Founded in May 2003, BMW Brilliance Automotive Ltd. (BBA) is a joint venture between the BMW Group and Brilliance China Automotive Holdings Ltd. During BBA¡¯s 15th anniversary in October 2018, the shareholders extended the joint venture contract until 2040. Business operations of BBA include production, procurement, sales and after-sales services of BMW automobiles in China. BBA has a state-of-the-art production base in Shenyang, Liaoning Province and has been the top taxpayer in Shenyang for 13 consecutive years. It has 19,000 employees, a branch company in Beijing and an extensive national sales and service network.
|DISCLOSURES RELATING TO THE INCOME STATEMENT|
|Profit/loss before financial result||1,922||1,620|
|Profit/ loss after tax||1,561||1,338|
|thereof from continuing operations||1,561||1,338|
|thereof from discontinued operations||-||-|
|Other comprehensive income||-250||-121|
|Total comprehensive income||1,311||1,217|
|Dividends received by the Group||384||258|
1 Prior year figures adjusted due to first-time application of IFRS 15, see note 6.
|DISCLOSURES RELATING TO THE BALANCE SHEET|
|thereof cash and cash equivalents||2,937||2,617|
|Non-current financial liabilities||71||-|
|Non-current provisions and liabilities||1,193||960|
|Current provisions and liabilities||6,094||4,779|
|thereof current financial liabilities||81||6|
|AGGREGATED FINANCIAL INFORMATION|
|Provisions and liabilities||7,358||5,739|
|Group¡¯s interest in net assets||2,963||2,691|
1 Prior year figures adjusted due to first-time application of IFRS 15, see note 6.
BMW Brilliance¡¯s production base in Shenyang is the BMW Group¡¯s largest production base worldwide. It currently manufactures six BMW models: BMW 5 Series (long wheelbase), BMW 3 Series (long wheelbase and standard wheelbase), BMW X3, BMW X1 (long wheelbase), BMW 2 Series Active Tourer and BMW 1 Series Sedan. The cars are built at two plants, in the districts of Dadong and Tiexi. The Tiexi location is also home to an R&D Center and a Powertrain Plant, which produces the BMW Group¡¯s latest 3 and 4 cylinder engines and high voltage batteries. BBA¡¯s production system applies the latest Industry 4.0 manufacturing technologies and was listed among China¡¯s Top 10 Intelligent Manufacturing Advancements by the China Association for Science and Technology in 2017. Plant Tiexi was the first automotive plant in China to be recognized as a national 4A tourist attraction, an achievement that is inspiring local interest in science and technology and promoting tourism in Liaoning province. In the coming years, BBA will further expand its production footprint in Shenyang through significant investment in new and existing plant structures. Construction projects include a major expansion of Plant Tiexi in the dimension of a new automotive plant, a large-scale expansion of the existing Plant Dadong and second phase of the High Voltage Battery Center.
BMW Brilliance is committed to leading mobility transformation in China. On top of plans to increase the number of new energy vehicles (NEVs) it develops and manufactures, it has formed a comprehensive NEV ecosystem encompassing R&D capabilities, battery solutions, technology leadership, brand and product, charging infrastructure and e-mobility services. The joint venture, which manufactures plug-in hybrid variants of the BMW 5 Series and BMW X1, was the first premium joint venture to assembly high voltage battery packs in China. From 2020, BBA will produce the BMW iX3 ¨C the first all-electric BMW core model. It will be produced only in Shenyang and exported to the global market.
Providing exceptional customer service and experiences is a top priority for BBA and it has a leading reputation for customer satisfaction among premium auto brands. The joint venture is also steadfast in its commitment to supporting and developing the businesses of its dealer partners. At the end of 2018, BMW had 625 dealer outlets throughout China.
