Ningbo Huaxiang Electronic Co., Ltd. Business Report FY ended Dec. 2021

Overview

(CNY millions)

	FY ended Dec. 31, 2021	FY ended Dec. 31, 2020	Rate of Change (%)	Factors
Sales	17,587.82	16,892.36	4.12	-The restructuring of the European business reduced the negative factors in Germany.
Operating income	1,684.61	1,297.58	29.83
Ordinary income	1,693.52	1,333.09	27.04
Net income	1,520.97	1,128.28	34.80

Orders

OEMs	Models
VW	Tayron, Sagitar, Bora, New Passat, Golf, Lavida, T-Roc, Tiguan L, Lamando, Magotan, Phideon, Teramont, New Jetta, ID.4, ID.6, ID.3
Audi	Q5, Q3, Q2, A7, A6, A4, A3, e-tron A+SUV
Benz	E-Class, C-Class, A-Class, GLB, GLC, V-Class, EQ
BMW	5 Series, 3 Series, 2 Series, 1 Series, X5, X3, X2, X1
Toyota	RAV4、Camry、Corolla、Levin、Avalon、Highlander, C-SUV, C-HR, Yaris, IZOA
Hongqi	HS7, HS5, HS3, H9, H7, H5, L7, L5
Volvo	S90, S60、XC60、XC40、Polestar2、Polesta3
GM	Cadillac XT4, XT5, XT6, CT4, CT5, CT6, Chevrolet, Buick GL8, Envision
Tesla	Model-3, Model-Y
NIO	ES6, ES8, EC6, ET7
XPeng	P7, G3, C-Sedan
Li Auto	ONE

Activities related to the COVID-19

-The company revealed that it has resumed normal production at its plants in Changchun where a COVID-19 outbreak struck. Its Shanghai plant will continue to improve the capacity utilization rate according to the progress of work resumption at Shanghai OEMs. (From a press release dated May 25, 2022)

Reorganizing Business in Europe

-In 2021, the Company completed the reorganization of its 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 market trend of "intelligent and lightweight" automobiles. The Company will research and apply new processes and new technologies to adapt to low cost production.

-Research on core components and lightweight new materials for battery packs for New Energy Vehicles.