Xuchang Yuandong Drive Shaft Co., Ltd. Business Report FY ended Dec. 2015
Financial Overiew
|
(in million yuan) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of Change (%) |
Factors | |
| Sales | 926.49 | 1,186.84 | - |
-In 2015, the Company's sales declined by the downturn in the Company's downstream customers such as commercial vehicles and construction machinery industry. |
| Operating profit | 97.64 | 147.60 | - |
-Market competition lead to lower profits. |
| Gross profit | 110.33 | 150.75 | - | |
| Net profit | 92.58 | 129.24 | - |
-In the first half of 2015, the Company exported 433,000 units products, 85.8% increase from previous year's 233,000 units. (From a press release in July 2015)
Acquisition
-The Company signed Asset Purchase Agreement with Xuchang Yuanbo Machinery Co., Ltd. to acquire Yuanbo Machinery’s part of operating assets, including factories, office buildings, manufacturing equipments. Yuanbo Machinery, capitalized at CNY 10 million, produced special thick-walled steel shafts. After the acquisition, the Company can produce special high quality type steel shafts for commercial vehicles, engineering machinery vehicles and passenger cars. With the company and its subsidiary’s iron and forging burr scrap as raw material, the Company can also produce precision steel shaft components. (From an announcement by the company on August 18, 2015)
Contract
-On July 4, the Company exported 1,000 sets of high-end heavy-duty special transmission shaft assemblies to Sweden to supply for Volvo. (From a press release on July 5, 2015)
Strategic Cooperation
-The Company signed a strategic partnership agreement and confidentiality agreement with Beiben Truck Group Co., Ltd. The collaboration will promote property rights cooperation and jointly develop new products. (From an announcement by the company on June 30, 2015)
-The Company signed a strategic partnership agreement and confidentiality agreement with Hubei Sanjiang Space Wanshan Special Vehicle Co., Ltd. The collaboration will promote property right cooperation and jointly develop new products. (From an announcement by the company on June 3, 2015)
R&D Facilities
- The company has "State Enterprise Technology Center", "Henan automotive transmission engineering and technology R&D center", "Henan post-doctoral R&D base", "Henan provincial-level high-performence lightweight shaft enginnering lab" and "Henan automotive parts intelligent heat treatment technology academician workstation".
R&D Expense
| Year | FY ended Dec. 31, 2015 (million CNY) |
FY ended Dec. 31, 2014 (million CNY) |
FY ended Dec. 31, 2013 (million CNY) |
| R&D expense | 54.11 | 63.90 | 59.08 |
| Ratio of R&D expenses to operating income | 5.84% | 5.38% | 5.36% |
R&D Project Expense
| Project | R&D Expense (in million CNY) |
| Development of key technology of automobile drive shaft remanufacturing | 2.89 |
| Heavy truck drive axle assembly parts heat treatment process research | 1.86 |
| Jiangxi Isuzu pickup "RT 50" drive shaft assembly development | 1.07 |
| R&D of JMC Transit drive shaft assembly | 3.14 |
| Research and development of key technology for intelligent manufacturing of high end commercial vehicle transmission parts | 2.58 |
Patent
-By the end of 2015, the Company has 198 patents, including 14 invention patents and 159 utility model patents.
Capital Investment Projects |
(in million CNY) |
| Projects | Budget | Investment in 2015 | Project status |
| Construction of 1.5 million sets of commercial vehicle drive shaft project | 132.29 | 28.21 | 100% |
| Contruction of annual output of 1 million sets of high-end lightweight commercial vehicles and construction machinery shaft project in Weifang Yuandong Drive Shaft Co., Ltd. | 215.66 | 20.70 | 100% |
| Contruction of 550,000 sets of drive shafts production line in Hefei Yuandong Drive Shaft Co., Ltd. | 58.00 | 1.79 | 100% |
| Contruction of 600,000 sets of commercial drive shafts project in Changsha | 69.30 | 4.30 | 85% |
| Construction of new factory of Beijing Beiqi Yuandong Transmission Co., Ltd. in Yangzhen | 45.03 | 8.94 | 100% |
| Project of Liuzhou Yuanteng Transmission's annual production of 0.18 million sets of high-end lightweight commercial vehicle shafts and engineering machinery transmission shafts | 66.52 | 8.12 | 10% |