Anhui Zhongding Sealing Parts Co., Ltd. Business Report FY ended Dec. 2022

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021	Change (%)
Sales	14,851.89	12,557.19	16.02
Operating income	1,120.63	1,161.87	3.55
Ordinary income	1,109.93	1,166.47	4.85
Net income	946.04	963.48	1.81

Main customers

-The combined sales of the top 10 customers was CNY 7.356 billion, accounting for 49.53% of sales in 2022.

	Main customers
1	VW
2	BYD
3	GM
4	Ford
5	Mercedes-Benz
6	BMW
7	Volvo
8	Renault Nissan
9	Changan Auto
10	PSA

Listed in Switzerland

-The company announced that it is planning to issue and list Global Depository Receipts (GDR) on the SIX Swiss Exchange. Through the issuance of these GDRs, Anhui Zhongding Sealing Parts aims to strengthen the construction of intelligent chassis plants and global information networks in China and North America. Combined with the global distribution of vehicle plants, the company will optimize the asset structure of affiliated companies in overseas markets and continue to expand its global strategic presence. (From a press release dated October 10, 2022)

Orders

Date	Supplier	Customers	Products	Project life cycle	Total value of order
February 2023	Chengdu Wangjin Automotive Components Co., Ltd.	Chinese independent brand	Lightweight chassis components	6 years	About CNY 969 million
October 2022		Chinese emerging manufacturer		5 years	About CNY 1.3 billion
January 2022		Chinese OEM		5 years	About 1.211 billion
January 2022		Chinese emerging manufacturer		5 years	About CNY 767 million
October 2022	AMK (Anhui) Automotive E-Drive Co., Ltd.	Chinese independent brand	Air supply unit assembly products for air suspension systems	5 years	About CNY 1.3 billion
October 2022		Chinese independent brand		4 years	About CNY 134 million
July 2022		Chinese emerging manufacturer		7 years	About CNY 767 million
March 2022		Chinese independent brand		5 years	About CNY 244 million
March 2022		Chinese independent brand		5 years	About CNY 52 million
February 2022		Chinese independent brand		5 years	About CNY 340 million
February 2022		Chinese emerging manufacturer		4 years	About CNY 100 million
May 2022	AMK Holding GmbH & Co.KG	European commercial vehicle emerging brand	Air suspension assembly	5 years	About CNY 279 million
March 2022	Anhui Tristone Flowtech Co., Ltd.	Chinese emerging manufacturer	Components for thermal management	5 years	About CNY 213 million
January 2022	Anhui Tristone Flowtech Co., Ltd.	Chinese emerging manufacturer	Components for thermal management	4.5 years	About CNY 381 million
February 2022	Anhui Zhongding NVH Co., Ltd.	Chinese emerging manufacturer	Lightweight chassis components	5 years	About CNY 1.179 billion

R&D Facilities

-The Company has a nationally accredited technical center. It has R&D branches in Shanghai, Guangdong Province, Jiangsu Province, and Hefei and Xuancheng in Anhui Province as well as R&D centers in the U.S. and Europe.

R&D partnerships

Partner	Content
Shanghai Jiaotong University	A joint "Rubber Engineering Research Institute" was established for research and testing of new rubber materials and new technologies.
Tsinghua University Automotive Engineering Department	The organizations signed a technical development agreementt to develop rubber shock absorber components.
Anhui University	Anhui University Zhongding Rubber Technology Development Co., Ltd. was jointly established to develop rubber products. The provincial level "Anhui Rubber Materials and Products Provincial Lab" was set up to conduct research in cutting-edge technologies of rubber materials and products.
Anhui University & Guangzhou Mechanical Engineering Research Institute	The "Special Rubber Material Products Industry Technology Innovation Alliance" was jointly established to conduct research on common technologies for rubber materials and products.

Patent

-The Company obtained 1,011 patents as of December 31, 2022. Among them, 313 are foreign patents, 118 are Chinese domestic invention patents, 543 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, 2022	FY ended Dec. 31, 2021	FY ended Dec. 31, 2020
R&D expenditure (CNY millions)	657.64	582.18	505.64
Proportion of R&D expenses to Sales (%)	4.43	4.63	4.38