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BeijingWest Industries International Ltd., 02339.HK - Company Profile
Chairman	Jiang Yunan
Share Issued (share)	574,000,000
Par Currency	Hong Kong Dollar
Par Value	0.1
Industry	Automobiles & Components
Corporate Profile	Business Summary: The Group is principally involved in the manufacture, sale and trading of automotive parts and components, and provision of technical services. Performance for the year: For the year ended 31 December 2019, the Group recorded revenue of HK$2,469.38 million from manufacture and sales of suspension products. While for the year ended 31 December 2018, the Group recorded revenue of HK$3,272.58 million from manufacture and sales of suspension and brake products. For the year ended 31 December 2019, the Group also recorded HK$185.21 million in provision of technical services (year ended 31 December 2018: HK$145.70 million). For the year ended 31 December 2019, the gross profit and gross profit margin for the suspension products were HK$552.19 million and 20.80% respectively. While for the year ended 31 December 2018, the gross profit and gross profit margin for the suspension and brake products were HK$622.69 million and 18.22% respectively. For the year ended 31 December 2019, profit for the year attributable to equity owners of the Company approximate to HK$4.89 million (year ended 31 December 2018: HK$120.88 million). Business Review During the year ended 31 December 2019, the Group involved in the manufacture and sale of automotive parts and components and the trading of automotive parts and components. The core products of the Group was suspension products. Suspension products The Group’s automotive suspension products were mainly utilized on premium passenger vehicles, which were manufactured by the Group's plants in Europe. There are two major plants in Poland and the United Kingdom (“UK”), which manufacture and assemble suspension products for their customers. Also, a new plant in the Czech Republic commenced production in the second quarter of year 2017. However, the new plant would not make any profit contribution to the Group before the plant reaches the optimal production status. By all means, the Group will try to expedite the process of reaching the designed capacity of the new plant so as to generate profit contribution as soon as possible. The Group develops and maintains strong relationships with its customers, who are mainly well-known European automobile manufacturers, therefore the Group well understood the technical requirements of the Group's customers and has the expertise on the manufacturing process for premium passenger vehicles. The Group purchases raw materials and components mainly from the suppliers in Europe, which are selected based on certain factors, including the history of relationship with the Group, quality and price of the products, delivery time, and after-sales services. The Group maintains stable relationships with its major suppliers and does not rely on any single supplier for any type of raw materials and components. Brake products The brake business of BWI (Shanghai) Co., Ltd. (“BWI Shanghai”) recorded an operating loss in 2018 due to changes in the market conditions in China. In order to mitigate the adverse effect caused by BWI Shanghai on the Group’s performance and better concentrate the Group’s resources to develop the Group's other businesses, the Group disposed of its 51% interests in BWI Shanghai (the “Disposal”), which was completed in August 2018. Prospects: The Group relies on passenger vehicle manufacturers as customers or potential customers of its products. Its financial performance largely depends on the continuing growth of the automotive industry in Europe. The overall market demand for cars may be affected by factors such as regional economic conditions, fuel price and end customers’ expectations on future economic situation. These factors are beyond the Group’s control, and may affect the annual production of automobiles by passenger vehicle manufacturers, which possibly in turn affect the sales and profitability of the Group’s products. The Group will keep moving forward and aim to maintain a solid and healthy growth and development. Despite the continued pricing pressure from customers and the increase in commodity prices, the Group is capable of maintaining its gross profit margin at a reasonable level. Apart from the commencement of production of the new sales order awarded from previous years, the Group is confident that it will be able to maintain a sustainable business development. The Group has accumulated extensive technical knowledge and developed a high degree of technical expertise with a consistent focus on research and development. The Group believes that the Group's technical expertise, the long-term relationship with different vehicle manufacturers, as well as the well-understanding of the requirements of the vehicle manufacturers will enable the Group to capture more market opportunities and develop products that meet the technical requirements of the vehicle manufacturers. It would be a strong support for the Group’s long-term development. The Group believes that the continuing investment on research and development as well as engineering activities is vitally significant for the Group to maintain and improve its leadership position in the industry. It would contribute greatly to the improvement of the Group’s competitiveness over other competitors. Meanwhile, it keeps evolving in the automotive industry to cater to the change of requirements from customers. To keep pace with the Group's customers, the Group will endeavor to collaborate closely with the vehicle manufacturers and develop innovative solutions to better serve the Group's customers. With a view to improve long-term profitability and shareholders’ value, the Company will also seriously evaluate and review the business of the Group, and optimize the business structure of the Group by acquisition or restructuring of operations appropriately. In addition, the Group will continue to seek potential acquisition opportunities in both the PRC and abroad to strengthen its revenue base and improve its profitability.

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