Hunan Corun New Energy 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 1,700.16 1,124.79 51.15 -Complete industrial chain.
-Stable orders.
-High R&D and technology level.
-Superior customers and staffs.
Operating profit (262.87) (114.26) - -
Ordinary profit (247.09) 76.67 - -
Net profit (252.17) 57.09 - -


-Hunan Corun New Energy Co., Ltd. said on September 8, 2017, that a project on research and development and industrialization of high-performance drive controllers and high-power motors for electric vehicles by its subsidiary was designated as one of the 17 pilot business programs for China-Germany Platform for Cooperation in R&D and Innovation of Intelligent Manufacturing in 2017. This program was a solo program related to new energy vehicles out of the 17 certified programs. The subsidiary, Xiamen Fugong Engineering Technology Co., Ltd., has developed a high-performance drive controller in cooperation with Aradex AG of Germany and a high-performance motor with Elektromaschinenbau GmbH (E. M. B) of Germany, spending a total of Chinese yuan (CNY) 25 million between October 2015 and December 2017. The company has already advanced the level of automation at its production lines, and the products have already won some orders from automakers. By August 20, 2017, it supplied 2,000 sets of the system components to Zhongtong Bus & Holding. The number is expected to rise further in the fourth quarter of 2017. (From a press release on September 9, 2017)

-A new production line of Hunan Copower EV Battery Co., Ltd., a subsidiary of Hunan Corun New Energy Co., Ltd., has passed an inspection of Toyota Motor Corporation. The new production line is part of the project for the Chinese company to expand its production capacity. It will be dedicated to the production of nickel hydride battery cells developed proprietarily by Hunan Copower EV Battery. (From a press release on June 23, 2017)

-On November 21, 2016, Fujian Fugong Engineering Technology Co., Ltd., a subsidiary of Hunan Corun New Energy Co., Ltd., started construction of a new plant in the Tongan Industrial Zone in Amoy, Fujian Province. The plant has a land area of 30,000 square meters. It is expected to produce three types of hybrid transmission cases (CHS1800, CHS2800, and CHS18000) for commercial NEVs including 6-12 meter buses, delivery trucks, and sanitation vehicles. These products will be delivered to Corun Hybrid System Technology Co. Ltd. The company aims to achieve sales of CNY 2 billion and hire 350 employees by 2020. (From a press release on December 23, 2016)

-On June 29, 2016, Hunan Corun New Energy Co., Ltd., received an order of 573 NiMH battery sets from Hunan CRRC Times Electric Vehicle Co., Ltd. It is expected to complete the supply before August 31, 2016. The order which will be used on 10.5 m plug-in hybrid buses, is a customization of nickel-metal hydride battery for CRRC. (From an announcement by the company on June 29, 2016)

-On June 15, 2016, Corun Hybrid Technology Co., Ltd. (CHS), a subsidiary of Hunan Corun New Energy Co., Ltd., received a purchase order of its HT1800 hybrid powertrain systems including batteries and control units for 5,000 units of Zheijiang Geely’s Emgrand EC7-HEV by the end of 2016. The HT1800 was developed for A-segment vehicles with a 2.4-liter or a smaller engine, and supports input shaft torque of 200Nm and wheel torque of 1,800Nm. (From an announcement by the company on June 16, 2016)

-Changde Liyuan New Material Co. Ltd., a subsidiary of Hunan Corun New Energy Co., Ltd., announced that it had started mass production of foamed nickels developed by Toyata, for hybrid-electric vehicles. Its annual production capacity is 1 million square meters. The company has intellectual property rights for the material. (From an announcement by the company on April 12, 2016)

-Hunan Copower EV Battery Co.,Ltd.,a subsidiary of Hunan Corun New Energy Co., Ltd., supplied 85,000 battery cell pole chips to Toyota in 2017, and the number will reach 112,800 in 2008. (From the 2016 annual report)

Strategic cooperation

-Hunan Corun New Energy Co., Ltd. announced that it had signed a strategic cooperation framework agreement with CRRC Times Electric Vehicle Co., Ltd. Under the agreement, the two companies will collaborate on the product developing and marketing of new energy vehicles. (From an announcement by the company on April 30, 2016)

New company

-On July 22, 2017, Hunan Corun New Energy Co., Ltd. said on July 22, 2017, its subsidiary, Corun Hybrid System Technology Co., Ltd. (CHS), and Yunnan Yunnei Power Group Co., Ltd. are planning to set up a joint company, Wuxi Tongrun Hybrid Power Technology Co., Ltd. with a registered capital of Chinese yuan (CNY) 600 million. CHS will invest CNY 306 million or 51% of the capital, and Yunnei Power Group will invest CNY 294 million or 49%. The new company will design, develop, manufacture and sell HT3800 (diesel/petrol), HT1800 (diesel), and HT2800 (diesel) engine hybrid transmission assemblies. The company plans to produce 300,000 units of diesel and gasoline hybrid transmission assemblies. The initial production capacity will be 150,000 units. (From a corporate announcement on July 22, 2017)

