Xuchang Yuandong Drive Shaft Co., Ltd. Business Report FY ended Dec. 2024

Financial overview

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	Rate of change (%)	Factors
Sales	1,307.11	1,074.29	21.67	-The company accelerated the transformation of intelligent and automated production lines and continuously improved the level of intelligent manufacturing. Conversely it also increased investment in technological research and development and overseas market expansion, with overseas order sales increasing by 54.66% year-over-year (y/y).
Operating income	108.94	73.72	47.78
Ordinary income	107.92	75.78	42.41
Net income	93.97	72.82	29.04

Business trends

‐In 2023, the company invested in precision forging production lines for constant-velocity drive shaft components for new energy vehicles, laying the foundation for the design, development and supply of longitudinal shafts for Chery's luxury sedans; using cold forging technology, the company has exported a total of more than 100,000 pieces tappet cold forging blanks used in automobile engine systems to DAF in the Netherlands. It has also supplied more than 120,000 flange shaft products for the chassis system of the Volkswagen Audi A4.

R&D structure

-The Company has various R&D facilities such as the National Authorized Enterprise Technology Center, National Postdoctoral Research Station, Henan Province Drive Shaft Engineering Technology Research Center, Henan Province Laboratory of High Performance Lightweight Drive Shafts, and Henan Industrial Design Center.

R&D expenditure

(CNY millions)

Year	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	FY ended Dec. 31, 2022
R&D expenditure	73.51	73.51	59.59
Ratio of R&D expenses to sales	5.62	5.62	5.55

-By the end of 2023, the Company had 210 R&D staff members, accounting for 9.91% of all employees.

Patents and Certifications

-As of the end of 2023, the company had 200 patents (28 invention patents, 1 exterior design patent, 171 utility model-type patents) and 4 software copyrights.

-The Company has received IATF16949:2016 quality management system certification, GB / T24001-2016 / ISO14001:2015 environmental management system certification, ISO5001:2018 energy management system certification, and ISO45001:2018 occupational health and safety management system certification.

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