Guizhou Guihang Automotive Components Co., Ltd. Business Report FY ended Dec. 2020

Business Results

(CNY millions)

	FY ended Dec. 31, 2020	FY ended Dec. 31, 2019	Rate of change	Factors
Sales	2,236.11	2,208.00	1.27	-Sales increased due to higher production and sales volumes of automotive electronic switches compared to the previous year, as well as an increase in new orders.
Operating profit	189.65	145.05	30.75	-Profit increased year-on-year due to cost-cutting and efficiency measures.
Ordinary profit	184.31	156.85	17.51
Net profit	161.89	146.19	10.74

Recent Development at a Subsidiary

Production Plant Established as a Subsidiary
-The business registration of Hongyang Sealing Products Company, Guizhou Guihang Automotive Components Co.,Ltd. was cancelled and then an announcement was made, stating that Guizhou Hongyang Sealing Products Co., Ltd. would be established in its place as a subsidiary. By becoming a subsidiary, the newly established company will be able to enhance its independence and competitiveness, in aiming to further grow its business. There will be no change in the location and scope of operations. The registered capital is CNY 10 million. Sales at Benyang Branch for the year that ended on December 31, 2020 were CNY 30,051.08 million and net profit was CNY35.08 million. (From a March 18, 2021 press release)

Completed the deregistration of two subsidiaries
-The company has completed the deregistration of Liuzhou Hongyang Sealing Products Branch of Guizhou Guihang and Chongqing Hongyang Sealing Product Co., Ltd. on April 20 and September 15, 2020, respectively. (From a press release dated September 17, 2020)

Orders

-Since 2020, the following projects have been awarded to Guiyang Wanjiang Aviation Electricalmechanical Co., Ltd., a subsidiary.

OEM	Products
Chery Automobile	T1D right-hand-drive, front wiper system, T19C rear-wiper system
FAW Hongqi	C001 rear-wiper systems
BAIC Group Off-road Vehicle	B60V front- and rear-wiper systems
FAW-VW	B-MAIN front- and rear-wiper-arm assemblies
SAIC MAXUS	MIFA platform SPX1 model left-hand drive, front- and rear-wiper systems, right-hand drive front- and rear-wiper systems
SAIC VW	AERO-B front- and rear-wiper arm assemblies
SAIC VW	Development rights for NEO front-wiper-arm assemblies and rear-wiper-arm assemblies
Geely	New platform EF1E rear-wiper system

-Guiyang Wanjiang Aviation Electricalmechanical Co., Ltd. announced that on March 8, the Shanghai plant of FAW-VW started installing its wiper system on the New Lavida. In May last year, the Changsha Plant also started installing the Company's wiper system on the Lavida. As a result of this order, the company has officially become a supplier of wipers for Lavida models. (From a March 12, 2021 press release)

-Yonghong Radiator Company, a subsidiary of Guizhou Guihang Automotive Components Co., Ltd., has received an order from SAIC-GM Wuling for an external, laminated, vacuum brazed transmission oil cooler. The ordered products, like the ones on SAIC-GM's Buick code GF6-CVT, will be installed in the Wuling RS5 (1.5T, SUV) and will also be installed on the Wuling 1.5T platform model. (From a January 12, 2021 press release)
　

Forecast for the Fiscal Year Ending 31 December 2021

-For the fiscal year ending in December 2021, the Group expects to achieve a sales turnover of CNY 2.47 billion and a gross profit of CNY 250 million.