Zhejiang Founder Motor Co., Ltd. Business Report FY ended Dec. 2020
Financial Overview |
(CNY millions) |
| FY ended Dec. 31,2020 | FY ended Dec. 31,2019 | Rate of increase/ decrease (%) | Factors | |
| Sales | 1,142.57 | 1,114.65 | 2.50 |
-The Company continued to invest in R&D due to strong sales in the fiscal year that ended in December 2020 of drive motors for new-energy vehicles and motors for automobile wipers at its wholly owned subsidiary Zhejiang Fangzheng (Hubei) Automotive Parts Co. |
| Operating profit | (644.61) | 19.88 | - |
-Due to the impact of the new coronavirus and changes in the product mix, sales of exhaust gas control systems fell and raw material costs rose, resulting in a net loss. |
| Ordinary profit | (648.38) | 18.66 | - | |
| Net profit | (642.23) | 16.55 | - |
New Company
Established Lishui Fangde Wisdom Applied Technology Research Institute Co.
-On September 14, 2020, the board of directors approved the establishment of Lishui Fangdeh Jihui Applied Technology Research Institute Co. The research institute will conduct research and development on intelligent control systems, as well as motors and their control systems. The Company will invest CNY 130 million and hold a 52% stake in the institute, while Zhong Zhen Traffic will invest CNY 120 million and hold a 48% stake. (From a September 14, 2020 press release)
Established GCE (Vietnam) Electronics Co.
-A new company, GCE (Vietnam) Electronics, will be established in Longjiang Industrial Park, Vietnam. The Company is investing USD 3.8 million in the new company. GCE will design, produce, and sell intelligent controllers. Establishing the new company in Vietnam will enable the Company to meet the global demand of its customers, expand its market share in the Southeast Asian region, and increase its market competitiveness. (From a June 29, 2020 press release)
Established Zhejiang Deqing Fang De Ji Drive System Co.
-The Company announced that it will establish a wholly owned subsidiary, investing CNY 350 million in it. The tentative name of the subsidiary is Zhejiang Deqing Fang Zheng Ji Drive System Co. and it will be engaged in the development, manufacture, and after-sales service of drive motors and systems for commercial vehicles, passenger cars, intelligent lifting systems, traction motors, and motor systems. An intelligent drive system plant with an annual production capacity of 100,000 units will be built in the Moheishan High-tech Zone of Huzhou. (From the release dated May 27, 2020)
Strategic partnership
-NavInfo Co., Ltd. (NavInfo) announced that it has signed a strategic cooperation agreement with Zhejiang Founder Motor Co., Ltd. (Founder Motor). They will cooperate in the field of China-made automotive electronic chips to promote China-made automotive electronic technology development and application. According to the agreement, chips of AutoChips Inc. (AutoChips), a subsidiary of NavInfo, will be the first choice of Shanghai High Energy Auto Electronic Co., Ltd. (Shanghai High Energy), a subsidiary of Founder Motor, during independent development projects, based on body control MCU chip characteristics of AutoChips. Shanghai High Energy will build a cooperation pilot platform to facilitate applications of products using AutoChips’ chips. The two subsidiaries will work together to develop solutions for AutoChips chips application technologies and provide professional services and technical support for Founder Motor to improve development efficiency, reduce development cost, enhance terminal product technical strength and develop China-made alternatives of key components. (From a press release dated November 20, 2020)
Orders
-On September 10, 2020 the Company signed an agreement with Ullan (Nanjing) Power Technology Corporation (Ullan Power), a subsidiary of Shanghai Ullan Automobile Co, to deliver core components for drive motors. This will become the first motor with a coiled, flat-wire, which improves both power density and motor efficiency when compared to existing products. (From a September 14, 2020 press release)
-The Company formed partnerships with new-energy OEMs based in China, such as FAW-GM-Wuling, Geely Automobile, and Xiaopeng Automobile. Based on the partnerships, the Company will supply of a series of drive motors for new-energy vehicles such as for the Wuling Hongguang Mini EV and Xiaopeng P7. (From Annual Report 2020)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31,2020 | FY ended Dec. 31,2019 | FY ended Dec. 31,2018 | |
| R&D Expenditure | 119.15 | 114.10 | 100.79 |
| Ratio of R&D expenses to operating income (%) | 10.43 | 10.24 | 7.39 |
-By the end of 2020, the Company had 317 R&D personnel, accounting for 13.62% of the total number of employees.
R&D Facility
-The Company has been certified as a technology enterprise by the Chinese government, and its R&D center has been certified by Zhejiang Province. The Company has a post-doctoral workstation and a provincial-class R&D center.
-In October 2017, Fangzheng Research Institute was established in Shanghai to conduct research and development on integrated systems for new-energy vehicles.
-In September 2020, the Company established Lishui Fangde Jiqiang Applied Technology Research Institute Co. Ltd. that conducts research and development activities on intelligent control systems, and motors and their control systems.
Product Development
-The trial production of the controller for the Country 6 diesel engine, which meets China 6 Regulations, has been completed. It was jointly developed with Shanghai Electric Power Company. Product testing is currently underway. (From Annual Report 2020)