Shenzhen Inovance Technology Co., Ltd. Business Report FY ended Dec. 2021
Financial overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change（%） | Factors | |
| Company-wide | ||||
| Sales | 17,943.3 | 11,511.3 | 55.9 | 1) |
| Operating income | 3,821.8 | 2,347.6 | 62.8 | - |
| Ordinary income | 3,819.2 | 2,343.5 | 63.0 | - |
| Net income | 3,680.9 | 2,181.7 | 68.7 | - |
| Sales by business segment | ||||
| Industrial automation business | 8,981.6 | 5,438.1 | 65.2 | - |
| Elevator system business | 4,967.2 | 4,343.9 | 14.4 | - |
| New Energy Vehicle / Railway transportation business | 3,518.2 | 1,454.2 | 141.9 | 2) |
| Industrial robot business | 361.9 | 171.9 | 110.5 | - |
Factors
1) Company-wide
-In particular, the industrial automation business, the electric drive and power supply business for New Energy Vehicles, and the railway vehicle system business each recorded a significant increase in sales against the backdrop of increased demand.
2) Electric drive and power supply business for NEVs
-In the fiscal year ended December 2021, the Company's total New Energy Vehicle business sales reached CNY 3 billion, a year-over-year (y/y) increase of about 171% (16.7% of total sales by business segment). This includes sales for New Energy passenger cars, for which sales were about CNY 2.3 billion, an increase of 250% y/y.
Business strategy
-In 2022, the New Energy Vehicle-related business is operated by its subsidiary, Inovance Automotive. The company aims to become a global supplier of electric drive systems (e-Axles) and power supply systems for New Energy Vehicles.
1) Market strategy
- After building a foundation for Chinese OEMs, expand business globally
- In the Chinese domestic market, development of motor/ECU integrated electric drive unit (e-Axle), power distribution unit, etc. will be promoted in parallel, and the customer/product mix will be optimized.
- Continuing to cultivate the market for products for hybrid vehicles, planning to expand market share
- In overseas markets, promote sales expansion of power distribution modules, motor ECUs, motors, etc.
2) Product strategy
- Strengthen product competitiveness
Strengthen product competitiveness through research and development aimed at improving e-Axle efficiency and platform sharing, high-safety ECU, high-output and high-reliability power distribution system, and motor NVH and reliability improvement. By optimizing product design and deepening cooperation with suppliers, the Company has created a platform with dramatically improved cost competitiveness. - Strengthening technology research and development
Promote development focusing on e-Axle system integration technology, SiC power module technology for high voltage batteries, oil cooling technology for high voltage motors, multiple function integration technology, etc.
-The company announced that it plans to make an additional investment of CNY 1.8 billion in its NEV (New Energy Vehicle) subsidiary, Suzhou Inovance Automotive Co., Ltd. (Inovance Automotive). Before the capital increase, Inovance Technology holds 100% of Inovance Automotive’s share. After the capital increase, Inovance Automotive will have a registered capital of CNY 2 billion, remaining a wholly-owned subsidiary of Inovance Technology. Inovance Automotive represents a standalone unit of Inovance Technology. The capital increase may enhance the core competitiveness of the company’s NEV business. (From a press release dated September 27, 2021)
Business alliance
| Year | Partners | Details |
| Jun. 2022 | Shaanxi Fast | Building a common foundation for electric powertrain system technology development |
| Feb. 2022 | SKF | Study high-speed ceramic ball bearings for Inovance Automotive applications |
| Jul. 2021 | Li Auto | Inovance Automotive and Beijing CHJ Automotive Co., Ltd. (Li Auto) established an auto parts joint venture company in Changzhou, Changzhou Huixiang New Energy Auto Parts Co., Ltd. Inovance Automotive will hold a 51% share and Li Auto 49%. |
| Jun. 2021 | Chery | Research on power electronics technology, system assembly technology, and smart manufacturing technology for New Energy Vehicles. |
| Apr. 2021 | FAW New Energy Development Institute | Inovance Automotive and FAW New Energy Development Institute establish joint lab for automotive power supplies |
| Jan. 2021 | American Axle & Manufacturing | Cooperation for development and supply of next-generation e-Axle |
| 2016 | Brusa Elektronik AG | Powertrain system development utilizing Brusa's motor design technology |
Production plants
| Plant | Zone | Area (square meters) | Details |
| Suzhou Plant | Zone B | 130,000 | PCBA (printed circuit board assembly) production line on the 4th floor of the B1 area. Production capacity: 1 million pieces/year DC/DC converters, on-board chargers (OBC) production line on the 4th floor of the B1 area. Production capacity: 120,000 pieces/year Inverter production line on the 3rd floor of the B1 area. Production capacity: 300,000 units/year |
| Zone C | 40,000 | Drive motor (e-motor) production lines on the 1st and 3rd floors of the C3 area. Production capacity: 400,000 pieces/year e-Axle production lines on the 1st and 3rd floors of the C3 area. Production capacity: 100,000 pieces/year |
|
| Changzhou Plant | - | Under construction | Construction started in September 2021. The first phase of the project will be completed in April 2022 and the second phase of the project will be completed in December 2023. The first product will be offline in May 2022. |
R&D Expenditure |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D expenditure (CNY millions) | 1,685.46 | 1,023.23 | 855.56 |
| Ratio to sales (%) | 9.39 | 8.89 | 11.58 |
| R&D personnel (persons) | 3,560 | 2,513 | 2,512 |
| Percentage of employees in R&D (%) | 21.02 | 14.84 | 22.40 |
-At the end of 2021, the company had a total of 3,560 R&D (Engineering) personnel. Among them, there are more than 800 research and development personnel for New Energy Vehicle related products, of whom 67% have a doctorate or master's degree. (from 2021 Annual Report)
R&D Activities
New Energy Passenger Vehicle Division
-The Company received orders from numerous domestic and international OEMs. Acquired over 30 projects throughout the year.
-Accurately execute product development work, including new-generation electronic control platforms, electric drive system platforms, hybrid electric control platforms, and power distribution system platforms.
New Energy Commercial Vehicle Division
-Iterations and upgrades of existing platform products.
-Started providing solutions for heavy-duty trucks.
-The Company released a new generation of powertrain solutions for the N1 class market.
R&D system
-The R&D center conducts work in technologies such as inverter module design, NVH design, EMC simulation, and IGBT online junction temperature estimation, and has applied for 286 patents.
-Investment for the test center CNY 250 million. The center covers an area of more than 10,000 square meters, has 179 engineers and 136 functional, performance, durability, environmental, NVH, EMC, physical and chemical analysis test benches. Obtained CNAS certification and information security management system certification, as well as CAERI, UL, and TUV certifications.
-The company has obtained ISO 9001, OHSAS18001, ISO14001, TS16949, ESD S20.20, ISO26262, ISO17025, IATF16949, CL1124, DA2920 certification.
-Passed VW Formel-Q audit in December 2017 and VW Software and Logistics audit in 2018. In 2019, passed NSA audit for VDA6.3 (SGS third party certification) and PSA. Passed Nissan's quality system audit in 2020. Passed Volvo and FCA quality system audits.
Patents
| New in 2021 | Total | |
| Invention patents | 31 | 372 |
| Practical models | 290 | 1,217 |
| Appearance design | 92 | 299 |
| Software copyright | 55 | 298 |