Fuyao

福耀玻璃

Fuyao Glass Industry Group manufactures and distributes automobile glass.

Fuyao, founded in June, 1992 and headquartered in Fuqing, is a company focusing on automotive safety glass and industrial technical glass. The founder is Cao Dewang. Listed on the HKEX on March 31, 2015, the company's major shareholders are HKSCC Nominees Ltd., Sanyi Development Co., Ltd. and Heren Charitable Foundation. Rivals that have direct and indirect competition with Fuyao include Waldorf-Run, Taiwan Glass, Saint-Gobain, Corning, etc.

Fuyao Glass Industry Group manufactures and distributes automobile glass.

Sector

Automotive

Industry

Auto Parts

Sub-industry

Auto Parts

Founded date

Jun 1, 1992

HQ location

Fujian, China

Legal name

Fuyao Glass Industry Group Co., Ltd.

Website

https://www.fuyaogroup.com

Number of Employees

25716

News

Jun 2, 2020 · people

News

Jun 2, 2020 · people

BOE and Fuyao Group Sign a Strategic Cooperation Agreement

Analysis EO

May 27, 2020

Analysis EO

May 27, 2020

Manufacturing Glass for the Automobile Industry: Fuyao Group

► Although Fuyao is one of the dominant players among automobile glass producers, there are some challenges for the company that may take serious measures to overcome in the future. The Fuyao Glass Industry Group Co., Ltd. – briefly 'Fuyao Group' – was founded in Fuzhou, China, in 1987. It specializes in the manufacture of automobile safety glass and industrial technical glass. Within five years of its establishment, the company was listed on the main board of the Shanghai Stock Exchange with a stock code of 600660 in 1993 and the Hong Kong Stock Exchange (3606) in 2015. Currently, the company's market cap is CNY 48.25 billion. It has manufacturing plants in China and the US. Last year it posted a revenue of more than USD 3 billion, a 13.7 percent year-on-year increase, and a net profit of USD 20.9 million, 16.4 percent higher than a year ago. Over the years, the company has placed itself among the top automobile glass producers in China and internationally. Most of this success is attributed to its current chairman: Cao Dewang. "Fuyao's success is largely a result of chairman Cao's superb judgment and persistence… he grabbed onto the massive opportunity in the development of China's automobile industry," said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management. Cao is a self-made billionaire. He started his career at the age of 14 by selling fruit and fixing bicycles on the streets to help his family make ends meet, in the 1980s, while working at a glass factory, he sensed the market potential for the product class. He found out that imported car glass could sell for prices that were hundreds of times the cost of manufacturing. Now his firm supplies customers in the US, the UK, Germany, Japan and other countries and regions, and claims a one-quarter share of the global market, and 60 percent of China's. While these numbers draw out a promising future for Fuyao, there are some challenges for the company that may take serious measures to overcome. Although Fuyao is one of the dominant players among automobile glass producers, its main competitors are still posing a serious threat. Last year, AGC reported a USD 1.4 billion net revenue. The company also underlined in its financial report that it has been working on improving its environment, social and governance (ESG) activities and increasingly curbing the adverse environmental effects of the company's operations – which are the things Fuyao lacks compared to its rivals. Moreover, Nippon Sheet Glass – another dominant player in the market – reported USD 1. 7 billion in revenue last year. Another challenge is shrinking automobiles sales growth due to the slowdown amidst increased economic uncertainties at home and abroad. The global auto industry dove deeper into recession in 2019 – with sales dropping more than 4 percent as carmakers struggled to find buyers in the developed world as well as in emerging markets such as China and India. The situation is likely to continue this year. According to analysts at LMC Automotive, the number of vehicles sold across major global markets dipped to 90.3 million last year – that is down from 94.4 million in 2018, and well below the record 95.2 million cars sold in 2017. Lastly, the violation of labor laws is harming the international reputation of Fuyao. When the company expanded its manufacturing plants to the US in 2016, it probably was not expecting this to cause a reputation problem. On the one hand, Fuyao's 'American Factory' is financially achieving more than expected – it posted a net profit of USD 20.9 million in 2019, 16.4 percent higher than a year ago. On the other hand, it exacerbates the bad reputation of the company in terms of labor law violations, such as long working hours, safety risks, and environmental protection. In the documentary, Mr. Cao says, "If a union comes in, I am shutting down," during a management meeting in one scene. In another, a manager shows an employee's picture to the camera, describes the man as a friend and union supporter, then says, "He'll be fired in short order." The documentary also shows the unsafe working conditions of the workers – some of them are collecting broken glass with bare hands, and others are forced to engage in much more dangerous tasks. As a result, a day after the documentary about Fuyao's American manufacturing plant was released, an unfair labor practice charge was filed against Fuyao. All this means Fuyao is not applying ESG measures, which might make increasingly conscious investors and major car companies think twice when doing business with the company. However, not all the news is bad. If the company can solve the issues mentioned earlier, it could even boost revenues in the future. As the amount of glass used in cars is increasing – new designs are giving more space to glass in their vehicles, such as glass ceilings – the automobile industry will depend on companies like Fuyao even more, provided that they comply with ESGs.