Sustainability is one of the cornerstones of BBA¡¯s corporate strategy. From BMW EfficientDynamics to cutting-edge sustainable production and the introduction of BMW 5S dealer certification in China, BBA is proactively lowering emissions, reducing waste and promoting sustainable development in China through innovation. In 2017, BBA was the top-ranked automotive JV in China for corporate average fuel consumption achievement rate and was selected for a National Green Plant Award from the Ministry of Industry and Information.
BMW Brilliance not only integrates sustainability throughout its entire value chain, but also includes Corporate Social Responsibility (CSR) as an integral part of its sustainable development strategy. Since 2007, BMW China Culture Journey has been exploring Chinese traditional culture and promoting the inheritance and development of intangible cultural heritage. The program exercises BMW¡¯s brand influence to build bridges geared to concentrate various social resources, helping to integrate intangible cultural heritage into modern life. BMW has also put emphasis on children¡¯s traffic safety education in China. Over the past 14 years, BMW Children¡¯s Traffic Safety Education has grown from large-scale roadshows to establishing a fixed center, expanded its focus to children and adult drivers, and upgraded to a public advocacy project that impacts the public widely and deeply by engaging BMW dealers, customers, associates and public volunteers into schools and communities. In 2008, BMW China and BBA jointly set up the CCF-BMW Warm Heart Fund (WHF) in partnership with the China Charity Federation. CCF-BMW WHF provides BMW China Corporate Social Responsibility with a platform to engage all stakeholders. By the end of 2018, CCF-BMW WHF had involved more than 250 dealers and 88,000 devoted customers and associates into the program.
Having established itself as one of China¡¯s leading premium automotive manufacturers, BBA will continue on its high-quality development path. At its 15th anniversary, the joint venture pledged to introduce more technology-leading products, invest in new structures and facilities and broaden its vision from ¡°in China, for China¡± to ¡°in China, for China and the World¡±. As a responsible corporate citizen of China, BBA is fully committed to developing talent, creating more jobs and supporting the economic prosperity of Shenyang, Liaoning province and Northeast China. It will continue to invest in social responsibility programs, manufacture sustainable products in a sustainable way and provide its customers with the premium quality products and services that the BMW brand is renowned for.
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group as a manufacturer of automobiles and motorcycles, also provides premium financial and mobility services. As a global company, the BMW Group operates 31 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries.
In 2016, the BMW Group sold approximately 2.367 million cars and 145,000 motorcycles worldwide. The profit before tax for the financial year 2016 was approximately 9.67 billion on revenues amounting to 94.16 billion. As of 31 December 2016, the BMW Group had a workforce of 124,729 employees.
The establishment of the BMW AG Beijing Representative Office in April 1994 unwrapped the official entry of the BMW Group in Mainland China. Elevating another significant milestone for the BMW Group and the long-term commitment for Chinese market, BMW China Automotive Trading Ltd. was established in October 2005. Currently almost all of the BMW petrol engine product ranging from 1, 2, 3, 4, 5, 6, and 7 Series, X, M and Z models are available in the Chinese market and in addition, MINI and Rolls-Royce brands also share the vast lineup choices in China. In February 2014, all-new BMW X5 xDrive 30d was launched in China which registered the first BMW diesel car in the Chinese market. In September 2014, the all-new ¡°Born Electric¡± BMW i ¡ª¡ª the sub-brand of BMW, officially launched two of its NEV vehicles in Chinese market ¡ª¡ª the progressive sportscar BMW i8 and innovative all-electric BMW i3, which represents a new milestone of e-mobility era for the BMW Group and advocates in the development for NEV market in China. BMW is one of the premium automaker brands that provide the most intensive NEV product models in China, offering up to 9 models in five series in the Chinese market. While providing customers with a varied selection of products, BMW continued to expand and enhance its sales and service network. By the end of March 2017, there were 470 authorized 4S/5S dealerships in Mainland China. Enhancing after-sales service and maximizing customer satisfaction are the essential effort to BMW¡¯s development in China. BMW also boasts a professional training network for cultivating talents, including 4 training centers, 15 training bases in cooperation with local technical colleges or academies and 11 B&P training sites. BMW covers a training capacity of 400,000 man-day in 2015.
