Bohai Automotive Systems Co., Ltd. Business Report FY ended Dec. 2022

Financial overview

(CNY millions)
  FY ended Dec. 31, 2022 FY ended Dec. 31, 2021 Rate of change
Sales 4,102.29 4,414.86 (7.08)
Operating income (58.99) (98.26) -
Ordinary income (54.22) (97.24) -
Net income (68.79) (87.17) -

 

Business situation

1) Piston business
-In the passenger-car piston market, annual sales volume increased by 23.35% YoY to CNY 8.48 million, and revenue grew by 12% YoY, mainly driven by strong sales from major OEMs such as BYD and Chery Automotive. In the export segment, strong sales of forged steel pistons  generated sales revenue of CNY 214.9 million. However, sales of pistons by Binzhou Bohai Piston Commercial Vehicles, a subsidiary, declined due to the downturn in the commercial-vehicle market.

2) Lightweight parts business
‐Due to increased sales at Chery, Dongfeng, and Geely, the subsidiary company Hainachuan (Binzhou) Lightweight Automotive Parts Co., Ltd. recorded higher revenue from the sale of products such as cylinder bodies and transmission cases.

3) Wheel business
‐The downturn in the commercial-vehicle market had a negative impact, which caused a decrease in sales of wheels to Taian Qicheng Wheel Manufacturing.

 

Merger and acquisition

-The company announced that it has completed the merger and acquisition of its wholly-owned subsidiary, Binzhou Temai Auto Parts Co., Ltd., with the aim of optimizing its business structure and improving management efficiency. After the merger is completed, the company will continue to operate under the group umbrella. (From a press release dated June 12, 2022)

-The company announced that its subsidiary's acquisition of a 25% share in BTAH has been approved by the Shandong Development & Reform Commission and the Department of Commerce of Shandong Province. In January 2022, Bohai Automotive Systems announced that Bohai Automotive International GmbH, its wholly-owned subsidiary, intended to acquire a 25% share of BOHAI TRIMET Automotive Holding GmbH (BTAH) from TRIMET Aluminum SE. After the deal is finalized, BTAH will become a wholly-owned subsidiary of Bohai Automotive International GmbH. (From a press release dated June 21, 2022)

 

Patents

-In the fiscal year ending December 2022, the company has obtained 14 patents, including 12 invention patents. (From 2022 Annual Report)

 

R&D Expenditure

FY ended Dec. 31, 2021
(CNY millions)
FY ended Dec. 31, 2021
(CNY millions)
FY ended Dec. 31, 2020
(CNY millions)
R&D Expenditure 91.80 126.41 117.02
Ratio of R&D expenses to sales 2.24 2.86 2.50

-As of the end of 2022, the Company has 294 R&D personnel, accounting for 5.96% of the total employees.

 

Major plants

Plant Name Description
Binzhou Bohai Piston Co., Ltd. Largest China-based piston manufacturer, being a piston manufacturer capable of producing pistons that meet Euro-5 and China-6 standards.
Hainachuan (Binzhou) Lightweight Automotive Parts Co., Ltd. The Engineering Center develops, manufactures, and sells lightweight, aluminum-alloy automotive components such as engine parts, transmission parts, body-structural parts, chassis parts, and electric-drive parts. The company received orders from Beijing Benz in 2021.
Taian Qicheng Wheel Co., Ltd. Established in February 2012. A subsidiary of Binzhou Bohai Piston Co., Ltd. It develops, manufactures, and sells high-performance wheel hubs. The main sales destination is the overseas aftermarket market.
Harzgerode Guss GmbH The company develops and manufactures machining tools; manufactures dies; and conducts surface-finishing, machining, and assembly of cast-aluminum products.
Sömmerda Guss GmbH The company manufactures high-precision aluminum die-cast components such as engine parts, control panels, valve plates, structural parts.
Bohai Trimet Automotive Holding GmbH The company produces mainly lightweight, aluminum-alloy drive parts, engine parts, chassis parts, and structural parts, delivering them to major OEMs based in Europe, including BMW, VW, Audi, Daimler, Bentley, Ford, Kia, Magna.

MarkLines Customer Support

9:00 a.m. - 5:30 p.m. Mon.-Fri. (excluding national holidays)
japan Japan
Nagata-cho, Chiyoda-ku, Tokyo, Japan
+81-3-4241-3907
USA USA
Southfield, Michigan, USA
+1-248-327-6987
MEX Mexico
León Guanajuato, Mexico
+52-477-796-0560
DEU Germany
Frankfurt am Main, Germany
+49-69–904-3870-0
CHN China (Shanghai)
Huangpu District, Shanghai, China
+86-21-6212-6562
CHN China (Shenzhen)
Nanshan District, Shenzhen, Guangdong
+86-755-2267-1725
THA Thailand
Klongtoey, Bangkok, Thailand
+66-2-665-2840
IND India
Gurgaon, Haryana, India
+91-124-4048779