Anhui Zhongding Sealing Parts CO.,Ltd.
Abstract of the Semi-Annual Report 2022
Stock Abbreviation: Zhongding Stock
Stock code: 000887
1．Important StatementsThis is an abstract of the Semi-Annual Report 2022. Investors are suggested to read the complete version of theSemi-Annual Report 2022 on the media, which is designated by the China Securities Regulatory Commission(the“CSRC”) to have a full understanding of operational results, financial statements, and future plans of theCompany.Should there be any inconsistency between the Chinese version and English version, the Chineseversion shall prevail.
All directors attended the Semi-Annual Report Meeting of the Board of Directors
Modified Audit Opinion
□Applicable ?Not Applicable
The preliminary plan for dividend distribution and converting capital reserves into share capital for commonshareholders which were considered and approved by the Board during the reporting period.
□Applicable ?Not Applicable
The company doesn’t plan to distribute cash dividends 、stock dividend and convert capital reserves into sharecapital.The preliminary plan for dividend distribution for preferred shares in the reporting period was approved by theBoard
□Applicable ?Not Applicable
2．Basic Information Of The Company
(1) Company Profile
| Stock Abbreviation | Zhongding Stock | Stock Code | 000887 | |
| Stock Exchange Where the Shares of the Company are Listed | Shenzhen Stock Exchange | |||
| Contact Us | Board Secretary | Securities Representative | ||
| Name | Jiang Weijian | Wang Songyuan | ||
| Address | Economic and Technological Development Zone, Ningguo City, Anhui Province | Economic and Technological Development Zone, Ningguo City, Anhui Province | ||
| Tel. | 0563-4181887 | 0563-4181887 | ||
| jiangwj@zhongdinggroup.com | wangsy@zhongdinggroup.com | |||
(2) The Main Financial Data And Financial Indicator
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□Yes ?No
| This reporting period | The same period of last year | Yo Y change(%) | |
| Operating revenues（Yuan） | 6,573,456,892.17 | 6,383,010,495.27 | 2.98% |
| Net Profit attributable to shareholders of | 470,532,188.44 | 591,179,161.95 | -20.41% |
| the Company（Yuan） | |||
| Net profit attributable to shareholders of the Company before non-recurring gains and losses (Yuan) | 400,706,431.95 | 440,347,758.60 | -9.00% |
| Net cash flows from operating activities (Yuan ) | 452,646,622.41 | 644,879,655.85 | -29.81% |
| Basic earnings per share (RMB Yuan /share) | 0.37 | 0.48 | -22.92% |
| Diluted earnings per share (RMB Yuan /share) | 0.37 | 0.46 | -19.57% |
| Weighted average return on net assets | 4.78% | 6.50% | -1.72% |
| The end of this reporting period | The end of the same period of last year | Yo Y change(%) | |
| Total assets(Yuan) | 19,090,840,343.38 | 18,296,566,389.99 | 4.34% |
| Net assets attributable to shareholders of the Company（Yuan） | 10,550,685,754.70 | 9,266,893,212.21 | 13.85% |
(3) The Number And Shareholdings Of The Company’s Shareholders
Unit：share
| Total number of common shareholders at the end of the Reporting Period | 57,603 | Total number of preferred shareholders with resumed voting rights at the end of the reporting period(If any) | 0 | ||||
| Top ten common shareholders | |||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Number of restricted shares held | Pledged or frozen shares | ||
| Status | Number | ||||||
| Anhui Zhongding Holding (Group) Co., LTD | Domestic non-state-owned corporation | 40.46% | 532,701,321.00 | Pledged | 142,500,000 | ||
| Industrial and Commercial Bank of China LTD－China - Europe Times pioneer equity - initiated securities investment fund | Others | 1.46% | 19,225,568.00 | ||||
| Agricultural Bank of | Others | 1.16% | 15,239,729.00 | ||||
| China Co., Ltd. - Guotai Intelligent Automobile Stock Investment Fund | ||||||
| China Construction Bank Corporation - China Europe New Blue Chip Flexible Allocation Hybrid Securities Investment Fund | Others | 1.04% | 13,646,897.00 | |||
| Hong Kong Securities Clearing Co., Ltd. | Foreign Corporation | 0.98% | 12,917,223.00 | |||
| Abu dhabi Investment Authority | Foreign Corporation | 0.98% | 12,853,963.00 | |||
