Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
Anhui Zhongding Sealing Parts CO.,Ltd.
Abstract of the Annual Report 2021
Stock Abbreviation: Zhongding Stock
Stock code: 000887
April 2022
Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
Ⅰ.Important Statements
This is an abstract of the Annual Report 2021.Investors are suggested to read the complete version of the Annual
Report 2021 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 the Company. Should there
be any inconsistency between the Chinese version and English version, the Chinese version shall prevail.
All directors attended the Annual Report Meeting of the Board of Directors except the following directors.
Name of directors who are Position of directors who are not Reason for not attending the
Name of delegate
absent present in person meeting in person
Modified Audit Opinion
□ Applicable √ N/A
The preliminary plan for dividend distribution and converting capital reserves into share capital for common
shareholders which were considered and approved by the Board during the reporting period.
√ Applicable □ N/A
Converting capital reserves into share capital
□ Yes √ No
The Board has considered and approved the following dividend payout plan for the Reporting Period: based on the
Company's total shares of 1,316,489,747，the Company should distribute a cash dividend of RMB 2.0 (tax inclusive)
and 0 stock dividend (tax
inclusive) per 10 shares to all the shareholders and should not convert capital reserves into share capital.
The preliminary plan for dividend distribution for preferred shares in the reporting period was approved by the
Board
□ Applicable √ N/A
Ⅱ.Company Profile
1. Company Information
Stock Abbreviation Zhongding Stock Stock Code 000887
Stock Exchange Where the Shares of
Shenzhen Stock Exchange
the Company are Listed
Contact Us Board Secretary Securities Representative
Name Jiang Weijian Wang Songyuan
Economic and Technological Development Economic and Technological Development
Address
Zone, Ningguo City, Anhui Province Zone, Ningguo City, Anhui Province
Fax 0563-4181880 transfer to 6071 0563-4181880 transfer to 6071
Tel. 0563-4181887 0563-4181887
E-mail jiangwj@zhongdinggroup.com wangsy@zhongdinggroup.com
2. Business or Product Review in the Reporting Period
1)The main business of the company during the reporting period
The company continued to promote the cost control and refined management of overseas factories. Under the
severe impact of the industry downturn and the novel coronavirus epidemic, the company further carried out a series
of measures such as cost optimization and non-core business divestiture of overseas enterprises, which increased 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 growth trend, 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 gradually strengthened the strategy of
management output and cultural output, upgraded from regional management to modular management,
strengthened the cost control of overseas enterprises, promoted business integration and market expansion, at the
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
same time, take advantage of the Chinese engineer bonus, and further accelerate technology absorption and
innovation. While maintaining the steady growth of traditional businesses, the company continues to promote the
growth of incremental businesses of air suspension systems, lightweight chassis systems, and fluid piping systems.
Currently, the incremental business has a good momentum of development, and related orders are showing a
momentum of accelerated growth. The company will continue to focus on the core strategic goal of intelligent
chassis system, and promote the company's business to move towards intelligence. The company continued to rank
among the "Top 100 Global Auto Parts Industry" (ranked 87th).
(1）Intelligent Chassis system business-Air suspension system
①Introduction of Products
Compare to coil spring suspension, air suspension system has the advantage that the Spring stiffness can be
adjusted according to different usage scenario.Base on the different road conditions and the input from the height
and acceleration sensor, the ECU of ECAS system will identify the vehicle height change, the air height of air spring
can be adjusted through the control the air compressor and valve block to realize the lift or lowering of the vehicle
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.
②Future Market potential
With the advent of the era of new energy vehicles, the appeal of new energy vehicles intelligent, while chassis
protection air suspension system is no longer the exclusive high-end models, because the new energy vehicle chassis
system stability requirements are much higher than pure fuel vehicles, air suspension system has gradually 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 of their
own brands are also equipped with these technologies and intelligent functions such as air suspension systems.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 air suspension 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 and
light commercial vehicles are used in the air suspension system, heavy truck in addition to the engineering car road
transport vehicle almost all use air suspension in China in 2018 effective GB7258 motor vehicle operation safety
technical conditions also require:"The rear axle of Dangerous goods transport trucks with a total mass greater than
or equal to 12,000kg, all semi-trailers for transporting dangerous goods, as well as three-axle fence type, warehouse
grid type Semi-trailers should be equipped with air suspension."
