Ningbo Tianlong Electronics Co., Ltd. Business Report FY ended Dec. 2020
Financial Overview |
(CNY millions) |
| FY ended Dec. 31,2020 | FY ended Dec. 31,2019 | Rate of increase/ decrease (%) | Factors | |
| Sales | 960.49 | 919.00 | 5.89 | -The company has increased its investment in R&D, focusing on two key areas: automotive electronics and lightweighting, Sales of automotive products were up 12.03% year-over-year in the fiscal year ended December 21, 2020. |
| Operating profit | 102.58 | 72.40 | 41.68 | |
| Ordinary profit | 102.90 | 72.17 | 42.57 | |
| Net profit | 92.88 | 66.64 | 39.37 |
Establishment of New Company
-On July 8, 2020, the Company announced that it plans to set up Ningbo Tianlong Electronics Co., Ltd. Suzhou Branch (tentative name) in Taicang, Suzhou City, Jiangsu Province. The branch will supply products to the nearby Brose Taicang Plant. The branch mainly will produce new electronic components (chip components, sensors, and newmechatronics components) and plastic products. (From a press release on July 8, 2020)
-The Company's holding subsidiary, Fujian Tianlong Electronics Co., Ltd. has been liquidated as it no longer carries out normal production and operational activities. (From the release dated 27 May 2020)
Receive Orders
-In the fiscal year ending December 31, 2020, the Company was awarded 104 new projects. Of these, 20 relate to New Energy Vehicles, mainly indirect business for OEMs including Tesla, VW's MEB platform, Honda, Ford, Nissan and Mercedes-Benz. (From the 2020 Annual Report)
-In July 2020, the Company was appointed as a supplier of the door panel project for the Tesla Model Y through Brose (China) Co., Ltd. The supply of products will begin in January 2021, and the total value of the project will be CNY 120 million. (From the release dated July 8, 2020)
Awards
-In the fiscal year ending December 31, 2020, the Company received the 2019 "Delivery Cooperation Excellence Award" and "Quality Improvement Award" from Shanghai Toyo Denso. (From a press release on April 28, 2020)
-In 2019, the Company received a 2018 supplier award from Continental AG for its functional plastic parts. (From a press release on February 28, 2020)
Product R&D
-The Company will focus on research and development of automotive electronics and New Energy Vehicle related components, as well as on modularity, precision processes and weight reduction. The company will invest in the design and development of precision dies and complex multi-insert precision injection molding processes and automated production to enhance business performance. (From the 2020 Annual Report)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31,2020 | FY ended Dec. 31,2019 | FY ended Dec. 31,2018 | |
| R&D expenditure | 41.87 | 45.85 | 44.05 |
| Ratio of R&D expenses to Sales (%) | 4.30 | 5.00 | 4.75 |
-As of December 31, 2020, the company has 420 R&D and technical personnel, accounting for 30% of the total number of employees.
R&D Facilities
-R&D activities currently underway are as follows:
- Technology using sliders during molded product removal
- Technology for separating runners during molded product removal
- Technology to improve threaded-sleevereturn positioning
- New-generation, injection-molding technology that integrates window and motor systems
- Dichromatic, injection-molding technology
- Continuous fiber-reinforced thermoplastic resin (CFRTP) composites (Organo technology)
- Multi-insert technology
-The company also has a wind tunnel test chamber it uses to conduct performance testing of products such as the centrifugal impeller assemblies of automotive air-conditioning systems, and engine cooling fans.
Patents
-As of December 31, 2020, the company has 29 patents and 140 utility model patents.
-The Company’s wholly owned subsidiary, Langfang Tianlong Livon Automotive Components Co., Ltd., has been awarded the Certificate of High and New Technology Enterprise (High-tech Enterprise Certificate) jointly granted by the Hebei Provincial Science and Technology Administration, the Hebei Provincial Finance Administration and the Hebei Provincial Taxation Bureau of the State Administration of Taxation. The certificate was issued on December 2, 2019 and is valid for three years. The company will enjoy a preferential tax rate of 15% on its income for three years. (From apress release on April 9, 2020)