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5. Huizhou Desay SV Automotive Co., Ltd. Business Report FY ended Dec. 2020

Huizhou Desay SV Automotive Co., Ltd. Business Report FY ended Dec. 2020

Shareholder change

-Following the transformation of state-owned enterprises in China, the Company's shareholder has changed from Guangdong Desay Group Co., Ltd. to Huizhou Xinxin Investment Co., Ltd. The effective control of the company continues to be the State-Owned Assets Supervision and Administration Commission of Huizhou Municipal People's Government.

New brand proposition "Beyond Mobility"

-The company announced that it issued a new brand proposition "Beyond Mobility", updated its brand logo, and explained the company’s thoughts and prospects in the new era. The new brand proposition manifests the corporate philosophy of Desay SV: “leading the future through innovation”. In accordance with this, the company will promote the development of China's automotive electronics industry through innovative technology, intelligent products, and a commitment to superior quality.  (From a press release dated November 8, 2021)

Carbon neutrality

-The company released its carbon neutrality commitment benchmarked against the target of limiting temperature rise to 1.5°C (the Paris Agreement set the target of limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C by the end of this century) and began to implement the carbon neutrality plan. Desay SV will set up a carbon neutral project team to push ahead with the plan and implementation of carbon neutrality. Desay SV will work with TÜV Rheinland, an international independent third-party testing, inspection and certification agency, which will provide guidance and professional methods to assist Desay SV in the implementation of carbon neutrality. (From a press release dated November 11, 2021)

Merger of subsidiaries

-The company announced that it merged the operations of Antennentechnik Bad Blankenburg GmbH and ANTEBB Holding GmbH into Desay SV Automotive Europe GmbH to promote business integration and achieve faster development. As Desay SV’s European headquarters, Desay SV Automotive Europe GmbH is located in Weimar, Germany and employs about 110 people. In the next few years, Desay SV plans to build an advanced research and technology campus for vehicle prototypes at the Weimar site. The campus will initially include an R&D center that will be inaugurated in the first quarter of 2021. Afterwards, projects at the campus will include an antenna test chamber for all types of vehicles. (From a press release dated January 21, 2021)

New business

-The company announced that the company will develop and start to run a SiP (System in Package) business in 2022, expecting to start production in August. According to Desay SV, SIP is the integration of active and passive components, as well as functional chips such as MEMS (microelectromechanical systems), optical components, processors, and memories into  a single standard package component to create a fully functional subsystem with multiple functions. Desay SV will continue to invest hundreds of millions of capital to build fully automated SIP (System-in-Package) production lines. Its annual production capacity is expected to exceed 1.5 million units within two years. (From a press release dated March 11, 2022)

Research and development trends

-The company announced the launch of the first-generation ICP (Intelligent Computing Platform) “Aurora”. This product is a volume production in-vehicle ICP with mainstream chips that deliver a large computing power of over 2,000TOPS. Its software integrates core functional domains such as intelligent cockpit, intelligent driving, and connected services, enables cross-domain convergence and meets the multi-layer needs of future E/E architectures, including high computing performance, high functional security, and continuous hardware upgradability. (From a press release dated April 29, 2022)

-The company announced smart factory has started mass production of the IPU04  domain controller equipped with NVIDIA's AI chip Orin X. The IPU04 features 254 TOPS computing power, 16 high-bandwidth LVDS interfaces, 12 high-speed CAN, 2 Flex Ray, 6 100Gigabit, 6 Gigabit, and 2 10Gigabit Ethernet interfaces. The IPU04 is designed to work with HD cameras, millimeter-wave radar, LiDAR, ultrasonic sensors, etc.  to configure autonomous driving systems. (From the release dated September 28, 2021)

-The company announced that it released the Smart Solution, an intelligent mobility solution, at the Auto Shanghai 2021. It helps create a new smart urban lifestyle under three scenarios: Smart Home, Smart Mobility, and Smart Leisure.  (From a press release dated April 27, 2021)

Orders

-The company received orders for third-generation intelligent cockpits from Great Wall Motor, GAC Aion, Chery, and Li Auto.

