Xuancheng, China – China’s largest non-tire rubber product maker Zhongding saw its 2018 net profit drop 1% year-on-year to €148 million (1.1 billion yuan), according to its annual report released in April.
Revenue over the period rose by 5% to €1.6 billion. Net profit less non-recurring items fell by 6% to €125 million.
Nearly all of the company’s products target the automotive industry, according to the annual report.
Helped by its takeover of German’s Tristone Flowtech Holding in 2017, the company claims to be "one of the global leaders" in several neighbourhood electric vehicle (NEV) segments such as battery cooling, motor sealing and damping and noise reduction.
Against headwinds on the overall automotive sector, China’s NEV sales jumped 62% to 1.3 million units in 2018 according to China Association of Automobile Manufacturers.
Zhongding posted €155 million sales to NEV makers last year, up 27% from 2017.
“The company’s international expansion strategy since 2008 is entering harvest season,” said the annual report.
Last year the Europe and North America markets respectively accounted for 45% and 17% of Zhongding’s total sales. The domestic market took up 33%.
Gross profit margin for the China market, at 39%, was still significantly than that for overseas markets at 22%, said the annual report.