Yesterday (March 30), a company listed on the Shanghai Stock Exchange and a well-known domestic die-casting manufacturer, Nanjing Chervon Automotive Precision Technology Co., Ltd. (“Cherner Motor”) released its 2021 annual performance report. In 2021, the company’s operating income will be 1.615 billion yuan, a year-on-year increase of 16.53%; net profit will be 122 million yuan, a year-on-year increase of 0.81%.
Chervon Auto said that benefiting from the company’s advance in the field of new energy auto parts and the increase in the market penetration rate of the transmission parts business, the company’s total operating income has achieved a growth of 16.53%. Among them, the sales of new energy auto parts and auto transmission parts increased by 43.25% and 36.09% respectively.
In addition, during the reporting period, the total assets of Chervon Auto increased by 56.41% year-on-year, mainly due to its subsidiaries – Chervon Auto Precision Technology (Anhui) Co., Ltd. and Chervon Auto Precision Technology Limited Liability Company (Chervon Auto’s headquarters in Hungary, Europe Substantial progress has been made in the construction of a wholly-owned subsidiary (note in this publication), the rapid development of the company’s business has led to the growth of operating assets, and the company’s public offering of convertible corporate bonds has received raised funds.
It is understood that Chervon Auto has invested in the construction of an intelligent manufacturing project for auto parts in Maanshan City, Anhui Province. The main body of the project is Chervon Auto Precision Technology (Anhui) Co., Ltd. Workshop, die casting workshop, machining workshop, energy center and other production and auxiliary buildings. After the project is put into production, it is expected to achieve an additional annual production capacity of 20.4 million auto parts.
Chervon previously stated that the company’s current die-casting capacity is seriously insufficient. In order to meet the growing demand for business orders, the company will further plan and improve its own production capacity according to the “2+N” overall strategy of capacity expansion. At the same time, the company has increased investment in research and development and resources in the field of “die-casting integration” technology for new energy auto parts. According to Chervon Auto’s plan, as the company’s main large-scale die-casting capacity deployment site, the Ma’anshan base will add two 2700T units and one large die-casting equipment each of 3000T, 4200T, 4400T, 6000T and 8000T.
In addition, in November 2020, Chervon Auto established a wholly-owned subsidiary (Chervon Auto Precision Technology Limited Liability Company) in Budapest, Hungary, Europe, to invest in the construction of a European production base for intelligent manufacturing of auto parts, with a total investment of no more than 60 million euros. Among them, the investment in fixed assets is about 51 million euros.