Zhejiang Vie Science & Technology Co., Ltd. Business Report FY ended Dec. 2021
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change (%) | Factors | |
| Sales | 2,713.12 | 2,522.05 | 7.58 | -Higher costs for hydraulic brake systems and cast-iron parts pushed down profit margins. |
| Operating income | (1.02) | 87.83 | - | |
| Ordinary income | 7.87 | 87.01 | (90.96) | |
| Net income | 10.02 | 65.47 | (84.70) |
Orders
-For the fiscal year ending December 2021, the company received orders for front and rear chassis subframes from Ford, Volvo, FAW Hongqi, BAIC BJEV, NIO, XPeng, Li Auto, WM Motor, Human Horizons and Leap Motor, etc. The company received orders for aluminum knuckles from NIO and Hozon. The company also received an order for XEPS from Beiqi Foton Motor Co., Ltd. Forland Truck Plant. The company received orders for EBS and ESC from FAW, Dongfeng and Shanxi Heavy Automobile, and AEBS for JAC and FAW Qingdao. E-HS9 wireless charging products for Hongqi have started mass production.
Acquisition
-The company announced that it signed an equity transfer agreement with Protean Electric Limited (Protean) on March 15, 2021. Zhejiang Vie Science & Technology will acquire 40% of the shares held by Protean in Zhejiang Vie Zhiqu Science & Technology Co., Ltd. (Zhejiang Vie Zhiqu) at a price of 1 US dollar. After the deal is finalized, Zhejiang Vie Zhiqu will become a wholly-owned subsidiary of Zhejiang Vie Science & Technology. (From a press release dated May 27, 2021)
Investment
-The company announced that it plans to make an additional investment of CNY 4 million in its subsidiary, Haldex VIE (Suzhou) Electro Mechanical Brake Systems Co., Ltd. (Suzhou Haldex VIE). Upon the completion of this additional investment, Zhejiang Vie Science & Technology will have actually invested CNY 19 million in Suzhou Haldex VIE, holding 50% of its shares. Haldex Vehicle Products (Suzhou) Co., Ltd., the other shareholder of Suzhou Haldex VIE (currently holding 50% of the shares), will also make an additional investment of CNY 4 million in Suzhou Haldex VIE according to the shareholding percentage. The additional investment is mainly to provide further support for Suzhou Haldex VIE’s subsequent payment to suppliers, construction of a production line and daily operations, so that the project progress can be accelerated. (From a press release dated October 9, 2021)
Share transfer
-The company announced that its share of Shanghai Tongyu Automotive Technology Co., Ltd. (Tongyu Technology) changed from 16.2266% to 15.5015% because Tongyu Technology received an investment of CNY 40 million from Shanghai Anting Industrial Development Co., Ltd. (Anting Industrial). (From a press release dated February 24, 2022)
Subsidiaries
-The company announced that its subsidiary, Zhejiang Zhuji Wanbao Machinery Co., Ltd., has changed its company name to “Zhejiang Wan 'an Zhiyu Automobile Control System Co., Ltd.” Except for the company name, other information of the subsidiary, such as the registered address, telephone number, fax, e-mail, and official website, remains unchanged. (From a press release dated March 8, 2022)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D Expenditure | 132.14 | 97.06 | 97.23 |
| Ratio of R&D expenses to sales (%) | 4.87 | 3.85 | 4.32 |
-As of Dec. 31, 2021, the Company had 411 R&D staff, accounting for 11.54% of the total staff.
R&D project
| Project | progress | Detail |
| Wireless charging project | Installed in a vehicle and is being tested on the road. | Installed in the FAW Hongqi E115. Small-lot production will start in the second half of 2022, and the development of product applications will be gradually expanded. |
| Aluminum alloy knuckle project | Installed in a vehicle and is being tested on the road. | Completed construction of Phase 1 production base with an annual production capacity of 500,000 aluminum calipers. Mass production begins in September 2022 and large-scale mass production in 2023. The Company will gradually expand the development of product applications. |
| Circulating ball electric steering project | Installed in 20 models of 15 customers. Some models started small-lot production. | Dominated the domestic market for electric steering systems for commercial vehicles such as micro trucks, pickups, and light trucks |
Patents
-In 2021, 139 new applications were filed and 126 patents were obtained.
-The Company obtained IATF16949 quality control system certification, ISO14001 environmental management system certification, and OHSAS18001 occupational health and safety management system certification.
R&D
-Since the Company focuses on developing automotive electronic control systems it established connected vehicle technology R&D center in Beijing. It has completed the R&D and launched production of pneumatic/hydraulic ABSs, EBSs, and commercial-vehicle electronic stability control (ESC) systems. It also completes development and testing of electric parking brakes (EPBs), electronically controlled air suspensions (ECASs) and other key automotive electronics. Currently, electromechanical brakes (EMBs) are undergoing on-road tests while advanced driver assistance systems (ADAS) are in the development testing phase.
-In 2009, the company and Nanjing University of Science and Technology established the "NJUST-VIE Science and Technology Automobile Chassis Parts Joint Research Institute". They jointly conducted research and development of an electronic parking brake system (EPB) for automobiles.
-The Company has R&D centers in China (Zhejiang, Beijing, and Shanghai) and in Hungary. It has a summer automobile test site in Zhejiang Province and a winter automobile test site in Heihe City, Heilongjiang Province.
-The Company's technology center collaborated with the following entities to jointly develop new products: Tsinghua University, Shanghai Jiao Tong University, China Automotive Technology Center, China FAW Group Corporation Technical Center, Dongfeng Automobile Technology Center, and Chongqing Automobile Research Institute.