Zhejiang Vie Science & Technology Co., Ltd. Business Report FY ended Dec. 2022

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021	Rate of change (%)	Factors
Sales	3,364.06	2,713.12	23.99	-Besides expansion of the New Energy Vehicle market, the sales volume of hydraulic brake systems increased by 62.59% year-over-year (y/y), and the sales volume of subframes increased by 76.73% y/y.
Operating income	67.09	(1.02)	-
Ordinary income	66.04	7.87	739.14
Net income	66.79	10.02	566.57

Orders

-For the fiscal year ending December 2022, the company received orders for front and rear chassis subframes from Ford, Volvo, NIO, XPeng, Li Auto, Hozon and Leapmotor, etc. The company received orders for aluminum calipers from NIO, Hozon, and Leapmotor. The company received orders for EBS and ESC from FAW, Dongfeng and Shanxi Heavy Automobile.

-The company announced that Zhejiang Wan’an Zhiyu Automobile Control System Co., Ltd., its wholly-owned subsidiary, has been designated by Zhejiang Leapmotor Technology Co., Ltd. (Leapmotor) as the development cooperation supplier for the left front and right front brake assemblies of the C11, C01 and T03 projects, with the two parties to sign relevant contracts and agreements later. (From a Vie S&T SZSE announcement dated October 21, 2022)

-The company announced that Zhejiang Wan’an Zhiyu Automobile Control System Co., Ltd., its wholly-owned subsidiary, has become a supplier of a well-known domestic new energy enterprise (whose name cannot be disclosed due to a confidentiality agreement), for whom it will develop and manufacture products including aluminum alloy front fixed calipers and rear EPB calipers. (From a Vie S&T SZSE announcement dated October 21, 2022)

Trends

-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)

-The company announced that Haldex Vie (Shanghai) Electro Mechanical Brake Systems Co., Ltd. (Shanghai Haldex Vie), its subordinate participating company, has completed the absorption and merger of Haldex Vie (Suzhou) Electro Mechanical Brake Systems Co., Ltd. (Suzhou Haldex Vie). The independent legal personality entity of Suzhou Haldex Vie has been cancelled, and all its assets, liabilities, businesses, and personnel have been succeeded by Shanghai Haldex Vie. (From a Vie S&T SZSE press release dated May 16, 2023)

-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

	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021	FY ended Dec. 31, 2020
R&D expenditure (CNY millions)	169.25	132.14	97.06
R&D expenses as percent of Sales (%)	5.03	4.87	3.85

-As of Dec. 31, 2022, the Company had 525 R&D staff, accounting for 12.89% of the total staff.

R&D project

Project	progress	Detail
Aluminum alloy caliper project	Started supplying to NIO, Leapmotor and Hozon.	Completed construction of an aluminum caliper production facility to begin supplying aluminum calipers to the domestic NEV market in China.
Ball nut type electric steering project	Installed in 30 models of 20 customers. Some models started small-lot production.	Captured domestic market for electric steering systems for commercial vehicles such as micro-trucks, pickups, and light-duty trucks.

Patents

-In 2022, 177 new applications were filed and 131 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.