| (LOF) Industrial Bank Co., Ltd. - Sino-Europe New Trend Equity Securities Investment Fund (LOF) | Others | 0.83% | 10,926,900.00 | |||
| Miaosu | Domestic natural person | 0.76% | 9,954,202.00 | |||
| Everyone Life Insurance Co., LTD. - Universal Products | Others | 0.66% | 8,719,022.00 | |||
| Bank of China Limited - Cathay | Others | 0.66% | 8,715,301.00 |
| Intelligent Equipment Equity Investment Fund | ||
| Explanation of the related relationship or concerted action of the above shareholders | The company does not know whether there is an associated relationship between the shareholders, and whether it is a person acting in concert stipulated in the "Administrative Measures for the Disclosure of Information on Changes in Shareholdings of Shareholders of Listed Companies". | |
| Description of shareholders participating in margin financing and securities lending business (if any) | Not Applicable | |
(4) Changes Of The Controlling Shareholder Or The Actual ControllerChange of the controlling shareholder in the reporting period
□Applicable ?Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting periodChange of the actual controller in the reporting period
□Applicable ?Not Applicable
There was no any change of the actual controller of the Company in the reporting period.
(5) The Table Of The Total Number Of The Company’s Preferred Shareholders And The ShareholdingSituation Of Top 10 Preferred ShareholdersThere is no shareholding of preferred shareholders during the reporting period.
(6) Status Of The Bonds Existing On The Date Of Approval Of The Semi-Annual Report
□Applicable ?Not Applicable
3．Important Items
The company continued to promote the cost control and refined management of overseas factories. Under thesevere impact of the industry downturn and the novel coronavirus epidemic, the company further carried out aseries of measures such as cost optimization and non-core business divestiture of overseas enterprises, whichincreased the recovery of overseas business speed and certainty; through continuous management improvement,domestic and foreign production capacity has been fully restored and maintained a continuous positive growthtrend, the orders in hand continued to increase month-on-month, and the company's overall profit gradually
increased. On the basis of years of mutual adaptation with overseas enterprises, the company has graduallystrengthened the strategy of management output and cultural output, upgraded from regional management tomodular management, strengthened the cost control of overseas enterprises, promoted business integration andmarket expansion, at the same time, take advantage of the Chinese engineer bonus, and further acceleratetechnology absorption and innovation. While maintaining the steady growth of traditional businesses, thecompany continues to promote the growth of incremental businesses of air suspension systems, lightweightchassis systems, and fluid piping systems. Currently, the incremental business has a good momentum ofdevelopment, and related orders are showing a momentum of accelerated growth. The company will continue tofocus on the core strategic goal of intelligent chassis system, and promote the company's business to movetowards intelligence. The company continued to rank among the "Top 100 Global Auto Parts Industry" (ranked85th).
(1) Intelligent Chassis system business-Air suspension system
① Introduction of Products
Compare to coil spring suspension, air suspension system has the advantage that the Spring stiffness can beadjusted according to different usage scenario.Base on the different road conditions and the input from the heightand acceleration sensor, the ECU of ECAS system will identify the vehicle height change, the air height of airspring can be adjusted through the control the air compressor and valve block to realize the lift or lowering of thevehicle body.It can make the vehicle body more stable and improve the trafficability characteristic.The application of ECAS system can improve the comfort and the manoeuvrability of vehicle.The scope of ECAS includes air compressor, ECU, sensors, air springs,etc.
