HUAYU Automotive Systems Company Limited Business Report FY ended Dec. 2020
Financial overview |
(CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | Rate of Change (%) | Factors | |
| Sales | 133,577.64 | 144,023.63 | (7.25) |
-Sales declined in the first half due to impacts of the COVID-19 pandemic. The market recovered in the second half and sales grew 8.91% year-over-year (y/y) in Q4, resulting in a 7.25% y/y decline in sales in the fiscal year ending December 2020. |
| Operating profit | 7,919.22 | 9,156.70 | (13.51) | |
| Ordinary profit | 7,939.90 | 9,434.85 | (15.85) | |
| Net profit | 6,978.08 | 8,516.29 | (18.06) |
-The company's main businesses are automotive interior/exterior components, functional components, thermoformed components, metal formed products and dies, and electronic components. Of these, interior and exterior components accounted for 66.4% of total sales in the fiscal year ending December 2020.
Orders
Became a designated supplier of several luxury brands including Mercedes-Benz, BMW, Audi and Cadillac
-The Company announced that it became a designated supplier of several luxury brands including Mercedes-Benz, BMW, Audi and Cadillac for interior trims, automotive lighting, seats, bumpers, compressors, electric power steering, transmission shafts, drive shafts, braking systems, lightweight cast aluminum, body mechanical parts and moldings, chassis structural parts and module assemblies. For interior trims, automotive lighting, exterior trims, electric power steering, drive shafts, fuel tanks and generators, it became a designated supplier of several Japanese brands including Honda, Toyota and Nissan. In the field of new energy vehicles, it offers interior trims, seats, bumpers, battery boxes, body subassemblies, stabilizer bars and suspension springs to Tesla’s Shanghai plant while it supplies NIO with interior trims, dampers and electric steering gears. (From a press release dated August 27, 2020)
Production of e-drive systems for VW's MEB platform begins
-The Company announced that production of electric drive system assemblies to be supplied by Huayu Magna Electric Drive System Co., Ltd. (Huayu Magna), a subsidiary of HASCO Automotive, for Volkswagen’s MEB platform (global electric vehicle platform) began at the HASCO Automotive Innovation Park in Baoshan District, Shanghai. Finished products will be delivered to Europe. The first batch of electric drive system assemblies will be supplied to Volkswagen’s plant in Germany and Skoda’s plant in the Czech Republic and will be used in Volkswagen’s crossover coupe ID.4, Audi Q4 e-tron, Skoda Enyaq iV and other battery electric four-wheel-drive models. Huayu Magna will supply the same products to SAIC Volkswagen’s plant in Anting, Shanghai and FAW-Volkswagen’s plant in Foshan to support Volkswagen’s global electrification strategy. (From a press release dated November 1, 2020)
Drive Motors / Motor Controllers
-Supplied auxiliary drive motors for VW's global platform (MEB). In addition to supplying ER6 drive motors for new energy vehicles produced by SAIC Motor Passenger Vehicle Co., the company also supplied motor controllers for Shanghai GM Wuling's new energy model, the Wuling Hongguang MINI. In 2020, the company provided more than 100,000 sets of drive motors and 30,000 sets of controllers. (From the Company's 2020 annual report)
Electric Air Conditioner Compressors
-The company’s subsidiary Sanden Huayu Automotive Air-Conditioning Co., Ltd. focuses on the development and testing of heat pumps and electric air conditioning compressors for EVs and PHVs. In 2020, the company delivered a total of 157,700 electric air-conditioning compressors (sets) to OEMs including SAIC, SAIC-VW, SAIC-GM, Volvo, Great Wall Motor, GAC Group, and Jiangling Motors. (From the Company's 2020 annual report)
Air conditioner assemblies and thermal management systems
-Shanghai Mahle Thermal Systems Co., Ltd, a joint venture between the company and Mahle, provides air conditioner assemblies, cooling modules, battery coolers, low-temperature radiators, condensers, and cooling plates for new energy vehicle models of OEMs including SAIC Motor Passenger Vehicle, SAIC-VW, SAIC-GM, Xiaopeng Motors, and BYD. In FY2020, the company produced a total of 108,100 units (sets). (From the Company's 2020 annual report)
Electric Steering Systems
-Bosch HUAYU Steering System, a joint venture with Bosch, supplied 6.28 million sets of automotive electric power steering system products 2020. This includes approximately 42,000 sets for new energy vehicles. (From the Company's 2020 annual report)
Battery Management Systems
-A total of 94,200 units (sets) of battery management systems were supplied to new energy vehicles through the company's joint venture with Visteon. (From the Company's 2020 annual report)
Battery trays for new energy vehicles
-In 2020, HASCO KSPG Nonferrous Components (Shanghai) will complete the development of cast aluminum battery trays and motor housings and will set up a manufacturing system. In 2020, the company produced 35,000 battery trays and 8,500 sets of motor housings. (From the Company's 2020 annual report)