In August 2015, the BMW Group initiated aftersales service brand strategy upgrade for the Chinese market, which is known as ¡°Maintaining Joy¡±, BMW launched a series of initiatives responding to customer needs based on the principle of ¡°Convenience, Trust and Care¡±. In terms of Convenience, BMW launched Fast Lane Service highlighted by the One Hour Oil Maintenance Service and B&P Quick Repair Service. To fulfill the commitment of Trust, in 2011, BMW initiated transparent workshop system and after-sales service open day that were highly recognized by customers. In terms of Care, BMW provides free seasonal check up, maintenance package deals and end of warranty free check that have already established a good reputation and loyalty among customers who have enjoyed the BMW high-quality experience from products to services.
In 2003, the BMW Group achieved a new development cornerstone in China. In May, BMW Brilliance, the joint venture by the BMW Group and Brilliance Automotive was set up with production base located in Shenyang. After more than a decade of development, BMW Brilliance now has two plants in Shenyang (Dadong and Tiexi) as well as an engine plant. The New Plant Dadong (expansion) was officially opened on 19 May 2017. With the addition of the new plant, the annual capacity of BMW Brilliance can be increased gradually to 450,000 units according to market demand. During the past 5 years, BMW Group has invested a total capital of over 2 billion in China. Moreover, the R & D Centre of Tiexi Plant has been put into use and the new engine plant near Tiexi was opened in January 2016.
July 2014, the BMW Group announced to extend its joint venture contract with Brilliance Automotive to the year of 2028. Locally produced models will also be doubled from current 3 to 6. The new JV agreement is a testimony of BMW Group¡¯s extended commitment in localization strategy and lays another solid foundation for future development in China.
At BMW Brilliance, all BMWs have met the strict global production standards of BMW Group for high-quality cars. The BMW Group is always committed to introducing the latest products and technologies to the Chinese market. By now, a strong product portfolio of more than 30 variants of BMW 5 Series, BMW 3 Series, BMW X1, the BMW 2 Series Tourer, BMW 1 Series Sedan are produced at BMW Brilliance. On January 8 2015, BMW Brilliance¡¯s number one-millionth car rolled off the assembly line. April 2013, BMW Brilliance introduced the new brand ZINORO, a new milestone step towards deepened localization. ZINORO focuses on developing new energy vehicles in the early stage, and also emphasizes energy-saving products and technologies in the long-term. ZINORO 1E is the first premium electric SAV product of ZINORO and was launched in the market during the first quarter of 2014. ZINORO 60H is the second model from the brand. The car was approved and entered the 9th Purchase Tax Exemption NEV Catalogue in Nov. 2016, and launched in March 2017. ZINORO products are produced in Tiexi plant using advanced production facilities and the high quality standard of BMW Brilliance to guarantee the premium brand substance.
On January 15 2015, BMW Brilliance brought its latest NEV development to the market: BMW¡¯s first plug-in hybrid premium business sedan¡ª¡ª New BMW 5 Series Plug-in Hybrid. It was fully developed by BMW Brilliance and produced locally at Dadong Plant. In November 2016, the all-new BMW X1 PHEV was approved and entered the 9th Purchase Tax Exemption NEV Catalogue.
BMW¡¯s active product offensives and market strategies received positive feedback from customers and recognized by the market. Sales and market share grow year after year, in 2016, the BMW Group maintained a steady and healthy growth in Mainland China. More than 516,000 units of BMW and MINI cars were delivered to Chinese customers, representing a year-on-year growth of 11.3%.
BMW always adheres to sustainable development strategy and the practices of corporate social responsibility. With constant innovation and advanced technology, BMW has integrated the sustainable development with its entire value chain. With series of Corporate Social Responsibility (CSR) programs in China, BMW shows its long-term commitment to the Chinese society.
