Xuchang Yuandong Drive Shaft Co., Ltd. Business Report FY ended Dec. 2017

Financial Overiew

(in million CNY)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change Factors
Sales 1,522.61 1,024.27 48.65%

-In 2017, the Company's sales increased due to increase of market needs; efficiency improvement; cost reduction; purchase order increase from major customers; and obtainment of new customers.

Operating profit 220.70 113.91 93.75% -
Gross profit 218.74 137.67 58.89%
Net profit 187.33 117.05 60.04%


-On June 4, 2018, the Company and Wanxiang Qianchao Co., Ltd. signed a contract regarding a transfer of shares. The Company will acquire a 54.73% stake in Xuchang Qianchao Yuandong Auto Parts Co., Ltd., a joint venture between the two companies, for CNY 14.81 million. After the share transfer, the joint venture will have no capital relationship with Wanxiang Qianchao and become a wholly owned subsidiary of the Company. Xuchang Qianchao Yuandong Auto Parts primarily manufactures and sells universal joints. (From a press release on June 6, 2018)

R&D Facilities

-The Company has the following R&D facilities:

  • State Enterprise Technology Center
  • National Postdoctoral Research Station
  • Henan automotive transmission engineering and technology R&D center
  • Henan post-doctoral R&D base
  • Henan provincial-level high-performance lightweight shaft engineering lab
  • Henan automotive parts intelligent heat treatment technology academician workstation

R&D Expenditure

(in million CNY)
Year FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
R&D expenditure 78.62 61.21 54.11
Ratio of R&D expenses to sales 5.16% 5.98% 5.84%

R&D Project Expediture

(in million CNY)
Project R&D Expense
Integrated application research on blanking device of intelligent manufacturing line of heavy truck drive shaft 1.44
Automotive transmission shaft intelligent manufacturing integrated technology application development-sliding fork 2.77
Research on drive shaft assembly of constant velocity universal joint 8.32
Research and development of constant speed drive shaft assembly and automatic assembly technology 2.62
Research and development of comprehensive performance testing for constant speed drive shaft assembly 1.98
Research and development of autonomous assembly technologies for drive shaft 6.24
Research and development of drive shaft assembly for high-end rear-drive (or four-drive) passenger vehicles 4.42
Research and development of drive shaft assembly for buses with long lifecircles and high comfort 4.43
Research and development of 700-series drive shaft assembly 2.71
Industrialization and development of key technologies smart manufacturing for constant drive shaft components 12.16
Research and application of smart tracking and positioning system for automotive drive shaft processing 3.28
Research and development of hot edge cutting technology for sliding forks of light drive shafts 0.61
Research and development of extruding process for M299 differentials 1.03
Research and development of joint forging process for sliding forks of light drive shafts 0.83
Research and development of key technologies for smart pricise forging of drive shaft components 1.13
Research on new structures of universal fork forgings of drive shafts 0.82


-By the end of 2017, the Company has 252 patents, including 21 invention patents and 207 utility model patents.

Investment Activities

(in million CNY)
Project Budget Investment in 2017
(in million CNY)
Project status
200 mu light electric screw pressure production workshop 3.55 - 100%
Project to generate annual output of 1.8 million sets of high-end lightweight commercial vehicle and construction machinery transmission shafts at Liuzhou Yuanteng plant 66.52 1.03 41%
Project to generate annual output of 1.5 million sets of drive shafts for commercial vehicles 132.29 0.86 -