Anhui Zhongding Sealing Parts Co., Ltd. Business Report FY ended Dec. 2023

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	Change (%)
Sales	17,244.45	14,851.89	16.11%
Operating income	1,377.32	1,120.63	22.91%
Ordinary income	1,368.82	1,109.93	23.32%
Net income	1,112.95	946.04	17.64%

Strategic Cooperation

-The Company announced the signing of a strategic cooperation agreement between Anhui Zhongding Intelligent Thermal System Co., Ltd. (Zhongding ITS), a subsidiary, and Fuchs Lubricants (China) Ltd. (Fuchs China) in Shanghai. The two parties will establish a long-term and comprehensive strategic partnership to jointly promote immersion liquid cooling technology and co-develop advanced thermal management solutions for application areas such as data centers, energy storage, and New Energy Vehicles. (From a Zhongding press release dated January 12, 2024)

New company

-The Company announced the official opening of Anhui Zhongding Intelligent Thermal System Co., Ltd. (Zhongding ITS), a subsidiary, in Shanghai. Registered and established in January 2023, Zhongding ITS is mainly engaged in the R&D, production, and sales of thermal management systems (including controllers and software) and their core components for use in areas such as New Energy Vehicles, distributed energy storage, and supercomputing centers. (From a Zhongding press release dated September 20, 2023)

Main customers

-The combined sales of the top 10 customers was CNY 8.594 billion, accounting for 50% of sales in 2023.

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

Orders

Date	Supplier	Customers	Products	Project life cycle	Total value of order
April 2024	Shanghai Dingyu Intelligent Technology Co., Ltd.	Chinese emerging OEM	Air suspension system assembly products for new energy platform projects	6 years	About CNY 248 million
February 2023	Chengdu Wangjin Automotive Components Co., Ltd.	Chinese independent brand	Lightweight chassis components	6 years	About CNY 969 million

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.

Patents

-The Company obtained 1,090 patents as of December 31, 2023. Among them, 259 are patents outside China, 135 are Chinese domestic invention patents, 653 are utility model patents, 10 are design patents, and 33 are software copyrights.

Certifications

-The Company obtained ISO/IATF16949, ISO14001, ISO/IEC17025 and other quality, environmental, and laboratory system certifications.

R&D Expenditure

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021
R&D expenditure (CNY millions)	782.77	657.64	582.18
Proportion of R&D expenses to Sales (%)	4.54	4.43	4.63