Zhejiang Founder Motor Co., Ltd. Business Report FY ended Dec. 2016

Finacncial Overview

(in million CNY)
FY ended Dec. 31,2016 FY ended Dec. 31,2015 Rate of increase/ decrease (%) Factors
Sales 1,049.33 794.42 32.09 -Strengthen technology research and development.
-Adjust product structure.
Operating profit 126.86 67.51 87.91 -
Ordinary profit 143.56 74.37 93.03 -
Net profit 118.83 63.23 87.93 -

Strategic cooperation

-On December 14, 2016, Yuchai Machinery (Guangxi) Group Co., Ltd. signed a strategic partnership cooperation with Zhejiang Founder Motor Co., Ltd. Under the agreement, the two companies will collaborate on R&D on drive systems for new energy vehicles, as well as introduction and application of fuel control systems for gas engines. (From news releases issued by multiple sources on December 16, 2016)


-On November 27, 2014, Wanxiang Qianchao Co., Ltd. announced that the company and Zhejiang Founder Motor Co., Ltd. have signed a contract under which Wanxiang Qianchao will transfer the entire 57.9 percent shareholding in Hubei Qianchao Auto Parts Co., Ltd. to Zhejiang Founder Motor. Hubei Qianchao Auto Parts develops, produces and sells automotive wiper assemblies, brake valves, and other components. It generated approximately CNY 83.7 million in sales and approximately CNY -12.8 million in net profit during 2013. (From an announcement released by the company on November 28, 2014)


-The Company implemented the automation technology renovation project of the automobile seat motor series products, which was appraised as the provincial key demonstration project of "integration of two cultures" by the Zhejiang Economic and Information Technology Commission.

-Production line for auto drive motors has been put into operation, with an annual output of 100,000 sets. (From the semi-annual 2017)

R&D Expenditure

(in million CNY)
FY ended Dec. 31,2016 FY ended Dec. 31,2015 FY ended Dec. 31,2014
R&D Expenditure 46.35 24.38 21.98
Ratio of R&D expenses to operating income (%) 4.42 3.07 3.53

R&D Facility

-The company is a national high-tech enterprise, that owns a post-doctoral pilot unit and a provincial high-tech research and development center. The center was officially approved Zhejiang Province-class Enterprise Institute.

-By the end of 2016, the company owns 272 R&D personnels, accounting for 12.45% of the total number of employees.

R&D activity

-In 2016, the company focused on building the back-EMF harmonic THD simulation, electromagnetic MAP simulation, temperature field and NVH finite element analysis. At the same time, it carried out the research and development of auto seat motors, and high-power density (flat wire motor) for NEVs, with Shanghai High Energy, Shenzhen Gold Corolla and Hangzhou Dewos, the company's joint ventures.


-By 2016, the company had applied for 7 invention patents.

Investment in 2016

(in million CNY)
Project Budget Investment in 2016 Progress rate (%)
Commercial NEV drive motor project with an annual output of 10,000 sets 58.01 53.48 92.19
To be installed equipment project for EV drive system project with an annual output of 100,000 sets
207.40 33.11 87.83
Construction for the Vietnam Plant 8.00 - 24.80