-In the field of infotainment systems, the Company received new orders from FAW-VW, SAIC-WV, Great Wall Motor, Geely, GAC, Chery Automobile, and others. In the display module and system business, new customers such as Dongfeng Nissan and Xpeng Motor were acquired, and in the LCD instrumentation business, the company received project confirmations from customers such as BYD, Geely Automobile, Great Wall Motor, and GAC Passenger Car.

-The Company supplies the Xpeng Motor's P7 and P5 with its first high-computing-capacity autonomous driving controller platform.

-The Company announced that the Hycan Z03 is equipped with a Blue Core OS4.0 ecosystem, a 10.25-inch digital instrument panel and a cockpit domain controller, which are all provided by Desay SV. Based on an atomic design concept, Blue Core OS4.0 is a smart cockpit interactive operating system developed this year by the Desay SV vehicle connectivity team. (From a press release dated November 3, 2021)

New company

-The company and Fawer Automotive Parts Limited Company (Fawer) signed a joint venture agreement. They will build their second joint venture in the city of Changchun, Jilin Province following the first JV, FulScience Automotive Electronics Co., Ltd. The new company will mainly produce core components of FulScience’s automotive electronics. It will also be engaged in offering new intelligent products and professional services to clients, with emphasis on intelligent cockpits and intelligent driving. (From a press release dated May 21, 2021)

-The company announced that its subsidiary Guangdong Weihui Intelligent Technology Co., Ltd. started operations. The subsidiary mainly specializes in areas such as manufacturing optimization, development of automation equipment, and application development of industrial artificial intelligence (AI). It has expansion potential in the field of automotive electronic manufacturing, where it will focus on manufacturing automotive electronics and making breakthroughs in key information generic technologies. It will help improve industrial standards and offer intelligent manufacturing upgrades, technological transformation and talent cultivation services in the intelligent driving industry. (From a press release dated January 29, 2021)

-To strengthen the Intelligent Manufacturing domain in the field of automotive electronics, the company jointly invested with three companies to establish a new joint venture. In December 2020, FulScience Automotive Electronics Co., Ltd., Huizhou Desay Automation Technology Co., Ltd., and  Huizhou Desay SV ITS Technology Research Institute Co., Ltd. established the joint venture, Guangdong Weihui Intelligent Technology Co., Ltd. Huizhou Desay SV Automotive Co., Ltd. and its wholly-owned subsidiaries hold a total of 82.85% of the shares in the JV. (From the 2020 Annual Report)

Strategic alliances

Qualcomm
-The company announced that it has partnered with Qualcomm Technologies, Inc. to jointly develop Desay SV’s 4th-Generation Intelligent Cabin System based on the 4th-Generation Snapdragon Cockpit Platforms. Desay SV’s 4th-Generation Intelligent Cabin System supports advanced technologies such as multi-screen synergy, audio processing and augmented reality (AR) technology to provide users with an immersive and interactive. It addresses the computation, performance and functional safety needs for a certain zone or domain in intelligent vehicles. (From a press release dated January 5, 2022)

MAXIEYE
-The company announced that it had reached strategic cooperation with Shanghai Maxieye Automotive Technology Co., Ltd. (Maxieye Technology) to jointly work on the R&D of highly automated driving with high computing power to develop full-stack autonomous driving solutions and operation services from  Level 1 to Level 4. Also, the two parties released the "Jiukui Plan", focusing ona common vision of the safe, efficient,  and carbon neutral transportation,  and aims to build a platform-based and scenario-based TaaS (Transportation as a Service) business model with the concept of open empowerment, and gradually realize the development and layout of L4-level automated driving platform technology for heavy trucks mainly on major domestic transportation roads. (From a press release dated December 9, 2021)

Texas Instruments
-The company announced that it has signed a Memorandum of Understanding (MOU) with Texas Instruments (TI) to jointly launch the IPU02 intelligent driving domain controller, a new intelligent driving solution. The IPU02 is the third intelligent driving domain controller built by Desay SV based on Jacinto TDA4, TI's next-generation automotive-grade processing platform, which enables L2+ level autonomous driving. (From Desay SV’s official WeChat account dated November 15, 2021)

