Anhui Zhongding Sealing Parts Co., Ltd. Business Report FY ended Dec. 2017

Financial Overview

(in million CNY)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change Factors
Sales 11,770.48 8,384.37 40.39% -
Operating profit 1,355.85 1,052.68 28.80% -
Ordinary profit 1,407.43 1,100.83 27.85%
Net profit 1,153.57 928.80 24.20%


-The Company made an official announcement about its plan to acquire all the Tristone Flowtech Holding S.A.S. shares owned by Bavaria France Holding S.A.S. Tristone Flowtech supplies flow technology solutions for engine cooling systems and new energy vehicle battery cooling systems, as well as air charging and intake tubes. Its major customers include Volvo, BMW, VW, Ford, and Fiat. (From an announcement by the company on January 24, 2017)

-On September 19, 2017, Anhui Zhongding Sealing Parts Co., Ltd. signed a share purchase agreement with Shenzhen Clou Electronics Co., Ltd., a shareholder of Beijing National Battery Technology Co., Ltd. Based on the contract, Anhui Zhongding Sealing Parts will obtain 1.203% of shares in Beijing National Battery Technology at Chinese yuan (CNY) 84.21 million. Beijing National Battery Technology was established in 2011 with a registered capital of Chinese yuan (CNY) 230 million. It's engaged mainly in battery technology, system assembly, and lithium-ion batteries. It has a high-performance lithium-ion battery production line with an annual production capacity of 2 billion Ah, and makes batteries for 11 new energy buses. As of June 30, 2017, it has the total assets of CNY 3.18 billion, the total liability of CNY 1.52 billion, and the net assets of CNY 1.66 billion. In the first half of 2017, from January through June, it generated sales of CNY 534 million, operating income of 77.88 million and net profit of CNY 101 million. (From a corporate announcement on September 19, 2017)


-In February 2018, the Company signed an “Equity Transfer Agreement” with Tristone Flowtech Holding SAS (the Zhongding Europe GmbH, its wholly-owned subsidiary, holds its 100% equity, hereinafter referred to as “TFH”), which the Company will transfer the 100% equity of Anhui Zhongding Rubber Hose Products Co., Ltd., its wholly-owned subsidiary, to the TFH, and change its name to Tristone (Anhui) Flowtech Co., Ltd., whose main business will be the design, manufacture and sale of automotive rubber pipe fittings. TFH is a supplier of engine and battery cooling system assembly, ranking No.2 in the world, one-third of its business is cooling system for new-energy battery, and its customers are mainly the well-known automobile manufacturers such as Volvo, BMW, Volkswagen, Ford, Fiat and so on. Up to now, the above transfer has not been completed.


Date Supplier Customers and Projects Products
Jun. 2018 Anhui Zhongding Shock-absorbing Rubber Technology Co., Ltd. Geely CMA1.5 Platform Project bushing products
May. 2018 American subsidiary , ACUSHNET Tesla sealing products for battery cooling system
May. 2018 Company

Volvo P319 PEV Platform Project
Chery ,Jaguar and Land Rover L551 PEV Platform Project

sealing strip products for battery module
May. 2018 Anhui Zhongding Shock-absorbing Rubber Technology Co., Ltd. Geely PMA PEV Platform Project bushing products
Mar. 2018 Company CATL A75、A26 Project

battery pack for NEV,
vibration reduction products for inner cooling system

Mar. 2018 Anhui Zhongding Shock-absorbing Rubber Technology Co., Ltd. Dongfeng Nissan 322EV&331EV Project assembly products for motor suspension
Feb. 2018 Company CATL EL255 Project

battery pack for NEV,
vibration reduction products

Feb. 2018 Company NEXTEV ES8 NEV Project bridge sealing assembly for NEV
Feb. 2018 Anhui Zhongding Rubber Hose Products Co., Ltd Geely New Energy Commercial Vehicle MPC-1 NEV Project cooling system for NEV
Feb. 2018 Company eGT BBG project NEV Project vehicle suspension system products
Dec. 2017 Company CHJ M01New Energy SUV Project vehicle cooling line and intercooler assembly products
Nov. 2017 Anhui Zhongding Shock-absorbing Rubber Technology Co., Ltd. SAIC EX21(code name) suspension assembly products for electric vehicle
Nov. 2017 Anhui Zhongding Shock-absorbing Rubber Technology Co., Ltd. Volvo V331Project part of shock- absorbing products


-“The Rubber & Plastics News” in the U.S. published 2017 annual ranking of 50 global non-tire rubber products and Anhui Zhongding Sealing Parts Co., Ltd. ranked 18th up from 19th in 2016. (From a press release on August 17, 2017)

-On July 27, 2017, Anhui Zhongding NVH Co., Ltd., which is a subsidiary of Anhui Zhongding Sealing Parts Co., Ltd., received an excellent supplier leading quality award of the year 2017 from Beijing Benz Automotive Co., Ltd. (From a press release on July 31, 2017)

R&D Facilities

-The Company has state-certified enterprise technology center.

-The Company has R&D branches in Shanghai, Guangdong, Jiangsu, Hefei, Xuancheng, and has set up R&D centers in the United State and Europe.

R&D Cooperation

Partner Business
Shanghai Jiaotong University Set up "Rubber Research Joint Institute" to R&D and test new rubber material & new technology.
Tsinghua University Automotive Engineering Department Signed technical development contract to develop rubber shock absorber components.
Anhui University Established "Anhui University Zhongding Rubber Technology Development Co., Ltd." jointly to develop and improve rubber products; set up "Anhui
Rubber Material Products Provincial Lab" to conduct rubber materials cutting-edge products research and experiment.
Anhui University & Guangzhou Mechanical Engineering Research Institute Jointly set up "Special Rubber Material Products Industry Technology Innovation Alliance" to conduct rubber materials products industry generic technology research.


-By the end of 2017, the Company has 600 patents, including 64 domestic invention patents, 183 foreign patents.

R&D Expenditure

FY ended Dec. 31, 2017
(million CNY)
FY ended Dec. 31, 2016
(million CNY)
FY ended Dec. 31, 2015
(million CNY)
R&D Expenditure 455.88 298.96 249.52
Ratio of R&D expenses to operating income 3.87% 3.57% 3.81%

Investment Project

(in million CNY)
Project Budget Investment in 2017 Project status
Plant in Heli Development Zone 43.20 2.87 100%
Plant of Tianjin Zhongding 39.80 2.77 100%
Plant of Special rubber refining
72.81 13.52 18.57


-The Company said on May 24, 2018, that the company would raise Chinese yuan (CNY) 1.5 billion and allocate the fund to the first phase expansion and relocation of its research and production site of shock absorber rubber materials and products, the construction of a new plant that produces fluid pipe systems for new energy vehicle power cell temperature control, and the current capital. The company is going to invest CNY 1.71 billion in total in the expansion and relocation of the research and production site. A wholly-owned subsidiary, Anhui Zhongding NVH Co., Ltd., is going to take charge of the project. The project is aimed to meet the needs for upgrading the company's production capacity, its products from components to assemblies, and develop lighter parts for new energy vehicles. The investment in the new pipe system production facility is going to total CNY 562 million. Anhui Zhongding Sealing Parts is going to take charge in the construction project. It aims to localize the technologies related to advanced engine coolers and new energy battery coolers and raise the share in the new energy battery cooling system market in China. (From a press release on May 24, 2018)