Chaoda equipment: to create the world's important automotive interior and exterior molds and non-standard equipment R & D and manufacturing base

Nantong Chaoda Equipment Co., Ltd. (hereinafter referred to as Chaoda Equipment) is a leading domestic supplier of automotive interior and exterior molds, mainly engaged in molds, automotive inspection tools, automated tooling equipment and parts research and development, production and sales, the main products include: molds; automotive inspection tools; automated tooling equipment and parts. Today, the company successfully landed on the Gem.

Adhere to innovation, located in the first party position of the industry

Chaoda Equipment is a leading supplier of automotive interior and exterior molds in China. Since its inception, the company adheres to the continuous innovation of products and technologies, has original innovation ability and independent intellectual property rights, and has a strong ability to industrialization of R & D results.

The company is a high-tech enterprise, with original innovation ability and independent intellectual property rights. During the reporting period (2018 to June 2021), the company attached great importance to R&D investment, and the R&D expenses were 35.105 million yuan, 35.0924 million yuan, 34.5924 million yuan and 15.9581 million yuan, accounting for 7.41%, 7.84%, 7.66% and 7.32% of the operating income in the same period, respectively. As of the end of the reporting period, the company had a total of 128 patents, including 63 invention patents and 65 utility model patents.

After years of continuous innovation, the company has formed a number of leading core technologies, including "soft interior punching and cutting mold with positioning limit device of floating die belt", "carpet edge shearing knife edge punching and cutting technology", "instrument table flip punching and cutting skin technology", "fast change technology of multi-cavity soft interior molding mold intermediate slitter", "pre-judgment control technology of shrinkage with integral skeleton rear seat and backrest foam product", "automobile matching main model simulation block adjustment mechanism and adjustment method".

The company is a key backbone mold enterprise and a key mold export enterprise in China awarded by the China Mould Industry Association, with "Jiangsu Provincial Enterprise Technology Center" and "Jiangsu Large-scale Complex Mold Process and Manufacturing Engineering Technology Research Center". The company presided over the formulation of EPS (hairtable polystyrene), EPP (foam polypropylene) foam mold industry standard "EPS, EPP foam mold technical conditions" (JB/T11662-2013), and was rated by the Jiangsu Provincial Economic and Information Commission as "2015 Jiangsu Province Informatization and Industrialization Integration Transformation and Upgrading Demonstration Enterprise", "2016 Jiangsu Province Internet and Industrial Integration Innovation Pilot Enterprise", and was awarded by the Department of Commerce of Jiangsu Province in 2020" Jiangsu Province focuses on cultivating and developing international well-known brands". The company's "Chaoda brand automotive interior parts hot compression molding punching and cutting mold" won the title of "Jiangsu Famous Brand Product"; the company's "shear main carpet punching and cutting mold", "sheared automobile wheel cover guard plate punching and cutting die", "slush plastic instrument panel foam mold" products have won the "Fine Mold Award" issued by the China Mould Industry Association.

Through the continuous innovation of new products and new technologies, the company has become a leading supplier of automotive interior and exterior molds in China, and its research and development, design and production capacity in the field of automotive soft trim and foam molds are in the first phalanx position in the industry.

The products enjoy a high reputation and cover blockbuster brands

As a key backbone mold enterprise in China, Chaoda Equipment is one of the few automotive interior and exterior mold enterprises in China that can implement the whole process of manufacturing and service, and can independently complete the whole process of automotive interior and exterior molds from research and development, design, wood mold, casting, CNC machining, assembly, mold trial to follow-up modification and maintenance, and has the ability to develop and design molds and other supporting products for automotive OEMs and interior and exterior parts suppliers, and can provide customers with mold molding solutions for internal and external trim parts.

For core components made of aluminum, companies usually purchase aluminum ingots directly, and then design and cast blank casting according to customer requirements, while comparable companies in the same industry are less involved in rough casting. In addition, compared with comparable companies in the same industry, the company adopts more independent production mode and adopts fewer links of outsourcing processing.

With the advantages of full-process service, the company effectively guarantees the overall quality of products and delivery progress on the one hand, shortens the development cycle of customers' interior and exterior decoration products, thereby accelerating the industrialization process of new models of vehicle manufacturers and improving customer satisfaction; on the other hand, it obtains the profit of raw material processing links such as casting, thereby improving the overall gross profit margin.