Rightware
-Rightware announced that it has a strong cooperation relationship with Desay SV Automotive for UI implementation. Its Kanzi, an HMI toolchain for fast UI creation, allows Desay SV to create rapid functional prototypes, iterate quickly to incorporate customer feedback, and deliver the final software for automotive production. The third-generation Smart Cabin of Desay SV Automotive is a comprehensive design solution based on Level 4 autonomous driving, a 5G cloud computing platform, and V2X vehicle networking technology. It integrates various hardware combinations, uses Kanzi to realize different interactive experiences, and provides a variety of display configurations based on different driving modes. The deep integration of design and implementation enabled by Kanzi promise a trustable product quickly and efficiently. With the help of Kanzi, it is easy to build three-dimensional urban scenarios with 3D buildings, supporting various special-effect visual styles such as dynamic road networks and energy consumption curves, and so on. Using Kanzi Particles, Rightware simulates real-time weather scenarios and other factors, which are then optimized using the AI algorithms developed by Desay SV Automotive to provide users a more immersive in-vehicle experience. (From a press release on August 19, 2021)

Beijing Horizon Robotics Technology R&D Co., Ltd.
-The company announced that it formed a strategic alliance with Beijing Horizon Robotics Technology R&D Co., Ltd. (Horizon Robotics). According to the agreement, they will implement R&D and in-depth technological cooperation in terms of intelligent cockpits and promote technological innovation and application of intelligent vehicles utilizing their respective advantages. The intelligent cockpit jointly developed by them made its debut at the signing ceremony and will soon go into production. (From a press release dated April 26, 2021)

Huawei
-The company announced that it signed a full-scenario smart mobility eco-solution cooperation agreement with Huawei Device Co., Ltd. (Huawei). They will cooperate specifically on HiCar solution platforms, testing capability building and onboard eco-system innovation. The HUAWEI HiCar (Huawei’s full scenario intelligent connected solution that connects people, vehicles and home) will be incorporated into Desay SV’s mainstream in-vehicle infotainment platform. They will make joint innovations based on Huawei’s full scenario smart mobility eco-solution, set up joint innovation labs, develop comprehensive test schemes of the HUAWEI HiCar, and provide customers with intelligent cockpit products and solutions. (From a press release dated April 26, 2021)

Chery
-The company announced that it has received the Outstanding Supplier Award from Chery Automobile Co., Ltd. (Chery). Desay SV has offered abundant products and technical solutions for Chery’s Tiggo series, Arrizo series, and Exeed series, including infotainment systems, driving information display systems, 360-degree surround-view parking systems and APA (auto parking assist) systems. The Tiggo 8 PLUS adopts a dual-system intelligent cockpit domain controller that is jointly developed by both parties based on Renesas Electronics’ M3 Hypervisor. (From a press release dated March 20, 2021)

BlackBerry
-The company announced that it has jointly developed a dual-display virtual smart cockpit domain controller with BlackBerry to improve driving safety. This domain controller features QNX Hypervisor and QNX Neutrino RTOSs (real-time operating system) and has already been adopted for the Tiggo 8 Plus and Jetour X90 under the Chery brand. (From a press release dated March 9, 2021)

Business restructuring

European sites
-The company announced that it merged the operations of Antennentechnik Bad Blankenburg GmbH and ANTEBB Holding GmbH into Desay SV Automotive Europe GmbH to promote business. As Desay SV’s European headquarters, Desay SV Automotive Europe GmbH is located in Weimar, Germany and employs about 110 people. In the next few years, Desay SV plans to build a state-of-the-art research and technology campus for vehicle prototypes at the Weimar site. The campus will initially include an R&D center that was ccompleted in the first quarter of 2021. Afterwards, projects at the campus will include an antenna test chamber for all types of vehicles. (From a press release dated January 21, 2021)

