Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
Anhui Zhongding Sealing Parts Co.,Ltd.
Abstract of the Semi-Annual Report 2023
Stock Abbreviation：Zhongding Stock
Stock Code：000887
August 2023
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
1. Important statement
This is an abstract of the Semi-Annual Report 2023. Investors are suggested to read the complete version of the Semi-Annual
Report 2023 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 have attended this semi-annual report meeting of the board of directors.
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
The company doesn’t plan to distribute cash dividends 、stock dividend and 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
2. The Basic Information of the Company
A. Company profile
Stock Abbreviation Zhongding Stock Stock Code 000887
Stock Exchange Where the Shares of the
ShenZhen Stock Exchange
Company are listed
Contact Us Board Secretary Securities Affairs Representative
Name Jiang Weijian Wang Songyuan
Economic and Technological Economic and Technological
Address Development Zone, Ningguo City, Development Zone, Ningguo City,
Anhui Province Anhui Province
Tel. 0563-4181887 0563-4181887
Email jiangwj@zhongdinggroup.com wangsy@zhongdinggroup.com
B. The main financial data and financial indicator
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□Yes No
Increase/decrease
The same period of
This reporting period compared with
last year
previous year (%)
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
Operating income（RMB ） 8,188,606,870.57 6,573,456,892.17 24.57%
Net profit attributable to shareholders of the listed
531,210,932.73 470,532,188.44 12.90%
company (RMB)
Net Profit Attributable to Shareholders of the Listed
Company after Deducting Nonrecurring Gains and 454,172,773.72 400,706,431.95 13.34%
Losses (RMB)
Net cash flow from operating activities (RMB) 403,288,126.03 452,646,622.41 -10.90%
Basic earnings per share (RMB Yuan /share) 0.40 0.37 8.11%
Diluted earnings per share (RMB Yuan /share) 0.40 0.37 8.11%
Weighted average return on net assets 4.72% 4.78% -0.06%
Increase/decrease
End of the reporting End of same period of compared with the end
period last year of the previous year
(%)
Total assets(RMB) 22,307,282,055.59 21,124,309,445.51 5.60%
Net assets attributable to shareholders of the listed
11,527,503,321.09 11,168,127,264.81 3.22%
Company（RMB）
C. The Number and Shareholdings of the Company’s Shareholders
单位：股
Total number of
common Total number of preferred shareholders
shareholders at with resumed voting rights at the end of
76,687 the reporting period(If any) 0
the end of the
Reporting Period
Top ten common shareholders
Shareho Number of restricted Pledged or frozen shares
Total shares held at
Name of Nature of lding
the end of the shares held
Shareholders Shareholders percenta Status Number
reporting period
ge
Anhui
Domestic
Zhongding non-state- 142,500,00
Holding owned 40.46% 532,701,321 Pledged
0
(Group)
corporation
Co., LTD
Hong Kong
Securities Foreign
2.44% 32,096,664
Clearing Corporation
Co., Ltd.
National
Social
Security Others 1.44% 18,932,794
Fund 102
portfolio
Everyone
Life
Insurance Others 1.03% 13,604,990
Co., LTD. -
Universal
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
Products
Abu dhabi
Foreign
Investment 0.98% 12,937,063
Corporation
Authority
China Life
Insurance Co
Ltd.－
Traditional－
Others 0.82% 10,776,881
General
insurance
product-005L-
CT001hu
Domestic
Miaosu natural 0.80% 10,519,602
person
Ping An Bank
Co., Ltd.-Boshi
Growth
Vanguard
flexibly
Others 0.75% 9,938,950
allocates
hybrid
securities
investment
funds
Industrial and
Commercial
Bank of China
Limited-
Central
European
Others 0.65% 8,563,198
Times Pioneer
equity
sponsored
securities
investment
fund
Shanghai
Pudong
Development
Bank Co.LTD-
Yi Fang Da Yu Others 0.62% 8,118,072
Xiang return
bond securities
investment
fund
Explanation of the The company does not know whether there is an associated relationship
related relationship or between the shareholders, and whether it is a person acting in concert
concerted action of the stipulated in the "Administrative Measures for the Disclosure of Information
above shareholders on Changes in Shareholdings of Shareholders of Listed Companies".
