Zhejiang Vie Science & Technology Co., Ltd. Business Report FY ended Dec. 2023

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	Change (%)	Factors
Sales	3,982.53	3,364.06	18.38	-In 2023, the company won new projects from customers including BYD, Li Auto, GAC, NIO, XPeng, Voyah, IM Motor, Leapmotor, FAW, Dongfeng, and Foton.
Operating income	336.52	67.09	401.59
Ordinary income	327.46	66.04	395.85
Net income	317.62	66.79	375.55

Orders

-The Company announced that Anhui Vie Auto Parts Co., Ltd. (Anhui Vie), a holding subsidiary, received a notification of designation from a well-known Chinese flying car company, whose name cannot be disclosed due to confidentiality, for the supply of the front sub-frame assembly for a certain model. Anhui Vie is required to interface with the customer’s technology and quality departments for drawing and data confirmation as well as contract signing. The specific product supply time, price, and quantity are subject to the contract or agreement signed by the two parties. (From a Vie S&T press release dated January 31, 2024)

Trends

-In August 2023, the company absorbed and merged its wholly-owned subsidiary Zhejiang VIE Zhiqu Technology Co., Ltd. through an overall absorption merger. After the absorption merger, the company will continue to operate, VIE Zhiqu's independent legal person status will be cancelled, and all its assets, liabilities, businesses and personnel will be inherited by the company.

-The Companyannounced 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)

R&D Expenditure

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021
R&D expenditure (CNY millions)	173.22	169.25	132.14
R&D expenses as percent of Sales (%)	4.35	5.03	4.87

-As of Dec. 31, 2023, the Company had 525 R&D staff, accounting for 12.61% 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.
Automatic emergency braking system for commercial vehicles	Completed the development of vehicle matching applications for 5 vehicle models for 3 customers, and achieved small-batch production for some vehicle models.	Captured the domestic commercial vehicle active safety braking system supporting market and achieve L2 level of autonomous driving;
Commercial vehicle adaptive cruise control system	Completed the development of vehicle matching application for one customer and two vehicle models, and the product has started small-batch trial use.	Captured the domestic commercial vehicle autonomous driving system supporting market and achieve L2/L3 level of commercial vehicle autonomous driving;

Patents

-In 2023, 218 new applications were filed and 152 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.

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