Zhejiang Wanliyang Co., Ltd. Business Report FY ended Dec. 2016
Financial Overview
|
(in million CNY) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of change | Factors | |
| Sales | 3,732.25 | 1,972.65 | 89.20% |
-The Company merged 2016 sales of Ningbo Passenger Car and Jinxing Interior business; -The Company merged sales of Wuhu Wanliyang from November 2016; -The Company develop new customer, thus, expand business scope. |
| Operating profit | 351.99 | 235.29 | 49.60% |
- |
| Ordinary profit | 375.07 | 255.24 | 46.95% | |
| Net profit | 307.62 | 211.83 | 45.22% |
Recent development
-The Company announced that it will change its corporate name to Zhejiang Wanliyang Co., Ltd. At the same time, the company that has specialized in development, production, and sales of transmissions and other components for automobiles, will expand its scope of business. New operations will include development and sales of slow-release fertilizers; leasing of facilities, housing and automobiles; consulting and technical services; export and import; and investment business. (From an announcement by the company on January 26, 2016)
New Company
-In February 2017, Jinxing Automotive Interior Decoration Co., Ltd., which is a wholly owned subsidiary of the Company, and Inteva Products, LLC. signed a letter of intent to form a joint venture. The new company will develop, produce, and sell automotive trims for vehicles manufactured by joint ventures of foreign automakers. Investment in this project is expected to reach approximately USD 15 million, of which 51% will be invested by Inteva Products and 49% will be provided by Jinxing Automotive Interior Decoration. Jinxing Automotive Interior Decoration develops, produces, and sells automotive interior trims. Its major customers include BMW Brilliance, Brilliance Auto, Beijing Hyundai, Changan Automobile, Chery Automobile, Jiangling Motors, the FAW Group, Hawtai Motor, and Zotye Auto. (From an announcement by the company on February 17, 2017)
-The Company announced that it will invest CNY 500 million from its own resources to establish a new company in Jinhua, Zhejiang Province. The new company will be called Zhejiang GIF Automotive Drive System Co., Ltd., and will produce and sell drive systems for plug-in hybrid vehicles and automatic transmissions. (From an announcement by the company on December 13, 2016)
-In December 2016, the Company and GIF Research Center (China) Ltd. agreed to establish a joint-venture business in Jinhua, Zhejiang. The new company will be called GIF Automotive Technology (Zhejiang) Co., Ltd. A total of CNY 20 million will be invested in the joint venture, of which CNY 11 million (55%) will be provided by Zhejiang Wanliyang and CNY 9 million (45%) will be provided by GIF. GIF Automotive Technology will offer engineering development and technical services for transmissions, including MTs, ATs, CVTs, DCTs, and plug-in hybrid transmissions, as well as for new energy vehicle powertrains. (From an announcement by the company on December 13, 2016)
Acquisition
-The Company announced that it will acquire Wuhu Chery Transmission Co, Ltd. for CNY 2.6 billion after raising a necessary fund by issuing new shares. Previously, Wuhu Chery Transmission was the transmission production unit of Chery Automobile. It manufactures transmissions for Chery brand's passenger cars. After the transactions, Zhejiang Wanliyang will own a 100% stake in Wuhu Chery Transmission, while Wuhu Chery Transmission will acquire a 12.24% stake in Zhejiang Wanliyang. In the first half of 2016, Wuhu Chery Transmission generated CNY 568.8 million in sales and CNY 74.93 million in net profit. (From an announcement by the company on August 12, 2016)
-On May 11, 2016, the Company acquired a 100% stake in Ningbo Wanming Auto Parts Co., Ltd. for CNY 20 million. It will register the new wholly owned subsidiary under a new name, Ningbo Wanliyang Transmission Co., Ltd., at the State Administration for Industry & Commerce. After the CNY 20 million deal is completed, Zhejiang Wanliyang will acquire a 35,000-square-meter plant site, 22,000-square-meter office buildings, company housing, and factories, and will establish a passenger car transmission plant there. (From an announcement by the company on July 5, 2016)
-In May 2016, Zhejiang Wanliyang Transmission Co., Ltd. signed an agreement with Liaoyang Guoyue Investment Co., Ltd. and Liaoyang Kunpeng Investment Management Co., Ltd. concerning its acquisition of Jinxing Automotive Interior Co., Ltd.'s shares. Zhejiang Wanliyang Transmission, currently holds 70% of Jinxing Automotive Interior shares. It will acquire the 27% of the subsidiary’s shares owned by Liaoyang Guoyue Investment for CNY 54 million, and will also purchase the remaining 3% of the subsidiary’s shares owned by Liaoyang Kunpeng Investment for CNY 6 million. Jinxing Automotive Interior will thereby be converted into a wholly owned subsidiary of Zhejiang Wanliyang Transmission. (From an announcement by the company on June 1, 2016)
-The Company announced that it will increase its shareholding in Shandong Menwo Transmission Co., Ltd., its subsidiary, to 66.12% from the current 53.88% by acquiring the 12.24% stake held by Linyi Sincerity Investment Co., Ltd. The company will spend CNY 19.62 million for this deal. (From an announcement by the company on May 13, 2016)
R&D Facilities
-The Company has Wanliyang Transmission Research Institute and provincial enterprise technology center.
-Shandong Menwo Transmission Co., Ltd., subsidiary of the Company, has Shandong provincial enterprise technology center, industrial design center, engineering technology research center, engineering laboratory and other research and development platform.
-The Company announced that its technical center has been designated as a nationally accredited technical center. (From an announcement by the company on January 28, 2016)
-As of December 31, 2016, the Company has 602 R&D staff in total.
R&D Cooperation
-The Company said in April 2017, that one of its subsidiaries, GIF Automotive Technology (Zhejiang) Co., Ltd., and Vector Automotive Technology (Shanghai) Co., Ltd. have signed a strategic alliance framework agreement. The alliance in the area of automotive electronics will allow GIF Automotive Technology to upgrade the quality of software it will develop for Zhejiang Wanliyang’s automatic transmissions. GIF Automotive Technology also expects to receive strong technical support for the drive systems for new energy vehicles, which will also be developed for Zhejiang Wanliyang. (From a corporate announcement on April 20, 2017)
R&D Project
As of the end of 2016, the Company's main R&D projects are as follows:
-6AG40 development and industrialization projects;
-6G26 gearbox, 5G15 gearbox development project;
- New front-mounted six-speed transmission 6MF25 R&D project;
- New generation of CVT R&D projects.
Strategic Cooperation
-The Company established strategic research cooperation with Zhejiang University and Zhejiang Normal University.
R&D Expenditure
| FY ended Dec. 31, 2016 (in million CNY) |
FY ended Dec. 31, 2015 (in million CNY) |
FY ended Dec. 31, 2014 (in million CNY) |
|
| R&D Expenditure | 112.81 | 71.40 | 52.22 |
| Ratio of R&D expenses to operating income | 3.02% | 3.62% | 3.78% |
Capital investment project |
(in million CNY) |
| Project | Budget | Investment in 2016 | Project status |
| 500,000 sets of interior trim and seats production line construction project | 266.05 | - | 0.57% |
| Internet of things project | - | 3.99 | - |
| Transmission production line | 500.00 | 7.50 | 1.50% |
Investment in China
-The Company said on April 27, 2017, that the company and Fuyuan County of Yunnan province have signed a strategic alliance framework agreement. According to the agreement, the company will invest Chinese yuan (CNY) 2 billion in the construction of a new transmission case plant with an annual production capacity of 3 million units in Jinhua Industrial Zone in Fuyuan Industrial Park. (From a corporate announcement on May 3, 2017)