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
The air suspension system will gradually move from high-end to popular, and eventually become an
indispensable part of cars, especially smart cars.
③Company industry position and business promotion
AMK Germany, as a high-end supplier of air suspension system, is one of the top three leaders in the industry.
Since entering the field of air suspension system business in the 1990s, it has continuously improved the product
assembly technology, and has been deeply engaged in the industry for more than 20 years, supporting the world'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 improvement
of the performance and cost optimization of the air suspension system supply chain in the Chinese passenger car
market. With the divestment of industrial business at the beginning of the year, AMK started its business lightly and
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
succession to increase the proportion of self-produced hardware.
Business of AMK China has made breakthrough progress, and it has also obtained orders from many domestic
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 2.485 billion RMB, and it is expected to get more projects in the future,
especially new energy vehicle projects.
(2）Intelligent Chassis System Business-Lightweight chassis system
①Introduction 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 broad
consensus in the automobile manufacturing industry. The lightweight of the chassis plays a vital role in the
performance of the whole vehicle. Lightweight chassis products such as aluminum alloy control arm assemblies
have 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 become
the trend of automobile development in the world. The lightweight of automobiles is not only suitable for traditional
fuel vehicles, for new energy electric vehicles, it is also very important to reduce body weight and achieve vehicle
lightweighting, because it is related to the main battery life of new energy vehicles. Experiments have shown that in
terms of acceleration performance, it takes about 10 seconds for a 1.5-ton car to accelerate to a speed of 60
kilometers per hour; if the weight is reduced by 25%, it can be reduced to 8 seconds.
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
Lightweight the chassis, the benefits in terms of fuel consumption, handling, etc. far exceed the lightweight of
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 sprung weight. It is
generally believed that the effect of the same magnitude of unsprung weight reduction is 5-15 times that of the
sprung weight reduction. At the same time, lightening the unsprung weight increases the ratio of the sprung 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 and steering.
③Company 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, its
subsidiary Sichuan Wangjin Company, whose core technology is the ball joint assembly product, is the core safety
component and performance component of the chassis system. It has the world's leading technology and has a very
high technical threshold.
With the continuous advancement of the company's chassis lightweight system assembly business, it has
obtained orders from many traditional OEMs such as Mercedes-Benz, Changan, GAC, BYD, etc. At the same time,
it has made breakthroughs in the business of leading new energy enterprises and obtained relevant orders.
(3) Fluid pipeline system
①Introduction of Products
German TFH, a subsidiary of the company, has been R&D and production of thermal management pipeline
products. On the basis of supporting traditional thermal management pipelines, TFH vigorously promotes the
thermal management pipeline system assembly business of new energy vehicles, and actively expands the
application of new materials in products. TFH vigorously develops the application of nylon pipes and TPV materials.
Compared with traditional internal combustion engine pipes, the application of new technologies can make products
lighter in weight, lower in cost, and more flexible in assembly. In addition, it can maintain good NVH and flexibility.
With its innovative and technologically swift updating capabilities, TFH is able to respond to changes in hybrid and
fuel cell vehicles and is actively engaged in advanced development projects with several OEMs customers.
②Future market potential
As the temperature control requirement for battery modules of the new energy vehicle is much higher than
those of traditional vehicles, and also because of the absorption of TFH pipeline assembly technology, the single
vehicle value of the company fluid management products has increased from about RMB300 for traditional vehicles
to nearly RMB1,000 for new energy vehicles and even about RMB1,500 for Range Extend New Energy vehicles.
With the development of new energy vehicles, the market for fluid piping systems is also expanding rapidly.
