Jiangnan Mould & Plastic 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 (%) | |
| Sales | 7,389.87 | 6,124.45 | 20.66 |
| Operating income | (166.39) | 48.29 | - |
| Ordinary profit | (175.35) | 38.97 | - |
| Net profit | (203.69) | 16.61 | - |
Change in shareholding ratio
Mould Plastic Group increases its shareholding in the company
-In August 2021, the controlling shareholder of the Company, Jiangyin Mould & Plastic Group Co., Ltd. (Mould Plastic Group), entered into an Equity Transfer Agreement with Jiangyin Jingli Machinery Co., Ltd. (Jingli Machinery). According to the agreement, Mould Plastic Group intends to acquire 6% of the shares of the Company held by Jingli Machinery at CNY5.45 per share. After the completion of the transaction, the shareholding ratio of Mould Plastic Group to the Company will change from 31.86% to 37.86%.（From a press release dated August 12, 2021）
Sale of subsidiaries Minghua USA Inc.
-On September 30, 2021, the Company completed the sale of 100% of its equity interest in Minghua USA Inc. to Plasman US Holdco LLC. Minghua USA has continued to make substantial losses in recent years, which has seriously affected the overall operating results of the listed company. After negotiations between the two parties, Plasman US intends to take over the existing BMW Group's automotive interior and exterior trim business from Minghua USA.（From a press release dated September 14, 2021）
New company
-Minghua Mexico, a subsidiary of the Company, established Minghua Mexico California Inc. in California, U.S.A. in April 2021 with a registered capital of 1,000 dollars, which was included in the consolidated statements of income from the date of incorporation（From the 2021 annual report）
Orders
| Subsidiaries | Orders |
| Shenyang Minghua Mould & Plastic Technology Co., Ltd. | BMW bumper assemblies |
| Shanghai Mingchen Mould & Plastic Technology Co., Ltd. |
Orders received for BMW G09 luminous grille project, Human Horizons HiPhi HA1 project (almost all exterior trim parts business except tailgate), Nobo Automotive, and SAIC-GM. |
Awards
-Chongqing Beiqi Mould & Plastic Technology Co., Ltd. was awarded the Volvo Quality Excellence Award 2022, the highest award in the field of quality by Volvo worldwide. Chongqing Beiqi Mould & Plastic Technology Co., Ltd. is a wholly-owned subsidiary of BAIC Mould & Plastic Technology Co., Ltd. (a joint venture between the Company and Beijing Hainachuan Auto Parts Co., Ltd.), which mainly provides exterior parts such as car bumpers for Volvo, Beijing Hyundai, Great Wall Motor and other OEMcustomers. (From a press release dated 2 March 2022)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D Expenditure | 274.98 | 210.92 | 209.12 |
| Ratio of R&D expenses to Sales (%) | 3.72 | 3.44 | 3.81 |
-As of Dec. 31, 2021, the Company has 534 R&D staff, accounting for 9.39% of the total staff.
R&D Structure
-The company has R&D centers in Beijing, Shanghai and Jiangyin. The following are the results from research and development for the year ending December 31, 2021.
- Received two plastic fender projects from NIO
- XPeng's plastic trunk lid project is in the project quotation process
- Door panels, fans, air frames and other products have obtained technical approval from a number of component companies such as Brose and Magna
- Composite leaf springs have now received technical approval from Volvo