Huizhou Desay SV Automotive Co., Ltd. Business Report FY ended Dec. 2023

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021	Rate of Change (%)	Factors
Sales	21,908.00	14,932.91	46.71	-The penetration rate of high-end smart cockpits and high-end smart driving products has increased, and the number of customers of products such as display screens and navigation has increased.
Operating income	1,536.73	1,158.40	32.66
Ordinary income	1,538.18	1,157.39	32.90
Net income	1,541.57	1,171.37	31.60

New business

-Desay SV announced the launch of the G9SH cockpit domain control platform co-developed with Qualcomm. Based on the Qualcomm Snapdragon 8295 4th-generation flagship cockpit platform, the G9SH boasts features such as high computing power, iterability, and diversified ecological integration, and is provided for automakers as a solution combining high performance and cost advantages. (From a Desay SV press release dated October 18, 2023)

-Desay SV announced the holding of a strategic debut and signing ceremony with SemiDrive at Auto Shanghai 2023. Desay SV launched the China-made DS06C intelligent cabin domain control platform based on SemiDrive’s X9SP next-generation 12-core high-performance cabin processor for future mainstream intelligent cabin applications. Integrating a high-performance CPU, GPU, and NPU, as well as multiple mainstream technologies such as USB 3.0, gigabit Ethernet, and CAN-FD, the platform meets such needs of future intelligent cabins as a high computing power and high-speed data transfer, and enables a series of intelligentization experiences such as cabin-parking integration application, multi-modal voice interaction, and multi-screen interaction. (From a Desay SV press release dated April 20, 2023)

Exhibitions

-Desay SV exhibited the IPU04, a high-computing-power intelligent driving domain controller, at the Nvidia GPU Technology Conference (GTC) 2024. Integrating an Nvidia DRIVE Orin chip, the IPU04 has advantages in multi-sensor access, higher-level intelligent driving feature realization, and high reliability. So far, the product has been designated for projects of the vast majority of emerging, independent, and joint venture automakers including Li Auto, XPeng, Rising Auto, GAC Aion, Zeekr, and Lotus NYO, with several already in mass production. (From a Desay SV press release dated March 21, 2024)

-Desay SV announced that it held a technology exchange meeting at Dongfeng Nissan, where it exhibited cutting-edge products and technologies in the fields of intelligent cockpits, intelligent driving, and intelligent connectivity. In the field of intelligent cockpits, such products as augmented reality head-up display technologies, dual 23.6-inch Mini-LED curved display screens, and digital instrument panels were exhibited. In the field of intelligent driving, such products as 5G+V2X T-BOX+ intelligent antennae and domain controllers that can be matched to different models were exhibited. In the field of intelligent connectivity, such products as UWB digital keys and in-vehicle infotainment systems were exhibited. Over the years, the company has been providing supporting products and technologies such as air conditioner panels, controllers, and display screens for multiple Dongfeng Nissan models. (From a Desay SV press release dated July 12, 2023)

New companies

-Desay SV announced the official establishment of its Yokohama Office. As another Desay SV R&D center outside China, the Yokohama Office will further promote in-depth exchanges with customers and provide them with prompt and high-quality services at closer range. Customer representatives from Honda and Suzuki welcomed this and expressed expectations for more in-depth future cooperation. (From a Desay SV press release dated February 22, 2024)

Strategic alliances

-Desay SV) announced that it signed a strategic cooperation agreement with SAIC Motor Overseas Intelligent Mobility Technology Co., Ltd. (SOIMT) and AutoChips Inc. (AutoChips). The three parties will jointly develop the global cabin platform “GXV5”, which is expected to achieve mass production by the second quarter of 2024. (From a press release dated September 15, 2023)

Patents and Certifications

-The company has passed ISO27001 information security management system certification, EU TISAX AL3 highest level assessment, ISO 26262 ASIL D product certification, ISO/SAE 21434 automotive cybersecurity certification and ISO 21448 functional safety process system certification. In 2023, the company obtained the ISO 21448 (SOTIF) Intended Functional Safety Process Certification for Smart Car Solutions.

R&D Expenditure

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021
R&D expenses (CNY millions)	2,028.63	1,163.50	962.49
R&D expense as percent of Sales (%)	9.26	11.14	10.06
Number of R&D personnel	3,886	3,494	2,257
Proportion of R&D personnel (%)	45.26	44.49	42.25

R&D Facilities

-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.