② Future Market potential
With the advent of the era of new energy vehicles, the appeal of new energy vehicles intelligent, whilechassis protection air suspension system is no longer the exclusive high-end models, because the new energyvehicle chassis system stability requirements are much higher than pure fuel vehicles, air suspension system hasgradually become the mainstream configuration of the new energy vehicle platform.
Leading voice intelligent system, intelligent air suspension system and excellent automatic driving function
are the core of current automobile intelligence.Tesla, NIO, Lixiang, Xiaopeng and other new car-making forces oftheir own brands are also equipped with these technologies and intelligent functions such as air suspensionsystems.With the further improvement of air suspension system technology and the improvement of car owners'recognition of the ultimate experience of air suspension products, more and more cars will be equipped with airsuspension systems to improve product superiority and customer satisfaction in the future.In addition to the passenger car, developed countries in the vast majority of medium-sized passenger cars andlight commercial vehicles are used in the air suspension system, heavy truck in addition to the engineering carroad transport vehicle almost all use air suspension in China in 2018 effective GB7258 motor vehicle operationsafety technical conditions also require:"The rear axle of Dangerous goods transport trucks with a total massgreater than or equal to 12,000kg, all semi-trailers for transporting dangerous goods, as well as three-axle fencetype, warehouse grid type Semi-trailers should be equipped with air suspension."The air suspension system will gradually move from high-end to popular, and eventually become anindispensable part of cars, especially smart cars.
③ Company industry position and business promotion
AMK Germany, as a high-end supplier of air suspension system, is one of the top three leaders in theindustry. Since entering the field of air suspension system business in the 1990s, it has continuously improved theproduct assembly technology, and has been deeply engaged in the industry for more than 20 years, supporting theworld's top host manufacturers such as Jaguar, Land Rover, Volvo, Audi, Benz, BMW.The domestic air suspension market is in its infancy, and AMK China has been accelerating the improvementof the performance and cost optimization of the air suspension system supply chain in the Chinese passenger carmarket. With the divestment of industrial business at the beginning of the year, AMK started its business lightlyand developed steadily around the strategic goals of "localization promotion, technology iteration and upgrading,and industrial strengthening and completing". AMK China continues to promote the implementation of other self-produced hardware projects while launching air supply unit product assembly and production lines in successionto increase the proportion of self-produced hardware.Business of AMK China has made breakthrough progress, and it has also obtained orders from manydomestic new car manufacturing forces and leading enterprises of traditional independent brands. Up to now,AMK China has received orders with a total output value of 5.46 billion RMB, and it is expected to get moreprojects in the future, especially new energy vehicle projects.
(2) Intelligent Chassis System Business-Lightweight chassis system
① Introduction of Products
Automotive metal parts are widely used in automotive chassis systems, including steering systems,suspension systems, braking systems and driving systems. The lightweight of automobiles has formed a broadconsensus in the automobile manufacturing industry. The lightweight of the chassis plays a vital role in theperformance of the whole vehicle. Lightweight chassis products such as aluminum alloy control arm assemblieshave high bicycle value, it is a core parts of operational stability and comfortability.
② Future market potential
Due to the needs of environmental protection and energy saving, the lightweight of automobiles has becomethe trend of automobile development in the world. The lightweight of automobiles is not only suitable fortraditional fuel vehicles, for new energy electric vehicles, it is also very important to reduce body weight andachieve vehicle lightweighting, because it is related to the main battery life of new energy vehicles. Experimentshave shown that in terms of acceleration performance, it takes about 10 seconds for a 1.5-ton car to accelerate to aspeed of 60 kilometers per hour; if the weight is reduced by 25%, it can be reduced to 8 seconds.
Lightweight the chassis, the benefits in terms of fuel consumption, handling, etc. far exceed the lightweightof other components at the same level. The mass of most components on the chassis is unsprung weight.Relatively speaking, the mass of the body (structural parts, reinforcements parts and coverings parts) is sprungweight. It is generally believed that the effect of the same magnitude of unsprung weight reduction is 5-15 timesthat of the sprung weight reduction. At the same time, lightening the unsprung weight increases the ratio of thesprung mass to the unsprung weight, which is equivalent to the athlete removing the sandbag tied to the legs,which can significantly improve the response speed and comfort of the car during acceleration, braking andsteering.