Over the years, the company has been widely recognized by customers at home and abroad with stable product quality, efficient production efficiency and good cost performance. In the domestic market, the company's customers basically cover the wholly-owned or joint venture first-class suppliers set up by major international well-known automotive interior and exterior enterprises in China and most of the well-known local automotive interior and exterior first-class suppliers; in the international market, the company mainly provides automotive interior and exterior molds and supporting products for the factories invested and set up by internationally renowned automotive interior and exterior suppliers in Europe, North America and Asia.

The auto parts products produced by customers using the company's products are widely used in well-known brand cars at home and abroad and some independent brand cars, enjoying a high reputation. Related brands include: Audi, Mercedes-Benz, BMW, Peugeot Citroen, Great Wall, Changan, Volkswagen, Toyota, Ford, Jaguar, Geely, Land Rover, Rolls-Royce, Nissan, GM, Volvo, Kia, Hyundai, Roewe, Tesla, Nippon.

Thanks to the company's high-quality products, during the reporting period, the scale of Chaoda Equipment assets continued to expand. At the end of each reporting period, the total assets of the company were 683.0965 million yuan, 757.2801 million yuan, 817.5176 million yuan and 798.9796 million yuan, and the net assets were 497.472 million yuan, 543.3224 million yuan, 611.3929 million yuan and 638.0284 million yuan, respectively. At the end of 2018, the end of 2019, the end of 2020 and the end of June 2021, the total assets of the company increased by 11.58%, 10.86%, 7.95% and -2.27% respectively compared with the end of the previous period, and the net assets of the issuer increased by 21.45%, 9.22%, 12.53% and 4.36% respectively compared with the end of the previous period, and the net assets of the issuer showed an increasing trend.

Raise investment and expand production, seize the opportunity of industry development

The downstream of Chaoda equipment is mainly automobiles, the rapid development of the automobile industry, the acceleration of the pace of localization of molds by domestic automakers and auto parts suppliers, and the expansion of domestic mold procurement scale by internationally renowned automakers and auto parts suppliers, which drive the strong demand of China's auto mold market and provide rare development opportunities and huge development potential for the development of the entire auto mold industry.

According to the Guosen Securities Research Report, under the impetus of electrification and intelligence, the automotive industry is facing the change of new and old switching, and the industry will continue to maintain growth in the next 20 years, of which new energy vehicles are expected to maintain an annualized compound growth rate of more than 20% in the next 10 years.

In this context, Chaoda Equipment is listed in a timely manner, and the fundraising and expansion of production is expected to seize the opportunity of the change of the times.

The company's IPO investment projects include: large-scale complex interior and exterior mold expansion project and R&D center expansion project.

Among them, the expansion project of large-scale complex interior and exterior molds for automobiles is an expansion of the company's three major product production lines of large-scale soft interior molding molds, large-scale soft interior punching and cutting molds for automobiles, and automobile seat foam molds, which is conducive to improving the company's current production capacity and comprehensive supply capacity of major products, enhancing core competitiveness, and enhancing the overall sales scale.

The R&D center expansion project is based on the company's strategic development goals, guided by market demand and automotive technology development, on the basis of the existing R & D center to expand, improve the construction of software and hardware facilities of the enterprise R & D platform, for the automotive mold industry new materials, new processes and other aspects of the technology research and development, and began to develop with independent intellectual property rights of automotive interior and exterior molds and supporting products.

The above projects, on the one hand, are conducive to consolidating the market competitiveness and market position of the company's existing core products, laying a solid foundation for the realization of the company's vision of "becoming an important R&D and manufacturing base for automotive interior and exterior molds and non-standard equipment in the world"; on the other hand, it is also conducive to the company to closely follow the development trend of the industry, continuously improve the advanced nature and replacement speed of its core technology, and help the company continue to implement the core development strategy of "production generation, research and development generation, reserve generation, and conception generation".

In the future, the company will take advantage of this listing as an opportunity to continue to deepen cooperation with long-term customers, and through the continuous improvement of product competitiveness, research and development strength and market awareness, fully tap new customers at home and abroad, surpass peers, and provide sophisticated non-standard equipment for customers in the global automotive industry.