Anhui Zhongding Sealing Parts Co., Ltd. Business Report FY ended Dec. 2020

Financial Overview

(in million CNY)

	FY ended Dec. 31, 2020	FY ended Dec. 31, 2019	Rate of change	Factors
Sales	11,548.32	11,706.10	(5.40)	-Both sales and profits decreased due to the sluggishness of the automotive industry and the COVID-19 pandemic.
Operating profit	613.55	757.16	(40.83)
Ordinary profit	629.90	756.07	(44.51)
Net profit	496.54	591.86	(47.94)

Business Trends

-Continue with the strategic goal of focusing on intelligent chassis systems, and focus on intelligentization Focused development of air suspension systems and lightweight chassis.

-Promote overseas M&As, and organize and integrate technology and product structure globally. In 2020, total direct and indirect sales to the top 10 customers reached CNY 6.363 billion, accounting for 55.10% of total sales. The customer base is mainly high-end.

	Main customers
1	VW
2	GM
3	BMW
4	Daimler
5	Ford
6	Renault Nissan
7	VOLVO
8	Changan
9	GreatWall
10	JLR

transfer

-In order to focus on the development and production of core automotive components, the company plans to sell 100% of its shares in AMK Arnold Müller GmbH & Co. KG (AST), a subsidiary of the AMK Group, to FuPro GmbH & Co. KG for a total of EUR 48.95 million. This subsidiary has been in the red for the past three years. Through the sale of this industrial division, AMK will focus more on air suspension systems and electronic control systems for steering motors. (From a release dated January 15, 2021)

Orders

Date	Supplier	Customers and Projects	Products
May. 2021	Anhui Tristone Flowtech Co., Ltd.	Zhejiang Leapmotor Technology Co., Ltd.	Thermal Management Pipe Assemblies for N ew Energy Vehicle C01
Feb. 2021	AMK (Anhui) Automotive E-Drive Co.,Ltd.	Dongfeng Motor Arashi Figure H56	Air suspension system core component subassembly
Sep. 2020	AMK (Anhui) Automotive E-Drive Co.,Ltd.	Dongfeng Motor H97	Air suspension system core component subassembly
Sep. 2020	Anhui Tesitone Piping Technology Co.	Ideal Car X01	Automotive Thermal Management System Assembly and Intermediate Cooling Pipe Assembly Products
Aug. 2020	AMK Holding GmbH & Co.KG	Azera Motors	Air suspension system core component subassembly
Jan. 2020	Anhui Zhongding Seals Co.	All GM global model series (including the new energy BEV3 EV platform and the O1SL plug-in hybrid platform)	Vibration reduction parts
Aug. 2019	Anhui Zhongding Vibration Damping Rubber Technology Co.	Beijing Benz MRA2 Platform	Forged aluminum rear axle control arm and connecting rod assembly

R&D Facilities

-The Company has a nationally accredited technical center and R&D branches in Shanghai, Guangdong, Jiangsu, Hefei and Xuancheng, Anhui. R&D centers in the US and Europe.

-Established a rubber seal joint research center with Tsinghua University in 2018.

R&D Cooperation

Partner	Business
Shanghai Jiaotong University	Set up a joint "Rubber engineering Research Institute" to for the reserch, development and testing of new rubber materials and new technologies.
Tsinghua University Automotive Engineering Department	Signed technical development contract to develop rubber shock absorber components.
Anhui University	Established "Anhui University Zhongding Rubber Technology Development Co., Ltd." jointly to develop and improve rubber products. Set up "Anhui Rubber Materials and Products Provincial Lab" to conduct rubber materials cutting-edge products research and experiment.
Anhui University & Guangzhou Mechanical Engineering Research Institute	Jointly set up "Special Rubber Material Products Industry Technology Innovation Alliance" to conduct research in advanced technologies of rubber materials and products.

Patent

-By the end of 2020, the Company has 767 patents, including 110 domestic invention patents, 289 foreign patents.

R&D Expenditure

	FY ended Dec. 31, 2020 (CNY millions)	FY ended Dec. 31, 2019 (CNY millions)	FY ended Dec. 31, 2018 (CNY millions)
R&D Expenditure	505.64	570.63	550.27
Proportion of R&D expenses to sales	4.38	4.87	4.45