China Auto Electronics Group Limited (THB Group) Business Report FY ended Dec. 2021

Share Transfer

-Guangzhou Industrial Investment Holding Group Co., Ltd. has signed a share transfer agreement between the Company and Shanghai Sailing Capital Management Co., Ltd. After the share transfer is completed, Guangzhou Industrial Investment Holding Group Co., Ltd. will become the controlling shareholder of the Company. (From a release dated March 31, 2021)

Project Construction Started

-The New Energy Vehicle wire harness project of Liaoning Tianhai Electric Co., Ltd., a sub-subsidiary of THB Group, started construction in Tieling, Liaoning. (From a release dated June 1, 2021)

Exhibition

-The Company exhibited products such as intelligent electronics for automobiles, new energy, high-speed connectors, and vehicle interconnection solutions at Electronica China 2021. (From a release dated April 29, 2021)

Subsidiary News

-Hunan Tianhai Electric Co., Ltd. (Hunan Tianhai), a subsidiary of Tianhai Group, announced that it has successfully reached a new agreement with BAIC to produce wiring harnesses for the BAIC C53 and C62 series models with an order amount of CNY 57.8 million. It is reported that Hunan Tianhai's previous partners are all state-owned car companies, while in a second phase it will work with the joint venture brand GAC Fiat (GAC FCA). As a result, the company will take a new step in the production of components for joint venture vehicles. In addition, the group headquarters has recently decided to formally integrate its Jiangxi subsidiary into Hunan Tianhai early next year, which will increase the company's output to approximately CNY 500 million and create 600 jobs. (From a news report dated Oct. 5, 2020)

Strategic alliance

-The company concluded a cooperation agreement with Shanghai Shangqi Investment Management Partnership (LP) (private equity investment platform under SAIC Group), Ningbo Meishan Bonded Port Area Chendao Investment Partnership (LP) (investment platform affiliated with CATL), and BAIC Capital Co., Ltd. (From a release dated November 3, 2021)

Factory resumes work

-The Company announced that the government has officially approved the resumption of THB Group operations on February 9, 2020, in accordance with government requirements for strict compliance to rules related to companies’ strengthening of prevention and control of COVID-19. On February 10, operations resumed at the group’s headquarters, connector division, electronics business unit, wiring harness business unit, HebiHaichang Special Equipment Co., Ltd. and HebiTianhaiHuanqiu Electric Co., Ltd. Its subsidiaries including THB Fujian and THB Liuzhou also restarted operations. (From a press release dated February 11, 2020)

R&D Structure

-The Company has a total of six engineering research centers. These centers include its research institute, which is a national-level technology center, the Henan Province automotive electrical engineering technology research center, and the Henan Province automotive electronics engineering technology research center. It has R&D centers in Hebi, Shanghai, and Detroit, and a CNAS-accredited test center. The Company conducts R&D activities on connectors, wire harnesses, automotive electronics, harness equipment and components for clean-energy vehicles.

-The Company established an R&D Center in Shanghai, which focuses on automotive electronics and power systems.

Strategic Plan

-The company has formulated a three-stage development strategy. In the first stage, the Company will achieve sales of CNY 10 billion in 2020 and promote the digitization of factories. In the second stage, it plans to achieve sales of CNY 50 billion in 2035 and build an intelligent factory. In the third stage, it aims to achieve sales of CNY 300 billion and become a global supplier of car electronics systems in 2069, which is the 100th anniversary of the Company’s founding.