Fuyao Glass Industry Group (Fuyao) recently released its 2019 annual financial report, which ended on December 31, 2019. The company highlighted its revenue growth, global response to COVID-19, and more in its report.
“In 2019, the global economic growth weakened and the investment scale declined, as trade tensions, financial instability and increased geopolitical uncertainty resulted in the slowdown of global economic growth; China’s economy has been weathering increasing economic downward pressure, and particularly, the manufacturing industry was most directly affected by trade frictions, the automobile consumption has obviously grown weak,” a portion of the report reads.
China’s automotive industry recorded its first decline in 28 years in 2018. The report noted Fuyao has been committed to addressing both internal and external challenges by:
- Improving itself and strengthening management through continuous research and development and innovation, cost reduction and efficiency improvement, continuous optimization of product structure, quality, sales and service;
- Reinforcing the sense of social responsibility, insisting on people-oriented management and strengthening corporate governance, complying with discipline and law, performing social responsibilities and protecting and maintaining environment, resources and social benefits; and
- Continuing to promote international development and exploring overseas markets so as to allow more reasonable market structure, as a result of which the company’s domestic and overseas market proportions have been optimized.
The company’s Chairman, Cho Tak Wong, highlighted the possibility for “negative growth” resulting from COVID-19’s impact.
“Fuyao will face greater challenges ahead. But we will stay true to our commitment and make unremitting efforts to improve ourselves with greater courage and responsibility to fight the tough battle in 2020,” the Chairman said.
According to the Chairman, at the strategic level, the company will develop a new culture and upgrade the company’s management model. At the tactical level, Fuyao aims to strengthen its organizational management, improve corporate management systems, standardize conference management and implement conference discussions and scientific decision-making process.
The chart below shows the principal data for 2019 by quarter. Unit: 1 Chinese Yuan equals $0.14 USD.
|First quarter||Second quarter||Third quarter||Fourth quarter|
|Revenue (in USD)||$693,349
|Annual profit attributable to Fuyao owners||$85,521.6
|Annual profit attributable to Fuayo owners, net of non-recurring profit or loss
|Annual cash generated from operating activities
Unit: 1 Chinese Yuan equals $0.14 USD.
Fuyao also realized it had an increase to its revenue by 4.35% when compared to its results of the previous year. The report also noted the auto glass manufacturer’s goal is to have “zero defects.”
“[The company aims to] extend the boundary of ‘a piece of glass,’ strengthen the study on the trend of glass integration, continue to promote the aluminum trim business and provide more comprehensive product solutions and services to automobile factories and ARG users,” a portion of the report reads.
According to the company, product consumption upgrading and technical progress, have led to a growing demand for high value-added automotive glass, which provides new development opportunities.
“The world’s economic and political situations are complex, and economic growth is slowing down, and risks and uncertainties still exist, and the automotive industry may continue to face the risk of negative growth, which will bring challenges to the company’s operations and management,” a portion of the report reads.
Fuyao might not be able to respond quickly enough to “rapid technological change and evolving standards in the automotive glass industry or in industries its customers operate.” In order to maintain the competitive edge, the company plans to increase its investment in research and development, improve its independent innovation capabilities, strengthen the management of research and development projects and establish the market oriented research and development mechanism.