③The company's industry status and business promotion
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
The company has been promoting the R&D and production of thermal management rubber piping products for
many years, and its subsidiary German TFH is just an excellent supplier of thermal management piping assembly
products for engines and new energy vehicle batteries. TFH has the exclusive production technology creatube
process with independent patent and the core technology of TPV hose and nylon tube, which ranks among the top
two in the world in the industry segment. The company vigorously promotes the business of thermal management
pipeline system assembly for new energy vehicles, and currently it has been supplied to BMW, 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, the
development of cooling pipeline assembly business will be dominated by German TFH, and the development of
new 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, and
ACUSHNET in the United States, have the top three sealing technologies in the world. KACO actively promotes
the portfolio for NEV on behalf of the companies under the sealing system, and has successfully developed and
matched 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
are delivered to NEV platforms of Volvo, NIO, SAIC, and GAC.
The automotive sealing industry is a high-tech barrier industry with extremely high requirements for reliability.
Dynamic seal has the most difficult technology in the sealing industry, especially the high-speed oil seal for new
energy vehicle motors, which represents the most advanced technical level in the global sealing industry. In recent
years, the company has continued to increase the speed of business expansion, especially in the US brand car and
local brand customers, which has made great breakthroughs, and the industry market share has steadily increased.
1) Main business analysis
1.Overview
The company's internationalization strategy since 2008 has gradually entered the harvest period. By the end of
the reporting period, the sales in the three major regions of Asia, Europe and America were 51.47%, 35.62% and
12.92% respectively. Through the effective integration of global resources, the company's technology, brand,
profitability, and customer base have been rapidly improved, and the two-wheel drive of internal and external
extensions has been realized; at the same time, the company has concentrated its advantageous resources to increase
its support for new energy and environmental protection vehicles, automobiles electronics, system assembly and
other fields,and has actively done a good job in project incubation and reserve for the company's sustainable and
rapid development in the future.
In 2021, with the joint efforts of all employees, the operating revenue was 12.577 billion, up 8.91% year on year; net
profit attributable to shareholders of listed companies was 965 million, up 95.96% year on year; the company
continues to rank among "Top 100 Global auto Parts" (87th) and "Top 50 Global non-tire rubber products" (13th, 1st
in China).
（1）Overseas mergers and acquisitions projects in China landing performance display
In recent years, the company has actively promoted the domestic implementation strategy of overseas mergers and
acquisitions business, and the growth rate of performance has also exceeded expectations. See the following table:
Unit: ten thousand yuan
2021 2020 2019
Operating Net profit Operating Net profit Operating Net profit
revenues revenues revenues
Wuxi KACO 61847 11523 54614 8978 49679 6006
Anhui KACO
Anhui WEGU 21092 2541 13831 2114 10825 1564
Anhui TFH 43473 2627 33929 1554 27236 1163
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
Anhui AMK 2778.55 -6
（2）The customer structure of OEM supporting
Through overseas mergers and acquisitions, global technology and product integration, brand advantages are
highlighted, and product sales are developing towards mid-to-high-end models. The top ten OEM customers are
shown in the table below:
Top Customer Name Top Customer Name
1 VW 6 Changan
2 GM 7 Daimler
3 BMW 8 RenaultNissan
4 VOLVO 9 BYD
5 Ford 10 GreatWall
The total direct and indirect sales of the above top ten customers are 6.794 billion, accounting for 54.02% of the
operating revenues in 2021, and the concentration of high-end customers is relatively high.
（3）New energy vehicle project
The company actively deploys the field of new energy vehicles, with intelligent chassis systems as the core, and is at
the international leading level in many new energy sectors such as thermal management pipelines, battery pack
motor seals, etc. In 2021, the new energy field business has reached 2.061 billion sales, accounting for 17.28% of
the annual operating revenues of the automobile business.