2016 is the centenary year of BMW Group. As an excellent corporate citizen, BMW Group has upgraded its CSR strategy from charity donation to strategic CSR with its focus on two core areas: Social Mobility , Safe and Sustainable Mobility.
In June 2008, BMW China and BMW Brilliance joined hands with China Charity Foundation (CCF) in the establishment of the BMW Warm Heart Fund. As a comprehensive CSR platform, BMW Warm Heart Fund has engaged all stakeholders efficiently and has been contributing to the sustainable development of Chinese society.
With full name of Brilliance Automotive Group Holdings Co., Ltd., Brilliance Auto Group, a wholly state-owned company, was founded in 2002 under the approval of Liaoning provincial government according to the decision of the Central Committee. Its headquarter is located in the city of Shenyang, Liaoning Province, a national key equipment manufacturing base, which is known as ¡°Equipment Department of the Republic¡±. Brilliance is the leading enterprise of Liaoning automobile industry, the main force of domestic brand of Chinese automobile industry, with a total of 50 thousand staff and total assets of more than 140 billion RMB.
At present, Brilliance Auto Group has four listed companies (Brilliance China Automotive Holdings Co., Ltd., Shanghai Shenhua Holdings Co., Ltd., Jinbei Automotive Co., Ltd., Xinchen China Power Holdings Co., Ltd.), and more than 100 wholly-owned, holding and share companies. In the business segments, Brilliance Auto Group is specialized in R&D,vehicle design, manufacturing and sales of automobile, engine and core parts, as well as the automotive aftermarket business, also involved in new energy and other industries.
By 2015, Brilliance Auto Group has established two production and marketing bases in northern and southern China, six vehicle production companies, four engine production enterprises and a number of parts production enterprises, with two national certified enterprise technology centers, a national certified lab and a post-doctoral mobile workstation. It has 1,203 technology patents (including nearly 100 international patents), and obtains ability for developing complete vehicle styling, designing vehicle, prototype car, manufacturing, vehicle matching development and engine etc., the core automotive components. Through the high-level starting point of independent innovation, the enterprise creates three local vehicle brands of ¡°Zhonghua¡±, ¡°Jinbei¡±and ¡°Huasong¡± and joint venture brand of ¡°BBA (Brilliance BMW Automotive)¡± All products have covered all areas of passenger cars and commercial vehicles.
Brilliance Automotive Group takes " people-oriented, quality first, innovation rooted " as the core values, to create "customer-centric and market-oriented" strategic system, to set the goal of becoming stronger, bigger and more excellent. During the 11th Five-Year period, its sales volume reaches a record high, with a total operating income of RMB233.3 billion for five years, 215.7% for the 11th Five-Year, 26.55 billion yuan for profits and taxes, and 276.6% of accumulated for the 11th Five-Year, achieving a goal of "two-step, quadruple income "leaping development.
During 12th five-year period, Brilliance adheres to the "Brilliance development model", actively deepens the reform and innovation, and promotes the transformation and upgrading, It firstly crosses the threshold of 100 billion annual income in Liaoning province and ranks No.1 among provincial-owned enterprises. The total operating income in the five years reaches 633.48 billion RMB, up by 171.5% over the same period of last year. The profit and tax amounted to 1,301.3 billion RMB, representing an increase of 390% over the same period of last year. In 2016, the group won 100th in the "2016 Chinese enterprises top 500 list".
Now, the Group has entered the transformation and upgrading of the 13 five-year stage. Concerning brand, it shifts from the product management to brand management; on technology, it learns from BMW Group as an example to lower carbon, information technology and intelligent enterprise technology upgrading. In the scale of efficiency, till the end of 13th five-year, the group ensures that the annual production and sales volume reach 1.5 million, annual sales income more than 300 billion RMB, and the total profits and taxes over 50 billion yuan. In the future, Brilliance Automotive Group will continue to adhere to joint ventures and independent collaborative development, to seize the opportunity to cultivate new growth sections and to make greater contributions for the implementation of national northeast old industrial base revitalization strategy and independent brand car development.