In the second half of the year, a documentary called "The American Factory" hit the air, making Cao Dewang and his subordinate Fuyao Glass Company so anxious in Sino-US relations that became the focus of attention of the people of both countries. The profitability of glass is particularly striking.
According to the latest financial report information disclosed by Fuyao Glass recently, the company achieved revenue of 15.634 billion yuan in the first three quarters, an increase of 3.38% year-on-year; realized net profit attributable to shareholders of listed companies (hereinafter referred to as "net profit attributable to mother") Nearly 2.347 billion yuan, a year-on-year decrease of 28.07%. In Q3, Fuyao Glass's operating income was approximately 5.346 billion yuan, a year-on-year increase of 6.14%; net profit attributable to mothers was nearly 840 million yuan, a decrease of 39.65% compared to the same period last year, and the performance was not satisfactory.
If you focus on Fuyao Glass's U.S. plant, you will find that although it did not disclose its revenue by region in the third quarterly report, it is revealed in the first half of the report that as the production capacity of U.S. automotive glass plants continues to climb, the total revenue for 2019H1 is 19.11. 100 million yuan, an increase of 13.7% year-on-year. It is expected that Q3 revenue will still maintain double-digit growth, and the year will also continue to maintain the output of 3.9 million sets of automotive glass.
In addition, Fuyao Glass's revenue share in overseas markets is increasing year by year.
Cao Dewang's overseas roads are not only those listed in the "American Factory". As early as 2008, he began to divest architectural glass business. Fuyao Glass has paid more attention to overseas business. As of now, it has been in the United States, Russia, and Germany. , Japan, South Korea and other 9 countries and regions to build production and marketing bases, with a global layout and low-cost entry into the market, has become a veritable large multinational industrial group.
It is no exaggeration to say that in China, 2 out of every 3 cars are using Fuyao glass; in the world, 1 out of every 4 car glasses is Fuyao glass. As a global automotive glass head supplier, industry barriers are high, allowing it to fully enjoy the industry dividends brought by the increase in the value of automotive glass bicycles.
In order to further strengthen the integration of Fuyao Automotive Glass, in February this year, it purchased the bankruptcy assets of SAM automotive production GmbH (hereinafter referred to as SAM) for 58.83 million euros, including equipment, materials, finished products, work in progress, Tooling equipment, etc.
However, the large capital remittance brought by mergers and acquisitions and the subsequent expenditures caused by subsequent business and organizational integration have made Fuyao Glass's operating costs continue to rise in the past three quarters, and its net profit attributable to mothers has fallen year-on-year. The price.
Financial report, Fuyao glass, Fuyao Russia factory, US factory
In fact, the loss has always been in the financial report of Fuyao Glass, not only the "tuition fees" paid by the United States since 1991, nor the "frustration" of seeking Russia … As conveyed in the "American Factory", Under the conflict of culture and policy, etc., it is possible to open manufacturing factories overseas and make money. The hardship is only known to the parties.
However, all autobots, including Cao Dewang, know that if they want to win a bigger market, the global layout is still an irreversible trend.
Since the beginning of this year, according to the latest news from the Automobile Industry Association, in September 2019, the year-on-year decrease in automobile production and sales narrowed, but the downward trend continued. From January to September this year, the production and sales of automobiles were 18.144 million and 18.317 million, down 11.4% and 10.3% respectively from the same period of last year. Among them, China's independent brand passenger cars sold a total of 5.903 million, a year-on-year decrease of 18.5%.
Affected by this, Fuyao's automotive glass sales fell rapidly compared with the same period last year, and at the same time, the company's automotive-grade float glass inventory increased, leading to a gradual decline in product gross profit. This is also the important reason why Fuyao Glass's revenue growth has narrowed in the first three quarters of this year and its net profit has fallen.
But it is also the shift of its business focus that minimizes this loss, and it is expected that in 2019, Fuyao Glass's foreign business may further increase its proportion.
Regarding the future, in addition to the industry's general belief that the Q4 domestic auto market may show a slight recovery, Fuyao Glass's domestic market revenue growth will continue to increase, Fuyao Glass also said that it will continue to manage innovation, technology development and innovation, deepen information technology applications, and strengthen simulation The application of technology improves the development of simulation platforms, providing more accurate design services and leaner intelligent production solutions.
At the same time, the integration process for the SAM project is methodical, and aluminum trim is expected to open up new growth space. It is understood that Fuyao has invested 100 million euros in the transformation and repair of the production line of the SAM factory. One of the production lines will be completed as soon as possible by the end of this year. By March 2020, the second production line will be opened; The layout of aluminum refining plants and aluminum extrusion plants has begun, and the layout of the entire industrial chain has begun to take shape.
In addition, as the production capacity of Fuyao Glass's US plant continues to climb, and even after the end of the GM strike in the United States, the production and sales of American cars have stabilized, which will further help Fuyao's Q4 revenue and net profit continue to recover.