Bohai Automotive Systems Co., Ltd. Business Report FY ended Dec. 2021
Financial overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change | Factors | |
| Sales | 4,414.86 | 4,685.67 | (5.78) |
-Operating income decreased due to the acquisition of shares in subsidiary BOHAI TRIMET Automotive Holding GmbH and the repayment of medium-term bonds. |
| Operating income | (98.26) | 33.52 | - | |
| Ordinary income | (97.24) | 37.13 | - | |
| Net income | (87.17) | 21.52 | - |
Business situation
1) Piston business
-Piston production volume increased 5.35% year-over-year (y/y) to 24.11 million units, and sales volume increased 6.56% y/y to 24.51 million units. Among them, 7.02 million units were passenger car pistons (up 11.88% y/y), and 4.07 million were export products (up 61.17% y/y). In the passenger car piston market, sales to Geely, BYD, Great Wall Motor, Chery and FAW-VW increased over the previous year. In 2021, the company has developed a total of 161 new products, including 68 types of heavy-duty engine pistons, 37 types of light-duty engine pistons, 32 types of marine pistons, and 24 types of other products for passenger cars and agricultural machinery. The Company also received orders for products from MAN and SCANIA.
2) Lightweight parts business
-Production capacity of F4J20 cylinder blocks for Chery increased by 200%. Introduced a production line for DQ200 transmission housings for VW, realizing mass production.
3) Wheel business
-At its subsidiary Tai'an Qicheng Wheel Manufacturing Co., Ltd., the Company implemented product improvements as part of its business review. Started shipment of high-end 2-piece wheels to capture demand in new markets.
Merger and acquisition
-The company announced that it has completed the merger and acquisition of its wholly-owned subsidiary, Binzhou Temai Auto Parts Co., Ltd., with the aim of optimizing its business structure and improving management efficiency. After the merger is completed, the company will continue to operate under the group umbrella. (From a press release dated June 12, 2022)
-The company announced that its subsidiary's acquisition of a 25% share in BTAH has been approved by the Shandong Development & Reform Commission and the Department of Commerce of Shandong Province. In January 2022, Bohai Automotive Systems announced that Bohai Automotive International GmbH, its wholly-owned subsidiary, intended to acquire a 25% share of BOHAI TRIMET Automotive Holding GmbH (BTAH) from TRIMET Aluminum SE. After the deal is finalized, BTAH will become a wholly-owned subsidiary of Bohai Automotive International GmbH. (From a press release dated June 21, 2022)
Patents
-In the fiscal year ending December 2021, the company has obtained 38 patents, including 5 invention patents and 33 utility model patents. (From 2021 Annual Report)
R&D Expenditure
| FY ended Dec. 31, 2021 (CNY millions) |
FY ended Dec. 31, 2020 (CNY millions) |
FY ended Dec. 31, 2019 (CNY millions) |
|
| R&D Expenditure | 126.41 | 117.02 | 102.27 |
| Ratio of R&D expenses to sales | 2.86 | 2.50 | 2.08 |
-As of the end of 2021, the Company has 280 R&D personnel, accounting for 5.56% of the total employees.
Major plants
| Plant Name | Description |
| Binzhou Bohai Piston Co., Ltd. | Largest China-based piston manufacturer, being a piston manufacturer capable of producing pistons that meet Euro-5 and China-6 standards. |
| Hainachuan (Binzhou) Lightweight Automotive Parts Co., Ltd. | The Engineering Center develops, manufactures, and sells lightweight, aluminum-alloy automotive components such as engine parts, transmission parts, body-structural parts, chassis parts, and electric-drive parts. The company received orders from Beijing Benz in 2021. |
| Taian Qicheng Wheel Co., Ltd. | Established in February 2012. A subsidiary of Binzhou Bohai Piston Co., Ltd. It develops, manufactures, and sells high-performance wheel hubs. The main sales destination is the overseas aftermarket market. |
| Harzgerode Guss GmbH | The company develops and manufactures machining tools; manufactures dies; and conducts surface-finishing, machining, and assembly of cast-aluminum products. |
| Sömmerda Guss GmbH | The company manufactures high-precision aluminum die-cast components such as engine parts, control panels, valve plates, structural parts. |
| Bohai Trimet Automotive Holding GmbH | The company produces mainly lightweight, aluminum-alloy drive parts, engine parts, chassis parts, and structural parts, delivering them to major OEMs based in Europe, including BMW, VW, Audi, Daimler, Bentley, Ford, Kia, Magna. |