Ningbo Tuopu Group Co., Ltd.(Formerly Ningbo Tuopu Brake System Co., Ltd.) Business Report FY ended Dec. 2020

Financial Overview

(in CNY millions)

	FY2020 (ended Dec. 31, 2020)	FY2019 (ended Dec. 31, 2019)	Rate of change（%）	Factors
Sales	6,511.09	5,358.95	21.50	-Sales were strong in each business segment due to business allocation in anticipation of strong sales of New Energy Vehicles. In addition to receiving supplier designations from Toyota and Honda, the Company received orders from VW for electronic vacuum pumps and other products. The number of new orders received in FY2020 was significantly higher than the previous year.
Operating income	706.10	531.54	32.84
Gross Profit	710.09	528.75	34.29
Net Profit	630.13	460.05	36.97

Forecast for the year ending December 31, 2021
-Full-year sales are expected to be CNY 12 billion and net income CNY 1.2-1.5 billion.

-Completion of the 1 million square meter plant that was under construction. There are plans to build another 1 million square meter industrial park.

New Companies

-Ningbo Tuopu Group Co., Ltd. (Tuopu Group) announced that a subsidiary named Xi'an Tuopu Automobile Parts Co., Ltd. was set up to meet customer demand. The subsidiary has a registered capital of CNY 50 million and is 100% controlled by Tuopu Group. (From a press release dated June 1, 2021)

-Ningbo Tuopu Group Co., Ltd. (Tuopu Group) plans to establish a wholly-owned subsidiary in Hangzhou Bay New Zone, Ningbo City, Zhejiang Province, to further expand capacities and meet customer demand. The new company will be tentatively named Tuopu Electric Vehicle Thermal Management System (Ningbo) Co., Ltd., with a registered capital of CNY 2 billion. Its scope of business will include R&D, manufacturing, and wholesale and retail sales of automotive parts. (From a press release dated December 2, 2020)

-Ningbo Tuopu Group Co., Ltd. (Tuopu Group) announced that it planned to invest in the creation of a wholly-owned subsidiary in Poland to meet customer demands and further expand global capacities. It is expected that the company will invest up to EUR 30 million. The subsidiary will be named Tuopu Poland sp.z.o.o, with a registered capital of PLN 2 million (about EUR 448,000). The new company will engage in the manufacturing and sales of automotive parts; the manufacturing of automotive electronics and electronic equipment; and the manufacturing of other automotive components. (From a press release dated December 2, 2020)

Domestic Investment
-The Company announced that it increased its capital by CNY 750 million in its wholly owned subsidiary Hunan Tuopu Automotive Parts Co., Ltd (Hunan Tuopu), and increased its capital by CNY 100 million, in its wholly owned subsidiary Ningbo Tuopu Automotive Electronics Co., Ltd. (Tuopu Electronics). Hunan Tuopu and Tuopu Electronics are the implementers of the Hunan Plant Lightweight Chassis System Module Project and Hangzhou Bay Phase II Lightweight Chassis System Module Project, respectively. After the completion of the capital increase, Hunan Tuopu's registered capital is CNY 800 million and Tuopu Electronics' registered capital is CNY 250 million, and both remain wholly owned subsidiaries of the Company.

R&D Expenditure

(CNY millions)

	FY ended Dec. 31, 2020	FY ended Dec. 31, 2019	FY ended Dec. 31, 2018
Amount	354.85	314.31	287.51
% of Sales	5.45	5.87	4.80
Number of R&D personnel	1,729	1,385	1,328
The proportion of R&D personnel in the entire of the company (%)	18.96	18.51	17.12

R&D Center

-As of 2016, the Company has R&D centers in Detroit, USA and Gothenburg, Sweden. Engineers are assigned to Toronto, Canada; Weinheim, Germany; Levallois-Perret, France; and Sao Paolo, Brazil. R&D centers in Detroit, USA and Göteborg, Sweden. Tuopu R&D Centers have the capability to enter the global development systems of OEMs such as GM, Ford, Audi, and BMW, and to collaborate with domestic and overseas OEMs.

-Since 2002, Tuopu R&D Center have been engaged in joint development with OEMs including GM, Ford, Audi, BMW, Valeo, FAW Group, FAW Jiefang, FAW Jiefang Wuxi Diesel Engine Works, Changan Automobile, Shenyang Brilliance, Geely Automobile, and BYD, and has developed many products.