Zhongshan Broad-Ocean Motor 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 | 10,017.29 | 7,776.47 | 28.82 | -Sales revenue from the construction and home appliance motors business segment and New Energy Vehicle powertrain systems increased significantly. |
| Operating income | 330.26 | 116.00 | 184.70 | -In 2021, an increase in net income of CNY 51.61 million due to the sale of shares in BAIC BluePark. |
| Ordinary income | 363.60 | 119.88 | 203.31 | |
| Net income | 269.00 | 79.42 | 238.72 |
Business development
-In the BHM Division (construction and consumer use motors), sales increased 29.20% year-over-year (y/y) to CNY 5,567.64 million due to the stabilization and streamlining of production at the plant in Vietnam and the completion of the first phase of the production expansion plan at the plant in Mexico.
-As for the Vehicle Business Group (EVBG) business unit, the New Energy Vehicle powertrain system business completed the design and verification of a number of three-in-one products and new products, and started regular production for many automakers inclding Changan Automobile, Great Wall Motor, Renault, Dongfeng Automobile, XPeng Motors, Tata, Hyundai, BJEV, and SAIC GM. Sales revenue reached CNY 1,356.86 million. The starter motor and generator business mainly relied on the subsidiaries Prestolite and Generator to carry out the business, and achieved sales of CNY 2,499.69 million, an increase of 11.11% y/y.
-The Company's current strengths in the hydrogen fuel cell business are mainly power electronics, software integration technology and high-speed motor technology. The focus is on hydrogen fuel cell BOP (Balance Of Plant) research and development, including fuel cell all-in-one controllers, high-speed centrifugal compressors, DCDC converters, high-pressure electronic pump, and hydrogen circulation system. Projects such as hydrogen fuel cell module and key components development were carried out in 2021.
Subsidiary activities
Full capitalization of Weifang Shangwei Electric Drive Technology Co., Ltd.
-Shanghai Edrive Co., Ltd. established a wholly owned subsidiary, Weifang Shangwei Electric Drive Technology Co., Ltd. on November 30, 2021. The company's registered capital is CNY 50 million. (From 2021 Annual Report)
Exhibit at CIIE 2021
-Shanghai Edrive and Nexperia jointly exhibited at the 4th China International Import Expo (CIIE). The two parties exhibited their jointly developed GaN power components and motor controllers for New Energy Vehicles. As China's first production-level GaN motor controller, the device adopting the highest heat dissipation grade of Nexperia's CCPAK was announced. The product has a maximum output power of 35kW and a peak output current of 165Arms. It has high power density, excellent NVH performance and power coverage of A00/A0 class EV. In addition, Shanghai Electric Drive's 3-in-1 electric drive assembly was also presented at this exhibition. (From a press release dated on November 25, 2021)
2-in-1 electric drive system product installed in Renault Dacia Spring EV
-The Renault Dacia Spring, a fully electric vehicle produced in China, has received orders for more than 40,000 units in Europe in 2021. The battery for this model is supplied by Sunwoda Electronic Co., Ltd., the motor and electronic control (2in1 electric drive product) by Shanghai EDrive Co., Ltd., the DC/DC and charger by Zhejiang EVTECH Co., Ltd., and the gearbox by Zhejiang Siekon Transmission Technology Co., Ltd. (From various media sources)
Generator received new order
-In 2021, in the commercial vehicle business, Generator obtained all the China-6 projects and some China-5 projects for the starter motors and generators of Quanchai Engine, Xinchai Power, and Yunnei Power. The Company also became a supplier to Caterpillar and Carrier. In the New Energy Vehicle business, the Company successfully developed and applied drive motors for the Wuling Hongguang Mini and the Chery QQ Ice Cream 160 platform, and obtained orders for the 3-in-1 drive system for the Chery Little Ant model. (From 2021 Annual Report)
Outlook
-In 2022, the Company will maintain stable growth, targeting a 10% year-over-year (y/y) increase in sales to CNY 11,019 million. Net income is expected to reach CNY 370 million, up 37.5% y/y. (From 2021 Annual Report)
R&D expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D Expenditure | 512.69 | 428.66 | 410.16 |
| Ratio of R&D expenses to sales (%) | 5.12 | 5.51 | 5.04 |
-As of Dec. 31, 2021, the Company has 2,070 R&D staff, accounting for 16.29% of the total staff.
※In 2021, the Company increased its R&D efforts and invested more funds in the R&D of wind turbine systems, New Energy Vehicle powertrain systems and hydrogen fuel cell powertrain systems, with R&D expenses increasing by 19.6% y/y.
R&D activities
| Product | Expectation |
| 3rd generation 70kW 3-in-1 electric drive assembly platform | Scheduled for regular production in 2023, leading the market for A0-class vehicles. |
| 800V motor controller platform based on SiC technology | Expected to begin regular production in 2023, building a lineup of products for 800V voltage platforms. |
| Range extender generator assembly products | Regular production is expected to begin in October 2022, forming a product lineup for range extender EVS. (supplied to Hozon New Energy Automobile Co., Ltd.) |
| Deep-coupled electric drive assembly based on flat wire technology | Production is expected to be achieved by the end of 2022, forming a deep-coupled electric drive system product lineup based on flat-wire technology. |
| Integrated motor controller for hybrid vehicles | Expected to achieve mass production in 2023, forming an integrated motor controller platform for hybrid vehicles. |
| High power fuel cell system and BOP | Improve the company's fuel cell system product mix to ensure coverage of bus, light-duty and heavy-duty truck applications. |
| Fuel cells all-in-one controller | Strengthen competitiveness in product lines such as boost DCDC converters, air compressor controllers, and controllers for hydrogen return pumps. |
| High-speed permanent magnetization of semi-enclosed motors | Expected to achieve regular production in 2023, to achieve a global advanced level of semi-enclosed motor technology |
R&D Facilities
-The Company has R&D centers in China (Zhongshan, Beijing, Shanghai, Shenzhen, Wuhan, and Wuhu) and Detroit in the U.S.
-The Company has three national-level laboratories, three provincial-level enterprise technical centers, and two provincial-level factory technical centers. Established a post-doctoral workshop and a researcher/expert workshop.
Patent
-As of December 31, 2021, the Company had applied for a total of 3,494 patents and has been granted 2,649 patents, of which 2,073 are valid patents. Of these, 536 are invention patents.