-Hunan Corun New Energy Co., Ltd. announced that Corun Hybrid System, its subsidiary, and Foshan Green Island Fuda Invest Partnership (limited partnership) will establish a joint-venture company. The new company will be called Foshan Corun Hybrid Science and Technology Co., Ltd. It will be capitalized at CNY 2 billion, of which CNY 1.4 billion (70%) will be invested by Corun Hybrid System, and CNY 600 million (30%) will be provided by Foshan Green Island. The joint venture will produce hybrid ECVT including dual motors, battery packs including battery management systems, vehicle control units, and motor controllers. (From an announcement by the company on November 18, 2016)

Technology lincese

-On November 1, 2017, Corun Hybrid Technology Co.,Ltd.(CHS),a subsidiary of Hunan Corun New Energy Co., Ltd., and Wuxi Mingheng Hybrid Technology Co., Ltd. signed a technology licensing agreement and commissioned development contract. CHS will allow Wuxi Mingheng to use its all existing patents and non-proprietary know-how which can be adapted to diesel engines, with the total license fee of 314.600 million Yuan. At the same time, Wuxi Mingheng will delegate CHS to complete the development of HT3800 longitudinal hybrid system A prototype, and the first phase of the project entrusted development costs a total of 35.4 million yuan. (From an announcement by the company on November 1, 2017)


-In February 2017, the subsidiary Shenzhen National Engineering Research Center of Advanced Energy Storage Materials Co.,Ltd obtained the UL Witnessed Test Laboratory qualification officially authorized by Underwriter Laboratories. Authorized testing scope covers primary and secondary lithium batteries, nickel batteries, battery packs and mobile power products. UL Underwriter Laboratories Inc. is the most authoritative in U.S., as well as one of independent non-profit professional organizations, which engaged in product safety certification and safety certification business in the world. (From an announcement by the company on February 10, 2017)

Start operating

-On November 8, 2016, Corun Peve Automotive Battery Co.,Ltd. began production. This company was established by Primearth EV Energy Co., Ltd., Hunan Corun New Energy Co., Ltd., Changshu Sinogy Venture Capital Co., Toyota Motor (China) Investment Co., Ltd., and Toyota Tsusho Corporation in August 2014. For Toyota, the company is the sole nickel-metal-hydride battery joint venture outside Japan. The batteries produced at the company will be used primarily in hybrid vehicles produced and sold by Toyota FAW and GAC Toyota. (From a press release on November 14, 2016)

-Corun Hybrid System (CHS), in which Kunming Yunnei Power Co., Ltd. has invested CNY 60 million, broke ground for its 1 million units/year hybrid system plant in Changsha on February 28, 2016. The plant is scheduled to in 2017, and to reach full-scale operations in 2018. Its initial capacity is planned to be 300,000 systems. (From news releases issued by multiple sources on February 29, 2016)

R&D Expenditure

(in million CNY)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014
R&D Expenditure 111.09 103.82 77.11
Ratio of R&D expenses to operating income (%) 6.53 9.23 9.02

R&D Facility

-By the end of 2016, the company owns 603 R&D personels, accounting for 20.85% of the total number of employees.

-The company mainly engaged in developing (development) of hybrid powertrain systems, nickel-based batteries, and key raw material-foaming nickel.

-The company has a center (National Engineering Research Center of Advanced Energy Storage Materials) and four research platforms in Shenzhen, Nagoya, Changsha, and Shanghai.


-As of December 31, 2016, the company has 529 domestic patents and 6 international patents.

Investment in 2016

(in million CNY)
Project Budget Amount invested in 2016 Project progress (%)
New plant construction in Yiyang 50.00 17.65 100.00
Photovoltaic power generation system in Yiyang
12.00 - 100.00
To be installed equipments of Yiyang corun 21.82 9.76 80.00
New plant construction in Changde 347.25 192.58 90.00
Shanghai CHS project 21.04 5.87 -
Car Ni-MH battery (Copower) 680.00 3.02 95.00
Capacity expansion of Copower 217.56 50.39 30.00
shonan project - 4.66 -
Foshan CHS land project 85.00 2.78 -

Development expenditure

(in million CNY)
Project Expenditure
1.Copower EV Battery
(1)BMS 6.10
(2)BMS for bus 11.52
2.Changde Lyrun Material
(1)Foaming nickel for HEV battery 5.11
3.Lanzhou Jinchuan Corun
(1)Battery alloy powder for HEV project 0.97
(2)Nickel hydrogen power battery recycling 0.02
4.Shenzhen Engineering Research Center
(1)Nickel hydrogen Hybrid RTG 0.002
(2)Nickel hydrogen storage battery management system 1.65
5.Changsha Engineering Research Center
(1)BMS development 0.15
(2)Battery recycling 0.50
(3)Lithium electricity 2.33
(4)Fuel battery project 0.48
6.Corun Hybrid Technology
(1)CHS hybrid system 62.85
(2)BPS development 22.81
7.Fugong Engineering technology
(1)Hybrid system for passenger vehicles (including NiMH batteries) 2.04
(2)Three-in-one controller assembly 1.20