-The company announced that at the Weimar-Legefeld site (Weimar site) of Desay SV Automotive Europe GmbH, the construction of an industrial park has been completed. The park has a prototype vehicle development center. At a later date, a 3D test chamber for antennas will be built. Desay SV also plans to more than double the number of employees in its European headquarters to 300 by 2025. (From a press release dated November 22, 2021)

-The company announced that Desay SV Automotive Europe GmbH opened its second production and logistics center. On an area of 2,700 square meters, the new plant is located at the Weimar-Legefeld site. After the preparations were completed in early January this year, the first six production lines at the new center went into operation. Plans call for a 3D antenna measurement room to be built in the future. (From a press release dated March 3, 2022) 

Awards

-The company announced that it won the Excellent Supplier Award by GAC.（From a press release dated January 21, 2022）

-The company announced that it won the Outstanding Partner award at the 2022 Supplier Partnership Conference held by FAW-Volkswagen Automotive Co., Ltd. (FAW-VW). In 2021, Desay SV successfully supplied FAW-VW despite the chip supply shortages. (From a press release dated January 11, 2022)

-The company announced that it won the Top 10 Supplier Award by GAC Motor.(From a press release dated January 10, 2022)

-In addition to the above, the company received Li Auto’s “Ride TOP Award, Ride Spirit Award”, Great Wall Motor’s “Technology Leadership Award”, Guangqi Trance’s “Top 10 Supplier Award”, BYD’s “Best Partner Award”, Dongfeng Passenger Vehicle’s “Supply Received the Special Contribution to the Supply Chain Award, SAIC GM's Pioneering Innovation Award, and Peika/DAF's NGD Project Best Support Award.

Patents

-The company announced that its cockpit domain controller project has passed the Automotive SPICE CL2 process capability conformance assessment. The G6SH platform, which was the basic virtual architecture subject to ASPICE certification, was developed based on QNX Hypervisor 2.0, with QNX OS 7.0 and Android OS 9.0. (From a press release dated August 3, 2021)

-The company obtained the certification of "Corporate Intellectual Property Rights Management Standards" (GB/T29490-2013) and obtained the "Corporate Intellectual Property Rights Management System Certificate" issued by China Intellectual Property (Beijing) Certification Co., Ltd. The scope of certification covers the management of intellectual property rights related to the design, manufacture, and sales of automotive infotainment systems (e.g., audio systems, multimedia navigation systems, in-vehicle intelligent communication systems, combination meters, in-vehicle display systems, in-vehicle chargers, driver assistance systems, air conditioning controllers, and Connected Systems). (From a press release dated June 9, 2021)

-Established Technology Research and Development Center in 1992. Has R&D centers in China (Nanjing, Chengdu, Shanghai, Shenzhen, etc.), Singapore and Europe.

R&D Facilities

-The company announced that production has officially started at FulScience Automotive Electronics Co., Ltd., a joint venture with FAW and FAWER, which was announced in December 2019. FulScience's R&D Center plans to build a national testing center with a total area of 2,700 square meters, a total investment of about JPY 75 million, about 70 R&D staff, and an annual testing capacity of more than 1,500 times. In the future, multiple R&D centers are planned, with a total staff of more than 1,000 people. (From the release dated September 30, 2021)

-The company announced that the Huinan Industrial Park for intelligent connected vehicles (ICVs) is now operational. The industrial park was developed based on the latest concepts and comprises a plant meeting the Industry 4.0 standards, a multi-story warehouse, an ICV R&D center, a national-level laboratory and a national-level autonomous driving proving ground. The industrial park is expected to enable Desay SV to eeliminate bottlenecks in its production capacity and diversify its product portfolio. Additionally, Desay SV expects to increase the level of automation in production and product development capabilities. (From a press release dated May 21, 2021)

-In addition to the above, the company has a laboratory accredited by CNAS ISO/IEC17025. It is said to be one of the largest in China in terms of facility capacity and laboratory scale. It is capable of testing RF and electrical performance, mechanical and environmental reliability, and EMC tests, and can meet more than 90% of the automotive electronics test standards.