Northeast Industries Group Co., Ltd. Business Report FY ended Dec. 2016

Acqusition

-On December 30, 2016, the Northeast Industry Group acquired Delphi’s mechanical project in accordance with a contract signed between the two companies on October 11, 2016, and set up Merit Automotive Electronic System Co. Ltd. The mechanical project division mainly produces column switches, switch modules, and switches, having an annual production capacity of 30 million sets. It has the newest technology in the field and is one of the biggest manufacturers which account for the largest proportion in the European market. Currently, the company employs 290 people including 50 engineers, and holds 261 patents in force. It is headquartered in Spain, operates an R&D center in Poland, and has five plants in Poland, Mexico, Brazil, and China. Its main customers include BMW, Daimler, Fiat, Ford, Jaguar Land Rover, General Motors, Peugeot Citroen, and Renault. (From a press release on January 23, 2017)

-The Company completed acquisition of Delphi's reception system business at USD 25 million. After the transaction, reception system registered as FUBA Automotive Electronics Co.,Ltd. in Germany. (From a press release on August 24, 2015)

Strategic Cooperation

-The Company and Jiangling Motor Corporation signed cooperation framework on September 1, 2016, the two sides will cooperate in receiving system, double mass flywheel, ACS and brake system of Northeast Industrial. (From a press release on September 6, 2016)

-Recently, the Company and Ricardo signed a Memorandum of Understanding (MoU), the two sides will cooperate in automotive parts and system research. Northeast Industrial will use Ricardo’s technology for product development. Ricardo is a global cross-industry consulting company, providing engineering, technology, project innovation and strategic consulting. (From a press release on October 29, 2015)

Award

-Shandong Pengxiang Automobile Co., Ltd, subsidiary of the Company, got “2014 Outstanding Supplier” form Xuzhou Construction Machinery Group Co., Ltd. (XCMG) in March. (From a press release on April 15, 2015)

R&D Facility

-The Company's Automotive Parts Environmental Testing Lab passed audit by China National Accreditation Service for Conformity Assessment (CNAS) and was awarded as CNAS accreditation. The lab has automotive electronics control system testing, environmental testing, vehicle matching test and evaluation capabilities. (From a press release on August 18, 2015)

-The Company has 1 national enterprise technology center, 2 post-doctoral research station, 4 nationally recognized laboratories.

Patent

-The Company has more than 200 authorized patents.