Ningbo Joyson Electronic Corporation Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in millions yuan)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Increases (%) Factors
Sales 7,077.09 6,103.83 15.95% -The main operating income increased;
-Got more new contracts, especially the HMI products in China and North Amercia;
-Develop new technologies and products in HMI, and power control systems of new energy vehicles, etc.
Operating profit 424.27 379.79 11.71% -
Ordinary profit 458.71 385.65 18.94% -
Net profit 349.60 299.99 16.54% -

Major Contracts

-The Company announced that it would become a sole supplier of battery management systems for BMW's i3 and i8 electric vehicles. (From a press release on September 24, 2014)

-Preh, a subsidiary of the Company, announced in August 2014 that it would supply its new air conditioner control systems for the new Audi TT. The new control system features a temperature sensor-integrated control unit installed on the air outlet, which is a new design. (From a press release on August 12, 2014)

-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)


-The Company announced that it would acquire Germany-based Quin GmbH, a steering and interior parts supplier for luxury vehicles. Joyson Electronics would pay over EUR 90 million for the deal. The company aims to improve its capability in the human-machine interface (HMI) solutions business by integrating its technology for central control systems with Quin GmbH's expertise in interior components. Joyson Electronics will acquire the company in two phases. It will initially purchase a 75 percents share, and will purchase the remaining 25 percent share in the second phase. Quin GmbH generated EUR 92 million in sales during 2013 by supplying its products to Mercedes-Benz, BMW, Audi, and other automakers. It has R&D centers, plants, and sales offices in Germany, Poland, Romania and China. Over 1,000 people work for Quin. And the Company acquired 75 percent of Quin GmbH shares in January 2015. Quin GmbH, based in Germany, reported sales of approximately EUR 124 million and net profit of over EUR 1.1 million for 2014.

-The Company announced that it would acquire 100 percent shares in both Preh Holding GmbH and Preh GmbH (owned 94.9 percent by Preh Holding). The Company would gain a 74.9 percent share in Preh Holding GmbH from Ningbo Joyson Group for EUR 167.16 million, and would purchase a 5.1 percent share in Preh GmbH also from Ningbo Joyson Group for EUR 11.76 million. The Company will acquire the remaining 25.1 percent share in Preh Holding GmbH from seven foreign shareholders for cash. (From an announcement by the company on April 22, 2014)

New Companies

-The Company established a new wholly owned subsidiary, Wuhan Joyson Auto Parts Co., Ltd., in March 2014.

Recent Development

-Preh, a subsidiary of the Compnay, announced that it had expanded Preh de Mexico S.A. de C.V.’s Kalos Plant. The Kalos site, which opened in August 2011, had been expanded by 5,000 square meters to a total area of 13,300 square meters. New operations in the expanded area already started in November 2014. Preh de Mexico currently has 20,800 square meters of production space in Monterrey, including its 7,500-square-meter plant in Avante. These Monterrey facilities produce human machine interface (HMI) systems primarily for Ford, General Motors, BMW, and Volkswagen in North America. (From a press release on November 25, 2014)


-The Company announced that Quin GmbH, its German subsidiary, received a Supplier Award from Daimler at the automaker's 2014 supplier meeting. (From news releases issued by multiple sources on April 2, 2015)

-The Company received the 2014 GM Supplier Quality Excellence Award from General Motors North America. (From a press release on November 14, 2014)

-Preh, the Company's subsidiary in Germany, announced that it received two innovation awards from the BMW Group. The awards were given for Preh's iDrive Controller building block and 3-D test station for control surfaces. The iDrive Controller is the central control system of the center console that allows intuitive operation of infotainment functions. The iDrive controller can be used in the BMW 1, 2, 3, 4, 5, 6 and 7-Series, as well as in the BMW X3, X5 and X6. The 3-D test station is used for the contact-free measurement of control panels. (From a press release on October 13, 2014)

-Ningbo Preh Joyson Automotive Electronics Co. Ltd., a Preh subsidiary located in Ningbo, China, was awarded the Shanghai General Motors (SGM) Award for Best Quality Performance, in a recent ceremony held in Shanghai. Preh China was one of only two suppliers out of 32 to receive the prestigious award. (From a press release issued on June 12, 2014)

Business Plan for Next Year

-In 2015, the Company plans to reach 8.5 billion sales. (From the Company's 2014 annual report)

R&D Expenditure

FY ended Dec. 31, 2014
 (million yuan)
FY ended Dec. 31, 2013
 (million yuan)
FY ended Dec. 31, 2012
 (million yuan)
R&D Expenditure 357.21 253.95 187.22
Ratio of R&D expenses to sales 5.05% 4.16% 3.49%

R&D Structure

-As of 2014, the Company had more than 1,000 R&D staff.

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 Company announced in June 2014 that it opened a new testing laboratory. The laboratory was set up jointly with the School of Automotive Studies of Tongji University. The facility will serve as a development base for drive control systems and battery management systems for new energy vehicles. It is expected to help popularize these technologies in the Chinese market. (From a press release on June 12, 2014)

-The Company announced that it would launch a project to develop new energy vehicles and advanced turbocharger air duct technologies. The Ningbo City would provide a subsidy of CNY 14.95 million, of which CNY 10 million would be used as a fund for purchasing R&D equipment for the company’s new energy vehicle research center. The remaining CNY 4.95 would be spent on the development of electronic components and turbocharger air duct technologies. (From news releases issued by multiple sources on April 18, 2014)

Capital Expenditure

(in millions yuan)
Project FY ended Dec. 31, 2014
Tooling 90.46
First phase plant construction project of Liaoyuan Joyson 29.24
Machinery and equipments 25.60
Decoration, renovation and other projects 15.68
Constrution project of new industrial city 48.33