh's battery management system include the ActiveE pure electric, the ActiveHybrid 5 hybrid vehicle, and the BMW C evolution e-scooter. (From a press release on March 6, 2014)

-Preh GmbH, a subsidiary of the Company, said it has developed a rear seat climate control system for the Mercedes-Benz S-class. The high-performance control panel weighs only 200 grams, achieving a more than 50 percent reduction in weight compared with previous models. Such improvements were made possible with the introduction of a light guide design and the adoption of silicone contact mats. (From a press release, August 2, 2013)

-Preh GmbH, has developed an integrated center console unit for the Lincoln MKZ. This console unit consists of an air conditioning system and infotainment devices, which include a telephone, a navigation system, a radio and an audio device. Production of the console units will take place at Preh's headquarters in Bad Neustadt, where products for current Lincoln models have already been produced. (From a press release, April 1, 2013)


-In 2013, the Company's subsidiary, Preh GmbH, has taken over the software development company Innoventis GmbH in Wurzburg. Innoventis focuses on test systems, software components engineering services in the field of electronic network systems in motor vehicles associated sectors. With the takeover, Preh is increasing its development capacities in Germany to support growth on the global automotive electronics market. (From a press release, August 29, 2013)

-Zhejiang Bosen Electronic Co., Ltd., which is a wholly owned subsidiary of the Company, announced that it acquired a 25 percent share in Ningbo Joyson Electronics Co., Ltd. from Bosen (China) Holding Limited for CNY 212.86 million. After the completion of the transaction, Ningbo Joyson Electronics Co., Ltd. became a wholly subsidiary of the Company. (From an announcement by the company, April 25, 2013)


-In January 2013, Ningbo Joyson Automotive Electronic Co., Ltd., a subsidiary of the Company, received Shanghai GM's Excellent Supplier Award 2012 in the Technology Innovation category. (From a press release, February 17, 2013)

-In 2013, the Company was awarded "Outstanding Supplier" from Shanghai VW and Shanghai GM for the second year. (From the Company's 2013 annual report)

Business Plan for Next Year

-In 2014, the Company plans to reach 7.0 billion sales. (From the Company's 2013 annual report)


R&D Expenditure

-The Company's R&D spending in 2013 was CNY 253.95 million, a 35.64% increase from the previous year's figure of CNY 187.22 million. The Company's R&D spending for 2013 accounts for 4.16% of the Company's operating income for the year.

R&D Facilities

-The Company has R&D centers in Ningbo, Shanghai and Changchun. It has ability of synchronizing development with domestic and foreign customers. The research areas include:
  • Product modeling
  • Product design and development
  • Mold design and development
  • Tooling equipment design and development
  • Technology development
  • Hardware and software development
  • Electronic information development.
-The Company has R&D center in Germany as the core of Preh GmbH. The core competence covers product design, structural design, hardware and software development and testing, sensor technology, industrial engineering and tooling technology, etc.

-The Ninbo Joyson Group, a parent company of the Company, established New Energy Vehicles Research Academy to carry out pilot projects as part of Ningbo city’s EV and HV industry technology innovation program. It will develop battery control systems for hybrid and electric vehicles. (From a press release, November 20, 2013)

New Product

-Preh GmbH, a subsidiary of the Company, would present a new center console concept at the International Motor Show IAA 2013 in Frankfurt. The new series products are characterized by three-dimensionally shaped genuine glass and three-dimensional function icons. These icons can be produced without using LCD displays. They are produced by Preh’s fourth-generation black panel display technology. The touchpad in the front of the central armrest provides haptic feedback. In addition to realize obligatory character recognition, it includes a function which is similar to the mouse cursor, which moves to achieve target selection. (From a press release, September 11, 2013)

-In April 2013, the Company launched self-developed turbo intake and exhaust systems with core patents. As of December 2013, the Company has the capacity of 30 million units/year. (From the Company's 2013 annual report)

Investment Activities

Capital Expenditure

(in millions yuan)
Project FY ended Dec. 31, 2013
Tooling 115.03
First phase plant construction project of Liaoyuan Joyson 16.25
Machinery and equipments 79.58
Decoration, renovation and other projects 3.80