2.Revenue and Cost
（1）Composition of operating revenue
Unit: yuan
2021 2020
Amount % of Operating Amount % of Operating Increase/Decrease
Revenues Revenues over the previous
year (%)
Total Operating Revenues 12,577,189,139. 100% 11,548,324,048.12 100% 8.91%
54
By Industry
Auto Industry 11,926,798,123. 94.83% 10,617,165,869.64 91.94% 12.34%
81
Non-Auto Industry 650,391,015.73 5.17% 931,158,178.48 8.06% -30.15%
By Product
Intelligent chassis-Air 630,809,699.66 5.02% 779,468,001.86 6.75% -19.07%
Suspension System
Intelligent 789,318,431.45 6.28% 441,494,729.76 3.82% 78.78%
chassis-lightweight chassis
system
Intelligent Chassis-rubber 2,758,930,779.8 21.94% 2,223,074,743.01 19.25% 24.10%
business 0
Cooling System 3,297,365,151.5 26.22% 3,033,063,825.52 26.26% 8.71%
0
Sealing System 3,057,539,609.5 24.31% 2,790,106,009.98 24.16% 9.59%
2
Others 2,043,225,467.6 16.25% 2,281,116,737.99 19.75% -10.43%
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
1
By Region
Domestic 5,613,066,111.5 44.63% 4,593,235,055.03 39.77% 22.20%
6
Overseas 6,964,123,027.9 55.37% 6,955,088,993.09 60.23% 0.13%
8
By Sales Methods
Direct Selling 12,577,189,139. 100.00% 11,548,324,048.12 100.00% 8.91%
54
（2）Information about industries, products, regions, and sales models that account for more than 10% of
the company's operating revenues or operating profit
Unit: yuan
Operating Operating Cost Gross Profit Rate Increase/Decre Increase/Decre Increase/Decre
Revenues ase ase ase
of operating of operating of gross profit
revenues cost rate
over the over the over the
previous previous previous
year (%) year (%) year (%)
By Industry
Auto industry 11,926,798,123.8 9,388,168,843.77 21.29% 12.34% 13.49% -0.80%
1
By Product
Intelligent 630,809,699.66 524,777,417.29 16.81% -19.07% -23.44% 4.75%
chassis-Air
Suspension
System
Intelligent 789,318,431.45 662,531,396.73 16.06% 78.78% 82.64% -7.21%
chassis-lightweigh
t chassis system
Intelligent 2,758,930,779.80 2,206,686,350.02 20.02% 24.10% 31.21% 20.02%
Chassis-rubber
business
Cooling System 3,297,365,151.50 2,454,470,191.11 25.56% 8.71% -1.48% 7.70%
Sealing System 3,057,539,609.52 2,204,247,300.00 27.91% 9.59% 8.11% 0.99%
Others 2,043,225,467.61 1,692,789,748.33 17.15% -10.43% 1.23% -9.54%
By Region
Domestic 5,613,066,111.56 3,910,471,806.92 30.33% 22.20% 22.54% -0.19%
Overseas 6,964,123,027.98 5,835,030,596.55 16.21% 0.13% 1.63% -1.24%
By Sales Methods
Direct Selling 12,577,189,139.5 9,745,502,403.47 22.51% 8.91% 9.10% 6.41%
4
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
3 . Main accounting data and financial indicators
（1）Main accounting data and financial indicators in the past three years
Whether the company needs to retrospectively adjust or restate accounting data for previous years
□ Yes √ No
Unit: yuan
Increase/Decrease
at the end of the
At the end of 2021 At the end of 2021 current year At the end of 2019
compared with the
end of the previous
year (%)
Total assets 18,296,566,389.99 18,922,894,919.73 -3.31% 18,125,297,428.81
Net assets attributable to
shareholders of the Company 9,266,893,212.21 8,975,848,243.77 3.24% 8,897,358,628.55
Increase/Decrease
over the previous
2021 2020 2019
year (%)
Operating revenues 12,577,189,139.54 11,548,324,048.12 8.91% 11,706,104,396.94
Net profit attributable to
shareholders of the Company 965,194,114.53 492,554,600.75 95.96% 601,992,956.87
Net profit attributable to
shareholders of the Company before
non-recurring gains and losses 667,607,422.70 294,683,214.43 126.55% 474,307,690.32
Net cash flows from operating
activities 881,528,470.23 1,437,881,971.80 -38.69% 1,643,004,472.74
Basic earnings per share (RMB
Yuan
0.79 0.40 97.50% 0.49
/share)
Diluted earnings per share (RMB
Yuan
0.76 0.41 85.37% 0.49
/share)
Weighted average return on net
assets 10.62% 5.49% 5.13% 6.91%
（2）Main Accounting Data by Quarter
Unit:yuan
Q1 Q2 Q3 Q4
Operating Revenues 3,195,667,003.92 3,187,343,491.35 2,956,854,315.19 3,237,324,329.08
Net profit attributable to shareholders
of the Company 237,567,215.01 353,611,946.94 227,133,927.88 146,881,024.70
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
Net profit attributable to
shareholders of the Company before
non-recurring gains and losses 203,282,948.68 237,064,809.92 195,608,237.66 31,651,426.44
Net cash flows from operating
activities 275,714,341.81 369,165,314.04 146,843,105.95 89,805,708.43
Whether there are significant differences between the above financial data or the total value previously disclosed quarterly or interim reports.
