Lingyun Industrial Co., Ltd. Business Report FY ended Dec. 2015
|(in millions yuan)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Rate of Change||Factors|
|Sales||7,244.79||6,553.59||10.55%||-The Company increased R&D activities, added new products, and developed new markets in 2015, so sales in 2015 increased.|
|Operating profit||375.03||339.12||10.59%||-The Company's 2015 sales increased, thus, 2015 profits increased.|
-The Company announced that its group companies were awarded major new contracts during the first half of 2015:
-Wuhan Lingyun Auto Parts Co., Ltd. received an award to supply front bumpers for Dongfeng Honda’s 2HX and 2CL. This is the third time that the company was awarded a contract from Dongfeng Honda. The 2HX includes the 2017 CRV. Its output will begin in May 2017 and is expected to reach 540,000 units in three years. The 2CL is the improved model of the 2CN Jade. Its production will begin in December 2016, and output is expected to reach 216,000 units in three years.
-Hebei Chinaust Automotive Plastics Co., Ltd. received an exclusive supply contract to provide urea SCR system pipes to Beijing Foton Daimler Automotive.
(From a press release on July 6, 2015)
-In November 2015, Kiekert AG, the Company's subsidiary, held a press meeting at its plant in Changshu, China, and said that it will increase its investment in the Chinese market. The company forecasts its worldwide sales will reach CNY 6 billion in 2015, of which CNY 840 million is expected to be generated in China. The company acquired Henan North Xingguang Locking Systems in Zhengzhou earlier this year, and plans to integrate this company's operations into its own plant in Changshu. The integrated unit will be operated as Kiekert China Zhengzhou (KCZ). It will control production processes and product quality. (From news releases issued by multiple sources on November 18, 2015)
-The Company announced that it will acquire 100 percent of Waldaschaff Automotive GmbH (WAG) shares for EUR 3.5 million. WAG is an auto parts supplier based in Wolfsburg, Germany. It is capitalized at EUR 1 million. The company supplies door modules and frames, rear fenders, engine hoods, and other structural components to automakers such as Volkswagen, Ford Motor, General Motors, and BMW. (From an announcement by the company on May 1, 2015)
-The Company announced that Waldaschaff Automotive GmbH (WAG) of Germany will make in-kind contribution in the form of technology in Lingyun's wholly owned subsidiary, Shenyang Lingyun Automobile Technology Co., Ltd. The subsidiary will thereafter change its company name to Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. Shenyang Lingyun Waldaschaff Automobile Technology will be capitalized at CNY 88.31 million. WAG will own 21.98 percent of the company's shares, while Lingyun will own the remaining 78.02 percent. (From an announcement by the company on July 1, 2015)
Off the Line
-The Company announced that Nexteer Lingyun Driveline (Zhuozhou) Co., Ltd., its joint venture with the Nexteer Automotive Group, produced its 1 millionth drive shaft for the year on September 29, 2015. It was the first time that the subsidiary's annual drive shaft production exceeded 1 million units. (From a press release on October 12, 2015)
Pass the Audit
-The Company announced that Nexteer Lingyun Driveline (Zhuozhou) Co., Ltd., which is its joint venture with the Nexteer Automotive Group, passed the Formel-Q7 A-class supplier test performed by Volkswagen China on July 9-10, 2015. The company expects this achievement will enable the joint venture to stably supply its products to Volkswagen Europe, Volkswagen Mexico, Shanghai VW, and FAW-VW for vehicles based on the MQB platform. (From a press release on July 17, 2015)
Business Plan for Next Year
-In 2016, the Company plans to reach CNY 7.96 billion sales and it will invest CNY 420 million. (From the Company's 2015 annual report)
|Year||FY ended Dec. 31, 2015
|FY ended Dec. 31, 2014
|FY ended Dec. 31, 2013
|Ratio of R&D expenses to operating income||4.11%||4.31%||4.19%|
-As of Dec. 31, 2014, the Company has a state-level enterprise technical center, a national quality control and evaluation lab, five labs approved by National Accreditation Committee, seven provincial-level technology centers and a provincial engineering technology research center.
-In 2015, the Shanghai R&D sub-center of Lingyun Co., Ltd. operated independently.
-In 2015, the Company applied 158 patents and held 120 newly licensed patents.
-The Company's R&D center announced that its original electrode device for spot welding has acquired China’s utility model right. (From a press release on January 20, 2015)
Automotive metal and plastic parts
-In 2015, the Company completed 68 kinds of 113 new products development.
Plastics piping systems
-In 2015, the Company developed more than 2,100 new products.
|(in millions yuan)|
|项目||Budget||Investment in 2015
|Office building and plant construction at Shanghai Lingyun Industry Technology Co., Ltd.||51.31||9.14||67.78%|
|East plant construction||35.80||18.22||100%|
|Phase II of plant construction at Chongqing Lingyun Auto Parts Co., Ltd.||40.05||18.38||100%|
|Plant construction at Liuzhou Lingyun Automotive Parts Co., Ltd.||28.28||17.45||100%|
Phase II of plant construction at Liuzhou Lingyun
Plant construction at Yantai Technology
Plant construction at Chengdu Lingyun
Phase I of plant construction at Tianjin Lingyun
Investment in China
-The Company announced that it will invest another USD 4 million in Changchun Lingyun GNS Technology Co., Ltd. with GNS of Korea , their joint-venture company, to mass produce new products and expand their market. Lingyun Industrial will provide USD 2,004,000, while GNS will provide USD 1,996,000, in accordance with their shareholding ratio. After the transactions, Changchun Lingyun GNS Technology's capital will increase to USD 13 million. Lingyun Industrial will continue to hold a 50.1% share in the joint venture. (From an announcement by the company on December 26, 2015)