Huayu Automobile's revenue in 2020 was 133.6 billion yuan, and R & D investment increased by 5.9% over the same period last year.

On the evening of March 24th, Huayu Automobile (600741) disclosed its annual report that the company's operating income in 2020 was 133.578 billion yuan, down 7.25% from the same period last year, and its net profit was 5.403 billion yuan, down 16.4% from the same period last year. Although the company's revenue and net profit declined, during the reporting period, Huayu automobile R & D investment increased by 5.86% over the previous year to 5.573 billion yuan, accounting for 4.17% of annual revenue, an increase of 0.52% over the previous year.

In 2020, due to the impact of the COVID-19 epidemic at home and abroad, there has been a sustained and deep adjustment in the domestic and foreign automobile markets. With the effective control of the domestic epidemic situation and the gradual recovery of production and life, the domestic automobile market has gradually picked up and ended its decline for many consecutive months, especially since the second half of 2020, benefiting from the macroeconomic stabilization and recovery and the favorable policies of local governments to promote automobile consumption, the domestic automobile market has rebounded rapidly. In 2020, 25.324 million vehicles were sold in the domestic market, down 2.2 percent from the same period last year, including 20.044 million passenger cars, down 7 percent from the same period last year, and 1.269 million new energy vehicles, up 7 percent from the same period last year.

In this context, both revenue and net profit of Huayu Automobile have returned to positive year-on-year growth since the third quarter of 2020. Among them, the operating income in the fourth quarter reached 41.852 billion yuan, an increase of 8.91 percent over the same period last year and 9.84 percent over the previous year; the net profit belonging to the listed parent company reached 2.301 billion yuan, a year-on-year increase of 49.77 percent and a month-on-month increase of 28.16 percent.

In various businesses, revenue from internal and external accessories, metal forming and moulds, functional parts, electronic and electrical devices, and hot-working parts were 88.731 billion yuan, 9.126 billion yuan, 24.227 billion yuan, 4.667 billion yuan and 531 million yuan respectively, down-3.58%,-5.7%,-14.82%, 1.04% and-25.33% respectively.

Specifically, in the field of drive motors and power electronic boxes, in the past year, its subsidiary Huayu Automotive Electric Systems Co., Ltd. successfully realized the batch production and supply of (MEB) auxiliary drive motors for Germany's Volkswagen global electric vehicle platform, and at the same time, the batch supply of new energy vehicle ER6 drive motors for passenger cars, making it the first company in China to achieve mass production of eight-layer flat copper wire technology. The company has also been assigned part of the motor controller business of SAIC GM Wuling new energy model-Wuling Hongguang MINI and has achieved batch supply. In 2020, the company sold more than 100,000 sets of drive motors and more than 30,000 sets of controllers.

In terms of electric drive system, Huayu Magna Electric Drive system Co., Ltd. mainly produces new energy vehicle electric drive system assembly products. In November 2020, the electric drive system assembly supporting Volkswagen global electric vehicle platform (MEB) project was officially mass produced and shipped to Europe, the first batch of cross-border Volkswagen sedan cars produced by Volkswagen German factory and Skoda Czech factory, Audi and Skoda and other brands of pure electric four-wheel drive models.

Electric air conditioning compressor: Huayu Sandian Automobile Air conditioning Co., Ltd. is committed to the research, development and trial production of heat pump systems and electric air conditioning compressors for new energy vehicles such as pure electric vehicles and plug-in hybrid vehicles. In 2020, it successfully provided matching for SAIC passenger cars, SAIC Volkswagen, SAIC Chase, Volvo, Great Wall Automobile, GAC GROUP, Jiangling Automobile and other hybrid and pure electric related vehicles. A total of 157700 sets (sets) of electric compressors were supplied in batches in the whole year.

Electric air conditioning and thermal management system: Shanghai Mahler Thermal system Co., Ltd. produces air conditioning assemblies, cooling modules, battery coolers, cryogenic radiators, condensers and water cooling plates for SAIC passenger cars, SAIC Volkswagen, SAIC General Motors, Xiaopeng Automobile, BYD and other new energy vehicles in 2020, a total of 108100 sets (sets).

Electronic steering: Bosch Huayu steering system Co., Ltd. already has the matching capacity of double-gear, column and rack electric steering system, with a total of 6.28 million sets of electric steering system products in 2020, of which about 42000 sets are equipped for all kinds of new energy models.

Battery management system: Yanfeng Visteon Electronics Co., Ltd. has the ability of application development and batch supply of battery management system, and has supplied a total of 94200 sets (including exports) to all kinds of new energy vehicles in 2020.

New energy vehicle battery tray: Huayu Pilberg Nonferrous parts Co., Ltd. has formed the application development and batch supply capacity of aluminum alloy casting new energy automobile battery tray and motor shell. In 2020, there are 35000 battery trays and 8500 sets of motor shells.

