Weifu High-Technology Group Co., Ltd. Business Report FY ended Dec. 2020
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | Rate of Change (%) | Factors | |
| Sales | 12,883.83 | 8,784.36 | 0.72 | -Efforts were made to counter COVID-19 and resume production. With the support of the government's economic recovery support measures, the Company achieved each of the management indicators in the business plan made at the beginning of the year. |
| Operating profit | 2,940.64 | 2,454.26 | (6.00) | |
| Ordinary profit | 3,002.95 | 2,450.54 | (5.83) | |
| Net profit | 2,822.74 | 2,302.74 | (6.63) |
-Analysis of main businesses:
- Fuel injection business: In the fiscal year ending March 2020, annual sales of common rail pumps was 2.1 million units, and sales of VE pumps exceeded 350,000 units, up approximately 20% year on year, as the company expands its share of the off-road market.
- Exhaust gas after-treatment systems: Annual sales of exhaust gas after-treatment systems for gasoline engine vehicles exceeded 2 million sets, and for diesel vehicles, exceeded 500,000 sets. Year-on-year sales increased by more than 50%. Market share in the passenger car market continued to increase. In the commercial vehicle market, the company aggressively developed China-6 projects for core customers. In the off-road market, the company built up a group of customers who are pursuing key projects.
- Intake systems: Introduced 4 turbochargers to the 4-cylinder gasoline engine market and won several customers. Sales of turbochargers for 6-cylinder engines increased by more than 50% over the previous year, and the company won orders for six projects in six countries from major customers. At the same time, the company's precision manufacturing and parts machining capabilities rapidly improved.
- Hydrogen fuel cell components: In terms of fuel cell core materials, completed proprietary development of all core materials from catalyst and gas diffusion layer (GDL) to membrane electrode assembly (MEA); completed improvement of aqueous ink formulation and catalyst layer for catalyst coating membrane (CCM), resulting in significant performance improvement.
- New products: The first intelligent seat is came off the production line and commercial vehicle seats were batch-produced.
Business Plan
-Continue with the strategic plan for fuel cell and connected car core components, and add product plans focusing on metal bipolar plates, balance of plant (BOP), situational awareness systems and intelligent seats for automobiles. The company will move forward with a new business arrangement focusing on the two major areas of hydrogen fuel cells and connected cars.
Strategic Alliance
-The company announced that it signed a strategic cooperation agreement with Shanghai Re-Fire Technology Company Limited (Re-Fire Technology) in early November 2020. Going forward, the companies will carry out in-depth cooperation and exchange information in the area of fuel cell core components, and collaborate to achieve wider commercial application of fuel cell vehicles (FCV). (From a press release dated December 9, 2020)
Absorption-type merger
-The company will acquire a 100% stake in the Belgian company Borit NV through its wholly owned Danish subsidiary, Weifu Holding ApS. The aim is to quickly enter the field of metal bipolar plates, a core component of fuel cells, and further optimize the layout of the fuel cell industry. (From the press release dated October 29, 2020)
R&D
-The Company established a post-doctoral scientific research station and a national-level approved enterprise technology center in 1999.
-The Company has an engineering center (provincial level), an exhaust aftertreatment system center, and a turbocharger R&D center.
-The company and semiconductor manufacturer STMicroelectronics have established a joint laboratory in the Company's Technical Center to conduct research and development of automotive power ICs. The company hopes to introduce STMicroelectronics' advanced automotive electronics solutions to raise the technology level of its electronically controlled diesel pumps and electronic aftertreatment systems to international standards.
R&D Expenditure
|
(in CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | |
| R&D Expenditure | 532.58 | 417.92 | 403.26 |
| Ratio of R&D expenses to operating income | 4.13% | 4.76% | 4.62% |
-As of the end of 2020, the Company had 1,094 R&D staff, accounting for 20.30% of the total number of employees.
Patents
-As of December 31, 2020, the company has a total of 2,525 approved patents, including 611 approved invention patents (including 54 foreign approved invention patents), 1,605 approved utility model patents, and 309 approved design patents.