□ Yes √ No
4. Shareholders and Shares
(1) Total number of common shareholders and shareholdings of the top ten common shareholders at the
period-end
Unit：share
Total number of
Total number Total number of Total number of preferred
of common common preferred shareholders
shareholders at shareholders at shareholders with resumed voting
the end of the
the end of the 49,073 60,002 with resumed 0 rights at the end of 0
previous month this report previous
Reporting of the disclosure voting rights at
month of the
Period date of this report the end of the disclosure date of
reporting period this report
Top ten common shareholders
Total shares Pledged or frozen shares
Name of Nature of Shareholding held at the Number of restricted shares held
shareholder shareholder percentage period-end
Status Number
Anhui Domestic
Zhongding non-state-o
Holding wned 43.63% 532,701,321 Pledged 142,500,000
(Group) Co., corporation
LTD
Hong Kong
Securities Foreign
Clearing Co., corporation 2.69% 32,889,104
Ltd.
Agricultural
Bank of China
Co., Ltd. -
Guotai
Intelligent others 1.05% 12,786,088
Automobile
Stock
Investment
Fund
Shanghai
Pudong
Development
Bank Co., Ltd. -
E Fund Yuxiang others 0.79% 9,680,100
Return Bond
Securities
Investment
Fund
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
Domestic
Miaosu natural 0.71% 8,708,941
person
Shenzhen Ping
An Dahua
Huitong Wealth
- Baoshang
Bank - Anhui
others 0.62% 7,594,936
Gaoxin Zhiyuan
Smart City
Industry Fund
(Limited
Partnership)
(LOF)
Industrial Bank
Co., Ltd. -
Sino-Europe
New Trend others 0.59% 7,215,900
Equity
Securities
Investment
Fund (LOF)
Shanghai
Pudong
Development
Bank Co., Ltd. -
E Fund
Ruicheng
others 0.57% 6,902,000
Flexible
Allocation of
Hybrid
Securities
Investment
Fund
China
Construction
Bank
Corporation -
China Europe
New Blue Chip
others 0.47% 5,796,650
Flexible
Allocation
Hybrid
Securities
Investment
Fund
Domestic
Zhao Xiyi natural 0.43% 5,233,566
person
Explanation of the related
The company does not know whether there is an associated relationship between the shareholders,
relationship or concerted
and whether it is a person acting in concert stipulated in the "Administrative Measures for the
action of the above
Disclosure of Information on Changes in Shareholdings of Shareholders of Listed Companies".
shareholders
Description of shareholders
As of December 31, 2021, Miaosu, one of the top 10 shareholders of the company, held 8,630,041
participating in margin
shares of the company through the customer credit transaction guarantee securities account of Huaxi
financing and securities
Securities Co., Ltd.
lending business (if any)
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Annual Report 2021
（2）Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings
□ Applicable √ N/A
During the reporting period, the Company had no preferred shareholders' shareholdings.
（3）Disclose the property rights and control relationship between the Company and the actual controller in
block diagram form
5. Relevant Information on Corporate Bonds
□ Applicable √ N/A
Ⅲ.Important issues
N/A
11
