Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2020

Overview

(CNY millions)

	FY ended Dec. 31, 2020	FY ended Dec. 31, 2019	Rate of Change (%)	Factors
Sales	16,892.36	17,093.44	(1.18)	-Although affected by the spread of the new coronavirus infection in 2020, the decrease in domestic business was offset by the effect of customer composition such as for FAW-VW and the effect of increased sales and profits of some subsidiaries. In the overseas business, the long-term loss was eliminated by restructuring the European business.
Operating profit	1,297.58	1,482.81	(12.49)
Ordinary profit	1,333.09	1,511.89	(11.83)
Net profit	1,128.28	1,272.62	(11.34)

Orders

OEMs	Models
VW	Tayron, Sagitar, Bora, New Passat, Golf, Lavida, T-Roc, Tiguan L, ID 4, Lamando, Magotan, Phideon, Teramont, New Jetta
Audi	Q5, Q3, Q2, A7, A6, A4, A3, e-tron
Skoda	Codiac, Coloc, Spa, Octavia, Rapid
Benz	E-Class, GLA, A-Class, GLB, V-Class, Vito
BMW	5 Series, 3 Series, X3, X1
Toyota	RAV4, Camry, Corolla, Levin, Avalon, Hybrid Platinum, C-SUV, C-HR, Yaris
Volvo	S90, S60, XC60, XC40
Cadillac	XT4, XT5, XT6, CT4, CT5, CT6
Buick	Envision, GL8, Envision S
Tesla	Model-3, Model-Y
NIO	ES6, EC6, ET7
XPeng	P7, G3, C-Sedan
Others	Jaguar XF, XJ, Porsche Macan

Reorganizing Business in Europe

-The Company announced that it will reorganize its business in Europe. Firstly, the company will close NBHX Trim GmbH (NBHX Trim) in Germany and relocate NBHX Trim’s equipment to other plants in Germany and Europe. Secondly, the company will downsize Northern Automotive Systems Ltd. (NAS) in the UK and relocate NAS’s business to other plants in Europe on a staged basis. Thirdly, the company will downsize HIB Trim Part Solutions GmbH and NBHX Trim Management Services GmbH in Germany. The entire reorganization plan will cost a total of about CNY 343.7 million and is expected to be completed in 2021. The company decided to implement the reorganization plan because its business in Europe has been suffering large losses since 2014, which became a drag on the company’s development. No improvements in European business were achieved though multiple measures had been taken. (From a press release dated October 9, 2020)

R&D System

-The company has the following facilities for research and development.

Ningbo Automotive Plastic Mold Provincial Technology Research and Development Center
Ningbo Huaxiang Automobile Research and Design Institute
Ningbo Huaxiang Automobile Technology Co.
Huaxiang Innovation (Shanghai) Information Technology Co.
Ningbo Huaxiang Automotive Technology Co.

R&D Plans

-Innovative transformation of existing interior and exterior products to meet the development trend of "intelligent and lightweight" automobiles. Research and apply new processes and new technologies to adapt to low cost production.

-Research on lightweight new materials and core components for battery packs for new energy vehicles.