Electronic pump: it and Pilberg joint venture company Huayu Pilberg pump Technology Co., Ltd. has formed the application development and batch supply capacity of electronic pump products. A total of 3.07 million sets of electronic pumps were sold in 2020, some of which were supplied to new energy-related models.

Start-up all-in-one machine: it and Valeo joint venture Shanghai Valeo Automotive Electrical system Co., Ltd. has a batch supply capacity of 48V start-up all-in-one (iBSG), with a total supply of 115000 sets (sets) in 2020.

Electronic braking: its subsidiary Shanghai Huizhong Automobile Manufacturing Co., Ltd. has successfully developed Ebooster (electronically controlled booster) and active accumulators and other products, which have been supplied to BAIC new energy vehicles in small quantities in 2020.

In 2020, in actively dealing with the sudden changes in the market brought about by the COVID-19 epidemic, in addition to comprehensively doing a good job in fighting the epidemic, ensuring supply, stable operation and improving efficiency, to ensure that domestic and foreign businesses return to stable operation in a timely manner, to ensure that the company's annual business performance to achieve the goal of "stable and good". At the same time, it adheres to the strategic landing and continues to promote key work such as structural adjustment, market development and business upgrading.

Among them, it includes the adjustment of the structure of its business:

Yanfeng Automotive Decoration system Co., Ltd., a wholly-owned subsidiary of the company, completed the acquisition of 30% of the minority shareholders of Yanfeng International Automotive Technology Co., Ltd. (formerly Yanfeng Automotive Interior system Co., Ltd.). To achieve complete independent control of the global interior business, build a collaborative global operation and management platform;

The company accelerated the withdrawal of non-core business, sold 45% of the shares of Shanghai Lear Industrial Traffic Automotive parts Co., Ltd., and realized the full withdrawal of the automobile wiring harness business.

The company strengthens the integration of internal resources, reduces the level of management, completes the business adjustment of its wholly-owned subsidiaries Shanghai Happiness Motorcycle Co., Ltd., Shanghai Lianyi Auto parts Co., Ltd., withdraws from the manufacturing business, and changes its respective holdings of Huayu Pilberg pump Technology Co., Ltd., Shanghai Automotive Powder Metallurgy Co., Ltd. from indirect investment enterprises to direct investment enterprises.

In addition, throughout the 13th five-year Plan period, the company also gradually realized the independent development of automotive interior, lighting, chassis, passive safety, transmission components and other businesses through equity trading, business merger, bankruptcy liquidation and other methods. the internal integration of pump and cast aluminum business has been completed one after another, and the smooth withdrawal of tractor, seal, wire harness and other businesses has been successfully implemented, and the core business structure has become clearer.

While combing the business structure, Huayu is also constantly fighting for new customers, constantly increasing the business development of high-quality customers in market segments such as luxury brands, Japanese customers, high-end electric car brands and independent brands. Interior decoration, steering gear, lights and other products have been designated by BMW, Mercedes-Benz, Audi and other luxury brands.

Headlights, suspension springs, stabilizing rods, compressors, transmission shafts and other products have been newly designated by high-end electric vehicle brands and other related models.

Products such as interior and exterior decoration, headlights, steering gear, transmission shaft and chassis structure have been recognized by Japanese customers and independent brand customers, and the fixed point of business is expected to maintain stable growth.

To overcome the continuing impact of the overseas epidemic, global interior and other businesses maintained a good momentum in the acquisition of new business, and the total life cycle value of new overseas business for the whole year was significantly higher than that of the previous year.

In the face of the challenges of continuous market fluctuations and rapid technological changes, Huayu focuses on "digital transformation" and "intelligent upgrading" to form an integrated capability of both hardware and software, and accelerate the landing of new businesses. Among them, the 77GHz forward millimeter wave radar of Huayu Automotive Electronics Branch has successfully realized the mass production of passenger cars, and the long-distance road test has been completed based on the fusion scheme of forward radar and forward-looking camera (1R1V).

Huayu Magna Electric Drive system Co., Ltd. and Huayu Automobile Electric system Co., Ltd., for the German Volkswagen electric vehicle global platform (MEB) supporting electric drive system products to achieve mass production and shipped to Europe, covering Volkswagen ID.4, Audi Q4 e-tron and other pure electric four-wheel drive models;

Yanfeng Automotive Accessories system Co., Ltd. released the second generation (XiM21) intelligent cockpit independently developed, which has won wide attention and strong interest from customers at home and abroad.

The company continues to explore the way to enable intelligent manufacturing, defines the implementation path, construction framework and key measures in the next five years, determines 10 benchmarking factories to carry out innovation and exploration, and sets up intelligent manufacturing case base, talent base and resource storehouse. to explore effective ways to improve the efficiency, agility and cost competitiveness of the manufacturing system.

With the above help, facing 2021, Huayu Automobile said that it will strive to achieve a combined operating income of 142 billion yuan, on this basis, the operating cost will be controlled within 120 billion yuan.