Anhui Zhongding Sealing Parts Co., Ltd. Business Report FY ended Dec. 2021
Financial Overview |
(in million CNY) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change | |
| Sales | 12,557.19 | 11,548.32 | 8.91 |
| Operating income | 1,161.87 | 613.55 | 89.37 |
| Ordinary income | 1,166.47 | 629.90 | 85.18 |
| Net income | 963.48 | 496.54 | 94.04 |
Factors
-The company worked to improve profitability by optimizing costs and selling non-core businesses outside of China. In addition, orders increased as production capacity recovered.
-In the fiscal year ending December 31, 2021, the Company's automotive sales were CNY 12,577.19 million, accounting for 94.83% of total sales. Sales outside of China accounted for 55.37%, and new energy sales amounted to CNY 2.061 billion, accounting for 17.28% of the automobile business.
-Sales from the top 10 customers, below, totaled CNY 6,794 million, accounting for 54.02% of the total.
| Main customers | |
| 1 | VW |
| 2 | GM |
| 3 | BMW |
| 4 | VOLVO |
| 5 | Ford |
| 6 | Changan |
| 7 | Mercedes-Benz |
| 8 | Renault Nissan |
| 9 | BYD |
| 10 | GreatWall |
Acquisition
-Bridgestone Corporation (Bridgestone) announced that it will transfer its anti-vibration rubber business, a part of the chemical and industrial products business, to Anhui Zhongding Holding (Group) Co. Ltd. (Anhui Zhongding). The process to transfer the business to Anhui Zhongding will be that Bridgestone will establish a wholly owned subsidiary which will succeed Bridgestone’s anti-vibration business. Bridgestone will transfer all ownership of Bridgestone Group’s anti-vibration rubber business to the new subsidiary, and then, will sell all shares of stock of the new company to Anhui Zhongding. The transfer of the business is part of Bridgestone's Mid-term Business Plan (2021-2023) announced on February 16, 2021. The company judged that transferring the anti-vibration rubber business to Zhongding Holding, which has this business as its core, would help it maintain its competitiveness. The transfer is expected to be completed by the end of July 2022, after regulatory approvals and other necessary conditions are met. (From a press release dated December 10, 2021)
Divestment
-In order to focus on the development and manufacturing 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 & CoKG for a total of EUR 48.95 million. The subsidiary has been in the red for the past three years. Through the sale of this industrial unit, AMK will further focus on air suspension systems and steering motor electronic control systems. (From a release dated January 15, 2021)
Orders
| Date | Supplier | Customers and Projects | Products |
| May 2021 | AMK Holding GmbH & Co.KG | Emerging European commercial vehicle manufacturer | Air suspension assembly |
| March 2022 | Anhui Tristone Flowtech Co., Ltd. | Emerging Chinese manufacturer | Parts new platform project for thermal management |
| March 2022 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Major Chinese independent | Air supply unit parts of air suspension for new platform project |
| March 2022 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Major Chinese independent | Air supply unit parts of air suspension for new platform project |
| February 2022 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Independent Chinese company | Air supply unit parts of air suspension for new platform project |
| February 2022 | Anhui Zhongding NVH Co., Ltd. | Leading Chinese New Energy Vehicle brand | New platform project for lightweight chassis parts |
| February 2022 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Leading Chinese New Energy Vehicle brand | Air supply unit parts of air suspension for new platform project |
| January 2022 | Anhui Tristone Flowtech Co., Ltd. | Emerging Chinese manufacturer | Thermal management parts for new platform project |
| January 2022 | Chengdu Wangjin Automotive Components Co., Ltd. | Major Chinese manufacturer | Lightweight chassis parts for New Energy Vehicle platform project |
| January 2022 | Chengdu Wangjin Automotive Components Co., Ltd. | Leading Chinese New Energy Vehicle brand | Lightweight chassis parts for two new platform projects |
| December 2021 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Leading Chinese New Energy Vehicle brand | Air supply unit parts of air suspension for new platform project |
| December 2021 | Anhui Tristone Flowtech Co., Ltd. | Leading Chinese New Energy Vehicle brand | Thermal management parts for new platform project |
| November 2021 | Anhui Zhongding Fluid System Co., Ltd. | Major battery manufacturer for New Energy Vehicles in China | Thermal management components for energy storage projects |
| September 2021 | The company | Emerging Chinese manufacturer | Thermal management parts for New Energy Vehicles |
| August 2021 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Major Chinese light-duty commercial vehicle manufacturer | Air supply unit parts for air suspension |
| August 2021 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Leading Chinese New Energy Vehicle brand | Air supply unit parts of air suspension for new platform project |
| July 2021 | Anhui Tristone Flowtech Co., Ltd. | Chongqing Li Auto Automobile Co., Ltd. | X03 Project automotive thermal management system assembly |
| July 2021 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Major Chinese OEM | Air tank components of air suspension systems for new platform project |
| July 2021 | Anhui Zhongding NVH Co., Ltd. | BYD | Lightweight chassis components for New Energy Vehicle platform project |
| May. 2021 | Anhui Tristone Flowtech Co., Ltd. | Zhejiang Leapmotor Technology Co., Ltd. | Thermal management parts for New Energy Vehicle C01 project |
| Feb. 2021 | AMK (Anhui) Automotive E-Drive Co., Ltd. | Dongfeng Motor | Air suspension system components and sub-assembly for Voyah H56 project |
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" for research, 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 rubber products. Set up "Anhui Rubber Materials and Products Provincial Lab" to research cutting-edge technology of rubber materials and products. |
| 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
-Obtained 705 patents as of December 31, 2021. Among them, 312 are foreign patents, 84 are domestic invention patents, 299 are utility model patents, and 10 are design patents.
Certifications
-The Company obtained ISO/IATF16949, ISO14001, ISO/IEC17025 and other quality, environmental, and laboratory system certifications.
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 | 582.18 | 505.64 | 570.63 |
|
Proportion of R&D expenses to sales |
4.63 | 4.38 | 4.87 |
-As the end of 2021, the Company had 3,056 R&D personnel, accounting for 14.82% of the total number of employees.