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Due to the spread of the novel coronavirus epidemic around the world in the first half of 2020, the automotive industry suffered heavy losses and impacts, whether car companies or upstream auto parts companies were also affected. For example, Fuyao Glass, the world's largest auto glass manufacturer, reported a nearly 40% drop in profits in the first half of the year.

A few days ago, Fuyao Glass Industry Group Co., Ltd. released its semi-annual report for 2020. The company's operating income in the first half of the year was 8.121 billion yuan, down 21.06% from the same period last year, and its net profit was 964 million yuan, down 35.97% from the same period last year.

As a result, its workforce fell by 2267 in the first half, equivalent to about 8 per cent of its workforce at the end of last year. The company said that it is to give full play to the enthusiasm and potential of employees, improve work efficiency and enhance the competitiveness of enterprises.

As for the reasons for the decline in profits, Fuyao Glass said that due to the impact of the epidemic, production and sales in the automobile industry declined compared with the same period last year, and the demand for orders from customers downstream of the company decreased. Including the German FYSAM auto accessories project integration period and the total profits affected by the epidemic were-26.1712 million euros, reducing the total profits in the first half of the year by about 148 million yuan compared with the same period last year; and Fuyao Glass America Co., Ltd., affected by the epidemic, reduced the total profits by about 270 million yuan compared with the same period last year. At the same time, another factor is the increase in exchange gains and losses compared with last year.

Although Fuyao Glass is now the first glass giant in China and the second in the world. According to the latest data, Fuyao Automotive Glass has a domestic market share of 70% and a global market share of about 30%, second only to Japan's Asahi Niko.

But the huge impact of the market has had a big impact on Fuyao Glass. Although data on global car sales in the first half of the year have not yet been released, there has also been a marked decline in the Chinese market, the world's largest and best-recovering market in the first half. According to the statistics of the China Association of Automobile Manufacturers, from January to June 2020, automobile production was 10.112 million, down 16.8 percent from the same period last year, of which passenger car production was 7.754 million, down 22.5 percent from the same period last year. It can be seen that in the downward period of the automotive industry, Fuyao Glass's performance will inevitably be affected to some extent.

In spite of this, Fuyao Glass still has room for growth in the industry. On the one hand, the value of automotive glass is still rising. On the other hand, the world's new energy vehicles are in a period of explosion, not only the glass consumption of new energy bicycles is generally higher than that of traditional fuel vehicles; this year, Fuyao Glass also won the "big order" of Tesla, which is bucking the trend of sales growth this year. Cao Dewang, chairman of Fuyao Group, has even said that Fuyao Glass will be number one in the world sooner or later.

As for the development in the second half of the year, Fuyao Glass said that although the market was affected by the epidemic and the global economy was hit hard in the first half of this year, it will grow compared with the first half of this year. However, risks and uncertainties remain, and the auto industry continues to face the risk of negative growth. It will take a process for the overall economy, both globally and domestically, to return to growth.

According to the data, Fuyao Group, founded in Fuzhou, Fujian Province in 1987, is a Sino-foreign joint venture specializing in the production of automotive safety glass and industrial technical glass. at present, it has established a complete industrial chain from design research and development, raw material manufacturing, equipment research and development to glass production and functional glass processing in 11 countries, such as China, the United States, Germany, Russia and so on.

As the world's largest professional supplier of automotive glass, its products have also been certified and selected by the world's top automobile manufacturers and major automobile manufacturers, including Bentley, Mercedes-Benz, BMW, Audi, General Motors, Toyota, Volkswagen, Ford, Chrysler and so on, providing them with global OEM supporting services and a full range of automotive glass solutions.

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