1 Three Characteristics of Auto Parts Industry Development.4
1.1 Auto Parts Industry Developed Independently .4
1.2 Modular Supply Strengthens .............6
1.3 Polarization of Auto Parts Industry ....7
2 Governmental Policies 9
2.1 Automobile Industry Development Policy .........9
2.2 Notice of Opinions on Auto Industry Structure Adjustment of National Development and Reform
Commission ........... 11
2.3 The 11th Five-year Development Plan of Auto Industry 12
3 Growth Pace Surpasses Complete Car, the Profitability Stabilizes and the Export Becomes a Bright Spot ....14
3.1 Supplemental Market Continues to Grow, and Maintenance Market has a Large Potential to
Develop...14
3.2 Growth Rate of Revenue and Profit Higher than that of Completed Vehicles and Hopefully
Continuing..............16
3.3 Stable-prone Profitability, Strong Ability to Control Expense.........18
3.4 Growth Rate of Parts Export Hopefully to Maintain 25 to 30 Percent..........21
4 Analysis of Listed Companies in Auto Parts Industry ........27
4.1 Enterprises with Product Structure Optimized27
4.1.1 Prominent Advantage of Fuyao Glass Industry Group Co., Ltd in Supply Chain............27
4.1.2 Modularized Supply of Goods of Ningbo Huaxiang Electronic Co., Ltd to Enhance its
Competitiveness............28
4.2 Enterprises with Rapid Export Increase/Large Proportions – Fuyao Glass Industry Group Co.,
Ltd, and Wanfeng Auto Wheel Co., Ltd .29
4.2.1 Fuyao Glass Industry Group Co., Ltd: Export Market, especially International OEM
Market, is Seeing Rapid Growth....30
4.2.2 Wanfeng Auto Wheel Co., Ltd: Export Revenue Accounts for more than 70% of Total ..30
4.3 Enterprises with Assets Integration/Acquisition & Merger – Qingdao Yellow Sea Rubber Co., Ltd,
AEOLUS Tyre Co., Ltd, Ningbo Huaxiang Electronic Co., Ltd and WanXiang QianChao Co., Ltd..31
4.3.1 Qingdao Yellow Sea Rubber Co., Ltd: Shareholder Structure Reform Promises to Inject
the Capitals .....32
4.3.2 AEOLUS Tyre Co., Ltd: Change of Big Shareholder Drives its Performance to Grow....32
4.3.3 Ningbo Huaxiang Electronic Co., Ltd: Be Bigger and Stronger via M&A and
Recombination 33
4.3.4 WanXiang QianChao Co., Ltd .............33
4.4 Investment Opportunity Brought by Industry Policy Change – Weifu High-technology Co., Ltd 33
4.5 Influence of Raw Material Price Change on Auto Parts Enterprises Profitability ........34
5 Industry Risks ...........36
5.1 Periodicity Risk of Industry..............36
5.2 Competition from Foreign-invested/Joint Venture Auto Parts Companies...36
5.3 Unable to Enter Global Supplemental System Effectively ............36
5.4 Exchange Rate and Resource Price Fluctuation, and Policy Change.........37
5.5 Restriction of Export Regions’ Law and Code, and Trade Barriers .............37
Chart Index:
Automobile Industry Chain .......4
Development Mode Evolvement of Auto Parts Companies...6
Tower Supply Relation of Auto Parts Industry ........7
Relevant Orientation of Automobile Industry Development Policy on Auto Parts Industry ..............10
Relevant Orientation of Notice on Auto Parts Industry ........ 11
Relevant Orientation of the 11th Five-year Development Plan of Auto Industry on Auto Parts Exports
.........13
China’s Auto Output and Growth Rate, 1990-2006 .............14
China’s On-Road Vehicle Amount, 1998-2006.....15
Proportion of Component Enterprises to Complete Vehicle Enterprises by Income and Profit,
1998-2006.......16
Growth in Revenue of Completed Automobile and Parts Enterprises, 2002- Feb 2007 ...17
Growth in Profit of Completed Automobile and Parts Enterprises, 2002-Feb 2007..........17
Gross Profit Margin, Period Fee Rate and Pre-tax Profit Margin of Completed Vehicles and Parts,
1998-2006.......18
Gross Profit Margin, Period Fee Rate and Pre-tax Profit Margin of Parts Enterprises, 1998-2006 .19
Rate of Operation Expense, Administrative Expense and Financial Expense of Parts Enterprises,
1998-2006.......20
Import and Export Value of the Parts Industry, 1996-2006..22
Growth Rate of Import and Export Value of China’s Parts Industry, 1997-2007Q1 ..........22
Revenue from Export to the Total Revenue of the Parts Industry, 1998-2006...23
Proportion of Different Product to Total Export Value of Parts, 2006 ..24
Multinationals Increasing their Purchase in China ..............25
Automotive Float Glass Production Lines of Fuyao Glass Industry Group........28
Fuyao Revenue Constitution (%) by Region, 2002-2006 ....30
Raw Materials of Key Auto Parts Listed Companies ...........35
