Shaanxi Fast Auto Drive Group Co., Ltd. Business Report FY ended Dec. 2021

Contracts

-On June 18, 2021, the 11 millionth transmission was produced at the Baoji plant.

-Shaanxi Fast Auto Drive Group Company (Fast) announced that it has obtained an overseas order for 1,500 sets of bus transmissions and hydraulic retarders. (From a Fast website press release on March 9, 2020)

Subsidiary begins production

-The company announced the start of production of its subsidiary, Shaanxi Fast Songzheng Electrical Drive System Co., Ltd. (Fast Songzheng). The company also announced that its total production of synchronizers and retarders has reached 20 million units and 150,000 units, respectively. The 20 millionth synchronizer is the latest lock-ring synchronizer developed by the company and features an integrated compact structure design. The 150,000th retarder is a new generation FHB400 parallel fluid retarder. The 390 series, produced for the first time by Fast Songzheng, is suitable for 8-12m buses and medium trucks. In addition, products under development, such as those for heavy-duty electric trucks and heavy-duty hybrid trucks, will be unveiled in August, October and December. (From a press release dated June 22, 2021)

New Products

-The "Fast-Yixing" brand is the latest generation of the AMT brand of medium- and light-duty trucks, following on from the "Fast-Zhixing" brand. It uses helical gear and gear grinding technology, aluminum alloy lightweight design, and in-house designed software and hardware. Currently, Fast-Yixing is available in two types of transmissions, 6-speed and 8-speed, with a torque range of 400-1800Nm, and can be used in a variety of vehicles, including light trucks, light passengers, light special vehicles, medium-duty trucks, and special vehicles. (From multiple media reports, September 2021)

-Recently, several high-end tractors equipped with Fast’s integrated AMTs and parallel hydraulic retarders rolled off production lines atvarious OEMs. Fast’s integrated AMT is an all-new, high-end AMT that h as concentric clutch actuators and integrated shifting actuators (integrated TCUs) and uses the latest technologies in the U.S. and Europe as the benchmarks. This integrated AMT receives ADAS map data via the TCU to optimize transmission control strategies and perform economic cruise control. Fuel consumption can be reduced by more than 5%. Its safety system is designed in accordance with ASIL-C (Automotive Safety Integrity Level C) and ISO26262 (automotive functional safety standard). (From a press release on June 15, 2020)

Certification Information

-The C10JSDQX180T and C12JSDQXL280T transmissions were selected as “important new products of Shaanxi Province” in 2021 by the Ministry of Industry and Information Technology of Shaanxi Province.

-Achieved ISO 9001, QS-9000, ISO/TS 16949 quality management system certification, ISO 10012 measurement management system AAA certification, ISO 14001 environmental management system certification, ISO 17025 laboratory certification and ISO 50001 energy management system certification.

-The "Clutch Disc Assembly Drag Torque Measuring Device" developed by Fast Eaton (Xi'an) Drive Systems Co., Ltd. passed the examination of the State Intellectual Property Office and obtained a utility model. The measuring device is used for benchmarking production lines and developing samples, and has already been put into operation. (From the release dated June 15, 2020)

R&D Facilities

-In 2021, Fast Industrial Design Center was granted national accreditation. The center is positioned as a comprehensive design service platform for the whole industry chain of automotive transmission products.

-As of the end of 2020, the Company had established a research and development system including "National Class Enterprise Technology Center", "Academy of Experts Workstation" and "National Class Postdoctoral Workstation". With 1,400 core technology patents, the company has eight major product lines: AT retarder automatic transmissions, AMT automatic transmissions, S transmissions, bus transmissions, light truck transmissions, hydraulic retarders, clutches and reduction gears. The company employs over 580 people in development.

-Shaanxi Fast Auto Drive Engineering Technology Research Center is located in the Xi'an High-tech Industries Development Zone, and includes a Research Institute Office, Design Research Institute, Processing Research Institute, Test Center, Material Forming Center, Prototype Manufacturing Center.

New Plants

-On July 1, 2020, a ceremony was held in Xi’an marking the start of the construction of Fast’s intelligent plant. The total investment in the plant is CNY 2.5 billion. The plant will have a building area of around 120,000 square meters. The project includes R&D, trial-manufacturing, testing, and production facilities, as well as a sales force. As one of the key projects in Fast’s “14th five-year development plan”, the project will create a modern intelligent plant that is estimated to annually produce a total of 200,000 S series transmissions, AMTs, clutches, new-energy systems, and hybrid-transmission systems. It is scheduled to achieve annual sales of CNY 5 billion and an annual after-tax profit of CNY 500 million. (From a press release on July 6, 2020)

Overseas Investment

-On July 2, 2019, in Belarus, Shaanxi Fast Gear Co., Ltd. and Fast MAZ Co., Ltd. (Fast MAZ) held a ceremony to sign a joint venture agreement and celebrate the start of the construction of a new plant. Fast MAZ is a joint company between Shaanxi Fast Gear Co., Ltd. and Minsk Automobile Plant (MAZ). The ceremony was held in the China-Belarus Industrial Park "Great Stone." For Fast MAZ, the new plant in Belarus will be the second overseas factory, following the one in Thailand. The new joint venture will be a primary supplier of transmissions for MAZ, starting in 2021. MAZ is the largest commercial car manufacturer in Belarus. It produces heavy-duty cargo trucks, buses, trailers, dump trucks, jeeps, and several other specialty vehicles. It has over a 90% share in the Belarus market. The China-Belarus Industrial Park is the largest comprehensive industrial park outside China among the parks established by Chinese companies. It is located in Minsk, an important hub of the Silk Road Economic Belt that stretches from Central Asia to Europe. (From a press release on July 9, 2019)