Description of shareholders As of June 30, 2023, one of the top 10 shareholders of the Company,
participating in Shareholder Miu Su, held 9,947,441 shares of the Company through the
marginfinancing and Customer Credit Transaction Secured Securities account of Huaxi Securities
securities lending business Co., LTD
(if any)
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
D. Changes Of The Controlling Shareholder Or The Actual Controller
Change of the controlling shareholder in the reporting period
□ Applicable √ N/A
There was no any change of the controlling shareholder of the Company in the reporting period
Change of the actual controller in the reporting period
□ Applicable √ N/A
There was no any change of the actual controller of the Company in the reporting period
E. The Table Of The Total Number Of The Company’s Preferred Shareholders And The Shareholding
Situation Of Top 10 Preferred Shareholders
□ Applicable √ N/A
There is no shareholding of preferred shareholders during the reporting period.
F. Status Of The Bonds Existing On The Date Of Approval Of The Semi-Annual Report
□ Applicable √ N/A
3. Important Items
The company continued to promote the cost control and refined management of overseas factories. Under
the severe impact of the industry downturn and the external environment, 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 business has been fully restored and maintained a continuous positive growth trend 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 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 pipeline systems. Currently, the incremental business has a good
momentum of development. 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 95th).
A. Intelligent Chassis system business-Air suspension system
a. Introduction of Products
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
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.
b. Future 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, Li Auto, Xiaopeng and other new emerging NEV
manufacturers 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
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
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."
The air suspension system will gradually move from high-end to popular, and eventually become an
indispensable part of cars, especially intelligent cars.
c. 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 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 leading vehicle manufacturers such as Jaguar, Land Rover, Volvo, Audi, Benz, BMW etc.
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. AMK continued to develop 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 emerging manufacturers
and leading vehicle manufacturers. Up to now, AMK China has received orders with a total output value of 7.839
billion RMB, and it is expected to get more orders in the future, especially new energy vehicle orders.
The company's subsidiary, Shanghai Dingyu Intelligent Technology Co., LTD, relies on the core advantages
of Anhui Zhongding Holding Group Co., LTD. in the field of rubber formulation, research and development,
focusing on the research and development and production of air springs, and will actively promote technological
breakthroughs to further improve the performance of related products. At present, the production of air spring
products has been completed, the production line equipment has been landed, and the relevant business
cooperation is accelerating. At the same time, the company is also accelerating the development of other system
hardware assembly products.
B. Intelligent Chassis System Business-Lightweight chassis system
a. Introduction of Products
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
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 value per vehicle, it is a core parts of operational stability and comfortability.
b. 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 lightweight, 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.
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.
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
c. 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, 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 lightweight chasis 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.
C. Fluid pipeline system
a. Introduction of Products
German TFH, a subsidiary of the company, has been promoting 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.
b. Future 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
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
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.
c. The company's industry status and business promotion
The company has been promoting the R&D and production of thermal management pipeline products for
many years, and its subsidiary German TFH is just an excellent supplier of thermal management pipeline
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. The company's previous
projects have made great progress.In the future, it is expected to get more project designations, especially new
energy vehicle projects.
The company's subsidiary Zhongding Fluid leads the development of new energy temperature control system
assembly business, and actively distributes other thermal management products such as liquid cooling plates. At
present, the company is actively promoting the landing of related products, and will accelerate the layout of
temperature control system assembly field.
D. 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
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Anhui Zhongding Sealing Parts Co.,Ltd. Abstract of the Semi-Annual Report 2023
American brand car and local brand customers, which has made great breakthroughs, and the industry market
share has steadily increased.
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