News

Apr 8, 2020 · Finet

News

Apr 8, 2020 · Finet

Fuyao Glass accounts for nearly half of its overseas income, and the epidemic has made the development of "global factories" uncertain

News

Apr 3, 2020 · Sina Finance

News

Apr 3, 2020 · Sina Finance

Fuyao's global strategy bumps forward

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May 28, 2020 12:40 pm

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Apr 26, 2020 03:17 pm

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Apr 19, 2020 06:36 pm

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Apr 19, 2020 03:12 pm

Research

Mar 30, 2020 · The above information is fromChina Merchants Securities, with source link: www.newone.com.cn. Please contact this company if full report is needed.

Research

Mar 30, 2020 · The above information is fromChina Merchants Securities, with source link: www.newone.com.cn. Please contact this company if full report is needed.

Fuyao Glass: Non-recurring factors affect performance and do not change the long-term value of high-quality companies

Announcements

Mar 23, 2020 · sse

Announcements

Mar 23, 2020 · sse

Announcement of the fourth issue of ultra-short-term financing bonds in 2020

Announcement: Click here

Analysis

Mar 14, 2020 · 36kr

Analysis

Mar 14, 2020 · 36kr

Did Cao Dewang save the American factory?

Announcements

Mar 12, 2020 · sse

Announcements

Mar 12, 2020 · sse

Announcement of the third issue of ultra-short-term financing bonds in 2020

Announcement: Click here

Analysts

Linyan Feng

Automotive

Fan Zhang

Co-founder of EqualOcean

Chao Gong

Automotive

Research

Nov 1, 2019 · The above information is fromChina Merchants Securities, with source link: www.newone.com.cn. Please contact this company if full report is needed.

Research

Nov 1, 2019 · The above information is fromChina Merchants Securities, with source link: www.newone.com.cn. Please contact this company if full report is needed.

Fuyao Glass: SAM integration effect exceeds expectations, enters a new lightweight automotive track

News

Sep 2, 2019 · the Paper

News

Sep 2, 2019 · the Paper

Fuyao Glass: Become a Tesla Car Glass Supplier in Shanghai, Respond to U.S. Factory

Analysis

Mar 27, 2019 · huxiu

Analysis

Mar 27, 2019 · huxiu

After the 13.6 billion dividends, when will Cao Hui, Fuyao's successor, return?

News

Jan 16, 2019 · Shanghai Securities News

News

Jan 16, 2019 · Shanghai Securities News

Fuyao Glass intends to purchase German aluminum bright strip manufacturers

EO analysis

Chinese EV Player Lixiang Files for Nasdaq IPO

Analysis

Dec 5, 2018 · huxiu

Analysis

Dec 5, 2018 · huxiu

Disadvantages and limitations of Fuyao Glass

News

Jun 29, 2018 · China Times

News

Jun 29, 2018 · China Times

Glass king Cao Dewang merged with the eldest son's company

Analysts

Linyan Feng

Automotive

Fan Zhang

Co-founder of EqualOcean

Chao Gong

Automotive

EO analysis

Chinese EV Player Lixiang Files for Nasdaq IPO