Ningbo Joyson Electronic Corporation Business Report FY ended Dec. 2018
|(in million CNY)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||Rate of Change (%)||Factors|
-The acquisition of Takata's assets and corporate restructuring promoted operating income and profit growth.
-The Company renamed its subsidiary, Ningbo Joyson Automotive Electronics Co., Ltd., to Ningbo Joyson Quin Automotive System Co., Ltd., according to its announcement. In 2014, Ningbo Joyson Electronic acquired Quin GmbH, which is a global supplier of high-end automotive interior parts based in Germany. Quin is headquartered in Stuttgart and has production bases in China, Romania, Mexico, Poland, and other countries. (From a press release on May 22, 2019)
-On August 8, 2018, the Company announced a plan to consolidate Key Safety Systems Ltd. (KSS) and the assets it acquired from Takata Corporation into Joyson Safety Systems. According to the company, the merging process is proceeding smoothly. After the acquisition of Takata, Joyson Safety Systems won new orders from global automakers including VW, BMW, Ford, and Nissan. The total amount of the new orders has already reached USD 5 billion. (From a corporate announcement on August 8, 2018)
-Ningbo Joyson Electronic Corporation announced on January 10, 2018, that its wholly-owned subsidiary, Ningbo Joyson Automotive Electronics Co., Ltd., acquired 25% of the shares of QUIN GmbH, at a cost of EUR 31.81 million and raised its stake in the German manufacturer to 100% from 75%. Ningbo Joyson Electronic acquired its 75% stake in QUIN in 2015. Since then, the company renovated a research and development center and plants of QUIN and built a new plant in Mexico. Through the acquisition of QUIN, the company believes it can enrich its product lineup, develop HMI, connected car, and ADAS products, and supply smart driving systems for automakers. (From a corporate announcement on January 10, 2018)
-In the first half of 2018, Joyson Auto Safety Holdings S.A. , the Company's subsidiary, introduced Advanced Fund and PAG of strategic investor SDIC innovation management. After the introduction, the Company holds 69.22% equity of Joyson Auto Safety Holdings and Advanced Fund and PAG hold 30.78% equity of Joyson Auto Safety Holdings at USD 550 million in total. Joyson Auto Safety Holdings changed from the Company's wholly-owned subsidiary into a holding subsidiary. (From the Company's 2018 annual report)
-On October 25, 2018, the Company agreed to invest USD 10 million to establish Joyson Electronic USA LLC in Cupertino, near San Francisco, to develop and absorb the world's top autonomous driving, smart driving and new energy technology. (From the Company's 2018 annual report)
-On May 4, 2018, the Company's subsidiary Ningbo Joyson Preh Car Connect Co., Ltd. signed a strategic cooperation agreement with Morningcore Technology Co.,Ltd. The partners will develop smart vehicle connection technologies, create next-generation TBOX and Vehicle to Everything (V2X) in-vehicle electronics, and promote the existing smart IVI systems. They will develop automotive chips and terminal products by constructing R&D and industrial platforms for smart connected vehicles. Discussion on the Beidou system, Tiantong system, and wireless charging will also be conducted between the companies. (From news issued on May 8, 2018)
-On September 14, Ningbo Joyson Preh Car Connect Co., Ltd., a subsidiary of Ningbo Joyson Electronic Corporation, signed a strategic alliance agreement with Banma Network Technology Co., Ltd. The two companies will cooperate in intensively upgrading the products for automotive infotainment and driving experience and developing comprehensive solutions for intelligent in-vehicle systems. According to the agreement, Ningbo Joyson Preh Intelligent Car Networking is to focus on its IC platform software and hardware systems and make use of its automotive electronics system integration technology and extensive experience in the joint initiatives. Banma Network Technology is to supply richer and superior one-stop services that combine AliOS-based Alibaba cloud data computing ability with a powerful Alibaba business family. Banma Network Technology is an IT company that develops computer network, communication, and electronic technologies. It was established in 2015 jointly by Shanghai Automotive Industry Corporation and Alibaba Group Holding Limited. “Banma Zhixing System” is one of its affiliates. (From a release on September 17, 2018)
-E. I. du Pont de Nemours and Company (DuPont) unveiled its Accelerating Hybrid-Electric Autonomous Driving (AHEAD) for the first time at the 1st China International Import Expo (CIIE 2018). AHEAD is a program for accelerating the development of vehicle electrification, autonomous driving, and IoV. It combines DuPont’s innovative products and technologies to support new types of vehicles including electric vehicles and hybrid vehicles. At CIIE 2018, DuPont formed a technical tie-up with NIO Inc. It also agreed to collaborate in promoting AHEAD in China with Ningbo Joyson Electronic Corporation and Roborock, and signed strategic alliance agreements. (From media reports on November 6, 2018)
-On February 26, 2018, the Company announced that one of its group companies, Ningbo Preh Joyson Automotive Electronics Co., Ltd., received an Excellent Quality Performance Award 2017 from SAIC VW and a Leading Quality Award from SAIC GM. Ningbo Preh Joyson Automotive Electronics joined SAIC VW's supplier network in 2011 and SAIC GM's supplier network in 2013. (From a press release on February 27, 2018)
-By the end of 2018, the Company had over 5,000 global patents and R&D personnel of over 5,000.
|FY ended Dec. 31, 2018
|FY ended Dec. 31, 2017
|FY ended Dec. 31, 2016
|Ratio of R&D expenses to sales||6.94||7.44%||6.25%|
-The Company has R&D centers in Ningbo, Shanghai and Changchun. It has the ability to synchronize 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.
-KSS: There are three R&D centers in the world, which are located in Michigan, US; Suzhou, China; and Seoul, Korea. R&D centers worked on internal, front and side-looking products. In addition, the company is expanding R&D centers of the active safety division of KSS and Preh intelligent vehicle division in China.
-Preh GmbH: The company has R&D functions in Germany, the United States, Romania and China. Preh opened a new research and development (R&D) center in Bad Neustadt an der Saale, Germany, in April 2017. The core competence covers product design, structural design, hardware and software development and testing, sensor technology, industrial engineering and tooling technology, etc. The lab will focus on developing intelligent drive control systems and new-energy-vehicle power management systems.
-QUIN Germany: On March 8, 2018, the company completed construction of another global R&D center in Stuttgart, after the start of operation of its R&D center in Puri, Germany. The new center had an investment of EUR 10 million and covers a land of 4,400 sqm. The construction will take 27 months. The center will specialize in vehicle functional components and automotive electronics. It will enhance innovation development of QUIN Germany, a subsidiary of the Company. QUIN Germany is a leading global high-end supplier of vehicle functional powertrain systems. Its sales doubled in three years after acquisition by the Company. It will achieve double-digit sales growth in 2018. (From news issued on March 9, 2018)
-Joyson Electronic: On February 2, 2018, the Company's new 232 acre industrial city started operation. The city acts as the Company's smart driving and NEV industrial facility. It is also a trial demonstration project for smart manufacturing and industry internet application authorized by the government. The facility features an R&D center, administration headquarters, and plants and can carry out NEV power management system research, development, and manufacturing, smart driving product manufacturing, smart connected vehicle manufacturing, and Joyson's security system manufacturing for the Vision brand. It will mainly produce products such as HMIs and BMSs, which will be widely used in the main models of automakers including BMW, Benz, VW, Ford, and GM. (From news issued on February 9, 2018)
|(in millions CNY)|
|Project||Investment in 2018|
|Machinery and equipment||1,576.85|
|Decoration, renovation and other projects||56.49|
|Construction project of Joyson new industrial city||104.60|