Lingyun Industrial Co., Ltd. Business Report FY ended Dec. 2018
Financial Overview |
(in million CNY) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | Rate of change (%) | Factors | |
| Sales | 12,251.83 | 11,844.95 | 3.44 | -The Company promoted optimization and upgrading of product structure and continuously improved industrial layout, thus, the Company's sales volume of auto parts products continued to grow. In addition, the Company focused on the high-end market of new energy vehicles recently and achieved partial volume supply. |
| Operating profit | 675.48 | 696.58 | (3.03) | - |
| Ordinary profit | 677.97 | 705.31 | (3.88) | |
| Net profit | 554.34 | 573.91 | (3.41) |
Contract
-The Company received a letter of product confirmation from Beijing Benz Automotive Co., Ltd. for the supply of battery cases of some models of the automaker. The company currently supplies battery cases for the Porsche J1, and the all-new BMW X3 and I20. (From a press release on January 17, 2019)
-Hebei Chinaust Automotive Plastics Co., Ltd., the Company's subsidiary, successfully obtained the approval of Nissan for its PA12/PA9T pipes and became the first domestic supplier to obtain the approval of Nissan's plastic pipe. (From official website of the Company on December 11, 2018). In November 2018, Hebei Chinaust Automotive Plastics Co., Ltd., the Company's subsidiary, became the first cooling pipeline supplier of Weichai (Weifang) New Energy Technology Co., Ltd. The Company obtained the first sample qualification for the first batch of bus battery pack cooling tube projects jointly developed by Weichai and Yangzhou Yaxing. It is expected that the project will be put into production in 2019. (From official website of the Company on November 27, 2018)
Acquisition
-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. 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. The absorption by merger has been completed.
Business Plan for Next Year
-In 2019, the Company plans to reach CNY 13.072 billion sales and CNY 670 million net profit. (From the Company's 2018 annual report)
R&D Expenditure
| Year | FY ended Dec. 31, 2018 (million CNY) |
FY ended Dec. 31, 2017 (million CNY) |
FY ended Dec. 31, 2016 (million CNY) |
| R&D Expenditure | 467.65 | 472.50 | 398.49 |
| Ratio of R&D expenses to operating income | 3.82 | 3.99% | 4.48% |
R&D Facility
-Through resource integration, the core of the Lingyun Central Research Institute has been formed. Meanwhile, the Company has a state-level Technology Center, 10 national-level laboratories and testing centers, 9 provincial-level technical centers, and 1 national-level municipal engineering pipeline training center. The Company also has professional innovation strength of the bumper collision test laboratory, which passed a series of international quality system certifications. (From the Company's 2018 annual report)
Patents
-In 2018, the Company applied 218 patents, 69 of them are invention patents.
Capital Expenditure |
(in million CNY) |
| Project | Budget | Investment in 2018 | Project progress (%) |
| Welding equipment of instrument panel bracket assembly | 6.48 | 2.63 | 80.37 |
| Welding equipment of instrument panel bracket assembly (left) | 2.68 | 1.07 | 80.03 |
| Welding equipment of instrument panel bracket assembly (right) | 2.46 | 0.97 | 79.53 |
| Energy absorber box bumper | 11.42 | 0.07 | 100 |
| Welding equipment bumper | 13.18 | 4.22 | 82.55 |
| Liudong plant Phase III project of Liuzhou Lingyun Auto Parts Co., Ltd. | 25.21 | 21.66 | 100 |
| Harbin Hydraulic line of Liuzhou Lingyun Auto Parts Co., Ltd. | 11.70 | 7.15 | 61.13 |
| Phase II plant project of Liuzhou Lingyun Auto Parts Co., Ltd. | 8.90 | 5.17 | 100 |
| R&D Center comprehensive building project of Codan-Lingyun Automotive Rubber Hose Co., Ltd. | 19.79 | 4.19 | 21.17 |
| Multilayer corrugated pipe extrusion line of Shanghai Yada Automobile Plastic Products Co., Ltd. | 3.50 | 1.03 | 50 |
| Phase II plant project of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 20.00 | 12.52 | 62.70 |
| G28 welding station of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 4.87 | 4.00 | 82.02 |
| CMT welding line of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 9.00 | 3.08 | 34.19 |
| G08 aluminum alloy laser welding workstation of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 9.98 | 2.56 | 25.64 |
| G08 automated production line of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 45.00 | 11.64 | 25.86 |
| SG127 rolling line of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 3.70 | 3.68 | 90.00 |
| G08 aluminum alloy riveting standard parts workstation of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 3.88 | 3.34 | 86.21 |
| G28 energy box punching automatic production line of Shenyang Lingyun Waldaschaff Automobile Technology Co., Ltd. | 3.04 | 2.62 | 86.21 |
| Information system transformation project of Codan-Lingyun Automotive Rubber Hose Co., Ltd. | 6.84 | 5.62 | 82.20 |
| Water pipes production line of Codan-Lingyun Automotive Rubber Hose Co., Ltd. | 7.62 | 2.54 | 33.27 |
| Thermoforming production line of Lingyun GNS Technology Co., Ltd. | 12.51 | 6.42 | 51.28 |
Investment in China
-On May 11, 2018, the Company’s Hunan Branch released an environmental assessment of its new automotive component plant that the Company is going to invest Chinese yuan (CNY) 30 million in establishing an annual production capacity of 300,000. According to the announcement, the new plant will be built on a site of 12,951 square meters and produce window frames, impact beams, and wheel covers, for example. The products are for the Lavida and the Touran, which are produced at Shanghai Volkswagen's plant in Changsha, and the N50N, which is produced at BAIC Motor's plant in Zhuzhou. (From a press release on May 18, 2018)
Investment outside China
-In December 2018, Lingyun Indonesia Automotive Industry Technology,PT., the Company’s Indonesian subsidiary passed quality acceptance for annual production of 80,000 automotive metal stamping parts production line. The project was the first overseas investment project independently operated by the Company. (From a press release of the Company’s official website)
-The Company announced on January 12, 2018, a plan to raise capital in Waldaschaff Automotive GmbH (WAG) by making an additional investment in the wholly-owned subsidiary by EUR 55 million. Lingyun Industrial acquired WAG in 2015. The German company produces doors, tail gates, engine hood components and structural parts for Volkswagen (Audi, Porsche, and Scania), Ford, General Motors and BMW. After the acquisition, WAG expanded the capacity to develop products and has continued developing components for lighter vehicles and battery cases for new energy vehicles. WAG is going to use the additional money to ensure proper production management, develop several new products, and promote new projects. This time, WAG’s capital is to be increased to EUR 59.5 million from EUR 4.5 million. (From releases on January 15, 2018)