2021-06-22-深交所-万丰奥威_2020年年度报告（英文版）_348页_2mb

Zhejiang Wanfeng Auto Wheel Co., Ltd. 2020 Annual Report Summary

Core Content Overview

Zhejiang Wanfeng Auto Wheel Co., Ltd. (Wanfeng Auto Wheel, Ticker: 002085) is a leading international conglomerate in the automotive and general aviation industries. The company is dedicated to advanced manufacturing, with a focus on lightweight metal auto parts and general aviation aircraft. The report covers key financial indicators, business operations, and corporate governance information for the year 2020.

Key Financial Indicators

Operating Performance

• Operating Revenue (2020): RMB 10,699,224,904.57
  • YoY Change: -15.32%
• Net Income Attributable to Shareholders (2020): RMB 565,820,630.75
  • YoY Change: -36.83%
• Net Income After Non-recurring Items (2020): RMB 415,879,097.84
  • YoY Change: -28.08%
• Net Cash Flow from Operating Activities (2020): RMB 1,735,780,906.42
  • YoY Change: +22.21%
• Basic EPS (2020): RMB 0.27
  • YoY Change: -34.15%
• Weighted Average ROE (2020): 10.27%

Asset Status

• Total Assets (2020 Year End): RMB 15,973,225,900.87
  • YoY Change: -13.60%
• Net Assets Attributable to Shareholders (2020 Year End): RMB 5,353,609,030.21
  • YoY Change: -33.02%

Corporate Business Overview

Principal Business

The company is engaged in the production and supply of lightweight metal auto parts, including magnesium alloys, aluminum alloys, and high-strength steel. It also operates in the general aviation aircraft manufacturing sector, with the "Diamond" brand as a key player.

Lightweight Metal Auto Parts

• Focuses on automotive, aerospace, and 5G industries.
• Products include powertrain parts, front-end carriers, cross car beams, brackets, and rear lift door inner panels.
• Major customers: Ford, GM, Porsche, Tesla, Audi, Mercedes Benz, BMW, and others.
• Has 7 production bases and 4 R&D centers globally.

Aluminum Alloy Wheels

• A global leader in the industry with annual output capacity of over 40 million sets.
• Production bases in Zhejiang, Shandong, and Jilin provinces.
• Implements the "26313+N" marketing strategy, targeting OEMs and new energy vehicle customers.
• Has a smart factory and digital intelligence initiatives.

High-strength Steel Die Stamping Parts

• Operated by Wuxi Xiongwei, a subsidiary.
• Focuses on automotive body systems, including seat parts, door hinges, and airbag components.
• Annual capacity: 350 million parts.
• Key customers: Faurecia, Brose, Autoliv, Adient, and Johnson Controls.
• Synergizes with the company's magnesium and aluminum alloy segments.

Environmentally Friendly Dacromet Coating

• A leading domestic business in coating technology, with Chromium-free solutions.
• Production bases in Shanghai, Ningbo, and Jiaxing, annual capacity over 70,000 tons.
• Customers span across automotive, rail transit, wind power, and construction industries.
• Has received national recognition for its coating technology and digitalization efforts.

General Aviation Aircraft Manufacturing

• Acquired 55% equity of Wanfeng Aircraft Industry in April 2020, making it a controlling subsidiary.
• Subsidiary Diamond Aircraft owns IPs for 4 series, 8 basic types, and 16 models of aircraft.
• Has three R&D centers (Austria, Canada, Czech Republic) and three manufacturing bases (Austria, Canada, China).
• Targets flight academies, airlines, aviation clubs, and private pilots with 192 service centers in over 90 countries.
• Strategic investment by Qingdao Wansheng Chengfeng Equity Investment Partnership (35%) and Wanfeng Aviation Industry (10%).

Key Business Developments

• Acquired multiple subsidiaries over the years to expand its business segments:
  • Wanfeng Motorcycle Wheel (2011): Added motorcycle wheel business.
  • Shanghai Dacromet (2013): Expanded into environmental coating.
  • Wanfeng Meridian (2015): Entered lightweight magnesium alloy auto parts.
  • Wuxi Xiongwei (2018): Added high-strength steel die stamping parts.
  • Wanfeng Aircraft Industry (2020): Entered general aviation aircraft manufacturing.
• The company is well-positioned to benefit from national policies promoting the general aviation industry.
• Committed to becoming a global leader in lightweight automotive parts and innovative manufacturing.

Corporate Governance and Risk Factors

• The board of directors, supervisors, and senior management guarantee the authenticity and completeness of the report.
• The company faces risks such as macroeconomic conditions, RMB exchange rate fluctuations, raw material prices, labor costs, trade barriers, and the impact of the pandemic.
• The report is prepared in both Chinese and English, with the Chinese version prevailing in case of discrepancies.

Non-recurring Gains and Losses

• The company did not define any non-recurring gains and losses items as recurring items in the reporting period.
• Non-recurring gains and losses for 2020 totaled RMB 149,941,532.91.

Accounting and Reporting

• The financial statements are prepared in accordance with China Accounting Standards and there are no material differences with IFRS or overseas standards.
• The company has not made any retrospective adjustments or restatements to previous accounting data.
• The report includes a detailed breakdown of quarterly financial indicators, showing the company's performance across the year.