③ Company industry position and business promotion
In recent years, the company has been vigorously developing chassis lightweight system assembly products,and the forged aluminum control arm assembly project has made breakthrough progress. At the same time, itssubsidiary Sichuan Wangjin Company, whose core technology is the ball joint assembly product, is the core safetycomponent and performance component of the chassis system. It has the world's leading technology and has avery high technical threshold.
With the continuous advancement of the company's chassis lightweight system assembly business, it hasobtained orders from many traditional OEMs such as Mercedes-Benz, Changan, GAC, BYD, etc. At the sametime, it has made breakthroughs in the business of leading new energy enterprises and obtained relevant orders.
(3) Fluid pipeline system
① Introduction of Products
German TFH, a subsidiary of the company, has been R&D and production of thermal management pipelineproducts. On the basis of supporting traditional thermal management pipelines, TFH vigorously promotes thethermal management pipeline system assembly business of new energy vehicles, and actively expands theapplication of new materials in products. TFH vigorously develops the application of nylon pipes and TPVmaterials. Compared with traditional internal combustion engine pipes, the application of new technologies canmake products lighter in weight, lower in cost, and more flexible in assembly. In addition, it can maintain goodNVH and flexibility. With its innovative and technologically swift updating capabilities, TFH is able to respond tochanges in hybrid and fuel cell vehicles and is actively engaged in advanced development projects with severalOEMs customers.
② Future market potential
As the temperature control requirement for battery modules of the new energy vehicle is much higher thanthose of traditional vehicles, and also because of the absorption of TFH pipeline assembly technology, the singlevehicle value of the company fluid management products has increased from about RMB300 for traditionalvehicles to nearly RMB1,000 for new energy vehicles and even about RMB1,500 for Range Extend New Energyvehicles. With the development of new energy vehicles, the market for fluid piping systems is also expandingrapidly.
③ The company's industry status and business promotion
The company has been promoting the R&D and production of thermal management rubber piping productsfor many years, and its subsidiary German TFH is just an excellent supplier of thermal management pipingassembly products for engines and new energy vehicle batteries. TFH has the exclusive production technologycreatube process with independent patent and the core technology of TPV hose and nylon tube, which ranksamong the top two in the world in the industry segment. The company vigorously promotes the business ofthermal management pipeline system assembly for new energy vehicles, and currently it has been supplied toBMW, Volvo, Audi, Volkswagen, Geely, Xiaopeng and LI and other new energy vehicle platforms.
TFH China has now completed the establishment and began to expand the domestic market. In the future, thedevelopment of cooling pipeline assembly business will be dominated by German TFH, and the development ofnew energy temperature control system assembly business will be dominated by Zhongding Fluid. The company's
previous projects have made great progress, and the number of orders in hand has shown a sustained rapid growth.In the future, it is expected to get more project designations, especially new energy vehicle projects.
(4) Sealing System
The company’s subsidiaries, KACO GmbH + Co. KG in Germany, Cooper in the United States, andACUSHNET in the United States, have the top three sealing technologies in the world. KACO actively promotesthe portfolio for NEV on behalf of the companies under the sealing system, and has successfully developed andmatched new energy motor seals of high-performance. At the same time, the company has developed the mass-produced products for new energy battery module sealing systems and electric axle assemblies now, which aredelivered to NEV platforms of Volvo, NIO, SAIC, and GAC.The automotive sealing industry is a high-tech barrier industry with extremely high requirements forreliability. Dynamic seal has the most difficult technology in the sealing industry, especially the high-speed oilseal for new energy vehicle motors, which represents the most advanced technical level in the global sealingindustry. In recent years, the company has continued to increase the speed of business expansion, especially in theUS brand car and local brand customers, which has made great breakthroughs, and the industry market share hassteadily increased.