Electronic Pumps
-In 2020, HASCO KSPG Nonferrous Components (Shanghai) will provide 3.07 million sets of electronic pumps, including those for new energy vehicles. (From the Company's 2020 annual report)
Share Acquisition
Acquisition of joint venture with Adient
-Yanfeng Automotive Trim Systems Co., Ltd. (Yanfeng), a subsidiary of the Company, announced that it has reached an agreement with Adient on equity transfer and other asset transactions concerning their joint venture Yanfeng Adient Seating Co., Ltd. (Yanfeng Adient). Yanfeng plans to acquire Adient’s holding of 49.99％ shares in Yanfeng Adient. After all the transactions, Yanfeng will obtain all the rights and interests of the joint venture, including 16,000 employees, 55 seat manufacturing sites, a technical center, and Shanghai Jixiang Automobile Roof Trimming Co., Ltd. Projects where Yanfeng Adient acts as a designated supplier as well as Yanfeng Adient’s future business will be transferred to Yanfeng. Equity and controlling interests of Yanfeng and Adient in other joint ventures in China except for KEIPER Seating Mechanisms Co., Ltd. are also involved. (From a press release dated March 12, 2021)
Acquisition of joint venture with Woodbridge
-Yanfeng Automotive Trim Systems Co., Ltd. (Yanfeng), a subsidiary of the Company, announced that it signed an agreement with Woodbridge Foam Corporation (Woodbridge) to acquire the 49.9% stake in Yanfeng Woodbridge Lightweight Composites Co., Ltd. (Yanfeng Woodbridge) held by Woodbridge. Upon completion of the acquisition, Yanfeng Woodbridge will become a wholly-owned subsidiary of Yanfeng. The acquisition is expected to be completed in the first quarter of 2021. (From a press release dated January 6, 2021)
R&D
Smart Surface Demonstrator
-Yanfeng Automotive Trim Systems Co., Ltd. (Yanfeng), a subsidiary of the Company, released a smart surface technology model (Smart Surface demonstrator) that comprises seven human-machine interfaces (HMI). These human-machine interfaces are seamlessly integrated into various interior surfaces and can meet different needs through redefined user experiences. The model features sensor-enabled intuitive operating functions. With a sensor behind the light source, vehicle passengers can adjust the light color and intensity by swiping the translucent surface. The technology will provide more personalized experiences to drivers and passengers as it enables functions to be displayed on demand through the seamless integration of intuitive HMI technologies into hard and soft interior surfaces. Yanfeng is currently developing the concept for the technology and expects to apply it to the new models in 2021 at the earliest. (From a Yanfeng website press release on February 25, 2020)
Commenced production of 77GHz millimeter wave radar for forward monitoring
-Hualu Automotive Electronics Co., Ltd, a subsidiary of the Company, has started production of millimeter wave radar for forward monitoring for passenger cars. The product is an integrated front radar and front view camera (1R1V) based system, and has completed long-range road tests. (From FY2020 report)
Strengthening battery and motor housings business
-Rheinmetall announced that KS HUAYU AluTech GmbH has recently expanded its core business to include structural components and e-mobility products. For a German OEM’s battery-powered C-segment vehicle, it produced a cast housing for the additional batteries which allow battery capacity and thus vehicle range to be increased as desired - a key criterion for electric vehicles. The die-cast housing is produced at the company's headquarters in Neckarsulm. With another major OEM, the company developed an electric motor housing made of aluminum with a honeycomb water cooling structure. The new casting process required for this is the low-pressure sand-casting core package that was prototyped in Neckarsulm. Subsequently, the process and certain elements of the production facilities were relocated to China to the joint venture partner HASCO KSPG Nonferrous Components Co. Ltd. in Guangde. (From a press release on January 22, 2020)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | |
| R&D Expenditure | 5,572.85 | 5,264.53 | 5,133.40 |
| Percentage of Sales (%) | 4.17 | 3.66 | 3.27 |
-R&D expenses increased by 5.86% year-over-year (y/y), and the number of personnel related to R&D was 10,291, accounting for 18.19% of the total company workforce.
Patents
As of the end of 2020, the Company and its subsidiaries have more than 6,700 patents.
R&D Facility
-As of the end of 2020, the Company has 367 R&D, manufacturing and service sites. It has 98 manufacturing (including R&D) facilities in the United States, Germany, Thailand, Russia, Australia, the Czech Republic, Slovakia, India, Mexico, Canada, South Africa, Japan, Spain, Italy, Brazil, Indonesia, Serbia, Malaysia and other countries.