Lingyun Industrial Co., Ltd. Business Report FY ended Dec. 2017
|(in million CNY)|
|FY ended Dec. 31, 2017||FY ended Dec. 31, 2016||Rate of change||Factors|
-Further expand the target market and promote product upgrading and transformation.
|Operating profit||696.58||468.12||48.57%||-Sales growth, profit growth.|
-On November 8, 2017, Lingyun Industrial Co., Ltd. said its subsidiary, Beijing North Lingyun Suspension System Science & Technology Co., Ltd., and 201 Institute of Norinco signed a contract with SANY Heavy Industry Co., Ltd. on the supply of 100,000 units of suspensions. The first heavy-duty truck of the 6X4 trailer heads of the company, which is built with the suspension, celebrated the production of the first unit on November 1, 2017. (From a press release on November 9, 2017)
-Lingyun Industrial Co., Ltd. said that one of its subsidiaries, Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd., acquired the right to supply battery cases for electric vehicles (EVs) to BMW. (From a press release on October 30, 2017)
-Lingyun Industrial Co., Ltd. said that one of its subsidiaries, Chongqing Changan Lingyun Auto Parts Co., Ltd., signed a contract with Dongfeng Xiaokang Automobile Co., Ltd. regarding their joint development of car components made of steel substitute materials. For Dongfeng Xiaokang, this is the first time to use composite materials. For Lingyun Industrial, this is the first time to use steel substitutes for making vehicle components. (From a press release on October 30, 2017)
-Nexteer Lingyun Driveline System (Zhuozhou) Co., Ltd., one of the subsidiaries of Lingyun Industrial Co., Ltd., has passed an assessment of Daimler-Benz’s Chinese arm in June 2017 to become one of the PA-certified suppliers. Now the company is officially included in Daimler-Benz's supply network. (From a press release on June 15, 2017)
-In March 2017, Changchun Branch passed an assessment to become a certified thermoformed component supplier of Beijing Hyundai Motor Co., Ltd.. (From a press release on March 20, 2017)
-Hebei Chinaust Automotive Plastics Co., Ltd., one of the subsidiaries of the Company, has won a new order for a fuel system global project (development code: GM9BUX) led by Inergy Automotive Systems. The Chinese company will provide 11 products for the project, worth at least Chinese yuan (CNY) 420 million in China and South Korea. The mass production for the project is slated to begin in April 2019. (From a press release on January 6, 2017)
-In February 2018, the Company announced that it intends to acquire the remaining 49% equity of Guangzhou Lingyun Xinrui Auto Parts Co., Ltd. with 15 million Yuan. After the acquisition is completed, the Guangzhou Lingyun Xinrui will become the wholly-owned subsidiary of Lingyun Industry, and its name will be changed to Guangzhou Lingyun Xinrui Auto Parts Co., Ltd. And the acquisition and renaming procedures have been completed. The operating revenue of Guangzhou Lingyun Xinrui in 2016 was 250 million Yuan, net profit was 7.58 million Yuan.
Consolidation by Merger
-In February 2018, the Company announced that it intends to merge the Hunan Lingyun Hengjin Automotive Industry Technology Co., Ltd., its wholly-owned subsidiary. After the completion of the merger, the independent legal personality of the Hunan Lingyun would be cancelled, the Lingyun Industry will establish a branch in Hunan to undertake all the assets, liabilities, personnel and business of Hunan Lingyun. Now the absorption by merger has been completed.
-In December 2017, the Company announced that the Beijing Lingyun Dongyuan Technology Co., Ltd., its holding subsidiary, would merge Jiangsu Lingyun Dongyuan Technology Co., Ltd. Both Beijing Lingyun Dongyuan and Jiangsu Lingyun Dongyuan are the joint venture of Lingyun Industry and Korea Sinto Co.,Ltd, all of which are engaged in the design, research and development, manufacturing and sales of auto parts, Lingyun Industry respectively holds 70% shares of them. After the completion of the merger, the Beijing Lingyun Dongyuan will establish a branch in Jiangsu, and all the assets, liabilities, personnel and business of Jiangsu Lingyun Dongyuan shall be undertaken by the new Branch. Now the absorption by merger has been completed.
