Lingyun Industrial Co., Ltd. Business Report FY ended Dec. 2013
Business Highlights
Financial Overview |
(in millions yuan) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | Rate of Change (%) | Factors | |
| Sales | 5,632.82 | 4,882.66 | 15.36% | -The Company increased R&D activities, added new products, and developed new markets in 2013, so sales in 2013 increased. |
| Operating profit | 262.73 | 272.22 | (3.49%) | - |
| Ordinary profit | 288.45 | 289.35 | (0.31%) | - |
| Net profit | 223.59 | 225.82 | (0.99%) | -PE pipes raw material price increased, gross profit decreased; -The newly set up companies have not come into operation and the fixed expense is high, thus, net profits decreased. |
Contracts
-Liuzhou Lingyun Automotive Parts Co., Ltd., a subsidiary of the Company, received an order for reinforcement thermoformed parts from SAIC-GM-Wuling. (From a press release on November 27, 2013)-The Company's Wuhan Branch won contracts of four bumper items from Dongfeng Honda. The project is expected to start mass production in September, 2016. The Company expects to produce 320,000 units within 3 years This is the second contracts the Company won from Dongfeng Honda. (From a press release on September 16, 2013)
-The Company established joint ventures with Korea GNS Co., Ltd. in Shenyang and Yantai. On May 22, 2013, the signing ceremony was held at the headquarters in Zhuozhou. GNS is one of four thermoformed products suppliers which have been approved by GM. The Company has won 44 orders of 24 kinds of thermoforming parts. The mass supply will start from 2014 to 2021. The total sales is expected to be more than CNY 1.4 billion. (From a press release on May 30, 2013)
-The Company's subsidiary, Harbin Lingyun Auto Parts Co., Ltd. successfully developed car dashboard for new Mazda 6. It is made up of central frame cross tubes and 27 beams. Harbin Lingyun has entered into Mazda market. It has successfully bid for Mazda SUV dashboard, which is currently in research and development. It has developed several kinds of dashboard models, two of them are available in volume quantities, one is being tested, one is being developed, others are participating in the bidding. (From a press release on March 21, 2013)
New Company
-The Company and GNS Solitech Co., Ltd. of Korea jointly established Yantai Lingyun GNS Technology Co., Ltd. in Yantai, Shandong. The joint venture will design, develop, manufacture and sell exhaust pipes and brake pipes. It is capitalized at USD 10 million, of which USD 5.01 million (50.1 percent) was provided by Lingyun Industrial, and USD 4.99 million (49.9 percent) was invested by GNS Solitech. (From an announcement by the company on May 17, 2013)-The Company and GNS Solitech Co., Ltd. of Korea jointly established Shenyang Lingyun GNS Technology Co., Ltd. in Dadong District, Shenyang. The new company will design, develop, produce and sell exhaust pipes and brake pipes. It is capitalized at USD 6 million of which USD 3.01 million (50.1 percent) was invested by Lingyun Industrial, and USD 2.99 million (49.9 percent) was provided by GNS Solitech. (From an announcement by the company on April 24, 2013)
-The Company established Shenyang Lingyun Automotive Industrial Technology Co., Ltd., a wholly owned subsidiary in Dadong District, Shenyang. The new company will be capitalized at CNY 30 million. It will design, develop and produce automotive products and will also offer technical services. The subsidiary will acquire approximately 40,000 square meters of land in Dadong District, Shenyang for its new production facility. (From an announcement by the company on January 29, 2013)
-The Company established Yantai Lingyun Automotive Industrial Technology Co., Ltd., a wholly owned subsidiary in Yantai. The new company will be capitalized at CNY 25 million. It will design, develop and produce automotive products, and will also offer technical services. The subsidiary will acquire approximately 40,000 square meters of land at the Yantai Economic and Technological Development Zone for its new production facility. (From an announcement by the company on January 29, 2013)
Transfer of Subsidiaries
-The Company announced that it will transfer its operations in Shanghai, Shenyang and Yantai to the following subsidiaries: Shanghai Lingyun Industry Technology Co., Ltd.; Shenyang Lingyun Automobile Technology Co., Ltd.; and Yantai Lingyun Automobile Technology Co., Ltd. All personnel, assets and liabilities will be transferred to respective companies. (From an announcement by the company on January 15, 2014)
Awards
-On March 29, the Company won 2012 Toyota Quality Award and 2012 Special Contribution Award on FAW Toyota joint supplier conference held in Tianjin. This is the highest award the Company received from Toyota. (From a press release on April 3, 2013)Business Plan for Next Year
-In 2014, the Company plans to reach CNY 5.927 billion sales and it will invest CNY 330 million. (From the Company's 2013 annual report)
R&D
R&D Expenditure
-The Company's R&D spending in 2013 was CNY 235.95 million, a 27.03% increase from the previous year's figure of CNY185.75 million.The Company's R&D expenses accounts for 4.19% of the Company's operating income.R&D Structure
-In 2013, the Company applied 112 patents and held 76 newly licensed patents. The Company had a total of 245 patents, 204 of them are utility model patents, 26 of them are invention patents.-The Company and its subsidiaries have a total of four Provincial Technology Centers, four labs approved by National Accreditation Committee, a testing center approved by North America Test Center and a state-level testing burner base, including the only one lab specialized in bumper dynamic test.
-The Company is constructing Shanghai R&D center. (From the Company's 2013 annual report)
-Lingyun Industrial’s Hebei Automotive Safety Engineering Technology & Research Center has passed joint testing by the Science and Technology Department, the Financial Department, and the Development Reform Committee of the Hebei Province. The research center consists of three sections: the Research Section for Bumper Technology; the Research Section for Bumper Beams; and the Research Section for Low Speed Collision. (From a press release on January 17, 2014)
New Products
Automotive metal and plastic parts-In 2013, the Company's 586 metal parts passed 102 car models of 43 manufacturers's review, tooling design and trial production, 146 products of 19 manufacturers have been mass production and bulk supply. (From the Company's 2013 annual report)
Plastics piping systems
-In 2013, the Company developed 364 new products, 54 of them have been mass production and bulk supply. The gearbox ventilation pipes and overflow pipes developed for Dongfeng Peugeot Citroen, Great Wall, Inergy and Changan Ford have been mass production and bulk supply; the Company successfully developed hot forming corrugated tube tanks for Audi A6L; the Company began trial production of pipes for VW MQB series cars; the Company submitted samples of fuel pipes for new Mazda 6. (From the Company's 2013 annual report)
Investment Activities
Capital Expenditure |
(in millions yuan) |
| Project | Planned money in the projects | Invested money in 2013 | Project Progress |
| Haining production facility construction | 93.00 | 21.13 | 100.00% |
| Plant 131 | 16.35 | (0.39) | 100.00% |
| Plant 132 | 68.45 | 4.20 | 100.00% |
| Thermoforming Project | 50.72 | 15.31 | 91.37% |
| New plant construction of Yancheng Branch | 50.00 | 8.83 | 93.81% |
| Office building and plant construction at Shanghai Lingyun Industry Technology Co., Ltd. | 51.31 | 2.94 | 5.73% |
| East plant construction | 35.80 | 14.91 | 42.29% |
| Phase Ⅰof plant construction at Chongqing Lingyun Auto Parts Co., Ltd. | 34.00 | 17.41 | 52.44% |
| Plant construction at Shenyang Lingyun Automobile Technology Co., Ltd. | 35.12 | 24.97 | 71.11% |
| Plant construction at Yantai Lingyun GNS Technology Co., Ltd. | 55.41 | 26.04 | 47.00% |
| Total | 490.16 | - | - |