-In December 2017, the Company announced that the Lingyun GNS Technology Co., Ltd. (abbreviation: Yantai Lingyun GNS) , its holding subsidiary, would merge Shenyang Lingyun GNS Technology Co., Ltd. and Changchun Lingyun GNS Technology Co., Ltd. The Yantai Lingyun GNS, Shenyang Lingyun GNS and Changchun Lingyun GNS are all the the joint ventures of Lingyun Industry and GNS Solitech Co.,Ltd, Lingyun Industry respectively holds 50.10% shares of them. After the completion of the merger, the Yantai Lingyun GNS will respectively establish a branch in Shenyang and Changchun, and all the assets, liabilities, personnel and business of Shenyang Lingyun GNS and Changchun Lingyun GNS shall be undertaken by the new Branch. Now the absorption by merger has been completed.
-On November 28, 2017, Lingyun Industrial Co., Ltd. and Zhejiang Hozon New Energy Automobile Co., Ltd. signed a framework agreement on their strategic partnership. First of all, the two companies are planning to start with the joint design, development, and production of automotive parts and components and step up the activities further to the joint development of platforms, modules and lighter products. (From some releases on December 1, 2017)
-Liuzhou Lingyun Automotive Parts Co., Ltd., one of the subsidiaries of the Company, has received an “Overseas Development Award” from SAIC General Motors (SAIC GM). The two companies will reinforce their alliance in the areas of high-strength, aluminum alloy, thermoforming, punch-welding and piping products. (From a press release on February 28, 2017)
-Shanghai Chinaust Automotive Plastics Co., Ltd., one of the subsidiaries of the Company, has received an excellent supplier award from Nanjing Iveco (Naveco) for its contribution to Naveco’s “AD02/TD upgrade project." In 2016, Shanghai Chinaust Automotive Plastics became Naveco’s exclusive supplier of fuel pipes, vacuum suction pipes, escape pipes, and filler pipes. (From a press release on February 28, 2017)
Business Plan for Next Year
-In 2018, the Company plans to reach CNY 12.3 billion sales and it will invest CNY 800 million. (From the Company's 2016 annual report)
|Year||FY ended Dec. 31, 2017
|FY ended Dec. 31, 2016
|FY ended Dec. 31, 2015
|Ratio of R&D expenses to operating income||3.99%||4.48%||4.11%|
-In 2017, with Shanghai Central Research Institute as the center, it has formed a technology R&D layout, synchronous R&D system and effective operation mechanism which can provides excellent service for the customers both domestic and abroad.(From the 2017 Annual Report of the Company)
-Established R&D Sub-centers in Zhuozhou and Yantai, established a European Sub-center with WAG R&D team as the core in Europe, and a R&D office was established in Nagoya, Japan, the R&D office in Detroit is under preparation. (From the 2017 Annual Report of the Company)
-On May 5, 2017, Lingyun Industrial Co., Ltd. and GNS Solitech Co., Ltd. celebrated the opening of their joint technical center, Lingyun GNS (China) Hot stamping Technical Center. The alliance between the two companies is now entering a new stage by opening a lab to set up a foundation for the development of their hot stamping businesses. (From a press release on May 8, 2017)
-By the end of 2016, the Company has a state-level Technology Center, a Products Testing Center approved by the CNACL, a provincial-level Technical Center, a provincial-level Engineering Technology Center and a Low-speed Collision Laboratory for Automobile Bumpers.
-The Company said on March 14, 2017, that one of its subsidiaries, Liuzhou Lingyun Automotive Parts Co., Ltd., has established a new joint research group with SAIC-GM-Wuling Automobile Co., Ltd. to jointly develop technologies to reduce vehicle weight. The two companies will work on aluminum alloy bumpers, aluminum alloy tube beam assemblies, door sills, battery containers, and thermoformed components to find new materials, new manufacturing processes, and new technologies that can be used practically to make vehicles lighter. (From a press release on March 21, 2017)
-In 2017, the Company applied 170 patents and obtained 128 authorized patent.
|(in million CNY)|
|Item||Budget||Investment in 2017||Project progress (%)
|Auto Parts Construction Project of Shanghai Lingyun Industrial Technology Co., Ltd.||51.31||4.00||98.32|
|Liudong Plant Phase III Project of Liuzhou Lingyun Auto Parts Co., Ltd.||25.21||9.76||62.40|
|Industrial Park Project of Chongqing Lingyun Auto Parts Co., Ltd.||100.00||82.78||85.84|